Unlike its blockchain counterparts, IOTA uses a standout feature called DAG (Direct Acyclic Graph) – enabling transactions to be added in parallel to one another.
If you like the idea of learning how to buy IOTA from home, then look no further!
Today, we not only do we discuss how to buy this highly speculative currency, but also what investment strategies you can incorporate into your master plan. Additionally, we have saved you some time by reviewing the best brokers that allow you to buy IOTA safely and in a cost-effective manner.
eToro - Buy and Invest in Assets
eToro - Buy and Invest in Assets
Table of Content
How to Buy IOTA in 10 Minutes – Quickfire Guide
If you are pushed for time, you probably want to invest in IOTA right now. If so, the first thing you need to do is join a reliable cryptocurrency broker.
See below a quickfire guide of how to buy IOTA in less than 10 minutes without paying any commission.
- Step 1: Sign up with an online broker that can provide you with access to IOTA – eToro will allow you to buy IOTA with zero commission payable and no ongoing account fees
- Step 2: Fill in your details such as full name, email, and residential address
- Step 3: To complete your profile you need to send the broker a clear copy of your ID, such as a passport. Another requirement is to send proof of address, such as a utility bill
- Step 4: Now you can deposit some funds with a debit/credit card, bank transfer, or e-wallet
- Step 5: Look for IOTA via the search facility and place an order – eToro supports investments from just $25
If you like the sound of eToro, you will find a full review of this top-rated broker below, as well as some great alternatives.
Select a Trusted IOTA Broker
As we alluded to, the best way to buy IOTA is by signing up with a trusted broker. With that in mind, this section will review the best platforms for the job.
A hallmark of all three of the below providers is that you can apply leverage when trading IOTA. For those in the dark about leverage, we offer an example later when discussing CFDs.
1. eToro – Best Broker to Buy IOTA Commission-Free 2021
eToro is a hugely successful online broker with some useful features and low fees. In fact, this platform charges ZERO commission to buy IOTA (or any other asset). If you want to try something new, you can also trade crypto CFDs here. This enables you to short your chosen asset - again, we talk about this later.
Brokers that don't charge commission fees must make money elsewhere to keep the wheels turning. This is where the spread comes in - a small fee based on the difference between the buy and sell price of the asset in question. We had a look and found the spread on IOTA and other assets at eToro tend to be very competitive.
You can invest in IOTA from just $25 at eToro, making it perfectly suited to newbies or investors with a tight budget. Furthermore, when it's time to add funds to your account, this broker accepts tons of payment types. This is inclusive of e-wallets like Skrill, PayPal and Neteller, bank transfers, and debit/credit cards.
We mentioned features earlier - the most noteworthy is probably the platform's Copy Trader tool. This enables you to invest in a trader with a successful track record in the cryptocurrency scene. It's as simple as this - whatever they buy, sell, or trade will be mirrored in your portfolio, crucially, in proportion to your investment.
Other features include a free demo trading facility topped up with $100k in paper money, and a Copy Portfolio which is comparable to a fully-managed investment fund. The latter creates a fully allocated portfolio without you having to do very much at all - fee-free.
Speaking of a fully allocated portfolio - if you want to add some variety to your basket there are thousands of different markets at eToro. This includes indices, forex, ETFs, crypto-assets, and stocks - all of which come with 0% commission. Finally, this broker is licensed by the FCA, ASIC, and CySEC, as well as being registered with FINRA (US).
- Plethora of accepted payment methods including PayPal
- Invest in IOTA from $25, with 0% commission
- Low spread on IOTA and other markets
- Doesn't offer technical analysis
2. Capital.com – Best IOTA CFDs for Beginners - Minimum Deposit From $20
Capital.com is an accessible CFD broker for beginners and seasoned traders alike. You cannot buy IOTA here, as you will instead trade this crypto-asset based on its predicted future value. One of the most attractive things about this platform is that you will not pay a cent in commission fees to trade cryptocurrencies.
After some research, we found the spread at Capital.com to be fairly tight on pairs like IOTA/USD. With zero commission and low spreads, it may surprise you to hear that this broker only requires a $20 deposit to trade IOTA CFDs! This is just one reason this platform is so popular with newbies.
