As the cryptocurrency market continues to grow, more and more currencies are being added. One of the most interesting currencies finding their way into the market is IOTA. It is the 7th largest cryptocurrency with a market cap of $11 billion. This makes it an exciting investment prospects to investors.
However, despite being an amazing coin with high scalability, speed, and more, it is surprising that IOTA is not being talked about enough on social media. If you have also been thinking of an excellent crypto option to consider this year, you may want to look in the direction of this underrated token; IOTA.
What is IOTA?
IOTA (Internet of Things Application) is a type of cryptocurrency that is radically different from other popular cryptocurrencies. One unique thing about the currency is that it doesn’t use blockchain technology like other cryptos. Instead, it uses its own distributed ledger known as Tangle.
The system uses Tangle to confirm transactions just like Bitcoin’s blockchain. IOTA’s enthusiasts believe that the Tangle system used by IOTA is much faster and efficient than blockchain. And that is one thing that makes the currency more scalable.
IOTA was created in 2015 to boost data sharing and execute transactions between devices in the Internet of Things (IoT) ecosystem. Initially, it was not created to be a cryptocurrency, but the development happened when the company changed focus from creating IoT hardware chips to creating decentralized networks after realizing how much potential the IoT network could have as a cryptocurrency.
The Tangle Ledger
IOTA relies on a more efficient blockchain alternative known as the Tangle. Tangle is a protocol that works as a Directed Acrylic Graph (DAG), where a central coordinator is used instead of miners. The coordinator collects data from the distributed ledger to confirm transactions. Tangle is so much faster than blockchain and can handle up to 1000 transactions per second.
For conventional cryptocurrencies like Bitcoin, having more transactions conducted on it at a time would normally slow down the speed of the system, which could also attract higher fees. For instance, in 2017, when the Bitcoin network experienced an influx of users, the network suffered slow speed. But IOTA uses a unique structure that makes it faster even when the number of users on it increases.
MIOTA is the native utility token within the IOTA’s sphere for enabling transactions. It is the smallest unit of the IOTA coin. The token is used to account for transactions, initiate smart contracts, and pay fees. The total supply of the coin is capped at 27 quadrillion IOTA
Advantages of IOTA Compared to Bitcoin
- No transaction fee: unlike Bitcoin transactions that attract high fees even in the case of microtransaction, there is no fee required with IOTA coins.
- No mining is involved: mining of Bitcoin does not only require special technology but also involves lots of energy and electricity. But with IOTA, there is no mining whatsoever needed to generate IOTA coins.
- Infinite scalability: with Bitcoin, scalability is very limited. But with the Tangle and the DAG approach of IOTA to transactions, there is no limit to scalability. And this is one reason IOTA is considered a better blockchain.
- Decentralized system: the IOTA system is decentralized because users and validators are all part of the same chain.
- Promising future: since IOTA is focused on the Internet of Things which is expected to become a huge market in the coming years, the cryptocurrency is said to have a bright, promising future ahead of it.
These and many more benefits offered by IOTA are what makes people believe the currency could be underrated. These benefits, especially over Bitcoin and other cryptocurrencies, are enough for IOTA to be talked about in every crypto community. But it seems the currency is not getting enough attention as it deserves.
Price History of IOTA
This is another pointer that every investor and trader should consider to help determine if a particular cryptocurrency is a right investment or not. Even though the crypto market is a highly volatile one, the price history of a token can still help predict how the coin will perform in the coming years.
IOTA came into the limelight in 2017, even though it was created in 2015. 2017 was a great year for virtually all the cryptocurrencies, including new ones just joining the market. Most cryptos, up till today, are still struggling to reach the milestone they achieved in the year. Even though IOTA was pretty new to the market at the time, it quickly joined the bull run and had one of the biggest price leaps. Between November 20 and December 18 2017, IOTA jumped from $0.851553 to $4.2369.
Against the thought of many people, IOTA was able to stabilize above the $4 mark until early January 2018. But by June, IOTA, together with other cryptocurrencies, begin to experience a decline in price. By the time it was mid-2018, the coin was already back at $1 and remained there until the recent coronavirus crash when its price dropped even further. The coin was traded at $0.137 by the middle of March 2023.
Fortunately, this didn’t happen for so long. Another bull run happened towards the end of 2023, and most cryptocurrencies began to increase in price. By February 2023, the token is already back and selling at a price over $2. But now, IOTA is selling at $1.07.
IOTA Price Prediction 2023: What Experts Say About It
Just like most other cryptocurrencies, IOTA also had a great start in 2023. And with smart home automation getting more acceptance, the Internet of Things is increasingly becoming mainstream. That means a great growth potential for MIOTA this year. So if anyone is considering investing in IOTA, this might just be the best time to do so. Plus, experts’ predictions about the cryptocurrency has been bullish.
For instance, Wallet Investor believes the coin will finish the year at $2.708 based on the current uptrend surrounding it.
Trading Beasts was also positive about the token when they predicted that its price might go as high as $2.4493 in the third quarter of this year. However, they also predicted price might slightly fall towards the end of the year to settle at $1.7652.
Previsioni Bitcoin, an Italian price analysis platform, is even more optimistic than Wallet Investor and Trading Beast as it predicted that the price of IOTA would rise month-to-month and finish 2023 at a staggering $5.05.
All these predictions about IOTA show that IOTA may be a good ground to sow for investors looking for where to invest their money this year. If you are ready to invest, below are some popular ways to invest in IOTA.
How Does One Invest In or Buy IOTA Tokens?
There are a couple of options available to you when looking to invest in IOTA. You can either;
- Buy and hodl the coin, which is considered a long-term form of investing in the coin
- Do active short-term trading with it
- Invest in IOTA-based applications or startups
To get started with trading or holding IOTA, you will need to first buy some coins. However, because IOTA is a relatively new crypto, not all exchanges list it on their platforms. But you can still get it from some popular exchanges and platforms listing it. Some of them include Binance, eToro, and AnyCoin Direct.
We find AnyCoin Direct to be the most reliable option here because it allows you to quickly and easily buy IOTA even with your credit card. It provides a wide range of payment methods, and the process is super easy on their intuitive platform.
IOTA – A Better Blockchain
IOTA’s unique approach to the decentralized sector is a refreshing break from the norms. Considering the technical aspect of the platform, it won’t be difficult to see why IoT-based decentralized networks are sure to see more adoption moving forward. Right now, IOTA is one of the coolest projects in the market, even though it has been less talked about. Most smart investors see it as an underrated currency and so could be a good ground to invest this year.