Cryptocurrencies like Theta are highly volatile. This means that the price of the coin is not stable and can go up and down very quickly. As a result, you can either make or lose money by buying Theta.
Whether you make or lose money really depends on your timing and the factors that influence the coin price. And while most of these factors cut across the cryptocurrency market, there are those that are unique to Theta.
We prepared this guide to help you learn some of the factors that influence Theta prices and how to make money with Theta. We will also share things that you should avoid or look out for if you don't want to lose your money.
How To Make Money With Theta
There are several ways that you capitalize on to make money with Theta.
Purchase When The Price Is Low
Like with all cryptocurrencies, the price of Theta is determined by supply and demand.
So, if you buy low and sell high, then you will make money. You can either watch the market or look at historical data to determine when the price is low so that you can time your purchase right.
Then again, if the price drops dramatically, it may make sense to buy in chunks rather than spend your money all at once.
The price usually falls fast when there is bad news about Theta, or the general cryptocurrency market is crushing. But over time, the coin tends to move back to its original value.
So you need to watch out for good and bad news about Theta and the general cryptocurrency market to time your purchase right.
Sell When The Price Is High
Like we said earlier, the price of Theta is determined by supply and demand.
If you have a lot of coins when their demand in the market is high, then you can sell them at a higher price. You can use this strategy to make a lot of money from the coin.
Just ensure that you have a target price in mind before selling, so that false triggers don't force you into panic-selling when there is not much demand for Theta.
Nodes And Mining
When a blockchain network first begins, only a few nodes are available to maintain the network.
As more people join the network, more nodes are created that help to validate transactions on the blockchain and add them to a public record called a ledger or block of transaction data.
Each new node helps to decentralize the system by making it less reliant on centralized institutions for consensus building. In return, you receive tokens for helping to maintain the blockchain network.
You can also mine Theta. Mining in cryptocurrency involves solving complicated problems using powerful hardware so that your computer may add a transaction to the public ledger.
To earn mining rewards, you will need specialized equipment like graphic cards and special software depending on the cryptocurrency. Most cryptocurrencies are mined by GPUs because of the high hash rates.
Hash rate is the number of calculations per second that your hardware can make when trying to solve complicated problems, and it is measured in mega-hashes or giga-hashes.
The amount of Theta coins that you can get will depend on the kind of equipment you use.
You can also buy Theta and stake it. Staking is the equivalent of you holding your coins in a wallet until they mature instead of putting them on an exchange where they could be lost.
When you stake Theta, you will receive TFUEL as a reward for helping to maintain the blockchain network.
TFUEL is a special token that can only be used to pay for transactions on the Theta platform.
People flock to staking because it makes it possible for them to make money without having to do much at all. But you should know that there are risks associated with leaving your coins in a staking wallet or exchanging them before they mature.
You cannot predict when the price of Theta will drop, and you can lose a significant amount of money. Some users have reported that they had to wait for months before their coins matured so that they could claim or transfer them into an exchange.
So if you do plan on staking, monitor your coins and exchange them as soon as possible so that you are not stuck in the network when the price falls.
Share Your Bandwidth
Another way to make money with Theta is by sharing your bandwidth with the network.
Bandwidth refers to the amount of data that you can send and receive over a period of time. Theta allows its global pool of users to relay videos by offering their spare bandwidth and computing resources and rewards them with TFUEL for doing so.
As more users join the Theta network, more bandwidth is available, thus improving the streaming quality of the videos on the network.
People who have a good internet connection can make a decent amount by offering their bandwidth to the network when prices are high. You can also get good prices for your bandwidth during peak hours, so ensure that you have a fast internet line to maximize your profits.
Ways To Lose Money in Theta
Since they are unregulated, cryptocurrencies can be used for illegal activities that will get you into trouble with local authorities. The anonymity of cryptocurrencies also makes it easy to fall victim to scams and frauds.
Scams like Ponzi schemes are rampant in the cryptocurrency world because they promise huge returns on a short-term investment. You must remember that if something sounds too good to be true, then they are probably trying to scam you.
Here are some ways you can lose money in Theta.
Crypto scams are becoming rampant in the cryptocurrency world. You should be vigilant and only invest in products that you know will follow through with their promises because if something sounds too good to be true, then it probably is a scam.
Ponzi schemes are some of the most popular scams in the crypto space because they promise huge returns on a short-term investment.
Ponzi schemes work by promising users that they will receive a return on their original investments after a certain period. So, if you invest $100 for 100 days and get promised that you will be getting $1000 at the end of the period, it is likely that you will lose your money.
Hacking has become a significant issue in the cryptocurrency world. Millions of dollars have been stolen by hackers who exploit security loopholes on crypto exchanges.
You are also at risk of being hacked when it comes to cloud mining, staking wallets, and browser mining because these are easy targets for skilled hackers. Some software installed on computers may also contain malware that can be used to mine cryptocurrency without your knowledge.
So, if you are interested in Theta, then only invest what you can afford to lose. Keep the rest of your coins in cold storage for maximum security.
Don't Miss: Theta Price Predictions
Theta is a blockchain-powered network that allows people to provide their spare bandwidth and computing resources that will enhance the quality of videos being sent across.
There are a couple of ways you can make money from Theta, such as trading, staking, holding and sharing your spare bandwidth.
You also need to be careful as cryptocurrencies are full of scams, and you can easily fall victim to them. It is important that you do your homework before investing in Theta to avoid losing money.
eToro – Best Platform to Buy Theta
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.