How To Buy IOTA (MIOTA) - Beginner’s Guide 2023

Launched in 2016, IOTA is a cryptocurrency and open-source distributed ledger. With a market capitalization of just under $1 billion, there is plenty of upside potential on this digital asset. 

If you want to jump on the bandwagon and learn how to buy IOTA (MIOTA) yourself - stay right where you are.

In this guide, we show you how to buy IOTA today. We’ll walk you through the steps of choosing a broker, understanding the potential risks and rewards, and completing your IOTA investment in the safest way possible.

Not only that, but we detail how to create trading orders, store your MIOTA tokens, and come up with an investment plan.

 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Below, we show you how to buy IOTA today. On top of walking you through the step-by-step buying process, we also explore what the future holds for this digital currency.

Step 1: Choose An Online IOTA (MIOTA) Broker Or Exchange

When following the 5-step walkthrough listed above, you will see we mentioned a regulated broker. This is highly recommended as the safest option when considering how to buy IOTA.

If you sign up at eToro, you can buy IOTA on a direct basis, and importantly, in safe and secure conditions. This is because the online broker is regulated by multiple bodies.

An alternative option for you is to buy IOTA at a third-party cryptocurrency exchange. This option comes with a word of caution,  as exchanges often do not obtain a license and are therefore not regulated by any authority.

In stark contrast, eToro is strong when it comes to regulation. The platform is under strict rules from ASIC, the FCA, and CySEC. Not only that, but the broker is also registered and approved by FINRA in the US.

1. Regulation

With hundreds of places to buy IOTA - regulatory bodies provide a protective umbrella against shady brokers and malpractice, amongst other things.

This means that if the platform is regulated like eToro is, you can buy IOTA as and when you please, safe in the knowledge that the company is above board and held responsible for its actions.

As we said, if you are considering a crypto exchange, it is highly doubtful that you would be offered such a safety net. Moreover, there have been many occasions over the years where unregulated exchange wallets fall victim to being hacked, losing millions of dollars along the way.

There is always the option to buy IOTA and then store your coins in a private crypto wallet. Although taking care of your own digital currencies sounds simple enough, there are negatives.

By choosing to store your IOTA in a private crypto wallet you are left with the responsibility of protecting, insuring, and guarding your lengthy private key against getting into the hands of cybercriminals.

Well-respected online broker eToro on the other hand cuts out this concern. The platform will store your MIOTA tokens in a safe place, at no extra cost.

2. Payment Methods

When contemplating how to buy IOTA, you will be pleased to know that finding a place compatible with your chosen payment method is unlikely to present an issue.

Whereas years ago you might have been stuck with wire transfer - which even in 2023 is one of the most sluggish methods to pay online - these days modern brokers accept a variety of types.

Crypto provider eToro is compatible with the most hassle-free payment methods around. This is inclusive of credit/debit cards like Mastercard, Visa, Maestro, and more. In addition to these more traditional options, the broker accepts e-wallets like Neteller, PayPal, Klarna, and Skrill.

3. Fees and Commissions

It’s important to go into any new venture without blinkers on. One of the ways you can do this is to be mindful of potential fees and commissions, especially when considering how to buy IOTA.

If you time the markets correctly and place the appropriate order, you can make some healthy gains buying IOTA from the comfort of your own home.

Of course, online brokers need to turn a profit to continue offering access to the cryptocurrency markets and pay for overheads and such, like any business. So, as long as these fees aren’t extortionate, the arrangement works out well for everyone.

Most online brokers charge clients a variable fee against the position value.

See below a simple example of a variable fee:

• Online crypto provider Coinbase charges a variable fee of 1.49% for each and every trade
• Ergo, if you buy $1,000 worth of crypto - the fee at Coinbase is $14.90
• If your position is a value of $2,000 - the fee is $29.80 - and so on

For the sake of clarity, we have put together a practical example of how this fee can affect any gains from your IOTA purchase:

• You create a buy order worth $1,500 to purchase IOTA
• As such, you pay Coinbase $22.35 (1.49% of $1,500)
• When you want to sell, your tokens are valued at $1,900
• Again you must pay 1.49% - which equates to $28.31
• In total, you paid $50.66 in fees

As is clear from the above, 1.49% sounds like a minute amount. But, as they are charged on each trade - these fees soon eat away at your potential profits.

