More than 1,000 different digital currencies are currently available. While Bitcoin is still the most popular currency, more and more altcoins are conquering the market. IOTA is one of these altcoins. As part of the Internet of Things, a system was developed that should make digitization even easier. The IOTA coin is the cryptocurrency to this system. This guide shows to what extent the coin can convince with an interesting development and where the advantages and disadvantages lie.
- IOTA coin was first introduced in 2016
- Tangle is used instead of blockchain
- 2017 market capitalization of $ 12 billion
- Free transactions are offered
Table of contents
- The IOTA coin and the system behind it
- The IOTA Foundation as the creative mind behind the coin
- The advantages of distributed ledger technology
- Buy IOTA Coin - where does that work?
- Buy IOTA coin via direct provider
- Investing in IOTA via CFD trading
- The advantages of CFD trading with IOTA
- That should be a good broker for CFD trading bring along
- basic risk management when trading with IOTA
- working with the demo account
- the IOTA course - knowledge for investors
- These points can de n Change the course
- These advantages bring the IOTA coin with
- These disadvantages bring the IOTA coin with
- Conclusion: Make profits with the IOTA coin
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The IOTA Coin and the system behind it
The IOTA Coin is a digital currency that is also referred to as Altcoin. Altcoins are used to refer to all cryptocurrencies that came onto the market after Bitcoin. Compared to known digital currencies, such as Bitcoin, Litecoin or Ethereum, the IOTA system does not use the blockchain. Instead, another system is used. This is referred to as a distributed ledger technology that bears the name "Tangle". But what is the difference to the blockchain?
The blockchain is based on a system of chains in which there is a certain order. The Tangle, on the other hand, is a tangle. What sounds less positive at first glance brings with it some advantages for the IOTA. This makes it possible to run numerous transactions simultaneously via the Tangle. There are no fees. A decentralized network is also very important. If you want to order a transaction via IOTA, you have to take action yourself and confirm at least two transactions.
The development of IOTA is based on the idea of creating a payment system that is actively used as part of the Internet of Things shall be. At the same time, there is the option of executing projects and transactions via the IOTA system. The IOTA coin or MIOTA is the cryptocurrency of the system and can be bought directly and stored in a wallet. But trading with CFDs on IOTA is now also possible.
The IOTA Foundation as the creative mind behind the coin
In order to be able to develop the system and the cryptocurrency, the so-called IOTA was developed Foundation established. This is currently based in Berlin and is run as a non-profit foundation. A team for the development of the currency was founded in 2015 and the name is based on the ninth Greek letter of the alphabet.
Precisely because IOTA is always directly connected to the internet, things are often used assumed that the name of the digital currency also has its origin here. However, the IOTA Foundation chose the name because the meaning behind the Greek term stands for something "minor". The goal of the Foundation was to develop a system that requires little computing power, but can still implement numerous transactions in this context.
In the year the team was founded, the foundations for the development of the system first became compiled. The Tangle was programmed. The first presentation of the cryptocurrency then took place towards the end of 2015. In addition, a certain amount of coins was created. This is the number: 2,779,530,283.
The coins were distributed in an ICO. The test phase of the system then started in the summer of 2016. The entry into the market for interested parties finally took place in the summer of 2017. At that point, the IOTA coin entered at $ 0.64. The foundation itself was finally launched in November 2017.
Interesting: It is the first crypto foundation to be found in Germany.
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The advantages of distributed ledger technology
IOTA Coin News often relate to the technology behind the digital Currency stands. This distributed ledger technology has several advantages and therefore makes the digital currency particularly interesting for investors, investors and traders. The advantages include the following points:
- Privacy: Participation in the Tangle and thus also in the payment system can be done by creating a private key. This enables quick participation.
- Change options: Tangle is relatively unchangeable. This means that the participants who actively participate in the system have to accept and control changes. It is not easy to change the data afterwards.
- Decentralized work: Even if IOTA currently has a controller, the system itself is designed for decentralized work. The controller will be dissolved in the future. It is currently still required for the functioning system.
