IOTA is a distributed ledger and cryptocurrency platform primarily designed to facilitate transactions in the Internet of Things (IoT) ecosystem. Rather than using a traditional blockchain-based structure, it makes use of a newly-developed system called the Tangle.
Tangle was created by IOTA’s developers based on Directed Acyclic Graphs. This system was created to tackle some issues faced by blockchains like scalability and security. Tangle removes the need for mining without compromising centralization.
Eliminating the need for miners rids the system of the additional fees that usually come with minting cryptocurrencies. This makes IOTA a completely free-to-use platform.
With Tangle, transactions can be processed simultaneously rather than sequentially. With every new transaction, two previous ones are confirmed. So, the more people use the system, the faster information processes. This differs significantly from common blockchains since mining usually requires more time and effort.
Cryptocurrencies like Bitcoin and Ethereum are well-known for the volatility of their prices, and IOTA is no exception. Despite operating differently compared to other virtual currencies, the price of IOTA tokens is mostly driven by the same supply and demand forces affecting traditional blockchain-based crypto markets.
Unlike fiat currencies, cryptocurrencies usually have a limited supply. For IOTA, production is capped at 2,779,530,283 coins. This quantity restraint, coupled with increasing demand for IOTA coins, can lead to an increase in the value of the currency. Conversely, if demand for the coins drops, this will have a corresponding negative effect on its price.
Between 2018 and 2020, public opinion has shifted from doubtful to more accepting and even favorable towards cryptocurrencies. As people have become increasingly informed about crypto markets, their desire to invest in virtual currencies has heightened. A resulting surge in potential investors can have an impact on the value of coins.
The economic situation of traditional financial markets has a significant effect on the price of virtual currencies. Crises in conventional financial systems may inspire people to turn to other forms of security such as cryptocurrencies. This, in turn, can cause an influx in potential buyers and inflate prices.
Due to IOTA’s focus on encouraging machine-to-machine transactions and contributing to the IoT ecosystem, one of IOTA’s major price drivers is its corporate partnerships. This capacity to form connections with industry giants has led to an increase in awareness and viability of its currency. However, negative news regarding these partnerships can cause an adverse response.
Buying IOTA coins is not complicated. Only a few steps are required to become an IOTA investor.
Start by choosing a crypto trading platform that hosts the IOTA currency. Plenty of platforms offer this option, so new investors can pick the one with an interface that feels most convenient and easy.
On the chosen platform, create an account. This typically entails providing required personal information and waiting for verification.
After setting up an account, choose a method to fund IOTA purchases. Most exchange platforms support a variety of payment options such as debit, credit, Paypal, or wire transfers. Be aware that some brokerage sites require a minimum deposit.
At this point, users may set up a digital wallet. Most trading platforms have an internal wallet function, but private wallets can reduce the possibility of loss due to hacking.
Platforms will offer the option to input the number of IOTA coins the user wishes to acquire and make an order. Check the current exchange rates to evaluate the current price before completing the purchase.
Exchanges are digital marketplaces where cryptocurrencies are purchased using fiat money or other cryptos. These platforms act as intermediaries between buyers and sellers and are favored by professional traders.
Since IOTA is a relatively new cryptocurrency compared to bigger names such as Bitcoin and Ethereum, many exchange platforms don’t offer IOTA. However, several major digital asset exchanges freely trade IOTA tokens, including Binance, Bitfinex, OKEx, and Omoku.
Instant brokers either have their own stock of digital assets to sell or they place an order on behalf of the buyer on the exchange platform. This method is quicker and easier but usually involves higher fees.
As with any other existing cryptocurrency, trying to predict when the “right time” to buy IOTA tokens is like predicting the future. However, with the variety of factors such as technical analysis, assessing market conditions and understanding trends, it is possible to interpret what may be affecting the price of the currency, and help with making an educated decision with purchasing IOTA tokens.
Cryptocurrencies, in particular, are susceptible to security issues. Despite IOTA’s efforts in tackling this problem by developing a different system from other blockchains, it is still not completely immune to malicious attackers.
When setting up an account on exchange platforms, users are usually required to share sensitive personal information to verify their identity. This process differs among various platforms, but most of them may ask for a passport copy or other identification documents.