If you had elected to buy IOTA via eToro you would have saved $50.66, as this broker is 100% commission-free.

In terms of transaction costs, you should be aware that some platforms charge a fee to deposit. For instance, Coinbase charges 3.99% of the deposit amount when using a debit card. 

This means that the buy order in our earlier example would have cost you $59.85.

On the contrary, if you aren’t depositing with US dollars, eToro simply charges clients a 0.5% exchange fee.

4. Other Important Factors

In step 1 we’ve covered some of the most important attributes of how to buy IOTA - commissions and fees, regulation, and payment methods.

To shed a little more light on what else you need to consider when looking for a secure space to buy IOTA - see below.

• User-Friendliness: It is crucial that you find the brokerage website easy to use. If the platform is sympathetic to beginners, you will find the end to end process of looking buying IOTA a much more pleasant experience. eToro is notoriously user-friendly.
• Minimum Investment: Before signing up to any platform to buy IOTA - make sure you know what the minimum investment at that particular brokerage is. The main reason this is important is that some crypto providers expect a large minimum investment. This would not be ideal for a complete novice. At eToro clients can buy IOTA from $25!

• Storage: Thinking about how to buy IOTA and how to store it go hand in hand. As we touched on though, if you are a beginner you should avoid unregulated brokers and exchanges. Therefore, a favourable option is to sign up with eToro where you can store your coins for free in a regulated and safety-conscious environment.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Step 2: Come Up With An Investment Plan

A strategy adopted by many investors looking to buy IOTA is to come up with an investment plan.

Considering how volatile the cryptocurrency market is - an investment plan is a wise move. Particularly for those new to the digital currency scene, but really for people of all levels of experience.

If you fall into the category of people who have never purchased a financial asset, you will see some useful strategy ideas below.

1. Long-Term or Short-Term

When you are contemplating how to buy IOTA - do you envisage yourself being a short-term or long-term investor?

Let’s further explain the difference between the two.

Short-term investors look to make small, but regular gains. This is accomplished by entering the market and then exiting within minutes or hours (sometimes days) - making the most of short-term price spikes.

Consider that cryptocurrencies are highly speculative and can fluctuate by as much as five or six times that of fiat currencies and gold. As such, if you correctly time the market you could potentially make some impressive profits.

Long-term investors look to buy IOTA and hold onto the coins for weeks or months at a time. This is aptly called the ‘buy and hold’ strategy and can be a good option for beginners, due to the lack of concern for short-term price shifts.

2. Target IOTA Price

A popular strategy amongst cryptocurrency investors is to utilize a target IOTA price.

To clear the mist - let’s say you were looking to triple your IOTA investment. If the digital currency was priced at $0.3550 at the time of your initial purchase - its value would need to rise to $1.0650.

If you wanted to quadruple the same investment, IOTA would have to increase to $1.4200 - and so forth.

On the one hand, quadrupling an investment sounds implausible. But, the figures speak volumes. 

That is to say, IOTA reached lows of $0.15 in mid-2017, but subsequently exploded to an all-time high of $5.25 just six months later. That’s a shift of over 3,400%.

3. Consider Regular Investments

As you can see from above, cryptocurrencies regularly fluctuate in price, due to the market sentiment on the asset’s value.

When educating yourself on how to buy IOTA, you might want to consider making regular, but smaller investments as part of your plan going forward.

This is a strategy used by many investors and entails building up your portfolio slowly. This means you can purchase IOTA without risking all of your capital in one hit.

At eToro, you will be able to buy IOTA from $25! This makes the regular investment strategy of buying digital currencies within the realms of possibility for most people.

Would You Consider Investing In IOTA MIOTA?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Step 3: Open An IOTA (MIOTA) Broker Account

For anyone reading this who has traded before, albeit stocks, forex, or even silver - the procedure of opening an IOTA broker account is almost exactly the same.

