Would you like to jump straight to the answer? You can buy THETA on Binance.
Originally published as an ERC-20 token on Ethereum, Theta token is one of the most promising projects in the cryptocurrency industry. Since its inception, Theta has migrated from the Ethereum network to its own dedicated blockchain. Because Theta uses a proof-of-stake consensus model, the network has significantly lower transaction fees while increasing its transaction throughput.
What is theta
Theta aims to solve the problems with streaming services like YouTube and Twitch by creating a decentralized platform for content creators. Its blockchain supports smart contracts, similar to Ethereum and Cardano. However, unlike many smart contract-enabled blockchains, Theta already has a functioning ecosystem and users on its platform. THETA.tv is a decentralized application (DApp) on Theta’s blockchain that enables users to stream content without a centralized third-party platform.
Theta has 2 tokens on the platform: Theta and Theta Fuel (Tfuel). Theta token is the native cryptocurrency on the Theta platform and is used for log management. Because Theta is decentralized, token holders can use their tokens to vote on upgrades to the network. TFuel is similar to Ethereum’s gas and is used to pay network validators to process transactions on Theta’s blockchain.
Brief history of theta
Steve Chen, co-founder of YouTube, and Justin Kan, co-founder of Twitch, are consultants for Theta. Since Theta is in many ways similar to both Twitch and YouTube, Kan and Chen are extremely valuable to Theta’s team.
Theta was founded in 2018 by Mitch Liu and Jieyi Long. Since the theta token was not released immediately, the project had to secure funding from private investors. The project is currently supported by companies such as Samsung, Sony and several venture capitalists from Silicon Valley.
Theta Token started trading for around $ 0.20 in 2018. This was shortly after the 2017 bull market, and theta fell in price along with almost every other crypto asset. The token hit a low of around $ 0.06 in April 2020 before rapidly appreciating in value due to the newfound attention in the crypto markets. Today, Theta trades for nearly $ 10, making it the 20th largest cryptocurrency by market capitalization.
Step 1: Open an online account.
The best way to buy theta tokens is through Binance. The process of creating a Binance account may differ depending on where you live. If your internet IP address is in the United States, Binance will redirect you to Binance.us. Binance.us is its exchange for US-based investors that only offers certain services that are compliant with the Securities and Exchange Commission (SEC).
If you sign up for Binance in the US, you will need to verify your identity before investing in cryptocurrency on the platform. Some of the information you will need to have on hand includes your driver’s license number, social security number, and home address.
While popular US exchanges like Coinbase, eToro, and Kraken are great options for beginners, they don’t support theta. However, these exchanges make it extremely easy to buy a wide variety of other cryptocurrencies such as Bitcoin, Ethereum, Uniswap, and Cardano.
Step 2: buy a wallet (optional).
It is never a good idea to store your crypto assets on an exchange. Several crypto exchanges have been hacked in the past as these platforms are big targets for cryptocurrency hackers. With the exchange holding all of its investors’ funds, a security breach could result in all of the cryptocurrency stored on the exchange being stolen.
To mitigate this risk, consider using a dedicated cryptocurrency wallet to store your assets. The two main types of crypto wallets are hardware and software wallets. Software wallets are computer programs that encrypt your cryptocurrency on your PC or mobile device. Hardware wallets are the safest way to store crypto as they use a physical device to store your cryptocurrency offline.
Best hardware wallet: Ledger Nano S
Out of the box, the Ledger Nano S does not support theta. Ledger Live software enables investors to get their Ledger wallets up and running with Theta and if you are interested in learning how Ledger Live works you should read this article.
Ledger is a multi-currency wallet, which means it can store a wide variety of cryptocurrencies. The wallet supports over 1,000 different assets, including major cryptos like Bitcoin, Ethereum, XRP and all tokens derived from Ethereum (like ERC-20 and ERC-721 tokens).
Best software wallet: Theta Wallet
Theta Wallet is a software wallet for cryptocurrencies that was developed by the Theta team. The wallet is accessible via PC for free and you can create a wallet in minutes. When generating a wallet, the program will display a recovery phrase. This recovery phrase can be used to access your cryptocurrency in case you lose access to your wallet. So make sure your seed phrase is kept in a safe place.
Step 3: make your purchase.
Once you’ve created an account and selected how you’d like to store your crypto, it’s time to make your purchase. Binance supports trading in theta with THETA-BTC and THETA-USDT. While the USDT pair simulates investing with the US dollar, the Bitcoin-Theta pair allows you to trade theta tokens with Bitcoin.
Trade, sell, or convert your theta
If you want to trade or sell your Theta Coins, you will need to return your assets to Binance in order to execute the trade. You can sell your theta for either tether (USDT) or bitcoin (BTC). Tether is a stablecoin that is pegged to the value of the dollar, so using Tether will simulate selling your investment for cash. Alternatively, you can sell your theta for Bitcoin, which leaves you exposed to the fluctuations in price of the cryptocurrency market.
Trading altcoins for bitcoin is a great way to measure your performance against the cryptocurrency market. Since Bitcoin is the largest cryptocurrency by market capitalization, some investors like to use Bitcoin’s return on investment (ROI) as the “standard return” for the cryptocurrency market.
Current crypto prices
The entire cryptocurrency market has seen a sharp downturn, largely due to Elon Musk’s decision to stop accepting Bitcoin as a means of payment for Tesla. Even if the markets are over 20% below their all-time highs, most cryptocurrencies are still up over 100% since the start of the year. Depending on whether you think the market is trending higher, this can be a great buying opportunity for you.
Is Theta a Good Investment?
Theta has a credible team with founders who know the industry very well. Historically, theta has been a great investment. The coin has outperformed Bitcoin and Ethereum returns this year, making it an attractive investment for risk-tolerant crypto investors.
Benzinga has developed a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our cryptocurrency methodology page.