Is It Worth Investing In Theta?

Last Updated February 4th 2022

15 Min Read

The video streaming industry has been blossoming over the years and is expected to reach a market value of $48 billion by 2025. However, it is still flawed in ways that cannot be overlooked.

For instance, a large percentage of the revenue generated from subscriptions goes to middlemen and not video content providers/creators. This can lead to videos being monetized erroneously and less revenue going to the actual content creators.

Theta is the first decentralized video streaming platform to offer an end-to-end solution that not only compensates content creators for their efforts but also rewards viewers for sharing bandwidth and resources with other users.

The value of these transactions is measured by a native token called TFUEL, which can be earned by relaying videos on the network. This coin can then be used to rent videos or purchase virtual gifts for content creators.

Theta promises a decentralized video streaming ecosystem that gives content creators and users an equal opportunity to monetize and contribute to the network. It leverages blockchain technology and smart contracts to incentivize users for sharing idle bandwidth and computer resources with others on the platform, which helps improve the quality of videos being relayed across the network.

In this guide, we are going to look at what exactly Theta is, how it works and whether it is worth investing in.

Contents:

What Is Theta?
How Does Theta Work?
THETA Price History
THETA Price Prediction For 2022 And 2023
How To Invest In Theta
Is THETA A Good Investment?
Conclusion: So, Should I Buy THETA?

What Is Theta?

Theta is a decentralized peer-to-peer network that aims to offer faster and more efficient delivery of video streaming content.

It uses distributed network of idle resources, such as spare computing power and bandwidth, to relay videos while compensating everyone on the platform for their contributions. The concept behind Theta is simple; it cuts out the middlemen who charge fees for providing this service and gives the control back to the content creators/users.

Theta eliminates third-party entities that take a significant percentage of revenue generated from subscriptions/advertisements by users streaming videos on their platform. These costs are then redistributed among Theta users not just as higher subscription rates but also for relaying videos on the network.

Theta has two native tokens, THETA coin, for staking in order to vote on changes to the protocol, and TFUEL, for executing transactions and rewarding those who share bandwidth or stake their THETA coins.

How Does Theta Work?

Theta offers an end-to-end decentralized streaming solution that leverages blockchain technology and smart contracts to cut out middlemen, increase content creator revenue and makes video delivery faster/more efficient. Here is how the process works

Video streamers broadcast their content to viewers.
These videos are then relayed across a mesh network of Theta users that share their bandwidth and resources to relay the video stream.
Users can also act as backbone nodes, which help broadcast videos directly from content creators to other users on the platform. This not only reduces strain on the main backbone but also increases connection speeds.
Users who share a portion of their bandwidth and resources are rewarded with TFUEL tokens for doing so, which can then be used to sign up for premium content, purchase virtual gifts or tip content creators.

Let's put this into a clearer perfective.

The Theta is made up of three groups of users:

Enterprise Validator Nodes: These are mostly major companies that stake their THETA tokens so that they can process transactions on Theta. Current validator nodes include Samsung, Google, Sony and Bince.
Guardian Nodes: These are users who validate transaction blocks generated by the Enterprise validator nodes
Edge Nodes: These are the actual users of the Theta network who either share bandwidth or relay video streams to other users and, in return, earn some TFUEL.

Theta also allows developers to build DeFi applications on top of its blockchain, just like Ethereum.

The network uses a Modified Byzantine Fault Tolerance (BFT) which is a type of Proof-of-stake (PoS) governance mechanism. BFT is simply a system where nodes agree on changes to the blockchain before they are actually implemented.

This is also reflected in its consensus algorithm, which uses a Delegated Proof-of-Stake (DPoS) consensus model, meaning that any token holder can become a Theta miner by simply holding TFUEL tokens and staking them to vote for validator nodes. The network rewards you with TFUEL tokens for your efforts.

All these features not only improve the quality of video relayed across the network but also allow content creators to earn more from their videos instead of paying unnecessary bandwidth fees and sharing revenue among third parties like traditional streaming services do.

Check Out: How To Make Or Lose Money With Theta?

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

THETA Price History

Although the Theta network was launched in 2017, it started trading actively around 2018, so it is still fairly new in the crypto space. Despite this, the asset has brought some noticeable changes to the online video streaming industry.

Already, many users are taking advantage of the convenience it brings while investors are tickling in to try and profit off of it.

The project was initially launched on top of Ethereum's blockchain, and it wasn't until late March 2019 that it launched its own mainnet. Back when it was introduced to the market in early 2018, it started at a low price of close to $1.

The launch was kind of bad-timed because a bear market was overwhelming most cryptocurrencies and dipping their prices around this time.

By February 2018, the coin had plummeted to as low as $0.20. However, this wasn't THETA's lowest price. In late 2017 when it was still under the radar, the coin used to trade at a humbling low of $0.015. So, even $0.2 was still a pretty decent leap despite the crash.

