IOTA is an open-sourced, peer-to-peer network designed to facilitate the sending and receiving of payments anywhere on the globe. Although the currency has some similarities to other cryptos, it has one major difference: It does not use blockchain technology, but instead uses directed acyclic graph technology. IOTA was founded in 2015, and was introduced in 2016. IOTA can handle an unlimited number of simultaneous transactions, and all transactions made using the network are free regardless of their size.
What are Some of the Potential Benefits of the IOTA Network?
IOTA may potentially offer a rapid, inexpensive and convenient way to send and receive payments anywhere on the globe. Traditional payment methods, such as credit cards, bank wires or electronic transfers can be expensive, may take a long time to clear and may even incur additional fees. A bank wire sent overseas, for example, may not only incur a significant bank fee for wiring the funds, but then may also require a currency conversion once it has reached its destination. Credit card transactions outside of the U.S. may incur foreign transaction fees, which are typically based on a percentage of the amount. Cryptocurrencies may potentially eliminate such fees, and require no currency conversions since they have the same value anywhere on the globe.
Why Are Investors Getting Involved?
Investors have become increasingly interested in IOTA and other cryptocurrencies recently, as they have seen more interest among consumers. Some have suggested that cryptocurrencies could eventually conquer a significant portion of the global payments market, and as they grow in acceptance their popularity could accelerate.
Also of interest is the fact that most cryptos have a limited amount of coins, tokens or units that can be mined. If demand increases with limited supply, the laws of supply and demand could potentially fuel higher prices.
What Can Price Charts be Used For?
Although many might associate price charts with more active, short-term trading, charts can potentially be a very useful tool for long-term investors as well. Price charts can be used to look for trends in the market, or to spot technical trading patterns that may be used as buy or sell signals. Long-term investors can also look for areas in price that could represent good long-term buying opportunities. Any declines in the market to these levels could be seen as an opportunity to establish a new long position, or add to an existing long position.
Is it Best to Buy One Cryptocurrency or Several?
Diversification is one of the keys to successful long-term investing, and the same holds true when investing in cryptocurrencies. Some currencies may outperform others, or gain more widespread acceptance. Some could even become worthless if they do not become popular with merchants and individuals. A good long-term strategy may be to get involved in several cryptocurrencies, to spread risk and potentially gain exposure to different technologies.
What is the Ticker Symbol for IOTA?
IOTA trades under the symbol MIOTA. It trades on numerous cryptocurrency exchanges such as Coinone, Binance and Bitfinex.