If you’re like most people just getting into cryptocurrency, Coinbase will be your first introduction to buying, sending, and receiving cryptocurrency. With the recent upswing in IOTA’s value, many people are wondering how to buy IOTA from Coinbase. What I’m about to explain to you may sound weird and convoluted but it’s actually the easiest method to buy IOTA from Coinbase at the moment.
The answer to the question of whether or not you can buy IOTA from Coinbase is: Coinbase can play an important role in buying IOTA for the first time, however, it doesn’t cover the entire process–but can be essential. Currently, there is no way to directly buy IOTA using US Dollars. That’s where Coinbase comes into play. The most common trading pair that IOTA is bought and sold in is IOTA/BTC. Coinbase’s strongest ability is making it fast and simple for people to buy Bitcoin. That being said, Coinbase is also great for purchasing Litecoin and Ethereum–which I recommend doing instead of buying Bitcoin. This may make little sense as I just said that IOTA/BTC is the most common pair that IOTA is sold in. The reason I recommend buying Litecoin instead of Bitcoin on Coinbase is that Litecoin is dirt cheap to send (less than a penny) and it’s extremely fast. This is important because while Coinbase may be the easiest way to turn US Dollars into cryptocurrency, they don’t sell IOTA on their exchange.
The trick here is to use Coinbase to quickly purchase Litecoin, then send the Litecoin to an exchange that does sell IOTA. We do this for many reasons. Mainly because other large exchanges that do sell IOTA will only allow you to deposit US Dollar after a lengthy verification process, followed by another lengthy transaction period that can take several days. On the other hand, with Coinbase, we can purchase Litecoin instantly with a credit card, send the Litecoin to another exchange, sell the Litecoin for Bitcoin instantly, then turn around and instantly purchase IOTA with the Bitcoin. Complicated enough for you? This is all a game of conversions that we’re trying to do for as cheaply as possible. So to reiterate, we buy Litecoin with Coinbase, send Litecoin to an exchange that sells IOTA, such as Binance or Bitfinex, then sell the Litecoin for Bitcoin (because IOTA isn’t typically paired with Litecoin), then purchase IOTA with Bitcoin.
You may be asking: Why not just buy Bitcoin on Coinbase and send that to an exchange that sells IOTA? The answer is that Bitcoin is really expensive to send, and can also take hours. Litecoin typically costs less than a penny to send and transactions take around 10 minutes. That means that from the time we sit down with our credit card and decide to buy IOTA from Coinbase to the time we have a wallet full of IOTA can be as short as 30 minutes. If you’re interested in learning more about the process, please read my guides on how to buy IOTA.