After that initial crash, THETA managed only low prices until 2019. In fact, in late 2019, the coin bottomed out at $0.06 and mostly spotted a red chart. It wasn't until 2020 that THETA recovered and began climbing the charts again.

Towards the end of 2020, THETA reached $1 for the first time.

For the whole crypto market, late 2020 was a great time to recover from a crash. This is because 2021 set off on a bullish note, and most coins in the market were scrambling to achieve new all-time highs.

And as the market-wide bull run began gaining traction, THETA went on a parabolic rise, and by the end of the third month of 2021, it had crossed $13 per coin.

About two weeks later, on April 16th, 2021, Theta hit its current all-time high price of $15.90. However, towards the end of May, the bull market began losing strength, and most coins were trying to remain afloat. Many crashed and have never been able to recover again.

Although Theta has so far lost almost 60% of its peak value, it has managed to stand its ground above $5 until mid-July, when it slumped to $4.1.

It rose again and has since been trading above $5. In early September 2021, it went to around $9.2, then dropped again to $4.7 towards the end of that month.

There have been some fluctuations since then, with the coin mostly trading between $5 and $7. Influenced by the market crash in December, the Theta prices have dropped further down.

A the time of writing, THETA was trading at $2.93 and was ranked 44th with a market cap of $2.9 billion.

THETA Price Prediction For 2022 And 2023

As we mentioned, THETA has not been in the market for long. However, being one of the few projects that are trying to decentralize video streaming technology, it has already attracted a lot of attention. So far, the coin has had a quite interesting ride in the market.

However, when it comes to its future, there is little we can say. Having already proved to be a volatile asset, it is tricky to predict the future of Theta, which is why very few price experts have attempted to make the predictions.

We have looked at a number of predictions, and as usual, there’s isn’t a lot of agreement concerning how the token will trade in the future.

According to Wallet Investor, the THETA coin price will have a promising 2022, ending the year with a price of about $8.66 per coin. We might also see the same positive trend in 2023, with the price starting at $8.75 and ending at $13.47.

Priceprediction.net is much less optimistic about the future of Theta. The crypto price tracker predicts that THETA will close 2022 at an average price of $9.45 and 2023 at $14.00. This is much less promising compared to Wallet Investor’s predictions, but it still shows some promise.

Coin Price Forecast is pretty bearish about how THETA will fair in 2022 and 2023. Although the site predicts some improvement compared to the current market standing, the predictions are very low for the next two years.

Coin Price Forecast predicts that THETA will be worth $4.51 and $4.70 by the end of 2022 and 2023, respectively. As you can see, these are pessimistic predictions that seem to suggest a really slow growth going forward.

All in all, while we can’t tell exactly how Theta will turn out in the next two years, there is a good chance that it will enjoy more adoption and significantly boost its price.

Don't Miss: Theta Price Predictions

How To Invest In Theta

Before we move any further, we would like to clarify that when we talk about investing in Theta, we mean the main THETA coin, not TFUEL.

With that out of the way, there are three convenient ways you can invest in THETA. These are:

Trading
Holding
Staking

Let's go through each of the methods in more detail below.

Method 1: Trading THETA

Trading is the most common way to invest in any cryptocurrency for the short term. In simple terms, this is the process of buying and selling cryptocurrencies for other cryptocurrencies or fiat currencies.

In Theta's case, this means trading THETA with another cryptocurrency like BTC or ETH, traditional fiat currencies like EURO or US dollars, or even fiat-pegged cryptocurrencies, such as Tether (USDT).

There are several ways you can trade THETA, depending on your strategy. The most common methods are:

Scalping: This is where you make quick trades (every few minutes) in order to make small constant profits.
Margin Trading: This is where you make trades with borrowed funds
Day trading: This is where you trade using different timeframes to maximize profits over the course of a day.
Swing trading: With swing trading, you pick a starting position and hold it until a certain target is reached or pre-set exit conditions are met.

Each of these strategies has its own risks, with others being riskier. So, pick keeping in mind your skills and experience in the market.

There are several trading platforms that will allow you to trade THETA.

They include:

Binance
eToro
Uphold
Gemini
Coinbase

You can choose any of these exchanges depending on your preferences. However, for the most convenient trading experience, we recommend eToro. This is because it offers a wide range of trading tools and makes the whole process very straightforward.

To trade THETA on eToro

Visit eToro and log in or create an account
Deposit a minimum of $50 into your account
Search for THETA and click to open it
Click on 'Trade'
Enter the amount you want to put into the trade
Click on 'Open Trade'

That's it! You can now start trading Theta. You can deposit as much as you want but don't go overboard and break the bank.

Also, keep in mind that trading is risky, especially if you don't know what you are doing. That is why we recommend that if you are new or still learning the ropes, you start with HODLing before trading.

This brings us to the second method...

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

Method 2: Holding THETA

Holding, as the name implies, is the process of buying and holding cryptocurrencies for a long time.