Like many modern online brokers, Capital.com accepts the most convenient payment types. This includes QIWI, iDeal, Trustly, Apple Pay, debit/credit cards, and bank wire transfers. The latter being the slowest to process, often taking up to a week to clear. Nevertheless, you can access heaps of markets here such as digital currencies, forex pairs, commodities, and stock CFDs.
Like all the platforms on our list, Capital.com comes with its own features. There is plenty of educational content geared toward helping newbies focus on learning new skills. You will find everything from webinars and video lessons to a toolkit packed with educational materials, customizable indicators, and charts. The broker will also give you $10,000 in paper trading funds to use on a demo account. CySEC and FCA regulate this broker - so safety should be of no concern.
- $20 minimum deposit to trade IOTA CFDs
- Heaps of advanced trading tools and MT4 compatible
- Regulation from FCA and CySEC
- No access to fundamental analysis
3. AvaTrade – Huge Variety of Trading Tools for IOTA CFD Trading
AvaTrade is another platform that will facilitate IOTA CFD trades, enabling you to apply leverage - if permitted in your jurisdiction. This brokerage charges a 0% commission on cryptocurrencies and all other financial instruments. When trading IOTA CFDs via this platform you can expect to pay a spread of around 2% over-the-market spot price.
This platform accepts multiple payment types, including Skrill, Neteller, Bitcoin, debit/credit cards, and wire transfers. The minimum deposit to trade IOTA is $100, which is accessible for most. If you wish to access a multitude of advanced trading tools like pricing charts, educational content, automated bots, and indicators - this CFD broker works smoothly with MT4 and MT5.
With that said, this broker has its fair share of proprietary apps, resources, and features. For instance, there is the AvaTradeGO mobile app, which allows you to trade on the move with ease and offers live news feeds and pricing trends. Another helpful addition to your trading arsenal might be the risk management offering called AvaProtect, which in itself is packed with handy tools.
For the more sociable of you out there, AvaTrade also enables you to hook your account up to the AvaSocial app. This allows you to copy other pro investors, automate your IOTA trades, and create your own networks by following and 'liking' like-minded crypto-traders. Moreover, the platform gives all clients a free trading account with $100k in practice money.
Finally, this online broker operates under the watchful eye of six financial authorities. Tier-1 and Tier-2 regulation come from well-known organizations such as ASIC, FSCA, FSA, MiFID, BVI, and ADGM. This protects you and your fellow traders against financial crime. You can also be sure that this regulated trading platform is operating legitimately and within the law.
- Trade IOTA CFDs with a minimum deposit of $100
- Regulated by multiple jurisdiction's
- 0% commission on CFDs
- Admin fee payable after a year of inactivity
Buy IOTA or Trade CFDs
When considering how to access IOTA, you have likely already thought about whether you want to buy or trade CFDs.
For those who are undecided, see below the 2 most commonly adopted ways to access this market.
Buy and Hold IOTA
If you like the idea of sitting on your investment and not worrying about day-to-day price shifts – you might consider the ‘buy and hold’ method. This entails making one or more IOTA purchases and then selling the coins later on for a higher price. Depending on the market sentiment, you might hold on for years.
To make things clearer, see an example of a buy and hold strategy below:
- You see that IOTA has fallen in price – but believe this is a short-term trend
- Consequently, you create a $150 buy order at your chosen brokerage
- 12 months later, IOTA has risen in value by 21% – meaning your speculation was correct
- To cash out your gains you place a sell order
- From your original buy order of $150, you made a profit of $31.50 ($150 x 21%)
In this example, you held onto your IOTA investment for 12 months. Although cryptocurrencies are digital, they still need storing. You may look at downloading a crypto-wallet, however, this can make things more complicated for newbies as you also need to consider securing your purchase from hackers.
This guide found that in all cases, the easiest way to store your IOTA is via a regulated broker. This way, you can access your own investment when you wish, but don’t need to encrypt and protect it yourself. Regulated brokerage eToro facilitates commission-free IOTA investments from $25 and will store your coins on your behalf.
If you have been researching how to buy IOTA, the chances are you have heard of CFDs. We touched on this subject in our broker reviews, however, for newbies let’s offer some insight. CFDs (Contracts for Differences) offer a way to trade cryptocurrencies like IOTA without taking ownership.
