IOTA is an open-source scalable DLT platform and one of the first distributed ledgers built specifically for IoT with data immutability and feeless transactions. Learn more about IOTA here.
A recent report titled “Time For Trust” by PricewaterhouseCoopers states how blockchain technology will transform business and the economy in the near future. The report further states that blockchain technology can provide a USD 1.76 trillion boost to the global economy and create around 40 million jobs globally by 2030. The current trends indicate that there is a possibility that enterprise networks will soon transform into an open blockchain network. In this article, we’ll explore more details about this next-generation data and value exchange, IOTA, and how and why you need to invest in IOTA, and more.
What is IOTA?
IOTA is not a platform built on the blockchain network. Still, it is an open, feeless, and highly scalable distributed ledger specially built to provide frictionless data and value transfer. Built based on the DAG consensus algorithm called Tangle, there is no fee associated with transactions like the blockchain network. Instead, to send a transaction, a user has to validate two transactions that he received earlier.
Why should I invest in IOTA?
IOTA offers a lot of benefits for investors, and some of them are listed below:
- Unlike blockchain networks, there are no transaction fees
- IOTA has unlimited scalability
- Low resource requirements
- More energy efficient than blockchain networks
- Quicker than blockchain transactions
- IOTA is based on IoT, which is expected to be the future
How Can One Invest In IOTA?
The most popular ways of investing in IOTA includes:
- Long-Term Investment: If you are looking to hold on to your investments for a long time, then you should go for long-term investments. Traditionally, people go for long-term investments for higher returns.
- Short-Term Investment: If you are into making quick money, then short-term investments are the best bet. Investors buy and sell crypto frequently to see some quick profits.
- Invest In IOTA Startups: Investing in startups involve huge risks, but if the startup succeeds, then it will probably yield massive returns to the investor
To trade or hold IOTA, you need to buy IOTA tokens called MIOTA. These tokens can be easily bought from various exchanges, including:
- eToro, Bitfinex, Binance, Bittrex, Liquid, OKEx, Changelly, BitPanda.
To buy IOTA tokens from eToro, please follow the steps outlined below:
- Create Account: To buy MIOTA in eToro, you need first to create an account in eToro. To register on the platform, click the “Join Now” button on the top right corner of the eToro Home page. Provide your details and click “Create Account” to complete the registration process.
- Complete Profile: Once the registration is complete, you will be taken to the eToro dashboard. Before you make a deposit, you need to complete your profile, including verification details like your Social Security Number.
The complete profile process could take some time, as you need to provide your personal details, contact details, some financial information, etc.
- Make Deposit: Once the registration and verification are complete, you can start depositing eToro. You need to make minimum deposit of $200 initially. eToro offers various payment options, including debit/ credit cards, PayPal, wire transfers, etc.
- Buy MIOTA: Once you have made an initial deposit, you are free to buy and sell MIOTA to your heart’s content.
Can I Lose All My Money in IOTA?
Hackers and cybercriminals are finding new ways every day to trick potential victims and steal their crypto assets. Whether you invest your money in IOTA or another cryptocurrency, you have every chance to lose all your money in various ways. Some of the common ways of losing your money in IOTA include:
- Cyberattacks: One of the most common ways of losing all your cryptocurrency in IOTA is cyberattacks. People looking to hold crypto coins like MIOTA need to store them in a wallet. Hackers and cybercriminals find new ways to hack into your online wallet to steal your digital currency. If you store your crypto in a hardware wallet, it would be nearly impossible to break in and steal your cryptocurrencies. But the hot wallets or the software crypto wallets are the most vulnerable. Once they are breached, hackers can wipe your wallets clean as they can either sell or transfer the crypto assets.
- Crypto Scams: Another way of losing your digital currencies is through various crypto scams. As people start to invest in crypto assets, hackers are targeting crypto investors in all possible ways. From October 2020 till March 2021, almost 7000 victims have lost around 80 million USD in various crypto scams.
- Trading: Cryptocurrencies are known for their high volatility. Hence, if you invest hugely in IOTA or other cryptocurrencies, if the price of the crypto assets falls to a large extent, there is every chance that you will lose your money.
Risks of investing in IOTA
Even though IOTA is not built on top of the blockchain network, it incorporates distributed ledger technology. IOTA is an enterprise platform and one of the first DLT (Distributed Ledger Technology) built specifically to exchange data between humans and machines.
- Trinity, the dedicated desktop client of IOTA, was hacked, leading to a total shutdown of the IOTA Foundation in February 2020.
- IOTA created its own hash formula that was found with some vulnerabilities and corrected later.
- The Discovery of a bug in the IOTA network led to the total shut down of the foundation for a maximum of 15 hours in December 2019.
- Moreover, the entire IOTA foundation is centralized around a master node called Coordinator. Hence, each and every transaction made in the network is approved only by the master node.
The IoT space is growing like never before, as many people are showing interest in IoT technology. Experts believe that the full potential of IoT is still to be exploited. IOTA has a strong foothold both in the decentralized ledger technology and IoT, and hence it is seen as a potential force to reckon with. With IOTA, there are no transaction fees, are highly stable, more energy-efficient, and offer fast transactions compared with the blockchain network. Hence, the IOTA platform is believed to be a better place for newbie investors as every IOTA coin value is extremely compared to Bitcoin and Ethereum, etc.