- High transparency: The lack of transparency is one of the problems with the Fiat currencies. This problem is to be counteracted at Tangle. This works through the possibility that users can see large amounts of data transparently. This also affects the transparency of donations, for example.
Investors who are considering trading the IOTA coin themselves can better understand the price developments if they understand the system behind the digital currency, It is all the more important to deal with the Tangle.
Buy IOTA Coin - where does that work?
The purchase of the digital currency can now be done quite easily. So there is the possibility to contact an IOTA coin exchange. The IOTA Coin Exchange is set up so that providers and buyers come together here. It is comparable to a marketplace through which trading is carried out. Registration is required to buy IOTAs. The current offers can then be viewed on the marketplace. These are either provided by the exchange itself or by other users.
A good exchange checks all participants and ensures that the amount of coins offered is really available. The prices are usually based on the current prices. In order to be able to benefit from exchange rate changes as quickly as possible, a look at the IOTA Coin News is recommended. All changes relating to the digital currency and the rates are recorded here. Good exchanges also provide the live price and show the value of the IOTA coin in USD.
Tip: Normally, buy offers can also be placed on a stock exchange. So if a buyer wants to buy the IOTA coin for USD or Euro, he can create an offer. Sellers have the opportunity to get an overview of the current lists and offer their tokens directly before they are posted on the marketplace.
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Buy IOTA coin via direct provider
In addition to the exchanges, which represent a trading center, there are also the so-called cryptocurrency brokers. The clarity is the focus on the websites of these brokers. It is possible to buy a certain amount of cryptocurrency tokens here. The tokens are offered at the current exchange rate. The buyer specifies how many US dollars or euros he would like to invest and then receives an overview of how many coins this corresponds to.
This also gives him an indication of how the IOTA coin is in USD is listed. The advantage with these providers is a really simple and fast processing that can be used. After registering on the platform, money is usually deposited into the account. The user chooses the amount himself. The transfer of the money can take place in different ways.
This includes, for example, deposits by bank transfer or by credit card. The deposit via PayPal is rarely found. After the credit has been credited to the account, the coins can be bought in the desired amount. After the successful purchase, the amount of coins goes to the specified wallet.
Important: A wallet is absolutely necessary to buy the tokens. Online and offline wallets can be used here .
Investment in IOTA via CFD trading
Due to its very good market capitalization, IOTA is already with its publication got into the market very well. The IOTA Coin Market Cap stood at $ 12 billion at the end of 2017. For the digital currency, this meant a rapid entry into the lists of cryptocurrencies. It was quickly found among the ten largest digital currencies.
This also made the digital currency interesting for CFD trading. CFD trading itself is very popular with traders. Thanks to the various online brokers that are now available, private investors can easily carry out trades from home. Academies and demo accounts also make it easier to get started. CFDs can be opened on various underlyings - with or without leverage. The basic values are known:
In the meantime, digital currencies are also offered for CFD trading. CFDs are generally considered to be very risky investments. But trading in digital currencies is particularly risky. The high liquidity of the cryptocurrencies makes them an attractive investment for traders with a very high risk tolerance. However, brokers refrain from offering high leverage for CFD trading with IOTA. Instead, only little leverage is offered. But these are also very suitable to generate high returns with CFDs on IOTA.
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The advantages of CFD trading with IOTA
The decision whether to buy the IOTA coin directly or prefer to trade CFDs on the digital currency is not an easy one. However, buying and selling the tokens is time-consuming. It is necessary to set up a wallet here and go in search of the right exchange and good offers. The question is to what extent CFD trading offers advantages over investing in tokens:
- No wallet
Traders only need an account with the brokers selected by you. This can be opened within a few minutes and trading can begin. If you want to buy tokens, you first have to set up a wallet. There are different variants of the wallet. It takes time to make a decision here and then set up the wallet.
- Course selection
When buying and selling tokens it is for the Users can only benefit if the price of the IOTA rises. If it falls, the losses increase. It looks different with CFD trading. If the signals indicate that the price is falling, a position on a falling price can be opened.