If you happen to be a complete novice - head over to the crypto provider’s platform and look for the ‘Join Now’ button.

You will be asked to complete a form including your first and last name, residential address, email, mobile phone number, and date of birth.

As per KYC (Know Your Customer) rules imposed by financial regulators, you will also need to provide the broker with a photo ID. The fastest to process is usually a passport, although you can also use a driver's license.

You will also be required to supply a copy of your proof of address. Think along the lines of a utility bill, bank account statement, or tax letter.

As we mentioned, you can look into how to buy IOTA via an unregulated crypto-exchange or brokerage. However, this is asking for trouble, as you have no protection at all. The lack of regulation means that the company doesn’t have any standards to uphold and has no one to answer to.

On the contrary, licensed broker eToro operates under the watchful eye of some of the regulatory giants in the industry.

Not only that, but some platforms take days to manually check KYC documents. Whereas eToro uses automated technology - so you can usually deposit and buy IOTA within 10 minutes.

Step 4: Deposit Some Funds

It’s important to check whether or not your preferred payment method is accepted, before getting to this stage.

Assuming your payment type is compatible - you can deposit some funds into your account to buy IOTA. The swiftest method of payment is debit/credit card or e-wallets - both of which are accepted at eToro.

In fact, you are able to buy IOTA at eToro using an impressive selection of payment types, including Neteller, PayPal, and Skrill.

The crypto platform will also allow you to buy financial assets using wire transfer - but as we mentioned, this is the slowest deposit method for brokers to process.

Always check what the minimum deposit amount required is before committing to a platform, as some stipulate a deposit in excess of $1,000.

Over at eToro, the minimum deposit is $200, but you can buy IOTA from $25.

Step 5: Set Up A Trading Order

Now that you’ve followed steps 1 through to 4 you can place an order to buy IOTA via your broker.

It’s imperative to create an order, as otherwise, the broker isn’t going to know how to proceed on your behalf, or what your position is.

If you need a recap or have never traded a day in your life, you’ll see a list of easily employable trading orders below. All of which can be used when getting to grips with how to buy IOTA.

1. Buy Order

Generally speaking, you will enter the market using a buy order when looking to purchase IOTA.

If you have a strong suspicion that IOTA is undervalued, and will therefore increase in price - place a buy order with your broker.

Some cryptocurrency providers also allow clients to make money from the falling price of an asset. This is done by enabling ‘short-selling’, whereby you place a sell order if you think the price will fall.

2. Limit or Market Order

That’s the simplest order out of the way, but given the volatile nature of cryptocurrency markets - there are other orders to be aware of. 

Many investors of digital currencies do so to make the most of the temporary shifts in price, which change by the second.

A ‘market order’ is a beginner-friendly order that indicates to your broker you would like your IOTA position actioned immediately. In other words, if you like the current market price - place a market order and the platform will execute this without hesitation.

Keep in mind, as a result of the aforementioned volatility, you will see an inconsequential difference between that price and the one you get. Let's say you placed your market order on IOTA at $0.3826, you might actually get $0.3824.

Moving onto a ‘limit order’, this order tells your broker that you would like to enter your IOTA purchase at a very specific price.

Below you will see a clear example of how this works in practice:

• IOTA is currency priced at $0.3800, however you want to enter at $0.3950
• As such, you place a $0.3950 limit order
• If IOTA rises to a value of $0.3950 - the platform will execute your order for you
• Bear in mind, this position will remain until either IOTA reaches that price, or you cancel it manually

As demonstrated above, market orders are super simple, while limit orders allow you to buy IOTA at a price specified by you.

3. Stake

Every time you place an order with your cryptocurrency provider, you will be asked how much you want to stake. To put it another way - how much IOTA do you want to purchase?

When talking about coming up with a plan, we also touched on the beginner-friendly approach of making regular bite-sized IOTA investments.

Not only is it less risky than using a large chunk of your investment budget, but regular investments are a logical way to buy IOTA in a risk-averse manner. 

