What Is Theta? Should You Invest In Theta And Where to Buy It?

Last Updated October 10th 2022

19 Min Read

One of the things that make the cryptocurrency market exciting is the number of coins traders and investors can buy and sell. Currently, there are more than 17,300 cryptocurrencies being traded. Many of these coins are potential millionaire makers, even when their names don’t ring a bell. Theta is one of the less-known digital coins, but it is not a coin to neglect for any reason at all.

Theta is a relatively new coin, so it is understandable that it is not yet well-known. However, Theta is growing in popularity, in the United States and several other countries. It is one of the coins that have caught the attention of many cryptocurrency investors.

So, what exactly is Theta? Should you invest in Tether? And where can you buy Theta? If you are thinking of adding this digital asset to your investment portfolio then you need the sincerest answers to these questions.

To help you find the answers that will help you make an informed decision about investing in Theta, we will discuss the coin properly here. It is important that you read carefully because the information here will enlighten you further about cryptocurrency investing and also help you decide whether or not to invest in Theta.

Content:

What Is Theta?
Should You Invest In Theta?
Major Reasons to Invest In Theta
Reasons to Reconsider Investing In Theta
Where Can You Buy Theta?
What Next After Buying Theta?
Key Points to Keep In Mind
Are You Ready To Invest In Theta? Do It the Smart Way

What Is Theta?

Theta is a blockchain-based cryptocurrency that powers the Theta network. The network is basically a decentralized video delivery network built on a blockchain. It is a comprehensive blockchain solution to video streaming and provides both technical and economic benefits to content creators and even their consumers.

Obviously, Theta was created to solve the inherent problems of global streaming services like YouTube and Twitch. As a decentralized network, Theta offers several advantages over traditional streaming platforms. Users can seamlessly stream content without a centralized third-party platform. Also, its blockchain supports smart contracts, just like Ethereum and Cardano.

Theta has been described by some people as the new Ethereum. Though it currently boasts of a working ecosystem with lots of users, Theta is still a long way from matching Ethereum in any regard. The network is several projects short, and the Theta token hasn’t scratched the surface of Ethereum in terms of value and market capitalization.

It is important to mention at this juncture that the Theta network has two tokens at the moment. The major token is simply called Theta (THETA) while the other one is called Theta Fuel (TFuel). Theta is the native currency of the network while Theta Fuel is the secondary token.

Theta token is the primary investment vehicle for cryptocurrency enthusiasts, traders and investors. It is also used for protocol governance. Theta Fuel, on the other hand, powers transactions on the network. It serves the same purpose as Ethereum Gas. It is also used to pay network validators to process transactions on the network.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

A Brief History of Theta

To appreciate Theta and understand its presence and future better, we need to look at a brief history of the network.

Theta was co-founded by Mitch Liu and Jieyi Long in 2018. The founders had to secure private funding to start the project. From all indications, the founders were inspired by Ethereum. In fact, they leveraged the security and efficiency of Ethereum, and only included some proprietary technologies to make it unique and improve the quality and efficiency of stream delivery.

Theta founders also enlisted Steve Chen, co-founder of YouTube, and Justin Kan, co-founder of Twitch, as advisors for the project and the Theta team. The two men are considered to be highly valuable to the success of Theta. Steve Chen was once quoted as saying that Theta is “set to disrupt today’s online video industry in much the same way that the YouTube platform did to traditional video sharing back in 2005.”

Thanks to the hard work and resilience of the Theta team, the network is currently backed by several top companies and capitalists, including Sony, Samsung, and many Silicon Valley venture capitalists.

How Does The Theta Blockchain Work?

Before we start focusing on the Theta token (THETA), it is important that we describe how the network works so that potential investors will understand the system behind the digital coins they are backing.

Though it has been compared to Ethereum, Theta is more like an ER-20compliant decentralized network. The implication is that Theta users can utilize the Ethereum ecosystem to simplify their crypto experiences, though Theta is not fully built on Ethereum. Theta has also been compared to Dogecoin, but it is relatively more reliable when you consider real-world problem-solving.

The Tether blockchain is the end-to-end infrastructure that supports decentralized video streaming and delivery. It has a unique design that allows for maximum functionality while minimizing the content delivery network (CDN) costs.

The Theta Network delivers its services to the general public through Theta.tv, which is the primary streaming service of the network. It allows users to conveniently watch and post their videos. Theta.tv is set to be included on future Samsung Galaxy phones, expanding its global reach further.

The Theta blockchain introduced a unique form of the proof-of-stake consensus called Multi-Level BFT. This consensus has been proven to be faster than the traditional proof-of-work consensus. The system utilizes a small group of nodes that acts as a ‘Validator Committee’ to offer the first approval. Once it is done, a larger group of thousands of nodes act as a ‘Guardian Pool’ to validate and add the transactions to the blockchain.

