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The ‘oil’ of the Internet of Things
IOTA is a new-generation cryptocurrency that was created in 2015 to serve the needs of the IoT (Internet of Things) industry (hence the name IOTA). It was designed to be less complex and lighter than other cryptocurrencies in order to make the micro-transactions which are generated by the tens of billions of IoT devices as frictionless as possible. IOTA blockchain has no “blocks”. Instead, it uses a system called Tangle which allows free and instantaneous transactions. Tangle can handle unlimited transactions and is overseen by the non-profit IOTA Foundation which maintains it as a license-free technology.
IOTA is the token name of the cryptocurrency that fuels the platform, and it also represents the smallest unit of the token. IOTA applies the SI unit of measurement, with MIOTA representing the most traded unit of IOTA. One MIOTA (‘mega’) refers to one million IOTAs. There is also the KIOTA (‘kilo’), which refers to one thousand IOTA, and GIOTA which represents one billion IOTAs.
MT4 Symbol: MIOTAUSD
Trading Hours: 24/7
Leverage:
Typical spread: 0.8% over-market
The maximum accumulated position size for MIOTA is £/$/€ 50K.
The IOTA foundation was established in early 2015 by David Sønstebø, Dominik Schiener, Serguei Popov and Sergey Ivancheglo. These financially savvy Germans were one of the crypto space pioneers and the first to pinpoint the need to create a new type of transaction grid to better support the growing industry of IoT. IoT initially means that any device with a chip can be leased in real time. So why do these devices need a special e-coin? Because they generate tens of billions of micro-transactions (and even nano-transactions) and require a super-fast and scalable transaction technology.
In November 2015, IOTA raised 1,337 Bitcoins on a global crowdsale and at the end of 2016 more than 3 million transactions were processed on the IOTA platform. In November 2017, MIOTA was valued at the modest price of $0.37. It then experienced a solid climb, exceeding a market capitalization of $1.5 billion on its first day of trading.
In November 28, 2017 IOTA announced partnerships with mega IoT players such as Cisco, Microsoft, Samsung and Volkswagen. The trading volume surge that catapulted from this announcement was historic; in less than 24 hours, exchanges processed more than $800 million worth of trades (!), most of which were conducted on Bitfinex.
Some investors believe that IOTA is on the path to becoming No. 3 in market cap and beat the popular Bitcoin Cash, simply because it has a real technological edge over its peers:
All thanks to the technological breakthrough that is the backbone of IOTA: Tangle.
Tangle is a blockchain with no blocks and no chains! It looks something like this:
Its ledger technology is based on a Directed Acylic Graph (DAG) that functions in a similar way to a blockchain but with a peer-to-peer network and a validation mechanism.
This means that:
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We encourage you to learn more about IOTA trading by visiting our trading conditions & charges page.
The difficult, old fashioned way to trade IOTA cryptocurrency is to first find an exchange that has IOTA for trading. Then you’ll need to transfer some Bitcoin or other cryptocurrency to that exchange to trade for the IOTA since most exchanges won’t allow you to use your fiat currency to purchase. Hopefully during all this you haven’t lost or forgotten any of your private keys and there hasn’t been an attempt to hack your wallet and steal your coins. Or you can come to AvaTrade and trade on IOTA CFDs. It is much simpler, there’s no hacking risk, and you can still profit from the movements in IOTA’s price.
Like any other cryptocurrency IOTA’s price is pretty volatile, making it suitable for trading. However, the coin doesn’t appear to be the best for long-term investing as it has dropped to very low levels and other than a bounce following the March 2020 meltdown the coin hasn’t seen nearly the interest it once had. IOTA is quite an old project in cryptocurrency terms, but it seems like many have forgotten about and are leaving it behind. Of course, blockchain technology is quite new, and breakthrough developments happen all the time. A major upgrade to the protocol, or some ground-breaking news could certainly rocket the price of IOTA higher.
If you’re going to trade IOTA we recommend you do it via the CFD products offered at AvaTrade for the greatest safety. With our CFDs you can trade on the price action in IOTA without putting your capital in danger of theft from hackers. As recently as February 2020 IOTA had to shut down its entire network after hackers exploited a vulnerability in the official IOTA wallet app and stole millions of dollars worth of IOTA coins. With a network shutdown like that no one was able to move their coins, even those who weren’t part of the theft. There’s no threat like that if you trade IOTA via CFDs.
Register now and start trading MIOTA to USD with AvaTrade.