Last Updated October 7th 2021
5 Min Read

Is Theta Safe? If you have been keeping tabs on the cryptocurrency space, then you know that no asset is completely "safe." That said, however, some projects are undoubtedly safer than others. For many, Theta is very promising in terms of investment security. 

However, remember that investing in any cryptocurrency is extremely risky. You should never risk more than you can afford to lose.

In the next section, we’ll quickly go over what makes a cryptocurrency safe or unsafe.

Security Features to Consider Before Buying Theta

Below are a few of the top security features that make some cryptocurrencies better than others.

Remember that it is not necessary for all of the following security features to be present in order for a project to be deemed safe. What we're looking at here are those things that typically make a project safer than most others.

Liquidity

How much of the crypto is traded, and how often?

Whichever cryptocurrency you're considering, it's best to avoid those that see little volume. If the price rises unexpectedly and you cannot sell without tanking the market, then it's not safe enough.

In the case of Theta, the volume is solid. As of this writing, Theta recorded a 24-hour trading volume of $616.4 million, according to CoinMarketCap. This is quite impressive, especially for a young crypto.

Liquidity is a big factor in determining market stability and whether or not you'll be able to exit your position without crashing the market.

Transparency

A cryptocurrency that's completely transparent about its operations is safer than one that is not. Projects that make an effort to keep the public informed are almost always safer than those that don't bother.

Theta's team transparency is extremely high, meaning that investors have a better idea of what they're getting into. They can track the project's progress on a regular basis and get updates from the developers without much hassle.

Stable growth

One of the most important things that you need to look for when considering a cryptocurrency is whether it's growing slowly or experiencing explosive growth.

If an asset's price is rising quickly, then it may be due to hype rather than genuine growth. It could also be a sign of an impending crash.

Theta has shown fairly stable growth for the most part of this year, with the exception of April, when the price jumped to almost $16 per coin.

This is not to say that Theta does not have its own price volatility, but it's closer to becoming stable than volatile these days.

So, as far as safety goes, Theta is extremely promising. First and foremost, its primary purpose makes it easy for the team to add new features on a regular basis.

Video streaming requires constant innovation in order to make the experience better for its users. Developers can use Tetha’s TFUEL coins (and THETA tokens) to pay the network's bandwidth suppliers (i.e., the users who relay videos).

What does this mean? It means that Theta has a built-in method for improving its technology in the form of TFUEL. The team can also make updates to its code without too much friction since the project was originally based on Ethereum. For investors, this means that they don't have to worry about Theta going in an entirely new direction.

Overall, Theta is a relatively safe cryptocurrency. Whether or not that's good enough for you will ultimately depend on what your risk tolerance looks like. If you're comfortable with investing in an up-and-coming project, then Theta has a lot going for it.

Read Also: What Is Theta, Should You Invest In Theta And Where To Buy It?

Risks Associated With Theta Investment

Investing in any cryptocurrency carries a fair share of risks. You should never invest more than you can afford to lose.

In that regard, you might be exposed to the following risks when you invest in Theta:

  • Value Decline: It is possible that the value of the THETA coin could drop suddenly and significantly if investors suddenly move their money away from the project. This is typically not the norm, but it's still possible at any time.
  • Regulatory Risks: All cryptocurrencies are prone to government regulation. Even though Theta is touted as a decentralized project that is not controlled by any central organization, there is always the potential for hostile elements within governments to affect the coin's value.
  • Scams and Fraud: The cryptocurrency world is full of scammers and hackers who prey on unsuspecting investors. If you're going to invest in Theta, then it's a good idea to do a lot of due diligence first before sending any money to anyone.
  • Technical Risks: Cryptocurrencies are complex, and it's very easy for even highly skilled developers to make mistakes. The main reason why developers are good at what they do is that they've been practising their craft for years. Mistakes can still happen despite all of this, so be prepared to deal with technical risks when you invest in THETA coin.

These are just some of the key risks that you might have to contend with when investing in Theta. It's also important to keep in mind that Theta isn't intended for use by most mainstream investors.

It is designed to be used within the network, which makes its value depends on how many people are using the platform. If few people join this decentralized video streaming ecosystem, then it will have little or no value.

As long as you are aware of these risks, then it's probably a good idea to invest in Theta. You just have to be wary of how much money you put into it and make sure you don't go overboard.

The Best Way To Keep Theta Safe

There are many ways to keep your THETA coins safe.

First, you'll need to download the official Theta wallet so you can store them yourself. While this is not necessarily the most secure option, it allows you to control where your tokens go and who has access to it. 

This is something that should be done for all significant investments, regardless of the asset.

You can also store your THETA coins on cryptocurrency exchanges, but this is not recommended because they are less secure than personal wallets.

The Theta team has an official web wallet that you can use to keep your money safe for now, but they may or may not have a full-fledged wallet available in the future.

You can also use a cryptocurrency hardware wallet like a Ledger Nano S or a Trezor to store your Theta offline. Hardware wallets don't have any of the risks that come with online wallets and exchanges, so they're definitely worth considering if you want to invest in Theta.

Conclusion: So, Is Theta Really Safe to Invest in?

Theta is a complex decentralized network with many moving parts.

It's difficult to say whether it will prove to be as valuable as its creators think or if it will even survive in the long run.

The Theta website and promotional material do a good job of selling the project to potential investors and users.

However, there are some risks when you invest in Theta. Luckily, there are also ways to keep your asset safe if you follow the right security recommendations.

For now, using the official Theta wallet is probably the best way to make sure your investment doesn't get stolen or lost.

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