Is IOTA Worth Investing?

Is It Worth Investing in IOTA?

18 Min Read
Last Updated July 23rd 2021

Recent statistics show that the IoT network currently has more than 20.4 billion devices. Although just a few years ago, IoT was still an alien concept, it has now grown to become one of the most lucrative markets for investors.

In fact, the IoT market is now worth about $212 billion and is expected to be even bigger in the next few years. Statistics show that people are now buying IoT devices more than ever before. For instance, Amazon sold over 100 million devices that use Alexa in the first quarter of 2019 alone. 

And while the IoT community has been plausible so far, there has always been a problem of data sharing. That is why IOTA (MIOTA) was developed to make it easy for IoT devices to share data and communicate with each other. 

IOTA boasts of a superior distributed ledger compared to other blockchain-based cryptocurrencies such as Bitcoin. It also has no transaction fees and has managed to ingeniously solve cryptocurrencies’ biggest bottleneck; scalability. 

In this guide, we are going to show you how to invest in IOTA and reap from the fast-growing MIOTA market. 

Before that, let’s cover some basics. 

If you want to invest in IOTA quickly and easily, with 0% commission, check out eToro Exchange!

Contents:

What is IOTA (MIOTA)?

What is IOTA

IOTA is a type of cryptocurrency that is radically different from the other popular cryptocurrencies. One thing that sets IOTA apart is the fact that it does not use blockchain technology.  Instead, it uses its own distributed ledger known as Tangle. 

Basically, Tangle is a system of nodes that the network uses to confirm transactions, just like Bitcoin’s blockchain. According to IOTA enthusiasts, Tangle is much faster and efficient compared to blockchain. This gives IOTA unparalleled scalability and more use case scenarios. 

IOTA was developed in 2015 to help boost data sharing and execute transactions between devices in the Inter of Things (IoT) ecosystem. These transactions are enabled by IOTA’s native cryptocurrency known as MIOTA.

Originally, the creators of IOTA did not intend for it to be a cryptocurrency. The company was merely a manufacturer of IoT hardware chips that could record and execute transactions between IoT devices. 

The company later changed its focus to creating a decentralized network after recognizing the great potential that the IoT network could have as a cryptocurrency. 

How Does IOTA (MIOTA) Work?

IOTA is merely a bridge between the billions of devices in the IoT ecosystem. The network’s main function is to handle data transmission between these devices and also execute complex multi-device smart contracts. 

To accomplish this, IOTA uses a distributed ledger like blockchain-based cryptocurrencies. However, it relies on a more efficient blockchain alternative known as Tangle. 

Tangle is a protocol that works as a Directed Acyclic Graph (DAG), where a central coordinator is used instead of miners. The coordinator collects data from the distributed ledger to confirm transactions. Tangle is so much faster than blockchain and can handle up to 1000 transactions per second. 

Now for mainstream cryptocurrencies like Bitcoin, more transactions at a time would usually mean slower speeds and higher fees. For instance,  the Bitcoin network was brought to a crawl in 2017 after an influx of users joined the network. 

However, IOTA uses a unique structure that enables it to be faster as the number of users increases. This makes it highly scalable compared to other cryptocurrencies. 

Let’s look at an example of how IOTA works in real life. 

Imagine that you have three smart devices connected to IoT; a fridge, a self-driving car, and a grocery store ordering system. 

Here is how these three would communicate with each other in a typical IOTA network: 

  • The smart fridge senses that you are out of milk 
  • It automatically makes an order using the store’s ordering system and then pays using MIOTA 
  • At the same time, it also communicates with your smart self-driving car and gives it the store’s location to go pick up the milk.
  • The car fetches the milk and brings it back to your house. 

That is basically how IOTA works in theory. But for developers, there is so much more than merely communication and data sharing between IoT devices. 

IOTA Price History 

One way to determine if IOTA is the right investment for you is by looking at its past performance. This is because even though cryptocurrencies are highly volatile, they can still create a predictable projectile that long-term investors and traders can use to make educated decisions. 

IOTA hasn’t been around that long, so there is not much in terms of its price history. However, there have been some interesting happenings in IOTA’s short journey that we will briefly look at. 

Although IOTA came along around 2015, its real genesis is in late 2017 and early 2018. This is around the time when the cryptocurrency market was experiencing one of the biggest bull runs. 

In fact, most cryptocurrencies have not been able to reach the milestones they attained around this time. Although it was still pretty young, IOTA quickly joined the bull run and had one of its biggest price leaps. Between 20th November and 18th December 2017, IOTA jumped from $0.851553 to $4.2369! 

In the cryptocurrency market, that is a pretty huge leap. 

