How To Buy IOTA in Australia
Alright, so you want to buy some IOTA. First things first, a quick crash course on buying crypto in general.
Cryptocurrencies are bought through exchanges. Exchanges are platforms you need to sign up for (like forums/apps or any other website with user accounts). Once you’ve signed up, you can log in, deposit credits/money (preferably AUD) into your account. And then you can use that money to buy cryptocurrencies on the platform/exchange.
Buying IOTA in Australia has become pretty easy since CoinSpot came onto the crypto scene. It used to be the case that you had to buy either BTC or ETH, then transfer that to another exchange like Binance or Bittrex, and then trade them for IOTA. And to cash out, you’d have to do the whole process in reverse. With Coinspot you can buy IOTA with AUD, no need to go through BTC or ETH, very handy!
We’ve laid out the steps on how to get started below!
How To Get Started
Setup Your Account
As mentioned above, Coinspot is our go-to for trading cryptocurrencies in Australia, definitely if you're starting out. It's the most trustworthy exchange available and it makes trading buying, selling and switching coins incredibly easy.
After creating your account the first thing you'll want to do is Enable 2FA (2-factor authentication, adds an extra step for logging in to your account, very easy to setup), you should see the message below at the top of your page while on the dashboard.
Verify Your Account
Before you do anything on CoinSpot you'll have to verify your account.
Click top right on Account > Verification
First, you'll have to verify your email and mobile number before continuing with the verification process.
You will then have to fill in all of your personal information including documents, don't be alarmed uploading this information, every exchange requires it. It's to ensure your safety and make everyone on the platform accountable.
Connect Bank Account
You'll need to connect up your bank account if you want to buy coins on the platform.
Click top right on Account > Bank Details
Fill in the required bank information.
Once your account is verified and you've added your bank account details you can start buying and selling cryptocurrency.
Go to Buy/Sell
This page lists all the coins that CoinSpot has available (which is a lot). Simply click on "Buy" and input the amount of the coin you want to purchase or the amount of AUD you want to spend.
We highly suggest paying with POLi as it allows for near-instant transactions.
Easy as that! You now have bought some cryptocurrency. We highly recommend moving your cryptocurrency to a hardware wallet if you are planning on holding it for a while. If you are planning on day trading, or trading fairly regularly we suggest keeping it on the CoinSpot platform.
Where To Buy IOTA
We highly suggest using CoinSpot to buy and sell Cryptocurrency. We've done a comparison of the top 10 exchanges in the world for Australians to use and CoinSpot clearly deserves the top spot, you can see our full CoinSpot review here.
CoinSpot is by far our most recommended exchange for Australians. They have an easy to use platform and an online wallet that makes trading simple for new users. They have a strong sense of community and are constantly posting updates and adding new coins to their portfolio. This is the most trusted exchange in Australia and arguably the best exchange globally.
What is IOTA?
Cryptocurrencies continue to pop-up that are built on the same blockchain model as Bitcoin. However, there is a new currency out there using a completely different architecture that may change the game. That currency is IOTA.
IOTA (which stands for the Internet of Things Application) is a very unique cryptocurrency that has entered the scene.
How is IOTA different?
It does not use the blockchain ledger design typical to cryptocurrencies and, as its name indicates, was created for the Internet of Things. Its currency is called a MIOTA, and the system relies on architecture based on new technology called The Tangle.
The Tangle is quite different from blockchain. It is a Directed Acyclic Graph (DAG) that requires a sender in a transaction to also verify, or proof, another transaction at the same time. So, both making a transaction and validating another transaction occur together.
Since this is the case, the role that miners play in blockchain-based currencies is eliminated. Instead, only users of the currency who are actively making transactions can interact with the currency.
This makes IOTAs even more truly decentralized than Bitcoin or other blockchain currencies, since there are no third-party actors of any kind. With blockchain currencies, miners are required to enable the system to operate, but do not have to participate in the use of the currency. IOTA ensures that only those using the currency can make the system operate.
Compared to typical blockchain cryptocurrencies, there are a number of benefits of IOTA and The Tangle that result from its user-based set-up:
- Scalable: because users themselves proof, this means that as the number of users increase and a higher demand is placed on the IOTA system, the system will run faster. This works the opposite of Bitcoin and blockchain currencies, which slow down as users increase.
- Modular: again, as a result of each individual user being able to perform a transaction and proof a transaction, it creates even more modules, allowing for smaller transactions (or microtransactions) as well as faster ones.
- Decentralized: we have already touched on this above – since every user and only users can proof transactions as they make transactions, there are no third-party actors at all.
- Fee-less: finally, since miners are not necessary and users do the proofing and mining themselves, there is no one to pay a fee to.
History of IOTA
IOTA was initially born in 2014, but it was not fully developed until 2015 when it had its Initial Coin Offering. It was developed by four cryptocurrency enthusiasts: David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Dr. Serguei Popov.
In 2016, the IOTA Foundation, run out of Germany, came into being, and the IOTA has grown consistently since then.
Pros/Cons of IOTA
To a certain degree, we have already touched base on some of the pros of IOTA. However, in addition to the scalable, decentralized, modular, and fee-less attributes listed above, there are a few more pros, and of course, we need to cover the cons as well:
- IOTA is very resistant to attack because of the Tangle. It would be near impossible for someone to have the hashing power along with a simultaneous view of a sufficient number of nodes to launch an attack.
- IOTA’s network is also resistant to quantum-based computing, which is another potential threat to blockchain currencies.
- It is currently sitting right at number 11 for cryptocurrencies on the world market, which is a pretty big deal. Huge players include SatoshiPay, REFUNITE, and CarPass.
- There are quite a few exchanges offering IOTA, including Coinone, Bitfinex, Binance, and OKEX.
- The Internet of Things is continuing to increase and promises to continue doing so. This means increasing applications as well as increasing value for IOTA.
- Concern has been expressed about the IOTA’s reliance on the buggy Curl hash function, which is used to create the digital signatures (and thus confirm the authenticity of someone’s token and transaction).It was believed that attackers would be able to forge a user’s signature and steal their funds. However, IOTA fixed the bug that allowed this to happen and assures users that forging is incredibly impractical due to the topology of the network and the wallet structure.
- Currently, besides using an exchange wallet (which we don’t recommend), there is really only one wallet compatible with IOTA. You can get it from ITOA’s github and install it on your computer.
- As with all cryptocurrencies, especially those that deviate from the more time-tested Bitcoin, there are still many un-knowns that make it risky. Especially since The Tangle is such a new technology, more vulnerabilities could be found.
As stated in the pros, the IOTA is bound to increase in demand as the Internet of Things grows. It has already grown to be number 11 in cryptocurrencies, demonstrating a great deal of strength and promise. Little seems to be standing in the way of it continuing to climb in value and practicality.
Furthermore, IOTA is still relatively cheap per token, unlike Bitcoin, which has skyrocketed of late. If you are willing to be patient, you could invest even a humble amount and potentially see startling returns if IOTA lives up to its promise.