How to purchase IOTA with USD

I wasn’t planning on blogging about this, but I thought, what the hell, why not?  Today we’ll be purchasing some IOTA.  Iota is a new “tangle” technology designed to alleviate some of the problems with bitcoin.  Namely, high transaction fees, and slow transactions.  We won’t go into the details here, but if there is interest, I’d love to dive deeper into the details of an Iota transaction and explain the differences between bitcoin and iota.  For now, we’ll just be purchasing some.  This tutorial assumes you already have bitcoin in coinbase, or know how to go about getting some.

The wallet

The first step is downloading the wallet.  Go to this website and download the appropriate wallet for your operating system.  After your download is completed, open the wallet and choose the light node option (since we’ll only be using the wallet to send IOTA to it and nothing else).  You’ll next get a message talking about “transition phases”,  for now, we can exit out of this page.  Now you’ll see a page with “Seed” and a Login button.  I use a website like http://passwordsgenerator.net/ to generate an 81 character password, however 81 characters is not mandatory.  If you click the hamburger menu in the top left, then help, and “Creating a New Account” you can see the requirements for the seed.  If you use passwordsgenerator.net be sure to only set the “include upper case characters” and “generate on this device” options.  Store this password somewhere safe, if you lose it, or someone gets a hold of it, you’ll lose all of your iota.  Which may not sound like a big deal now, with IOTA trading at ~$1.00.  However, if IOTA explodes in value, you may have thousands of dollars in IOTA tied to this password.  Enter the password where it says seed, and click login.  You now have an IOTA wallet!

Bitfinex

Iota is so new, that it looked to me like the only place to get it is on bitfinex.  So that’s what we’ll use to exchange our bitcoin into iota.  If you don’t have an account create one.  If you do, log into it.  In the top right corner you’ll see “Deposit”, click it.  Under Exchange Wallet click “Click to generate address”.  Back in coinbase send your bitcoin to this address (however you’d like, I use the QR code).  The transaction should go through after about half an hour (yup, bitcoin…see why we’re buying iota?).  After the transaction goes through, hover over “Trading” (in the top left corner) then down to Iota, finally, click on IOTA/BTC.  Click the green circle next to Amount MI.  This will ensure you can purchase the maximum amount of IOTA immediately.  This transaction should happen very quickly.  Congratulations! you now have IOTA!

Bitfinex to iota wallet

You do not want to leave your tokens on an exchange wallet, if you’re new to crypto google Mt. Gox, if you’re not, then you know why.  So let’s transfer the IOTA out of Bitfinex and into our newly create iota wallet.  In your iota wallet you’ll see “RECEIVE”, click it, and copy the address (the big long string).  Go back to bitfinex, click withdraw and select IOTA, paste the address in and enter the full amount of IOTA you purchased on the exchange.  Now your IOTA is safe and sound in your wallet.  You can use this site to track the transaction to ensure the iota is in your wallet.

Advertisements

One thought on “How to purchase IOTA with USD

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s