Theta - All you need to know
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Ways to invest in Theta
The first thing to do to invest in Theta is sign up with an online broker or a cryptocurrency exchange. These platforms let you buy, sell, and trade Theta coins, and there are pros and cons to each approach.
You can try to turn a quick profit by trading Theta quickly, or buy and hold for the long term in the hope it goes up in price. There are investment vehicles like mutual funds and exchange-traded funds that can help you by offering diversity in exchange for a fee. Learn more about the different approaches using the links below.
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What is Theta?
The Theta Network is a blockchain-based video delivery platform. The aim of the project is to allow for high-bandwidth decentralised streaming, with users able to pay to watch other peoples’ streams or get paid to stream to other people. THETA is the cryptocurrency used to carry out these payments.
Theta is being touted as the next generation of video delivery, with YouTube Co-Founder Steve Chen claiming that the platform is ‘set to disrupt today’s online video industry in much the same way that the YouTube platform did to traditional video back in 2005.’
How does Theta work?
Theta works by decentralising the video streaming process in order to increase the quality of video available to users. The Theta team identified three key problems with live video streaming: low quality, high cost of infrastructure, and inefficient centralised ecosystems. They then used blockchain technology to help solve these problems.
The Theta Network rewards viewers for sharing bandwidth and resources in the form of Theta tokens. This enables the network to do away with expensive centralised infrastructure, and therefore deliver high quality, smooth video streaming at a reduced cost.
The Theta Token (THETA) is the platform’s ‘governance token’ and shouldn’t be confused with Theta Fuel (TFUEL), the protocol’s operational token (so named because it’s the ‘gas’ of the protocol). THETA is used strictly for staking and securing the network, while TFUEL is used to power microtransactions and operations of the network.
How to invest in Theta
There are a variety of different ways to invest in Theta. We’ve listed them below so that you can go through them and familiarise yourself with the options available to you. The best one for you might depend on how soon you want to see returns, how big a budget you have, and how much time you have to spare to manage your investment.
- Broker platforms. A broker is the simplest way to invest. You can create an account very quickly, navigate to a page with all the information on Theta, and buy it straight away at a fixed price. The only things you should be aware of when buying through a broker are that they usually charge you for each trade, either in the form of a flat fee or a percentage of the total amount, and not all coins are available to buy. Brokers are good for the leading cryptos but tend to focus on those at the expense of smaller coins.
- Cryptocurrency exchanges. An exchange platform is the place to go for a wider range of coins. You will be able to buy Theta on an exchange and the prices are often better as there is no intermediary taking a cut of each trade. Instead, you swap coins with other users, buying and selling at a price that’s always fluctuating in response to supply and demand. Just note that while you can buy with fiat currency (like GBP or EUR) on a broker platform, you might have to swap it for a cryptocurrency like Bitcoin to buy smaller coins on an exchange.
- Funds. A fund is a managed portfolio that’s controlled by a professional. Many different investors contribute to a pool of money that is handed to the fund manager, who then decides what to invest in. Funds are ideal if you don’t want to make the investment decisions yourself, but they tend to be expensive to join and might only be appropriate for the wealthiest customers.
- Mutual funds. For everybody else, there’s mutual funds. They offer many of the same benefits as a fund, with a fund manager choosing which assets to buy that will return the best performance for everyone who has a stake in the fund. The assets a mutual fund holds is publicly available information, and each one also provides an information sheet to prospective investors that details its guiding principles and a history of recent performance. Look for one that holds cryptocurrency, has low management fees, and a strong record.
- Theta ETFs. ETF stands for exchange-traded funds, and these are great for beginners as an alternative to a mutual fund. You can buy and sell a stake in an ETF just like you would shares in a company through your broker. They work by holding all of the assets within a particular industry or market so that their performance reflects that of the whole index. They tend to charge lower management fees than mutual funds and require very little maintenance.
- Crypto debit cards. Debit cards let you spend your cryptocurrency online just as you would use a regular bank card. Crypto cards tend only to be available for the most popular coins, so you can easily spend the likes of Bitcoin and Ethereum online, but decentralised finance is a growing industry that is adding new coins all the time, so you might soon be able to spend Theta as well.
- Smartphone apps. Mobile phone apps are a great way to manage your coins from wherever you are. There are apps that let you buy and sell Theta, or you can save it to earn interest, or even stake it as collateral to take out a loan, all from your smartphone.
- Theta wallets. The best place to store your Theta is in a wallet. Wallets are much more secure than leaving coins in a broker or exchange account because they use encryption to protect them from any malicious activity. Wallets come in many different forms, from mobile to hardcore offline editions, and often now include an exchange so you can buy and sell coins straight from your wallet.
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