CFD positions can be opened can be opened with a lever. This means that despite using less capital, there is an option to open positions with a higher value. Leverage can increase returns.
This should be a good broker for CFD trading.
If a trader has decided not to buy coins directly, but the CFD- To use trading begins the search for a broker. CFD trading on cryptocurrencies has so far been an area that is only made available to a limited extent by brokers. When choosing the cryptocurrencies with which a position can be opened, there are primarily known tokens.
These include, for example, Bitcoin and also Ethereum. IOTA are now also known digital currencies, but they are not yet as actively represented on the market as other coins. Therefore, it can be difficult to find a broker that offers CFD trading with IOTA. Nevertheless, it is worthwhile to search for several providers and then compare them. The following points are interesting when choosing:
- Trading costs
- Possible fees for the account or the deposit and withdrawal
- Support offers
- Other underlyings
- Regulation and location of the broker
Regarding security, regulation is an interesting aspect. It can be an indication to the trader that the broker is ready to follow the requirements of the regulatory authorities. This includes, for example, the separation of customer and business assets. If there are any ambiguities, it is important that traders can quickly reach an employee. When comparing, you can look at the variants for contacting, but also at the language in which communication takes place.
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Basic risk management when trading with IOTA
Regardless of whether investors choose to create a wallet and buy and sell IOTA coins, or focus on CFD trading - good risk management is important. Liquid investments, such as cryptocurrencies, are particularly attractive because they can help generate high returns in a short period of time. However, they also involve a high level of risk.
Even if a look at the historical course of IOTA can help to assess the development better, it is still not possible to make clear statements for the future. Every investment therefore involves a risk. Risk management plays an important role in protecting your own capital. It is therefore advisable not to invest until a strategy has been put together. What this strategy looks like depends on the risk appetite of the investor.
The basic recommendation is that only as much capital should be invested as the investor is willing to lose. This applies to the purchase of coins, but also for opening positions on CFDs.
Important: When storing the coins, effective storage is recommended. An online wallet offers a high degree of flexibility, but is to be viewed critically in terms of security. The split of the tokens over several wallets should therefore be considered.
Working with the demo account
Another advantage when deciding to trade CFDs on IOTA is that demo account. Many brokers provide this free of charge. It is optimal if the demo account can also be used without a real money account. However, this is only the case with a few providers. It is common to register on the platform before access is made available.
The demo account maps the complete trading environment. It should allow full access to all tools and to the basic values. This includes the option to open CFDs on IOTA. If this is the case, a strategy can be developed easily and effectively. Traders can use various tools to analyze the charts. These tools help to identify in which direction the course may develop.
Different positions can be tested via the demo account. The possibility of working with a lever is also very good. The lever increases the possible returns, at the same time it increases the losses if the position does not develop in the desired direction. However, further risk protection can be used here. The stop loss variants can normally be used with a broker. Protection is associated with costs, but losses are kept to a minimum if they occur.
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The IOTA course - knowledge for investors
The extent to which a digital currency can really be profitable for an investor depends primarily on the price development. It is therefore worth taking a look at the IOTA course and getting an idea of it. Market capitalization is also one of the points that can provide information as to whether an investment is worthwhile.
IOTA is convincing here. Thanks to its very good market entry, the cryptocurrency was able to secure a place among the top ten digital currencies right from the start. In the course of the following course, a significant increase could be identified. However, the IOTA coin has since fallen again.
Various questions regarding the currency are important for investors. These questions are, for example:
- How high was the market entry price?
- What market capitalization was shown and how current is it?
- What was the price? Developed in the past few months or years.
- Why have there been high price fluctuations?
An extensive analysis can answer the questions. Beginners in the digital currency market in particular still have problems initially with being able to carry out the analysis in a well-founded manner. Therefore, time should be planned to deal with the analysis and to learn more about the developments of the course. It is particularly important to know which factors can influence the development of the cryptocurrency exchange rates.
