IoTeX vs. IOTA: Which Coin Should You Add To Your Portfolio Immediately?

Last Updated January 20th 2022

20 Min Read

Blockchain technology and the cryptocurrency scene has grown considerably in the last decade. The earliest cryptocurrencies, including Bitcoin, were simply created as digital currencies. The newest coins, on the other hand, are created to solve real-world problems, even as they are traded as digital assets.

There are lots of cryptocurrencies with real-world applications. IoTeX and IOTA (the two coins we are going to compare here) are good examples of coins created to solve problems in a specific industry. Both coins are native currencies of their respective platforms, which solve problems in the growing Internet of Things (IoT) industry.

Though IoTeX and IOTA cater to the needs of businesses in the same industry, they are different in some ways. Of course, they are run by different companies and have different rules guiding their respective networks. Again, they differ in terms of price, market capitalization, liquidity, and more.

Since IoTeX and IOTA differ in many ways, investors need to understand which is better when they want to choose one crypto coin from the IoT industry. In this post, we are going to discuss both coins and compare them in an honest manner.

Remember that you will need to choose the coin to add to your portfolio at the end. Therefore, it is important that you read on with rapt attention as we discuss some of the key factors that will help you make an informed decision about which of the coins will suit your cryptocurrency portfolio better.

What Is IoTeX?

IoTeX is an open-source, decentralized platform that seeks to empower the open economics of machines. It has the ultimate goal of sustaining an ecosystem that allows people and machines to interact with guaranteed trust and free will. One of the most remarkable things about this ambition is that it will be run under a properly designed system with economic incentives.

IoTeX was started as a cryptocurrency project in 2017. It was started with a few people as lead facilitators but has attracted more than 40 research scientists and engineers who have unfaltering beliefs on the future of the project and the possibilities of changing the world in some ways with its services.

IoTeX is one of the few cryptocurrency platforms that has built an EVM-compatible blockchain from the scratch. This was achieved using an innovative Roll-DPoS consensus that has impressed several industry insiders. From April 2019, this unique consensus has been run by more than 100 delegates drawn from different parts of the world, and they have processed more than 10 transactions, as of the time of writing this.

The IoTeX blockchain is also highly regarded because of its ever-changing and ever-improving capabilities. Already, the team has built essential blocks of infrastructure on top of the blockchain. At the moment, it can connect seamlessly with Ethereum, BSC, and Heco blockchains. The IoPay wallet and the IoTube Bridge already serves thousands of users. A lot is still expected from the blockchain and the team running it.

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

What Is IOTA?

IOTA can best be described as a distributed ledger. Unlike most cryptocurrency platforms, it is not really run by an actual blockchain of its own. Rather, it employs a proprietary technology known as Tangle.

Tangle, the base technology of IOTA, is a system of nodes that confirm transactions. This may not sound like a lot, but users of the platform understand its advantages over the traditional blockchain technology. For instance, Tangle is believed to offer a lot more speed than what is obtainable with conventional blockchains. The foundation behind the technology and the IOTA platform insists that it is the “ideal footprint for the ever-changing Internet of Things ecosystem.

The uniqueness of IOTA makes it a curios platform for cryptocurrency investors. Since there is no blockchain in place, there are no miners of the coins. This also implies that there are no fees in the system. This also means that the platform can provide limitless throughput at the minimal possible expense.

One of the standout qualities of IOTA is that it was properly built with the IoT industry in mind. The creators focused on building a platform that can become the de facto network for executing transactions between IoT devices. Considering recent growth indexes in the industry, IOTA is set to become an exceptionally useful platform in the near future.

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

How Is IoTeX And IOTA Related?

IoTeX and IOTA are related in many ways. Firstly, they are both cryptocurrency platforms that seek to improve the IoT sector. They are the leading cryptocurrency platforms for digital identities that can power a wide range of machines that are necessary for smart homes, smart cities, and numerous other innovations that will come out of Internet of Things technology.

