Where and How to Buy IOTA Cryptocurrency | Step by Step Guide

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how to buy iota

While IOTA just began trading in mid-2017, the cryptocurrency quickly reached top 10 market cap status. Despite its large market capitalization and interest from investors, IOTA is currently only listed on two major exchanges. In this guide, I’ll show you step-by-step how to buy IOTA from Binance and Bitfinex.

Note: U.S. investors are currently unable to use Bitfinex. Non-U.S. residents looking to use Bitfinex, must maintain an equity balance equivalent to $10,000 or more. If you live in the U.S. or don’t want to deposit the equivalent of $10,000+, this essentially leaves Binance as your only option.

IOTA Exchanges

Binance is a cryptocurrency only exchange, meaning it does not support fiat currency (USD, EUR, etc.) deposits or trading. You’ll need to use another cryptocurrency like Bitcoin or Ethereum to buy IOTA on Binance. Binance accepts users from most locations (including the U.S.) and only requires you to verify your account if you wish to withdraw more than the equivalent of 2 Bitcoin / 24 hours.

Learn How to Buy Bitcoin and Ethereum Here.

Bitfinex does not accept U.S. residents and also requires a minimum account balance of $10,000 or greater to use their exchange. The exchange does allow fiat currency deposits (USD & Euro Bank Wires), though you will need to verify your account which can take 6-8 weeks. Users depositing cryptocurrency, rather than fiat currency, do not need to verify their accounts in most cases.

ExchangeAccepts U.S. ResidentsDeposit / Buy MethodsTrading FeesWithdrawal Limits
Binance logo

Visit Binance

YesCryptocurrency0.1%2 BTC / 24 hours for unverified accounts

100 BTC / 24 hours verified accounts


Visit Bitfinex

NoCryptocurrency /

Bank Wire

0.2% or lessUnlimited Cryptocurrency Withdrawals

Fiat users must verify accounts which takes 6-8 weeks.

How to Buy IOTA on Binance

Buying IOTA on Binance is a relatively straight forward process. We’ll show you how to do this, from creating an account to withdrawing your IOTA. While this is no guarantee, many of you should be able to go from creating an account to buying IOTA 10-20 minutes.

Find out more about Binance in our Review.

1) Create Your Binance Account

The first step is to sign up for a Binance account. Registration is simple, only requiring an email address and to create a password.

Binance Sign up Register

Once you've submitted the registration form, you'll need to verify your email address. This is simply done by clicking the link Binance has emailed you.

Binance Email Sent Sign Up Confirmation

2) Secure Your Binance Account

Upon logging into your account for the first time, you'll likely be prompted to enable 2-Factor Authentication (2FA). While this is not required, it's highly recommended.

Binance 2FA Prompt

2FA helps to secure your account by requiring an additional passcode when login attempts are made. Binance offers 2FA through the Google Authenticator App and SMS text messaging. We recommend using Google Authenticator, as SMS 2FA has known security vulnerabilities.

Once you select Google Authenticator, Binance will show you step-by-step how to set it up.

Binance Google Authenticator Set Up

You can also set up 2FA at any time from your "Account" page.

Binance Account Page

From your "Account" page, you'll also be able to submit verification documents, should you need higher withdrawal limits than the default 2 BTC equivalent per 24 hours.

3) Deposit Bitcoin or Ethereum to Binance

Locate the "Deposits" page, under "Funds" in the main menu. Here you can search for the cryptocurrency you want to deposit. We recommend Ethereum over Bitcoin, as it's faster and has lower network fees (fees from their respective networks, not Binance).

In this example, we'll be depositing 1 ETH.

Binance Deposit Ethereum Step 1

Once you've selected the cryptocurrency you want to deposit (in our case Ethereum), Binance will give you an address where you can send your deposit.

Binance Deposit Ethereum Step 2

After you've sent funds to the given address from your cryptocurrency wallet, your deposit will soon show up as pending while it completes the required number of block confirmations. For our ETH deposit, it took about 5 minutes for our deposit to be completed. Other cryptocurrencies like Bitcoin, that have longer block confirmation times, will take longer to deposit.