The CFD will instead monitor and price match the underlying asset (IOTA in this scenario) – so your role is to speculate correctly on its future direction. People who trade IOTA often do so in pairs so you will see crypto-crypto and crypto-fiat offerings at most CFD trading platforms.
The most popular pair to trade from each category is IOTA to Bitcoin (IOTA/BTC) and IOTA to US dollars (IOTA/USD).
Please see an example of IOTA CFDs to clear any confusion:
- Let’s say you are trading IOTA against US dollars via a CFD
- The CFD naturally mirrors the price of IOTA/USD, which is currently $1.60
- You think the markets have overvalued the pair and IOTA/USD will soon see a price drop
- This is when you create a $300 sell order to go short on the pair
- Sure enough, 4 hours later IOTA/USD is valued at $1.32, showing a 17% drop
- Satisfied with your 17% gains from this trade, you place a buy order to close your position
- You made a profit of $51 from this CFD trade ($300 x 17%)
Another important CFD characteristic you should know about is leverage, which acts as a loan to allow you to open a higher value position. Leveraged crypto CFDs are prohibited in some jurisdictions – including the UK, Hong Kong, and the US.
You will see below a simple example of how leverage would have impacted the previous IOTA CFD trade that we discussed above.
- When placing your $300 sell order on IOTA/USD, the broker offers you leverage of X2
- Your order is now worth $600
- Without leverage, you made gains of $51 on the trade (17% of $300)
- However, as you applied leverage of 1:2 – your gains are boosted to $102.
Where to Buy IOTA
The chances are, you are now feeling prepared to conquer the IOTA markets. First, we must disclose where you can buy this digital asset.
Buy IOTA Debit Card
No two brokers are the same, so it’s important to see which payment methods are accepted before signing up with a new trading platform. Many IOTA trading platforms are compatible with debit cards – albeit, you need to check what fees apply.
To give you an example of the contrast between brokers – crypto platform Coinbase charges 3.99% on debit card transactions, whereas eToro charges just 0.5% (only for non-US deposits).
Buy IOTA Credit Card
Credit cards are a fast and convenient way to buy IOTA. However, it’s crucial you are aware of any additional fees this payment type often comes with – such as the ‘cash advance’ This can be around the 3-5% mark. This is sometimes charged by credit card companies when depositing funds at an online brokerage.
Some platforms charge their own fees for this method or may even stipulate a higher investment amount. In contrast, eToro charges no extra fees for processing a credit card purchase – plus you will only pay the previously mentioned 0.5% conversion fee if USD isn’t your native currency.
Buy IOTA Paypal
We often associate PayPal with safe online purchases, so it will come as no surprise that you can use it to buy IOTA. Of course, this will depend on the broker in question, as some platforms don’t accept this e-wallet.
eToro enables you to deposit funds into your account and buy IOTA using PayPal and will still only charge you the 0.5% exchange fee for non-US deposits.
Strategies help us stay on track when buying cryptocurrencies, so why not think about this before placing your first order? Your entry into the world of cryptocurrency investing will run much more smoothly with a plan behind you.
If you don’t know where to start, not to worry – you will see below some of the simplest and most effective strategies used today when investing in IOTA.
Dollar-cost averaging is one of the easiest systems to incorporate into your own strategy. Think about how much money you would like to allocate to IOTA, divide it up, and spread it across multiple investments.
Let’s say, for example, you wanted to dedicate $500 per month to IOTA. This might see you making purchases of $125 per week, each time getting a different cost price. Dollar-cost averaging is a well-known way to hedge against the volatility that makes digital currencies so attractive, yet risky.
Buy the Dip
To ‘buy the dip’ is not too dissimilar to getting a discount on an undervalued product. You will wait until IOTA has fallen in price (usually by a sizeable amount) and buy whilst it’s below its market value. This of course means that you can buy low and hopefully sell high further down the line.
Let’s look at a simple example:
- Within days, the price of IOTA has fallen by 26%
- After analyzing data on the cryptocurrency, you consider this to be a temporary decrease in value
- This leads you to buy IOTA whilst it’s at a cheap price
As you can see, this is what it means to buy the dip. If you are correct and the price of IOTA increases again, you will make a profit from cashing out your investment later on.