Coming back to the cryptocurrency space, IoTeX and IOTA are platforms with their unique digital tokens. Like other platforms, they support crypto assets that can be traded on different cryptocurrency platforms. In this light, IOTX (the native currency of IoTeX) and MIOTA (the native currency of IOTA) are digital assets that you can buy and sell.

With regards to the purpose of this article, we are going to start focusing on IOTX and MIOTA. We can continue to regard these coins as IoTeX and IOTA, but you should know that we can use the names of the platforms and the names of their respective currencies interchangeably.

What Are The Major Differences Between The Two?

IoTeX and IOTA are different in many ways. We’ve already discussed both platforms individually to give you an idea of what they each stand for. Their differences are obvious from the paragraphs dedicated to each platform.

Though the two platforms under review play in the same industry, they have different approaches to achieving their goals. The goals may be closely related, but each platform and the company behind it has their individual goals and specific ways of achieving them.

Coming back to the primary reason for this post, IOTX and MIOTA (the native currencies of the two platforms) are different in some ways. Yes, they are cryptocurrencies, but they were released at different times and have had different achievements. Their prices, circulatory supply, availability, market capitalization, and other important matrixes differ considerably.

Again, the profit both coins can generate within the same period will differ significantly, based on other important factors like how much was invested, the investment strategy used, and market factors. Again, a coin that works well for your portfolio may not work too well for another person’s portfolio, especially when you consider some of the factors mentioned above and more.

Which Is Better Between IoTeX and IOTA?

It is often difficult to determine which cryptocurrency is better than the other. Even the priciest assets may not be the best fit for some investors.

Depending on a number of factors, you can determine which coin can suit your investment portfolio more. That’s basically what we will attempt to help you do here.

Important Factors to Consider When Choosing the Coin to Add To Your Portfolio

Most cryptocurrencies have the qualities to make you rich – it all depends on your experience and investment strategy. You can buy a pricy coin and lose and you can also buy a cheap coin and lose. The point is, there is more to a coin than its price. Here, we are going to look at the factors that you must consider before investing in a coin. The following factors will help you determine the best coin to add to your portfolio between IOTX and MIOTA:

Liquidity

The simplest way to define liquidity is that it is the ability of an asset to be converted to cash on demand. An asset has high liquidity when it is really easy to convert it to cash. That also implies that it is attractive to investors and traders.

In the cryptocurrency space, the liquidity of a token refers to how easy it is to convert the asset to cash. It refers to the attractiveness of the coin/token to traders and investors. When liquidity is high, it means you can easily sell the asset at the current market value. Poor liquidity, on the other hand, means people are not so keen to buy an asset, and that can force holders to sell at a price that is lower than the actual value.

In terms of liquidity, IoTeX enjoys the upper hand over IOTA. The easiest way to determine liquidity in the crypto market is to look at the trading volume of the tokens under consideration. At the time of writing this piece, IoTeX had a 24-hour trading volume of $14,727,008 while IOTA had a 24-hour trading volume of $17,342,439. That’s a $2,615,431 difference.

Looking closer at the performance of the two coins, it can be observed that IoTeX trading volume had decreased by about 76% in the last 24-hours. IOTA, on the other hand, had 66% decrease in trading volume.

Market Capitalization/Rank

Traditionally, market capitalization measures what a company is worth in the open market. In the cryptocurrency market, market capitalization is an indication of the true value of a coin. This is the major reason it is often used to rank cryptocurrencies.

In terms of market capitalization, IOTA also holds the upper hand over IoTeX. MIOTA has a market capitalization of $3 billion compared to that of IoTeX, which is currently $1 billion. In terms of rank, MIOTA is ranked as the #48 biggest cryptocurrency, while IoTeX is ranked as the #89 biggest cryptocurrency. Remember that they are ranked according to their market capitalization.

Recent Performance

It is unwise to invest in a digital currency or any other type of asset without considering its performance in the market. By performance, we mean all the key indications that show that the coin is trading properly and rewarding strategic investors/traders.

