LIMITED TIME OFFER: Get a $500 cash bonus with a personal loan.
Offer ends 9/30/21. Not available to OH residents. Bonus deposited into SoFi Money. See terms

Orchid Crypto Guide: Definition, How It Works, and Investing in OXT

By Brian Nibley · April 05, 2021 · 4 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

Orchid Crypto Guide: Definition, How It Works, and Investing in OXT

Orchid is a crypto project that facilitates a decentralized virtual private network (VPN) service. Unlike traditional VPN providers that route all user traffic through a single platform, Orchid creates a trustless, distributed VPN through a network of users on the Ethereum blockchain.

In order to use this service, users must pay for bandwidth using the orchid cryptocurrency. OXT crypto is the token that powers the Orchid network.

This Orchid crypto guide will cover everything an investor might want to know about Orchid OXT, including:

•   What is OXT Crypto and How Does it Work?
•   Why Was Orchid Crypto Created?
•   Orchid OXT Price
•   Is Orchid Crypto a Good Investment?
•   How To Invest in Orchid Crypto

What is OXT Crypto and How Does it Work?

Orchid serves as a kind of decentralized marketplace for individuals who need bandwidth and providers willing to sell it, bringing the two groups together. The medium of exchange that they use to transact with each other is Orchid coin.

There are two primary parties taking part in Orchid. The first are bandwidth users running the Orchid app wanting to use its decentralized VPN service. The second are bandwidth sellers, which are nodes in the Orchid network who exchange bandwidth for OXT. Once two users agree to exchange bandwidth for Orchid (OXT), the peer-to-peer connection then gets encrypted and routed through the internet servers of the seller.

Why Was Orchid Crypto Created?

Orchid cryptocurrency was created as a way to fuel decentralized virtual private networks (VPNs) in an effort to eliminate some of the vulnerabilities of traditional VPNs.

The biggest and most obvious such vulnerability lies in the fact that when routing all internet traffic through a single provider, the potential exists for that provider to use and abuse the information. While some VPN services do not log user activity, they could still be subpoenaed by national governments, being forced to hand over user data of one kind or another.

Orchid’s model of using a multi-hop configuring with layered encryption through a decentralized app hopes to eliminate this crucial vulnerability. The exchange of bandwidth for OXT crypto is facilitated through the Orchid mobile app, which allows buyers to enjoy a private browsing experience. When internet traffic is routed through an encrypted VPN tunnel, outside users cannot see what’s happening, including the user’s internet provider.

Increased Privacy Through Orchid’s VPN

Orchid uses blockchain technology to keep user data private to a degree not possible with traditional VPN providers.

Because paying for bandwidth must be done using Orchid (OXT), it’s thought that users can stay anonymous by not having to use payment methods like a bank account. Some VPN providers do allow for more anonymous payments using things like gift cards, but the Orchid team argues that using OXT is still more private.

But the feature that makes the Orchid VPN most unique involves its multi-faceted approach to privacy. Instead of having a single host create the private network, Orchid puts together several providers using layered encryption and multiple hops.

A “hop” refers to a new connection in a virtual private network. Many VPNs use only one hop, i.e., user traffic goes from the user’s device, to the VPN server, to the destination. However, Orchid allows for multiple hops, sending traffic through several servers on its way to its ultimate destination.

At each hop, data is protected, and the idea is that more hops makes it harder and harder to link the internet traffic back to its original source.

Orchid OXT Price

The price of Orchid (OXT) is currently about $0.34. This represents a 63% drop from the all-time high of $0.94 reached in August 2020, and a 228% increase from the all-time low reached in March 2020. Although the price will likely be higher or lower by the time this article reaches publication, these historic data points show how volatile an altcoin like Orchid can be.

Is Orchid Crypto a Good Investment?

As of March 2021, OXT crypto had a market cap of just $127.8 million, making it the #123rd cryptocurrency by market cap.

The smaller the market cap of any asset, whether it’s penny stocks or cryptocurrencies, the greater the risk and volatility in general. Less money in the asset means the market can make big moves in a short period of time with relatively small amounts of capital.

Individuals who believe that increased use of the Orchid decentralized VPN service will lead to a rising Orchid coin price (since the coin is required to use the VPN) might consider the cryptocurrency to be a good investment. But there is no definitive take on this.

In short, speculative altcoins can be profitable when the timing is right, but investors who are comfortable with the risk should be prepared to potentially shoulder heavy losses as well. One of the wisest general investing rules is also a wise cryptocurrency rule: when it comes to altcoins, only risk what you can afford to lose.

Recommended: 6 Things to Know Before Investing in Crypto

Will Orchid OXT Go Up?

No one can say for sure. Investing in crypto can be uncertain to say the least.

VPN use grew by 27.1% in 2020 , and if more and more people want a decentralized VPN service and decide that Orchid is the best way to do that, the demand for OXT crypto will increase. This, in turn, would theoretically increase the price of OXT.

How To Invest in Orchid Crypto

To get your hands on some Orchid crypto, simply create an account on an exchange that trades one of the OXT base pairs (like OXT/BTC or OXT/USDC), like Binance, Kraken, Gemini, Bithumb, and Coinbase Pro. Check CoinMarketCap for a full list of qualifying exchanges.

To buy and sell cryptocurrency such as Orchid, you will need some bitcoin, a stablecoin like USDT or USDC, or US dollars to trade for OXT.

The Takeaway

Orchid is a decentralized VPN app built on the Ethereum network. OXT crypto is the token that fuels this app. Users who want decentralized VPN pay users who operate nodes for bandwidth, and they do so using OXT.

Orchid provides a novel solution to a long-standing problem among privacy advocates—how to privatize network traffic without putting all of that data into the hands of a single party.

Investors interested in crypto can buy Bitcoin, Ethereum, and more with SoFi Invest®. You can get started with just $10, manage your investments from the SoFi App, and be assured that we keep your crypto secure.

Find out how to invest in crypto with SoFi Invest.



SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal. Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Lending Corp and/or its affiliates.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.

SOIN21019

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store
SoFi Android App, Get it on Google Play

TLS 1.2 Encrypted
Equal Housing Lender