4. Confirm Order

It’s recommended to double-check the information you have entered such as your buy/sell order, limit/market order, and your stake. Once you are happy you can confirm your order.

In doing so, your online broker will go ahead and action your orders and the IOTA coins will appear in your eToro account portfolio.

Ready To Invest In IOTA MIOTA?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Step 6: Storing Your IOTA (MIOTA)

As you know, cryptocurrencies are unlike fiat government-issued money, such as Euros or US dollars. After all, these are safely kept in banks. Instead, IOTA is a digital currency and open-source distributed public ledger.

Rather than the typical blockchain technology used by most cryptocurrencies, MIOTA coins are stored on a data structure named ‘Tangle’, where every new transaction confirms the preceding two transactions.

As covered further up this page, you can elect to buy IOTA at an online brokerage or a crypto exchange. 

Of course, storing your digital currencies in an unregulated crypto-wallet can leave you vulnerable to hackers - due to having to take full responsibility.

At eToro, clients are able to buy and store IOTA in a beginner-friendly and secure space - under the eagle eye of ASIC, CySEC, and the FCA. In the US, clients are protected by the strict ruling of FINRA.

This regulation cuts out the need to worry that you are buying IOTA from a company with bad intentions.

Step 7: Selling Your IOTA

Having made it through steps 1 to 7, you will know that the main goal of buying a financial asset is for it to pay off when it’s time to cash out.

In other words, you want to sell IOTA for more than you originally bought it for. This is how you make a profit - and essentially what it's all about.

If you opt to buy and sell IOTA via a third-party exchange, the procedure tends to be quite long-winded.

Exchanges often call for you to move cryptocurrencies from your personal wallet to the unregulated wallet of the platform in question. 

You’ll then need to exchange IOTA to an alternative coin like Bitcoin - which will likely come with a fee. Clients are often then required to make a withdrawal request when cashing out.

If you buy IOTA at eToro you can buy and sell digital currencies with ease. All that is required of you is to sign in to your account, and hit sell next to the IOTA in your portfolio.

The money will be transferred into the account you used to buy the crypto-asset in the first place - as per KYC rules.

Other Ways To Buy IOTA (MIOTA) In 2023

Whilst we have covered almost everything you need to know about how to buy IOTA, there are other ways to buy this speculative asset.

1. Buy IOTA Debit Card

Many people opt to pay by debit card when shopping online. If this sounds like you, then you may be happy to hear that you can also buy IOTA this way.

Head over to your eToro brokerage account and enter your debit card details in the relevant boxes. Enter the amount of IOTA you want to purchase and confirm that the information you entered is correct.

2. Buy IOTA Credit Card

As is the case with a debit card, you can also buy IOTA using a credit card at eToro. Simply enter your credit card details and stake in the relevant boxes and you are good to go.

A word of warning, some credit card providers charge a ‘cash advance fee’ for ATM withdrawals, gambling, and brokerage deposits.

As such, it’s important to check with your provider before committing to this payment type. Fees can be as much as 5%, so do your homework.

3. Buy IOTA Paypal

Paypal is a fast, secure, and trusted payment method globally. At eToro, you can also buy IOTA using this e-wallet.

Our beginner's guide found that not all cryptocurrency providers accept e-wallets, so do check this before signing up.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How To Buy IOTA (MIOTA) In 2023 - The Verdict

If you have made it this far in our How to Buy IOTA Guide, you are probably feeling ready to embark on your new cryptocurrency adventure.

The first port of call should be finding a trustworthy and regulated online broker. For this, we sing eToro’s praises - as the platform is super easy to navigate for beginners and is 100% commission-free.

Moreover, the crypto provider is regulated by respected financial bodies such as the FCA, ASIC, and CySEC. The broker is also registered with FINRA, for US citizens. 

Signing up to buy IOTA is a breeze at eToro, there are heaps of payment methods to choose from and it takes minutes to open an account.

As you can see from the above steps, the process of buying IOTA at eToro is not only safe and commission-free, but it takes just minutes.

eToro – Best Broker To Buy IOTA

eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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