The review in front of you regards IOTA trading and its latest market trends in terms of tools and instruments. We investigate the availability of trading analysis softwares and platforms, reviewing how effective these are. We also compare the crypto coin with its more popular counterparts, Bitcoin, Ethereum, Litecoin and several others. You find articles about those currencies in Bitcoin trading, Ethereum trading and Litecoin trading.
Available Trading Tools
No matter how we look at it, IOTA still has a long road to go if it is to catch up with giants like bitcoin and Ethereum. The coin does have support regarding usable tools like API, bots, and charts but at a lot smaller scale than BTC and ETH.
IOTA Data Center: IOTA project offers APIs that act as market sensors. These scripts gather data from the blockchain records and produce results according to the programming process undertaken beforehand. Moreover, they can also transfer coins from IOTA wallet, depending on the chosen tool. There are many scripts available, made by IOTA developers and participants of the market, as seen below.
CoinMarketCap: On the side of market data, you can use CoinMarketCap as a chart and data source for your analysis. The platform offers free updated analysis as well as information regarding numerous cryptos, IOTA included. It does not provide customizable chart services as Trading View does. Its power lies in the fact that it shows overall market trends that can be quite useful when designing your trading strategy.
Trading View: For traders that are looking for a more personal approach, Trading View specializes in customizable charts concerning IOTA price and volume. The platform offers a large selection of indicators, chart types which are changeable according to your needs. The level of freedom granted is nothing to scoff at, especially if you are dedicated to working with margin trading platforms.
Yet again, IOTA finds itself having a disadvantage compared to bitcoin, Ethereum, and Litecoin. Very few softwares work with IOTA coin, with the most plausible one being CryptoTrader.
CryptoTrader: The P2P marketplace offers a single web space were experienced traders can lend their knowledge to beginners for a price. They create a script or a bot that can be used to gather information, allocate funds around trading platforms or perform complex analysis, depending on the users’ needs. As seen in the snapshot below, IOTA does have support but at a smaller scale than its more famous counterparts.
We do need to remind our readers that there are many APIs and bots that include IOTA as a workable coin. You only need to locate suitable tool and implement it to your IOTA account and it will work.
IOTA, much like XRP and LTC, has smaller support by exchange and trading platforms. Therefore, we made a small review about three major players in the IOTA market, them being Binance, Bitfinex, and Poloniex.
Binance: The platform is strictly a crypto-to-crypto trade marketplace, where a large number of coins trade on daily basis. IOTA participates as well, with trading pairs being IOTA/ETH, IOTA/BTC, and IOTA/BNB (Binance Coin). Leveraging is not available but functions like Limit, Market, and Stop-Limit do work with IOTA. To know more about the platform, simply go to Binance review for our detailed guide about Binance.
Bitfinex: This platform is considered as one of the largest trading marketplaces in the world. Although not having a big list of cryptos as Binance for example, it does offer IOTA trading. It also offers more complex margin trading functions, leveraging as well as the lending market. IOTA is supported in all spheres, with trading pairs being IOTA/EUR, JPY, GBP, BTC, and ETH. To know more, simply go to Bitfinex review for our article about the platform.
Coinone: This exchange and trading market has headquarters located in South Korea and offers several coins, including IOTA. The platform uses fiat currency KRW, while other fiats need to be converted while funding your account. IOTA has only one trading pair (IOTA/KRW) while available trading functions are Limit and Market orders. Verification is a must while margin trading is currently not available in this marketplace. You can check out the interface in a picture below.
Read more about crypto trading platforms.
Currently, only swaps are available as far as IOTA is in question. The futures contracts are not available at this point, even though leveraging is possible as well as lending at Bitfinex. BitMex does not support the coin while other platforms work only with a simple exchange or limited margin trading.
Swapping is possible due to the crypto pairs that IOTA has. Purchasing at the predetermined price set in the future date is well beyond the reach at this time. This puts the coin at a disadvantage when compared to those coins that do have the support, such as bitcoin, Ethereum, and Litecoin. Go to our article, crypto trading instruments, for further reading.
Support and regulations do not have any special treatment for IOTA, as it is part of the cryptocurrency industry. Countries like USA and Canada would impose income tax obligations should you pair up IOTA with fiat currencies and earn a profit in the meantime. IOTA is also considered as an online commodity and not as a legal tender in these countries.
Regions like the UK, on the other hand, allow trade without any sort of tax expenses but do not offer insurance and protection against theft.
Strategies for Shorting IOTA?
At this point, it is safe to say that margin trading is the only available shorting strategy for IOTA. Others, futures contracts, binary options, and prediction markets, are yet to be developed at this stage for IOTA. The margin trading is available at Bitfinex while swaps can be done through Binance and Bitfinex.
In this IOTA trading guide, we touched upon major points regarding its market standing. IOTA still has some way to go, especially concerning support by platforms, as well as instruments and shorting strategies.
Without trading platform’s inclusion, IOTA trading view cannot really evolve into a dominant one in the industry. Thus, bitcoin, Ethereum, Litecoin and even Ripple hold an upper hand in terms of trading attractiveness.