More About the Theta Token

As hinted earlier, the Theta token (THETA) is the major investment vehicle in the network. It is the digital asset you will have to buy as a cryptocurrency trader or investor. Like other cryptocurrencies, it is valuable but volatile. The price changes from time to time, so traders/investors can either gain or lose by investing in it.

In addition to being the primary investment vehicle of the Theta network, THETA is the governance token. It provides users with several functionalities – it can be used to stake as a Validator or Guardian node.

When Theta started trading in major exchanges in 2018, its initial value was $0.20, which was basically due to the 2017 bull market. Expectedly, the value of the coin dropped just as the price of other cryptos dropped after the bullish period. By April 2020, the coin was worth about $0.06.

Following another bullish trend in the middle of 2020, Theta's price improved significantly. On April 16th, 2021, the coin reached its all-time high of $15.90. It had already broken into the top 20 cryptocurrencies by market capitalization and was a sensation before the cryptocurrency market was corrected once again.

At the time of writing this piece, Theta is trading at $1.05 per token. The market capitalization is $1.05B, with the same fully undiluted market capitalization. There are 1.00 Billion Theta Token in circulation, which is also the total/maximum supply of the coin. It is currently ranked as the #47 cryptocurrency in the world, in terms of market capitalization.

Should You Invest In Theta?

From what we have discussed so far, it will appear that Theta is a very good cryptocurrency. That sentiment alone shouldn’t inform your decision to invest in the coin. It is important that you consider the major reasons to invest in the coin and the possible drawbacks and decide whether it is the right coin for your portfolio. We will do that here as briefly as possible.

Don't Miss: Theta Price Predictions

Major Reasons To Invest In Theta

One of the major reasons you will want to invest in Theta is the fact that the network is likely to revolutionize the way we consume video content. The network is being run by a very competent team and is currently backed by a good number of relevant companies, including Samsung.

The Theta coin you will be purchasing has also shown signs of yielding significant profit in the long run. In just about four years of trading, the price of the coin has jumped from $0.20 to $1.05 at the time of writing. Remember, also that the coin moved from an all-time low of $0.03977 to an all-time high of $15.90 in a space of one year and one week. (March 13, 2020, to April 16, 2021). There is a good chance that the coin can reach new heights once the crypto market enters another major bullish trend.

There are several other important reasons to invest in Theta, including:

✅ Sharing Of Bandwidth

The Theta Network is designed to facilitate sharing of bandwidth with users who need them. It boasts of surplus computer resources that makes uploading and viewing of video content easier for both content creators and consumers. Again, the system rewards users with the token to encourage usage. This is bound to attract more users in the future.

✅ Access to a Global Framework

Theta was ultimately designed to promote social data delivery, and the network has adequate infrastructure to make that happen. Users enjoy effortless access to what they need and content creators find it easier to reach new users. It is a very reliable network with satisfied users and has the capacity for needed improvements.

✅ The Backing of Major Corporations

As mentioned already, two co-founders of highly successful software, YouTube and Twitch, are advisors of Theta. We also mentioned that the network is backed by Samsung and a few other recognized companies and investors. This is a clear indication that the network is viable and has a bright future. The potentials also rub on the native coin, which is what you will be buying as an investment vehicle.

✅ Access to Different Social Platforms

Theta offers access to a wide range of content, including music, tv, esports, enterprise, peer-to-peer streaming, and many more. Users have access to so much content and it is obvious that they are loving it this way. The decentralized streaming service also has the security to protect its users and will continue to attract new users. Of course, this will also have positive impacts on the value of its native coin, which you are considering adding to your portfolio.

✅ Interactivity and Communication

Interoperability is another major strength of the Theta network. Technical users can create vertical decentralized apps (dApps) (just like in the Ethereum ecosystem). The toolsets are impressive, and talented developers can achieve a lot with them. As the system continues to evolve positively, the effects will be great for investors and those who trade the coin regularly.

✅ Relationship/Comparison to the Ethereum Ecosystem

Theta was previously based on the Ethereum ecosystem until its team decided to build a blockchain of their own. The blockchain was properly designed and has been favourably compared to that of Ethereum. This relationship and resemblance already has lots of benefits and will continue to advance the cause of the platform and its native currency.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Reasons To Reconsider Investing In Theta

Chances are high that you are about to make up your mind to invest in Theta. However, it is important that we discuss the few drawbacks of the system and its currency so that you have a better perspective.

Without wasting time, here are the common reasons you may need to think twice before investing in Theta:

❌ Like Other Cryptos, It Is a Risky Investment Vehicle

If you are an experienced cryptocurrency trader/investor, you will know that the name of the game is volatility. The market is very volatile as most coins are traded based solely on speculations. If you take time to research the price history of Theta, you will see that it is not different from that of other digital coins. You must be ready for the volatile nature of the market and keep in mind that you can incur huge losses just as you can have huge profits.

❌ It Is Relatively New and a Lot Can Happen In The Future

Theta started in 2018, so it is barely three years. For some investors, this is a short period to understand the long-term potentials of the coin. The nature of the cryptocurrency universe also makes it very hard for anyone to believe in the future of a new coin. You have to be sure that you have the stomach for the risks involved in investing in the coin or trading.