If you want to buy IOTA in a more conservative way, consider adding some diversity to your portfolio. By investing in more than one asset class, you will better protect yourself against the volatility of a singular market.
Diversifying is a great survival technique for investors and traders from all walks of life. To give you an indication of where to start, you might decide to add some gold or perhaps stocks to your portfolio. If IOTA isn’t performing so well, the chances are this will balance out nicely.
IOTA Trading Signals
IOTA trading signals are nothing new, however, if you haven’t heard of them let us explain. When signing up for a crypto signals service, you will receive a number of trading ‘tips’ per week, depending on the provider. This saves you from performing in-depth technical analysis on IOTA or your chosen pair.
For instance, here at Learn 2 Trade, we have a team of cryptocurrency experts who scour the markets for money-making opportunities. They then send the information discovered to our Telegram group as a signal. Importantly, we always include every aspect of your order as standard, to cut out the guesswork. This includes those all-important stop-loss and take-profit order prices.
How to Buy IOTA Online – Full Walkthrough
eToro came out on top of our most trusted IOTA broker. As such, we are going to use the platform for this sign-up walkthrough.
Step 1: Sign Up With IOTA Broker
Go to the eToro website and click ‘Join Now’ to reveal the below sign-up box.
Next, fill in your details as prompted and click ‘Create Account’ to finish.
Step 2: Upload Some Identification
You will need to upload some identification to prove to the brokerage that you are who you say you are – a passport is fine. This is all part of KYC to keep the space free from crime. eToro also requires you to prove your address. You can use a bank statement or utility bill for this bit, but it should be dated within the last 3 months.
If you don’t have your passport handy, you can upload your ID at a later date. However, please note that you cannot request a withdrawal or deposit an amount beyond $2,250 until this is complete.
Step 3: Deposit Funds Into Your Account
Before you can buy IOTA, you need to see what payment methods are available to you and add some funds to your account. You can choose from a debit/credit card, e-wallet, or bank wire. When you have double-checked that everything is correct you can click ‘Deposit’.
Step 4: Buy IOTA
Now, all that’s left to do is find IOTA at eToro, click ‘Trade’, and fill in your order.
As we mentioned, you can invest in IOTA from just $25 at eToro and will not pay any commission for doing so.
To complete the investment – click on ‘Set Order’.
More people than ever are taking an interest in buying digital currencies and with so many online brokers around, it’s never been easier. A word to the wise though – choose your IOTA trading platform with caution as not all are trustworthy.
When looking to buy IOTA from home, you should strongly consider adding strategies to your investment plan, like diversifying. By investing in other markets like commodities, for example, you can protect yourself against cryptocurrency volatility.
Ultimately – eToro is strictly regulated and offers some great asset options for diversification. Additionally, you can invest in IOTA from $25 without being charged any commission fees!
eToro - Buy and Invest in Assets
eToro - Buy and Invest in Assets
What is the minimum amount of IOTA you can buy?
The answer to this question depends on the IOTA provider you sign up with. For instance, at eToro you can invest from just $25 in digital currencies, whereas some brokers don't support such low investments.
How much is IOTA likely to be worth in 5 years?
Some market predictions suggest that IOTA could be worth $9.847 in 5 years' time. If you want to observe the likelihood of this price increase, you will be better off learning the complexities of technical analysis.
Where is the best place to buy IOTA?
After much research, we can conclude that the best place to buy IOTA is eToro. Not only are you able to invest in the crypto-asset from a minimum of just $25 commission-free, but CySEC, FCA, and ASIC regulate the broker. Not only that, but you can store your investment safely at no additional charge and will have access to heaps of alternative markets.
How can I sell IOTA?
If you signed up with an online broker to buy IOTA, this is undoubtedly the easiest way to sell it. At eToro, all that's required is to place a sell order - and the platform will credit your account accordingly.
Can IOTA make you rich?
It's hard to say whether you might become rich from buying IOTA. The trick is to educate yourself on the ins and outs of the market, learn technical analysis, and incorporate strategies. If this all sounds too much for you, then why not try out a crypto signal service or a Copy Trader feature?