These points can influence the exchange rate
There are general factors influencing the exchange rate of a digital currency. However, there are also specific factors that can ensure that the price rises or falls in the future. It is therefore important to get to know a currency and to deal with the topic and the system. It is therefore important to take a look at the planned implementations at IOTA.
A coordinator is currently being deployed to stabilize the system. It is not uncommon. In fact, many digital currencies were initially monitored by a central authority. Nevertheless, the coordinator at IOTA is an important point of criticism. It is planned to replace the coordinator in the near future. From this point on, IOTA will be a completely decentralized system.
The "Qubic" project may also be of interest to investors. With this project, the IOTA Foundation wants to make IOTA even more effective. To achieve this, the technology of the smart contracts and the processing for the respective processing areas should be improved. Effectiveness is a particularly important factor for the Internet of Things.
The speed of Tangle is based, among other things, on the fact that users are active and confirm transactions. For this it is necessary to become better known and to gain additional users. By expanding the application areas, the potential customer base is expanded and the system becomes even more effective.
Important : As IOTA develops, innovations should be kept in mind. This works especially when investors check the news about IOTA again and again.
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These advantages bring the IOTA coin with
The IOTA coin is part of an entire system. Therefore, the overall picture should be considered. It is helpful for an investor to know the advantages of cryptocurrency. The following overview summarizes the most important advantages:
- Fees: Transaction fees are an important point when using a cryptocurrency. The higher the transaction fees, the less likely there is to be a large number of transactions. IOTA has no transaction fees. This means that micro payments are also made via the platform.
- Environmentally friendly: Sustainability and environmental friendliness are important issues and also affect technical systems. At IOTA, care is taken to achieve the lowest possible power consumption with the system. Mining creates a very high level of electricity consumption in other digital currencies. IOTA cannot be mined. This means they are more environmentally friendly.
- Decentralization: The lack of mining is a further indication that IOTA has extensive decentralization. The system uses user confirmations to confirm transactions. Own transactions can only be ordered after the confirmation of external transactions. So the system is led by the crowd, not by individuals.
- Growth: When there is extensive growth, systems of digital currencies often show weaknesses in the area of scalability. This is not the case with IOTA. Thanks to its infinite scalability, the system can also adapt very well to high speeds and execute transactions quickly as usual.
- Offline: Tangle as a system is able to update and take over offline transactions.
The IOTA Coin brings these disadvantages with
The advantages mentioned give an initial overview of how good an investment in the coin can really be. However, in order to be able to obtain extensive information, the disadvantages should also be known. These are:
- Growth: What is listed with the advantages also applies to the disadvantages. The growth of IOTA is still manageable and therefore not really interesting for all investors. Until the awareness increases, the currency scales rather low.
- Missing incentives: The lack of mining is a great advantage, especially in terms of environmental friendliness. However, it can also be seen as a disadvantage. With mining, participants receive a form of payment. Confirming transactions at IOTA has no incentive. This can result in transactions not being confirmed quickly enough. However, the Foundation assumes that users behind the technology are also active without incentive.
- Comparison: One problem that all altcoins have is the comparison with Bitcoin. The mother currency is still the focus when it comes to exchange rate developments. At first glance, it looks like IOTA cannot convince. In fact, not only the prices, but also the market capitalization and developments should be compared.
The IOTA Foundation knows the criticisms mentioned. However, the information on how to proceed with the system shows that work is being done on the points mentioned. The focus is on the goal of winning new users as quickly as possible.
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Conclusion: Make profits with the IOTA coin
IOTA is one of the digital currencies that attracts attention through innovation. This begins with the fact that no blockchain is the basis, but that the Tangle system is used. The lack of transaction fees also make an investment in the currency attractive. When deciding whether IOTA can be the cryptocurrency of choice, the question of why should be invested also plays a role. If you want to generate profits, you don't necessarily have to buy the coins directly. In this case, it can also be decided to invest in CFDs in the cryptocurrency.
IOTA can also be of interest to users who are heavily involved in the Internet of Things and want to keep an eye on digitization. Investing in the coin is not just a risk and potentially high returns. IOTA itself is also supported in this way.