Naturally, most people expected this price to plummet in a matter of days. However, IOTA was able to stabilize above the $4 mark until early January 2018. By June, the crypto excitement was waning, and most coins that had parabolic growths began to drop. 

IOTA was not spared. 

By mid-2018, the coin was back below $1 and remained there until the recent coronavirus crash, when it dropped even further. With lockdowns around the worth bottleneck economic growth, most investors downed their tools and took a break from investing in cryptocurrencies. 

As a result, most cryptocurrencies were affected. IOTA dropped even further and bottomed out at $0.137891 on 16th March 2020. 

Thankfully, this didn’t last long. Towards the end of 2020, another market-wide bull run started, and most cryptocurrency prices began to look up.  The majority were able to reach and even outperform their pre-COVID 19 valuations. 

IOTA took a little longer to recover and didn’t go back above $1 until February 2021. Towards the end of April, it went to above $2 and is now trading at $1.91, according to data from CoinMarketCap. 

IOTA Price Predictions for 2021

Like most cryptocurrencies, IOTA had a good start in 2021. The Internet of Things is increasingly becoming mainstream, with smart home automation getting more usage. This means that MIOTA has a great potential for growth this year. So, if you are considering investing in IOTA, this might just be the right time to get started. 

Keep in mind that cryptocurrencies are highly volatile, and the predictions we are going to give here are not final. Prices can move in any direction, mostly unpredictably. There are also notable differences between the different expert predictions we have seen, although they all paint the same rising trajectory. 

Given that IOTA’s original technology stands high chances of seeing mainstream adoption, most price analysts are positive that the crypto will be on an uptrend this year. After IOTA’s recent bull run, most platforms have updated their predictions to reflect a bullish momentum for the rest of the year. 

For instance, Wallet Investor believes that IOTA will finish the year at $2.708. The site had previously predicted that IOTA would surpass $1 at the start of 2021.

This accurately came true. However, Wallet Investor also inaccurately predicted that IOTA would fall to close the year at $0.27. After studying the current uptrend, they have updated their prediction and are now positive that the coin will be much more valuable at the end of 2021. 

In fact, Wallet Investor predicts that MIOTA will remain above $1 for the most part of the year before finally jumping to above $2 either in November or December. There might be a yearly low around October where the asset might fall to $1.033

While Trading Beasts is optimistic for the next few months, it predicts that the price of IOTA might fall towards the end of the year. According to the site, MIOTA might go as high as $2.3698 by the end of June next year. It will then increase gradually to $2.4493 by October then start falling to close the year at $1.7652

Previsioni Bitcoin seems to agree that the price of IOTA can reach the $2 level in 2021 and it is an achievable target for the end of the year. However, the Italian price analysis platform is much more optimistic than both Wallet Investor and Trading Beasts.

According to the site, MIOTA might go above $2 as early as June.  The price will then rise month-to-month and finish 2021 at a staggering $5.05. 

While Previsioni Bitcoin is often bullish in its predictions, some of them come true. For instance, they had predicted that MIOTA would be worth $2 by May 2021. This prediction came true early in April when the coin surpassed $2 and might even go back there by the end of the year. Given IOTA’s history, anything is possible, and Previsioni Bitcoin might just be on the right track. 

All these predictions are good news for investors looking to best their money on IOTA this year.  As you have seen from the predictions, there is generally a positive outlook, with the price expected to go as high as $5 by the end of the year. That means that if you start investing now, you could reap handsomely when the price rises to beyond $10 in the next few years. 

If you are ready to start investing, let us show some of the popular ways you can invest in IOTA.

Check Out: Why IOTA is Going to Explode

Common Ways to Invest in IOTA

There is more than one way you can invest in IOTA this year. In this guide, we will look at three of the most popular investment methods. These are: 

  • Long-term investment or Hodling 
  • Short-term Trading 
  • Investing in IOTA startups

If you are looking to trade or hold IOTA, you will need to buy some coins first.  Being a relatively new crypto, IOTA is not listed in most exchanges. However, you can still easily get it from exchanges that are listing it, such as eToro and Binance. 

We find eToro to be the most reliable option if you are looking to trade. So, for the purpose of this guide, we will be looking at how to buy IOTA on eToro. 

If you’d rather use another exchange that lists MIOTA, feel free to do so. Otherwise, here is the step-by-step guide on how to buy IOTA on eToro. 

How to Buy IOTA on eToro 

Buying IOTA on eToro is as simple as buying any other cryptocurrency. Just follow these five simple steps: 

  • Sign up for an eToro account 
  • Verify your account 
  • Complete your profile 
  • Deposit funds into your account 
  • Buy MIOTA

Step 1: Sign up for an eToro Account 

Visit eToro and click the ‘Join Now’ button to register for a free account. You will be required to profile a username, email and password. 