This means that you buy THETA and hold it in a wallet (more on wallets later) because you believe its value will increase significantly based on its innovative features and future market demand.

The best way to hold THETA (and any other cryptocurrency for that matter) is in a hardware wallet like the Ledger Nano S.

Essentially, there are several different types of wallets you can use.

The most common are:

Software wallets: These are apps that you can download and install on your computer
Mobile wallets: These are apps that you can download and install on your phone
Hardware wallets: These support all major cryptocurrencies and store the user's private keys in a secure hardware device
Paper wallets: Essentially, these are printouts of your public and private keys

Each of these wallets has its pros and cons, so it's up to you to choose according to your preferences. For instance, software and mobile wallets are convenient since you can access them anywhere, but they are at a high risk of being hacked.

In contrast, hardware wallets are the most secure but lack convenience and obviously require you to carry the device around with you.

So, there is no best wallet for every situation. That's why it's essential that you do your research before picking one.

As a final note, before you hold THETA, you need to be sure that its value will appreciate quickly in the long term. While it is possible that the token will increase in value in the coming years, the growth might be so leisurely that it might not be worth holding on to it for that long.

The best strategy, if you have the time, is to do a combination of trading and HODLing (another word for holding). This will help you spread risks and increase your chances of success.

You can even throw staking into the mix. But what exactly is that?

Method: Staking THETA

Staking is the process of securing the network and maintaining liquidity by holding a certain amount of coins or tokens in the platform and being rewarded for it.

In the case of Theta, staking can mean a number of things. It may mean being rewarded for sharing your computer resources and bandwidth, or more specifically, it may also mean locking up some of your THETA coins in the network to help improve governance and security and, in return, be rewarded with TFUEL.

At its core, Theta uses a proof-of-stake consensus mechanism that requires users to stake tokens in order to become Enterprise validator or Guardian nodes. You will stake a certain amount of Theta depending on which node you want to become. In most cases, this will be the Guardian node unless you are a big Enterprise like Google.

Generally, you will need not less than 1000 THETA tokens to start staking.

How to Stake THETA

Visit Theta.org and click on 'Wallet' on the upper navigation bar
From the top drop-down menu, Select 'Mainnet' (Usually set as default selection)
Click on 'Create Wallet' if you don't already have one
You will be provided with an encrypted keystone file. Download it since this is what you will use to access your Theta wallet.
Create a password for your wallet and the login
On the wallet page, click on Stakes > Deposit Stake > Guardian Node
Enter your information on the 'Guardian Node Holder' field. This is the private key from your Guardian Node app.
Enter the amount of THETA you want to stake ( A minimum of 1,000 THETA)
Click on 'Deposit Stake'. You will need at least 1 TFUEL for the transaction fee.
Double-check your info and Enter your wallet password.
Click on 'Confirm & Deposit Stake"

As soon as the transaction is confirmed, you become a guardian node. You will earn TFUEL as passive income. To check your rewards, just visit the Guardian Node page.

If you are an Edge Node, you can also earn some TFUEL by staking TFUEL, not THETA like with a guardian node. Apart from the web wallet, you can also download a THETA wallet application for Windows, macOS or Linux.

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

Is THETA A Good Investment?

So, should you invest in THETA? As with any investment, it's always best to do your homework first.

The video streaming industry is growing, and it is only a matter of time before consumers start considering blockchain alternatives. THETA has a lot of potential if the team behind it is able to execute its plan. However, there is also a high probability that you will lose your investment.

There are a number of factors, in particular, that will define whether THETA becomes a good investment or not. They include:

The success of the Theta Video Streaming Platform: If this platform does well and becomes a major hit with consumers, its value will increase, driving up THETA price as a result
Competition: There are a lot of projects in this space, and some already have working models. In such a scenario, the project with the most powerful concept will do well
Market Response to Tokenomics: The THETA tokens have been released into the market at a time when the bearish trend is still on. If sentiment does not change in the market, it will affect THETA value
Regulations: As blockchain technology becomes mainstream, there is always a possibility of government intervention. If this happens, token prices may reduce accordingly.
Coin Distribution: For any platform to succeed, it must have widespread support from its community. A well-distributed coin across many investors will give it an upper hand over its competition.

While the Theta project is still in its infancy, there is no way of knowing how it will progress. As with any investment opportunity, you need to look at your reasons for investing and consider the risks that come along with it. Also, ask yourself if THETA is a good long-term project.

Read Also: Will Theta Make Me Rich?

Conclusion: So, Should I Buy THETA?

Whether you should buy THETA or not will depend on your risk appetite, what you intend to do with the investment and how long you want to hold it for.

If you are looking for short term investment opportunities that offer potentially high returns, then this might be a good project to look at. But make sure to diversify your investments in case things go wrong.

If THETA becomes a success, the value of the tokens you purchase now will increase substantially. But if it doesn't, you may lose your entire investment! So, invest wisely.