The Theta project aims to revolutionise video streaming with blockchain technology. Is the platform’s THETA and TFUEL tokens good investments? We take a closer look.
Where to buy Theta coin
Read on to find out more about Theta in 2020 or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is Theta?
The Theta Network is a blockchain-based platform that enables high-bandwidth video delivery. It features decentralised streaming and token-based bandwidth sharing and is being touted as the next generation of video delivery.
YouTube Co-Founder Steve Chen claims 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?
The Theta team identified three key problems with live video streaming: low quality, high cost of infrastructure and centralised, inefficient ecosystems. Theta addresses these issues by using blockchain technology to create a decentralised video streaming platform. It rewards viewers for sharing bandwidth and resources to deliver high quality, smooth video streaming at a reduced cost. The aim is to create a sustainable incentivised mechanism that motivate all stakeholders to participate in a decentralised video delivery network.
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 buy Theta online – step-by-step guide
Step 1. Get a suitable wallet
A wallet allows you to store your THETA or TFUEL securely. It’s a good idea to have one ready before you invest so you’re able to transfer your freshly acquired tokens off the exchange and keep them safely stored. There are a few good options on the market, including:
- Theta Wallet: Theta’s official wallet can be created as a web wallet on the thetatoken.org and is now available as a mobile app for Android and iOS. The official wallet can store both the ERC20 Theta Token and Theta Mainnet tokens. It also offers support for Trezor and Ledger hardware wallets.
Step 2. Find a Theta exchange
There are plenty of exchanges on offer if you want to buy and sell THETA. Each has advantages and disadvantages, so it’s a good idea to do a bit of research. To get you started, here are two of our favourite THETA exchanges:
- Binance: Widely considered to be the best, most dependable place to buy altcoins, Binance is the world’s biggest crypto exchange. It offers a huge marketplace and fees that compare favourably with its main competitors, plus a well-designed mobile app.
- Changelly: Changelly combines slick, highly convenient design and speed. Fees are 0.5%, which is a touch higher than many exchanges but that doesn’t feel extortionate given the quality of the platform.
Step 3. Withdraw your Theta
It’s a good idea to secure your Theta by moving them off the exchange and into your wallet as soon as possible. To withdraw your Theta to your wallet you need to generate an address then paste it in the relevant field of your exchange account.
How to trade Theta – step-by-step guide
If you’re only interested in trading THETA you needn’t worry about getting a suitable wallet because trading involves taking a position on a currency rather than actually buying it. This means you can potentially make a profit from THETA without the hassle and security risk of owning it.
Step 1. Find a broker
THETA and TRFUEL are pretty new to the market so you may struggle to find a trading platform that allows you to trade on them. This will probably change over time. Plus500 and eToro are two of the most popular crypto trading platforms.
Step 2. Deposit money
Most trading platforms will allow you to deposit Fiat money (USD, GBP, EUR etc.). It’s worth noting that trading platforms offer leveraged trading, which means you don’t have to put down the full value of a trade. Instead you can pay a deposit, known as a ‘margin’. This means you can potentially make bigger profits and, of course, bigger losses.
Step 3. Decide how you’d like to trade
There are two methods to trade cryptocurrencies: CFDs (contracts for difference) and Spread Betting. Both methods essentially entail speculating on the price movements of your chosen currency. If you aren’t sure which option to go for, we recommend researching the differences between spreads and CFDs.
Step 4. Start trading
If you’re a complete novice we recommend starting with a demo account and familiarising yourself with the process and the platform. Cryptocurrency trading is extremely volatile, which means you can make and lose money very quickly. Cryptocurrencies are prone to fluctuation, which makes them intriguing prospects for traders who look to exploit volatility.
As a crypto trader you’re speculating on your currency’s price movements by taking a short (sell) or long (buy) position. If you think THETA will fall in value you should take a short position, if you think it will rise in value you should take a long position.
You may choose to incorporate leverage into your trading strategy. Leveraged trading allows you to put up a fraction of the trade’s value as a deposit or ‘margin’. This can be risky, though, so make sure you have a stop loss in place for damage limitation.
- A unique and potentially disruptive project
- Has some prominent investors including Samsung
- Serious names, including YouTube Co-Founder Steve Chen, are involved
- Passive income potential for guardian node runners
- Probably a better long-term investment prospect
- Technically complicated