Accept their terms and conditions, privacy policy, and cookie policy, then click on ‘Create Account.’ 

 You can also sign up with either Facebook or Google 

Step 2: Verify Your Account 

After creating an account, a verification link will be sent to the email address you provided. Click on the link to verify your eToro account.

Step 3: Complete Your Profile

Once you have verified your account, you will be taken back to eToro, where you can complete your profile before you can buy some coins. To do this, you will have to enter some personal information such as your Social Security and answer some questions that will help gauge your financial situation or personality. 

Step 4: Deposit Some Funds into Your Account 

Once your profile is complete, you can now deposit some funds which you will use to buy MIOTA.  eToro allows a minimum initial deposit of $200, which you can pay using a credit card, PayPal, wire transfer and a host of other options. All the payment methods do not have a transaction fee. 

Step 5: Buy IOTA

Wait for the funds to reflect in your account, then you can go ahead and buy some IOTA. On eToro, you can either buy at the current market price or specify your own price. If you have not done this before and are unsure of what to do, we recommend just buying at the current market price. 

Once the MIOTA coins reflect in your eToro account, you can either withdraw them to a personal wallet or trade. 

Let’s now look at the different methods by which you can trade your newly acquired IOTA tokens. 

Method 1: Buy and HODL IOTA

This is the most common way to invest in cryptocurrencies. Crypto experts usually recommend it for new investors who don’t have the skills required for active trading. 

Hodling means buying IOTA and storing it in an external wallet for many years. The point is to buy IOTA and forget about it until the prices are insanely high. For instance, you can buy now and sell in five years when the price is, say, $20. 

For example, if you invest $5,000 worth of MIIOTA at the currenct price, that would be around 2,630 IOTA coins. Now, if you sell them in five years, at $20 per coin, you would make $47,0600 profit. 

However, the process is not as straightforward. For hodling to be profitable, the purchase price will have to increase many folds. The most hardcore hodlers can even store their coins for more than ten years. 

The good thing about holding, when compared to active trading, is that you don’t have to do anything after buying your tokens. You simply have to wait. In fact, experts recommend forgetting about it until the underlying asset is insanely valuable or even assimilated into the mainstream financial market. 

If you plan on hodling, you will have to transfer your IOTA coins from the exchange as soon as possible. To do this, you will need an external wallet, either a hardware or software wallet. 

How to Transfer MIOTA from eToro to an External Wallet 

If you’ve bought your MIOTA from eToro, here is how to transfer it to an external wallet. 

  • Set up your wallet of choice, then copy the public key or address 
  • Sign in to the eToro Money app on your smartphone (Yes, you will need the eToro Money app for this process to work. If you don’t already have one, you can easily download it.)
  • On the app, navigate to the “Crypto” tab, then choose MIOTA 
  • Tap on “Send” 
  • Specify the amount of MIOTA you want to send, then input the public key you copied from your wallet. 
  • Alternatively, if you are using a software wallet, you can simply use the camera to scan the recipient's QR code. This will automatically input the wallet’s public key 
  • Tap “Send” 
  • A verification code will be sent to your phone via SMS. Enter it into the filled provided, then tap “ Verify.” 
  • You will receive a confirmation that your request has been received. 
  • To check the status of your request, tap on the ‘Transactions’ tab. 

That’s it! After some time, your IOTA coins will be transferred to an external wallet where you can hold them for many years until you ready to sell them. 

Method 2: Trade MIOTA

Another popular way to invest in IOTA is through active short-term trading. This is the best strategy if: 

  • You don’t want to wait for many years to make a profit
  • You want to profit from both price rise and fall through CFD trading. 

As we mentioned, eToro is the best platform if you want to trade MIOTA. 

Here is how to go about it. 

How to Trade IOTA on eToro

Assuming that you already created an eToro account and deposited some funds, follow these steps to start trading MIOTA. 

  • Click on “Trade Markets” and choose “Crypto” 
  • You will be presented with a list of cryptocurrencies. Choose IOTA (MIOTA), then click “Buy”
  • Choose the “ Trade” option to buy MIOTA at the current best market price 
  • Enter the amount of money you want to put into the trade 
  • Below the amount, there are some parameters you can modify to make your trade more effective. 
  • These include “Stop Loss”, which lets you input the maximum amount of loss you are willing to take. Here, your IOTA will be automatically sold if the price equals the stop-loss price you specified. 
  • The “Take Profit” parameter enables you to set a price at which your coins will be automatically sold to make a profit. For instance, if you bought your IOTA coins for $1,500, you can set your take profit amount at $2,000. When the price of IOTA reaches $2,000, your coins will be automatically sold to make a $500-dollar profit. 
  • You can check the status of your investment by navigating to “Portfolio” on eToro

Check Out: How to Trade IOTA: A Step-by-Step Guide

Method 3: Invest in IOTA-based Startups

Another lesser-known way to invest in IOTA is by investing in applications or startups that are based on IOTA. This way, you will be indirectly investing in IOTA without having to actually buy MIOTA. 