There are many ways to determine the performance of a cryptocurrency. Most people focus on the price of the coin, which is relevant. Higher prices often mean that people are buying the coins more. There are other factors that define performance, but price performance is the easiest to trace.

In terms of price performance in recent times, it is also obvious that IOTA is leading IoTeX comfortable. At the time of writing, MIOTA is trading at $1.4 per token while IOTX is trading at $0.14 per token. Again, MIOTA has gained by 3.05% in the last 24-hours while IOTX has gained only 0.07% within the same period. Market dominance is 0.15% for MIOTA and a paltry 0.05% for IOTX.

From all indications, MIOTA has performed better than IOTX in recent times.

Adoption

Adoption refers to the acceptance and usage of an asset or technology. In the cryptocurrency universe, it is used to describe the acceptance of the technology, innovation, or solution offered by a certain platform, as well as how well its token/native currency has been accepted in the crypto market.

Measuring adoption in cryptocurrency can be a lot more challenging than measuring performance. However, anyone with good insight can determine whether a coin has been fully accepted or rejected.

In the case of IoTeX and IOTA, it is a big challenge to determine which one has enjoyed wider adoption. But from what we know, IOTA has been accepted by most players in the IoT industry. IoTeX is doing pretty well, but it is, more or less, trying to catch up with IOTA.

You can also use such indicators as trading volume and performance to determine whether a token has been accepted by cryptocurrency traders/investors and whether it is being used for projects within and outside its platforms. Judging by the figures we’ve already referenced, it is safe to say IOTA currently enjoys wider acceptance and adoption.

Reputation

An asset with a bad reputation is more likely to bring you losses than an asset with a good reputation. However, reputation is relative in the cryptocurrency universe.

To fully understand the reputation of a crypto asset, you need to look at the background of the platform and the performance of its token. This can be a hard nut to crack when you have limited information. Thankfully, we have enough information to reach a verdict here.

IoTeX and IOTA have reputable teams running them. Both platforms were started by knowledgeable individuals and have assembled great teams to keep the innovation going. However, IOTA seems to have the upper hand again when we look at all the important factors that influence reputation.

IOTA uses a unique technology (Tangle) and has been able to prove to all that it is great at connecting smart devices in the Internet of Things scene to the cryptocurrency universe. IoTeX has done great too, but we expect more from it before it can really compete with IOTA. MIOTA, as a digital asset, also has a better reputation than IOTX in terms of volatility, price, and market performance.

Security of Investment

Regardless of how great a digital asset is performing, you need to be sure that your investment will be secured when you make financial transactions. All crypto platforms employ different security features, but there may be vulnerabilities you should know about.

IoTeX has invested significantly to keep its network secure. It uses numerous mechanisms, including ring signatures, to ensure the privacy of users and the security of transactions. It also uses delegated proof-of-stake mechanism, which relies on the vote of stakeholders to elect block producers. When these producers add new blocks to the blockchain, they receive rewards, which they can also use to incentivize the stakeholders who voted for them.

As mentioned earlier, IOTA doesn’t use a blockchain but utilizes a technology known as Tangle. This technology may be strong, but it is not immune to attacks and manipulations. The knowledgeable team understands this and have employed a relatively straightforward proof-of-Work puzzle in the process of validating transactions to improve the security of the network.

People have expressed concerns about the security of IOTA and some researchers have even claimed to have found vulnerabilities in its code. However, IOTA is considered a safe platform.

You may feel IoTeX is a more secure platform because it uses blockchain. You should know, however, that blockchains have been hacked in the past. Tangle technology has served IOTA faithfully for years, and there is no point for investors to be afraid. Same with IoTeX blockchain.

Future Value

While the history of a coin and its past performance matters a lot, you also need to consider its future before making an investment. We can admit that predicting the future performance of a cryptocurrency is a big challenge – the industry is relatively unpredictable. However, experts have successfully predicted trends in the past, so we can rely on that at this point.