It is possible to store cryptocurrencies in an exchange platform’s built-in wallet, but doing so may make the stored coins vulnerable to hackers. Opting to use a private virtual wallet that will enhance security and greatly decrease the risk of digital theft.
The crypto world is a competitive market, with an ever-growing roster of new currency choices due to the constant need for improvement and innovation. What started as a small market pioneered by the creation of Bitcoin has become an empire of big names such as Ethereum, Binance, LINK and Stellar.
Now, traders can keep track of and invest in an extensive list of available altcoins. Among these is a relatively new currency and the first bandwidth-hard blockchain: PKT Cash (PKT).
PKT is a Bitcoin fork designed to enable Internet access without paying a traditional ISP. How is this possible? Today, when a person wants Internet access they contact their local cable company. With PKT, the network pays people to connect their bandwidth, which facilitates the ability for Cloud ISPs to provide local Internet access to people via mesh networking. The PKT technology amaturizes this ability to provide local Internet access, which decentralizes and reduces the cost of Internet access.
The PKT Network provides an economic incentive for people to connect to the network. These mining rewards are paid out every 60 second in the form of PKT Cash. Mining is done by connecting Internet infrastructure to the network and performing a proof of work called PacketCrypt, which is the world’s first bandwidth-hard proof of work. Participants are paid in the native currency called PKT Cash.
PKT Cash has numerous utilities including, paying for VPN connection speed at AnodeVPN, as well as paying for utility bills at PKT Pal. People are able to mine PKT Cash with their Internet, and then pay their Internet with their PKT Cash. PKT Cash is also designed for microtransactions, so that bandwidth can be bought, sold and traded using PKT Cash in a decentralized bandwidth trading market.
While waiting for PKT coins to be publicly-listed on exchanges, trading is currently facilitated through a PKT Trading Group Chat. The group chat, which can be accessed via Telegram, and provides a forum for buyers and sellers to directly negotiate transactions. This method is the most accessible way to acquire coins. However, transacting over Telegram can have risk. It is recommended to use an escrow service to ensure the security of the transaction.
In order to mine PKT coins, set up a wallet. On the CLI Wallet and the Graphical User Interface (GUI) for Mac is recommended for mining due to its scalability. The Electrum Wallet is only usable for storing PKT Cash coins.
After creating a virtual wallet, install PacketCrypt on your device. PKT Cash is the only project that uses the PacketCrypt proof-of-work algorithm, which requires bandwidth to be paid for connecting to the PKT Network. Community members are encouraged to join the PKT Chat for any inquiries related to wallet and mining.
4 best places to buy IOTA with 26 reviews. (n.d.). Cryptoradar: Compare the Best Cryptocurrency Exchanges. https://cryptoradar.co/buy-iota
Bhambhwani, S., Delikouras, S., & Korniotis, G. (2019, August 19). The fundamental drivers of cryptocurrency prices. VOX, CEPR Policy Portal. https://voxeu.org/article/fundamental-drivers-cryptocurrency-prices
Bowden, S. (2020, December 22). 5 fast facts about IOTA for 2021: The Internet of things cryptocurrency. Commodity.com. https://commodity.com/cryptocurrency/iota/#What8217s_the_Price_of_IOTA
Buy IOTA tokens. (n.d.). IOTA Foundation. https://www.iota.org/get-started/buy-iota
M, L. (2020, July 21). Where and how to buy IOTA – The complete guide. BitDegree.org Crypto Exchanges. https://www.bitdegree.org/crypto/tutorials/how-to-buy-iota#how-to-buy-iota-using-binance-sign-up
Meyer, J. (2019, June 26). How to buy IOTA cryptocurrency: A guide. TheStreet. https://www.thestreet.com/how-to/how-to-buy-iota-cryptocurrency-14998216
PKT. (n.d.). PKT Cash. https://pkt.cash
Share this article with your friends
Updates
The PKT Town Hall Newsletter – Issue #5 The PKT Project has experienced substantial growth in recent months. Contributing community members are focused on building the community, launching real world…
Updates
As August 2021 wraps up, the PKT community is growing at a remarkable rate. There are many notable milestones and achievements to share. PKT is an open-source project. All of…