Before you get started buying it’s important to understand the function of a cryptocurrency exchange, and their inherent risks. An exchange is a 3rd party platform that will allow you to buy and sell cryptocurrency, or trade one coin for another.
All cryptocurrency exchanges offer online wallets that can be used to store your tokens without ever having to go through the trouble of setting up an offline wallet. But you should NEVER use an exchange for long term storage of any cryptocurrency. This is because that exchange is a 3rd party that owns and controls your tokens while you store it on their platform. If the exchange gets hacked or becomes insolvent your tokens could be lost, and that kind of occurrence is not as rare as you might think.
That’s why it’s absolutely critical to withdrawal your tokens into an offline wallet for long term storage. Then you are responsible for keeping your tokens secure, and breaches at the exchange level won’t affect you.
Lastly, While the exchanges we are recommending had good reputations at the time this article was published, it’s not unheard of for a legit exchange to become shady or even fail completely overnight. So always make sure you check out what people are saying about that exchange on social media, and Reddit. Always do your own research before doing business with any exchange, and always withdraw your cryptocurrency into your offline wallet as soon as possible to minimize the amount of time your tokens are out of your possession.
Now that we’ve gotten those basics out of the way, let’s move on to buying.
Using these two exchanges is currently the best option for buying and selling IOTA for the majority of users. Coinbase will be where you deposit your traditional money, and exchange it for Bitcoin or Ethereum. You can use a credit card, a linked bank account, or a wire transfer to deposit funds. Each way has a different fee structure and takes a different amount of time to complete.
After buying Ethereum or Bitcoin with Coinbase, you will send it to Binance and exchange it for IOTA. Then just withdrawal your IOTA into the receiving addresses associated with your cold storage seed.
Before you get started with that process you will need to sign up for some accounts and activate them. Below is what you need to do.
- Sign up for a Coinbase Account
If you use the above link you’ll even get $10 in free Bitcoin when you buy $100 worth of cryptocurrency. We will also get a $10 reward for referring you which will help us to expand our site and offer more direct support to the IOTA community free of charge. By the way, Make sure you enable 2FA (two-factor authentication) which links your account to your mobile phone number, and makes it more secure from attack.
- Verify your identity with Coinbase
You should see an option in your Coinbase dashboard or profile settings to verify your identity. You will need to do this before you are allowed to send any cryptocurrency to an outside address, like Binance.You will either need a desktop/laptop with a connected webcam, or an iPhone/Android smartphone with the official Coinbase app. That’s because they will ask you to take a live selfie (not upload a photo from a file) in order to verify your identity. You will also be asked to submit the front and back of your drivers license or government issued ID.If doing this verification process on a desktop or laptop you will need to have digital images of the front and back of your ID (separate files) saved to your computer, ready to upload to Coinbase. You can use a scanner, or you can use a clear and non-blurry photograph. It’s also important the image of your ID be cropped and not contain unused space. Basic image editors like Photoshop or even MS Paint can crop images. If you are using the Coinbase mobile app to do the verification, you will be able to scan the front and back of your ID using your smartphone’s camera.Once you’ve finished this step your account will be fully activated and you’ll be allowed to send your coins to external recipients.
- Set Up A Payment Method with Coinbase
Just visit the above link and click on the button that reads “Link New Account” and then proceed to set up a payment method. Buying directly with a bank account has lower fees than a credit card, but can take longer before your funds can be traded.
- Sign up for a Binance Account
We will also receive a small bonus, at no expense to you, for referring you to Binance. Please help support our efforts by using our referral links. Also, don’t forget to enable 2FA on Binance as well.
Now that your accounts are set-up, you are ready to begin buying Bitcoin or Ethereum and trading it for IOTA. Here’s how to do that.
- Log-In to your Coinbase account.
- Navigate to the “Buy/Sell” tab.
- Select your payment method and which coin you want to buy. For this guide we’ll use Ethereum due to it having lower fees, but you can also trade Bitcoin for IOTA.
- Enter the amount you want to buy. You will see the fees and totals calculated on the side.
- Press the “Buy Instantly” button and confirm your transaction.
- After it says your purchase was successful, leave that window open, and open a new browser tab.
- Log-in to your Binance account.
- Navigate to the “Funds” tab and select “Deposits”.
- Select ETH as the coin you want to deposit (Do NOT select “ETC” or “Ethereum Classic”). Then copy the receiving address provided by Binance.
- Go back to your Coinbase account in the other browser tab and navigate to the “Accounts” area.
- Scroll down to your ETH wallet and click the “send” button.
- Paste the ETH receiving address you got from your Binance deposit page into the “Recipient” field, and set it to transfer the maximum amount available. Then send the transaction.
- Now you have to wait a little bit for the ETH transaction to go through on the blockchain and Binance to receive your deposit. There are tracking pages on both sites that will let you know the status of the transaction. Usually it shouldn’t take more than 30 mins. Here is the Binance tracking page, and the Coinbase tracking area can be found under “Recent Activity” on this page.
- After Coinbase completes the transfer, confirm that Binance has credited your deposit by navigating to the “Funds” tab. Then click “Balances” and you will see your ETH balance.
- Now, lets exchange that ETH for IOTA. Just navigate to the Binance homepage, and click on the “ETH Markets” tab.
- Scroll down and click on the “IOTA/ETH” Pairing.
- Under the “Buy IOTA area, click the “100%” button followed by the “Buy IOTA” button to trade all of your Ethereum for IOTA. Depending on the volume this order might happen instantly, or it may take a minute or two to fill. If your order doesn’t fill instantly or only partially fills you can monitor it’s status here.
- Once the trade order is filled, You should see your newly bought IOTA on your Balances page. Also be aware that you just bought “mIOTA” meaning each one represents 1,000,000 individual IOTA. All IOTA price listings online use mIOTA as the standard. So whatever price you saw before you bought was per 1,000,000 units. IOTA uses smaller units like this to enable true micro-transactions.
- Press the “withdrawal” button next to IOTA, and submit your receiving address that corresponds to the cold storage seed we helped you set-up in our previous guides. You will need to confirm this withdrawal via 2-factor-authentication and e-mail.
- After completing the withdrawal from Binance, you can check the status of the transfer by pasting your receiving address into TheTangle.org. If it shows as confirmed, Your funds are now safely in your offline wallet and you don’t need to do anything else.If you need to access your funds to send IOTA somewhere you will need to insert the removable media containing your seed. Otherwise you can simply monitor your account balance and make deposits by keeping your receiving address handy. Receiving addresses are safe to store in plain text or share publicly so you don’t need to worry about any extra security with them. This will help your seed file to stay secure by keeping the amount of times you need to access it to a bare minimum.