Binance Pending ETH Deposit New

 

Step 4) Buy IOTA on Binance

Now that you have Bitcoin or Ethereum ready to be traded, head to the exchange portion of Binance (1). Next locate the IOTA trading pair you wish to trade (2).

Binance Buy IOTA

The buy order form (3) is where you can make your IOTA purchase. There are two types of orders available, market orders and limit orders.

As shown in the above image, a market order allows you to enter the amount of IOTA you want to buy, then automatically buys it at the best price available from sellers on the exchange.

Alternatively, a limit order allows you to enter both the amount and a limit as to what price you’re willing to pay. With a limit order there’s no guarantee your order will be filled, as there may be no sellers willing to sell at your set price.

After you’ve placed your buy order and it’s been matched by sellers on the exchange, the IOTA you purchased will be available in your Binance wallet. Note that my Binance account already had 11,717 before I placed my 200 IOTA buy order.

Binance IOTA Wallet

You can then withdraw your IOTA by clicking the withdraw button.

Buy IOTA on Binance

How to Buy IOTA on Bitfinex (Non-U.S. Residents)

While Bitfinex is not an option for U.S. residents, it’s another choice if you’re located elsewhere. As you’ll see in the step-by-step process below, Bitfinex works very similarly to Binance.

You can learn more about the exchange in our Bitfinex Review.

Step 1) Sign up to Bitfinex

To sign up to Bitfinex, you’re required to give a username, email, and password. After submitting this form, you’ll be sent an email to verify your email address. Click the verification button and log in.

Bitfinex Sign Up

 

Step 2) Secure Your Bitfinex Account with 2FA

As always, we recommend setting up 2-Factor Authentication (2FA) immediately to add an additional security measure to your account. Bitfinex offers a variety of 2FA options. Personally, we favor the widely trusted Google Authenticator.

Aside from 2FA, Bitfinex offers a variety of other features to further secure your account. These features and 2FA can be found on the security page of your Bitfinex account.

Bitfinex 2FA

Step 3) Deposit Bitcoin or Ethereum to Bitfinex

Since IOTA is traded against Bitcoin and Ethereum on Bitfinex, it’s easiest to deposit one of these cryptocurrencies to your Bitfinex account.

Click the deposit button in the upper right-hand menu of your Bitfinex account and then select the cryptocurrency you want to deposit.

Bitfinex Deposit Options

After clicking the cryptocurrency you want to deposit, you’ll be taken to a deposit page for that crypto. You’ll have the option to generate an address for an “Exchange Wallet”, “Margin Wallet”, or “Funding Wallet”. Since our goal is to just buy IOTA, choose to generate an exchange wallet address.

In this example I’m sending 0.2 ETH to my Bitfinex Ethereum exchange wallet.

Tip: Always make sure to send cryptocurrency to the right type of cryptocurrency wallet. For example, make sure you don’t send Bitcoin or Ethereum Classic to an Ethereum exchange wallet address.

Step 4) Buy IOTA on Bitfinex

Locate your trading pair in the “Trading” menu of Bitfinex’s navigation. For this example, I’ll be trading ETH for IOTA, so I’m choosing IOTA/ETH.

Like Binance, Bitfinex offers the choice of market and limit orders (as well as other order types). In this example I’m placing a market buy order. By simply entering the amount of IOTA (aka MI, MIOTA) I want to purchase and clicking “Exchange Buy”, my order will automatically be filled at the best price available from Bitfinex sellers (1).

If you choose to place a limit order, you can view the prices other investors are currently bidding and asking in the order book (2). This can help you decide what price to limit your purchase order for.

Bitfinex Buy IOTA with Ethereum

After your order is completed, the IOTA you bought will be shown in your account’s “Balances” (1). You can withdraw your IOTA by clicking “Withdraw” in your account menu (2), then choosing IOTA on the “Withdrawal” page (3).

Bitfinex IOTA Balance and Withdrawal

Buy IOTA on Bitfinex

Storing Your IOTA

IOTA has yet to be added to many of the popular multi-currency wallets. For now, the best option is IOTA’s GUI Client.

The Unhashed Team is dedicated to teaching the world how to safely get involved in cryptocurrency.

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