Bitvavo makes IOTA as easy as possible. Here are answers to common questions to help you make your first steps in the world of digital assets.
IOTA (MIOTA) stands for the Internet-of-Things Application and it is the first open-source technology that should make it possible for (micro) transactions to take place between devices that are connected to the Internet-of-Things(IoT). IOTA does not use a blockchain, as many other cryptocurrencies do, but uses the Directed Acylic Graph (DAG). This technique makes it possible for these transactions to take place without transaction costs.
Where in traditional blockchains transactions like blocks are added chronologically and linearly to a blockchain, whereby each block is directly linked to the preceding and the following block, and which are processed by miners, this works differently for IOTA. IOTA uses a consensus mechanism whereby the device that wants to perform a new transaction must first verify two transactions on the network. This means that each transaction is linked to the two transactions that were previously verified and the transactions that were subsequently carried out and verified. In addition, no miners are required and transactions can be processed without transaction costs, which is essential for micro-payments in the Internet of Things. In this way, IOTA tries to avoid the problems of scalability and transaction costs that traditional blockchains encounter, so that many IoT devices can use the network.
Bitvavo makes it as easy as possible to buy digital assets and cryptocurrencies.
1. Sign Up
Create a free account with which you can buy, sell, send, receive and store IOTA. Access your Bitvavo account from every location, on mobile and desktop.
2. Transfer Funds
Verify your account and transfer Euros to your Bitvavo wallet using one of the 8 supported payment methods.
3. Buy and Trade
Buy or sell over 150 digital assets and pay a maximum trading fee of 0.25%. Store your assets in your Bitvavo wallet or send them to your external wallet.
Storing IOTA and other digital assets requires a wallet, but don’t worry: Bitvavo’s hosted wallet allows you to store IOTA without any technical knowledge. Here is a brief overview of the existing wallet options to store your IOTA:
Hosted wallets are wallets where the private keys to your IOTA are managed by a third party such as Bitvavo. Access to your account is protected by a password and other advanced security features. Once you are logged in, you can easily and conveniently manage your IOTA online. Bitvavo offers standard hosted wallets for all digital assets that are offered on the platform.
A software wallet is a program installed on your computer or other device in order to use and manage your IOTA. Using a software wallet gives you full control over your private keys, so you are not dependent on third parties. The risk is that you alone are in charge of the security of your IOTA, and if malicious parties have access to your device, your private keys (and therefore your IOTA) can be stolen.
A hardware wallet is a physical device on which you can store your IOTA offline. It is one of the safest ways to store your IOTA, because the private keys are stored on a separate and offline device. Access to this device is often protected by a password. In many ways, a hardware wallet can be compared to a safe in which your IOTA is stored.
You can use Bitvavo's hosted wallet to easily store, send and receive IOTA. Once you have purchased IOTA on Bitvavo, you can choose to send your IOTA from your Bitvavo wallet to your own software or hardware wallet.