For instance, you could invest in a company that solely manufacturers smart fridges that will use the IOTA network or any other profitable home automation company that relies on IOTA. 

Alternatively, you can also directly invest in IOTA as a company and not as a cryptocurrency. 

This method of investment requires some understanding of the market, and we only recommend it if you have some previous experience investing in companies. First, you will need to identify a company that is actually profitable, then either go in as an angel investor or, if it is a publicly-traded company, buy shares through the stock market. 

Is IOTA a Good Investment? 

So, although the price of MIOTA is still low, most experts believe that IOTA will be a great investment in the long run. As the demand for DAG and IOT systems grows, IOTA will be in a good position to enjoy better mainstream adoption and make one of the most lucrative investments. 

The IoT industry is growing by the day, and recent trends show that technology is here to stay. For instance, it is estimated that there will be more than 75 billion devices installed worldwide by 2025. With the possibility of anything being turned into a smart device that can use the IoT ecosystem, there is no doubt that this industry has a promising future, both in terms of profitability and adoption. 

Now, being the only cryptocurrency that focuses on IoT devices, IOTA will most likely ride along with this success. So, as the IoT industry becomes more profitable, so will IOTA. 

This means that IOTA is a good investment not only this year but in the far future. Current investors will likely enjoy insurmountable ROI as IOTA sees more mainstream adoption and becomes highly profitable. 

It is worth noting that the price of the MIOTA cryptocurrency directly depends on the success of IOTA technology. As IOTA records more use cases, MIOTA will be used more often to make transactions and send its value through the roof. This means more wins for investors who buy MIOTA while the price is still low. 

So, if you believe that IOTA’s technology can easily be assimilated into people’s daily devices, then this would be a great time to start investing. 

Why Should I Invest in IOTA? 

When it comes to deciding whether or not you should invest in IOTA, we need to start by looking at whether Tangle or the DAG system, in general, is better than blockchain. Already we have seen that IOTA’s Tangle painlessly solves one issue that has been bottlenecking most cryptocurrencies: scalability. 

So, instead of it becoming slower with more users, it actually becomes faster. This is a huge attraction for both users and investors who are looking for efficiency. 

IOTA also has no transaction fees. What does this mean for you as an investor? You won’t be losing thousands of money in transaction fees while buying and selling IOTA. This is also a great selling point for users of IoT devices who are looking to eliminate transaction fees. 

IOTA, no doubt, offers many reasons as to why it is a good investment. So far, the IOTA system has shown signs of a quickly growing venture and good future returns for its investors. As more people use IOTA's devices, its value will keep rising, and soon the IOTA price will shoot. 

Generally, IOTA makes the already amazing IoT industry more efficient and appealing to users. And as more people use IoT devices that are IOTA-enabled, investors could stand to gain in a fair way. 

Don't Miss: IOTA Price Predictions for 2025 and 2030

eToro – Best Platform to Buy IOTA

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

Virtual currencies are highly volatile. Your capital is at risk.

Conclusion: So, Should I Invest in IOTA?

You should consider investing in IOTA if you believe IoT technology has a good future. So far, statistics show that this industry is growing rapidly, and soon, most households around the world will have one or two smart devices. 

When this happens, IOTA will be at the forefront to make these devices more efficient by enabling fluid communication and data sharing. As a result, most smart devices will be using IOTA’s technology. And as is the case in the crypto market, more use cases will most likely translate to more gains for investors.

FAQs 

Here are some common questions about investing in IOTA. 

Will the Price of IOTA (MIOTA) Go Up in 2021?

According to most analysts and industry experts, the price of IOTA will most likely go up in 2021. 

Does IOTA have a future?

Based on the most recent predictions and media reports, IOTA may be set for a bright future. We expect that the price might go as high as $10 in the next five years as the IOTA technology sees more mainstream adoption. 

Can IOTA reach $10? 

According to most predictions we have looked at, IOTA could reach $10 in the next five years. For instance, CoinSwitch believes that IOTA could be worth about $10.847 by the end of 2025. 

However, being a volatile asset, the price might even be higher if it encounters a catalyst along the way. 

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