❌ It Is Still a Long Way from Reaching the Height of Ethereum

We also mentioned earlier that Theta has been variously compared to Ethereum. The truth is that the coin still has a long way to go to merit the comparison. Saying that Theta is like Ethereum is more of a hype. Yes, the ecosystem is really good, but the network and its coins have a lot to prove to stand shoulder to shoulder with Ethereum. The best any experienced cryptocurrency enthusiast will tell you is that being ERC-20-compliant makes Theta more desirable.

Is Theta A Good Investment?

From what we have discussed so far, you can tell that Theta can be a good investment vehicle for anyone who understands the game. It is about knowing when to buy and when to sell. If we are to focus on the network and what it offers users, Theta is a great network.

In spite of its volatility and a few other challenges, Theta has yielded huge returns from the time it was priced at $0.20 to date. It has experienced massive growth in a few years, joining the league of top 20 cryptocurrencies sometime ago. It will likely explode in the future and traders/investors will be overjoyed for investing.

It is important to reiterate that investing in cryptocurrencies is only for those who have the stomach for it. Though Theta has achieved a lot and is becoming even more popular, it is still possible that you will lose money by investing in the network. You should invest with caution.

Where Can You Buy Theta?

There are various ways to buy a cryptocurrency, but your approach matters a lot if you are to make headway in cryptocurrency investing. The average person buys digital coins from cryptocurrency exchanges like Binance, Coinbase, Huobi Global, and the rest. Traders and investors who understand the system very well know that they can also buy digital coins from brokerages and cryptocurrency apps that are not official exchanges or brokerages.

Buying crypto through a reliable exchange can be very easy and convenient. However, it is not as easy or understandable as buying from trusted full-service brokerage like eToro, Swissquote, and XTB. Exchanges are also prone to hacking – this is especially dangerous for those who leave their coins for too long in exchanges.

Unofficial cryptocurrencies apps are on the rise, also. While many of these sites make buying cryptos very easy, there are risks involved. Some apps are nothing better than scam sites, and it can be difficult recognizing such sites as scams. It is always best to trust a reliable broker.

Best Platform to Buy Theta

In the few paragraphs above, we have hinted that buying cryptocurrencies through brokers is technically the safest way to invest. There are just a few full-service brokerages that allow users to buy cryptocurrencies, and eToro appears to be the champion of them all.

There are several reasons you may want to buy your cryptocurrency through eToro. The first major reason is that the platform is a trusted brokerage with lots of users who invest in cryptocurrencies and several other investment vehicles like stocks, ETFs, bonds, and many more. It has a robust and secure platform that makes crypto trading a bit less risky.

eToro is also loved for its user-friendliness. It supports users of all experience levels. New users have everything they need to start and succeed, including educational resources. eToro is really charting the course for other brokerages to get into the cryptocurrency universe.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

What Next After Buying Theta?

Buying Theta is just the beginning of investing in the coin. Knowing where and how to store your digital currencies is another trick every successful trader/investor must master.

There are so many reliable cryptocurrency wallets to store your coin, but you need to learn a lot about them before choosing the one that suit you best. The major factor to consider in a digital wallet is security.

The availability of a reliable wallet is another major reason to use eToro for buying and selling crypto assets. The brokerage offers an easy-to-use, multi-crypto, and secure wallet that makes trading and investing easier for every user.

Key Points to Keep In Mind

At this point, you’ve probably decided to either trade/invest in Theta or choose alternative coins. In any case, here are a few key points to keep in mind before taking any serious action:

Theta was created to solve most of the problems of traditional video streaming services and has done a lot in this regard.
Theta has Steve Chen and Justin Kan (co-founders of YouTube and Twitch, respectively) as advisors, and both speak highly of the platform.
Theta is backed by notable companies and Silicon Valley investors.
Theta has been favourably compared to Ethereum, though it still has a long way to go.
Like other cryptocurrencies, including Bitcoin, Theta is volatile, meaning it can bring huge profits and huge losses to investors at any time.
Theta is ER-20-compliant but has a blockchain of its own.
Theta has also been compared to Dogecoin, but offers more real-life value than Doge and looks likelier to succeed.
eToro is the best platform to buy Theta and also offers users a secure, multi-crypto wallet to make trading/investing easier and less risky.

Are You Ready To Invest In Theta? Do It The Smart Way

Investing in cryptocurrencies is risky, but it can be very rewarding. Investing smartly is the only way to succeed in the market. The first important thing to do before investing is to research and identify the right coins to buy. Next, you have to decide when to buy and then, when to sell. You also need to know the right places to buy your cryptocurrencies.

It is also important that you recognize the right place to learn about cryptocurrency trading. At Trading Education, we offer the best trading articles and courses in trading/investing in cryptos and other investment vehicles. You will get the best resources for online trading here.