Predictions for IOTA are generally favourable. Wallet Investor, Long Forecast, and Digital coin price are all predicting that MIOTA will reach higher heights in the future. A good number of prediction websites also believe that IoTeX will improve in the future. However, experts are keener on the future success of MIOTA than that of IoTeX.

Availability

The availability of a cryptocurrency is a factor many people choose to ignore. However, you should know that some traders/investors are particular about where they buy and sell their assets. So, the higher the availability of a coin on popular platforms, the higher the number of people who are likely to buy it.

In terms of availability, both IoTeX and IOTA rank very high. Both coins are available in major exchanges. IOTA is available on Binance, Bitfinex, OKEx, and many other platforms. It is available in trading pairs. You can buy with Bitcoin, Ethereum, stablecoins, and even fiat currencies.

IoTeX is also available across major cryptocurrency exchanges. Some of the popular places to buy IOTX are Binance, Huobi Global, HBTC, and Xtheta Global.

It is also important to note at this point that both IoTeX and IOTA are available on Etoro, one of the best brokerages. Etoro has earned the reputation as one of the top social trading platforms where you can buy all kinds of cryptocurrencies, stocks, ETFs, and other investment vehicles.

Price

Price is a factor you can never ignore, regardless of what you are buying and selling. You need to consider the price of a cryptocurrency because it will determine the size of the investment you can make and the possible return you can gain.

While IOTX is trading for more than $1 per token, IoTeX is far from reaching the $1 mark. This is partly an indication of the value investors attach to the coins. If you are after cheap cryptocurrencies, IoTeX is a good option. However, MIOTA is not expensive, especially when you consider how much it can be worth in the future and what you can gain by investing now.

Verdict

From the factors we have considered, it is so clear that MIOTA is a more valuable cryptocurrency than IoTeX. MIOTA comes top, in terms of most of the factors we have considered here. Most informed investors will choose it over IoTeX.

At this point, it is important to state that people invest in assets for different reasons. What works for many may not work for all. Depending on your approach to cryptocurrency investment IoTeX may suit your portfolio more than IOTA or vice versa. Just make sure you have enough reasons to pick the coin of your choice.

Who Should Buy IoTeX?

Any avid cryptocurrency trader or investor can buy IoTeX. However, you need to know the risks involved and make up your mind to take them.

IoTeX is a relatively good cryptocurrency, but it will be most helpful to businesses in the Internet of Things industry, that may need to create projects on the IoTeX blockchain.

IoTeX is also a good option for day-traders. It is a volatile cryptocurrency, so there is a chance that they can buy at a lower rate and sell at a higher rate when the market is favourable. If you are a long-term investor hoping to make a lot of money from crypto investment, there may be coins better than IoTeX that will suit your portfolio.

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

Who Should Buy MIOTA?

MIOTA is the leading cryptocurrency in the Internet of Things industry and a good fit for anyone who fancies the industry. Like other cryptos, it is considered a risky investment, but the returns can be heartwarming when it comes.

Again, MIOTA can be a great investment for all categories of cryptocurrency traders and investors. It has been adopted by many and has performed greatly in the past and in recent times. We expect that it will grow even bigger.

Long-term investors can also buy MIOTA. It is the native coin of a project that has been accepted in the IoT industry. As the industry continues to grow, IOTA has the capacity to grow with it and become a highly valuable digital asset. It can also benefit short-term traders.

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

Final Words – Always Invest The Smart Way

Depending on how long you have been involved in cryptocurrency investing, you should know that rejigging your portfolio can make a lot of difference. Here, we have discussed two similar coins extensively and given our verdict. Remember, what we have here is not investment advice but helpful information you can use to make a good investment decision.

It is also important that conclude this post by reminding you of how important it is to invest the smart way. This means you must research properly before investing in any coin. We are always here to provide you with the best information to make the right decision. You should also know that eToro is one of the best places to buy and sell cryptocurrencies. It is great for traders and investors of all experience levels and will offer you many benefits we can’t fully discuss here.