How our IOTA calculator works
The IOTA is a digital currency aimed at the Internet of Things – so the small interactions that happen between all our household devices in today’s interconnected world. IOTA has connected with car giants VW and others, meaning it is well worth keeping an eye on the value of IOTA using our IOTA calculator.
Th IOTA calculator works by drawing in data from the exchanges. This up-to-the minute information is used to do the simple maths that tells you how much your IOTA is worth in comparison to world currencies such as the dollar (USD) the pound (GBP) or the Euro (EUR). If you were exchanging for USD, then the formula would be:
value in USD = exchange rate x amount of IOTA.
The calculation between IOTA and a fiat currency (currencies regulated by government or a central bank) is made more complicated by the fact that most exchanges will not convert directly from one to the other. Most exchanges will only convert Bitcoiin, Ethereum and Litecoin to some world currencies. This means that your transaction will include a transfer between IOTA and another cryptocurrency. Although IOTA is famed for its lack of transaction fees, the other currencies still charge for conversion. This is not factored into the IOTA calculator, which only uses the current values of IOTA against the world currency.
What makes out IOTA converter so accurate and so useful is the connection to the up-to-the-minute price being traded on IOTA. The IOTA calculator becomes an essential tool because of the volatility of all cryptocurrency. Using the IOTA converter allows you control over your investment.
What does converting IOTA mean?
Converting IOTA is more simply seen as the buying and selling of tokens. You will likely go to an exchange and then purchase your IOTA. However, until you transfer your tokens off the exchange into a wallet you will only be given an IOTA IOU, which may lose value and or be lost completely. To get your wallet you need to download the official one from the IOTA foundation. Setting up your IOTA wallet to gain access to your IOTA and then eventually sell them can be complicated. It is well worth researching the process before starting.
However, the point of the IOTA is not to store or hoard the token but to have a real-world use. IOTA can be used to make micropayments – this means you can use them to pay for small services and products – or at least you will when the currency is more established.
How can you convert your IOTA?
It is likely that if you are buying and selling IOTA you are doing this through an exchange. Converting cryptocurrency will have all the feel of purchasing stocks and bonds. However, by converting your world currency to IOTA you will not generate any income unless the IOTA token rises in price and appreciates before you make your move to sell. Whilst you hold the tokens you are merely saving your money as a digital asset.
When selecting your exchange to convert your fiat currency to IOTA or vice versa, you need to be aware of some of the issues exchanges have faced. Some exchanges have faced security breaches and had raids by criminal hackers who cleared out a chunk of tokens from people’s accounts. This has led to an extreme paranoia in the community of digital currency holders – to the point that some store their coins in a paper wallet – in other words they write the code down on a piece of paper.
The response of exchanges has been equally as robust. Sites have created something called “cold storage”. This is the process of storing a proportion of digital assets offline and therefore out of the reach of hackers. All this seems counter-intuitive to the progression of technology but is essential in a world where criminals have access to technology. A lot of sites will store up to 95% of digital assets offline.
The issue of offline storage is liquidity. You need to be sure that the site you use has enough tokens to manage your transaction – no matter how large. Although 95% of assets sounds a lot, the number of tokens available number in the billions. This means 5% liquidity is still a healthy amount of currency.
Finally, you need to be assured that your exchange is regulated by an external financial organisation. Although cryptocurrencies resist regulation, the organisations that handle transactions should not. American-based exchanges tend to be regulated at the state-level to ensure their practices are ethical.
Alternatively, you can use the IOTA converter to exchange your money instantly into your world currency of choice. The transaction is likely completed using an exchange – but the conversion will take less clicks!
When should you convert your IOTA?
It is difficult to establish a timeline for the purchase and the selling of cryptocurrency. Buying and selling IOTA is a speculation – unless you intend to use them in the future for their use as tokens in microtransactions within the Internet of Things. Until the real-world application in the IoT the reason for buying and selling IOTA is to make a profit when the token rises in value. With some major links with large companies, confidence in this new cryptocurrency is rising. This confidence will increase the value of an individual token.
Therefore, the question of when to convert your IOTA is about judgement over the market conditions. The use of an IOTA calculator will keep you up-to-date with the latest value of your tokens and the potential cost of buying more. This is the best information for understanding when to use an IOTA convertor to manage your investment.