How To Invest In Tron - Step-by-Step Guide
TRON is a unique decentralised blockchain founded by Justin Sun which aims to connect audiences with content creators directly eliminating the need for centralised platforms like YouTube. It is fundamentally a blockchain-based OS that can handle up to 2,000 transactions per second. TRX, the native cryptocurrency of the TRON network has become very popular among users.
There is a total of 100 billion tokens out of which around 72 billion are in circulation. The limited and capped supply of the tokens makes it a deflationary cryptocurrency. This guide will explain how to invest in Tron.
Table of Contents
Invest in Tron in 3 Steps
Get a Tron Wallet
It doesn't make any difference whether you are hoping to invest in Tron or some other digital money, regardless of your target coin, you need to store your TRX in a protected way for which you need a wallet. You can evaluate a wide number of TRX wallets including software and hardware wallets. These offer an assortment of features including customer support, coin accessibility, security, and overall ease of use. Your responsibility is to find one that lines up with your needs.
Join a Tron Exchange
The subsequent phase you need to accomplish is finding a digital currency broker or crypto exchange that sells Tron (TRX). There are some prominent crypto platforms, for example, Poloniex and Binance where you can buy TRX coins. Remember that first, you will need to register on a platform and deposit funds before you can buy TRX. Top services will check your identity by requesting documentation such as a driver's permit or ID card.
Invest in Tron
Once you have selected an exchange, you will need to submit your seed capital which you can use to purchase TRX coins. You can purchase TRX either directly through fiat currency (if the currency pair is supported) or by using your funds to purchase an altcoin and then buy TRX through the relevant trading pair.
Investing in Tron Explained
As we discussed before, you can't start to invest in Tron without a TRX wallet. Before choosing a wallet, you should evaluate and assess various basics of a cryptocurrency wallet so you are in a position to make an educated choice. This way the wallet you pick will meet your objectives and requirements. Probably the most critical factors are security, user anonymity, the capacity to backup data, client care, private key control and ease of use.
Your investment strategy directly affects the wallet type you need. For example, if you are making a long-term bet on TRX, the best option for you is a hardware wallet since it offers exceptional security guaranteeing the wallet cannot be breached.
When you need the balance of security and accessibility, desktop TRX wallets are a smart alternative. They work like usual software applications and you can install them on both macOS and Windows. Exodus is perhaps the most feature-rich desktop Tron wallet you can get. For short-term traders, the ideal option is a hot wallet which is incorporated into the trading platform they are using for crypto investment and trading.
Another method for investing in Tron that has been acquiring popularity is peer-to-peer service that lets crypto purchasers and sellers connect with each other. There is a rating framework on the platform so you can pick legitimate sellers and you have the choice to arrange your transaction terms including the price of the coins, payment terms and mode, and more.
One significant factor that you should remember is that whatever platform you are using for TRX investment, top services will always require you to verify your identity. This may appear to be an issue yet this is done to guarantee regulatory consistency with Anti-Money Laundering (AML) and Know Your Customer (KYC) rules.
Where Can You Invest In Tron?
We evaluated a diverse range of platforms performing a careful appraisal of a variety of features, for example, ease of use, service quality, compliance, number of crypto pairs, client care, and more. Here is a list of the top Tron investment platforms.
Cryptocurrency trading platforms present various payment modes to financial traders and investors which they can use for TRX investment. Having said that, in the event that you are simply beginning your journey as an amateur financial investor, the most ideal option for you is a credit or debit card. It might add to your cost however it is the quickest and most convenient payment method. It is more like online shopping as all you have to do is enter your card information and deposit the sum into your account. Then you can buy BTC which you can exchange for TRX coins.
A few platforms permit you to transfer funds from your bank right away. When you are going to use this option for depositing your capital, you need to pick your bank as well as your preferred fiat currency. From that point forward, go to the deposit tab where you need to add your account. You'll be diverted to another page where you will finish the confirmation phase before you can transfer any money into your exchange account and start investing in Tron.
Tron Investment Strategies
There are several approaches to strategise your investment in Tron that make sure you don't let go of any opportunities. The segment below gives the necessary information on all mainstream Tron venture strategies.
Buy and 'Hodl'
What is it?
‘Hodling’ alludes to an inside joke of the online crypto world. It is the word 'hold' that has been incorrectly spelt. As the term would recommend, this methodology is about buying Tron and holding it for a long haul so you can acquire significant gains later on.
How to use this strategy
For using ‘hodl’ as your investment strategy, you simply need to sign up on a platform and confirm your identity and purchase TRX using the process mentioned above. Afterwards, you just need to hold your Tron coins in a secure hardware wallet. As 'holding' is a drawn-out method, you should be focused and persistent so that you can gain big in the long-haul. There will be moments where you would have the opportunity to sell and make modest gains but you will have to resist the temptation.
When to use this strategy
The best method to use 'hodl' method is to get in when the cost of Tron is seeing a decline. Purchase TRX coins with your seed capital and hold it in a protected wallet until the ideal opportunity arrives. You need to remember that the digital money market is exceptionally unstable so you will likely see numerous increases and decreases in TRX price. Try not to let the volatility of the market sway you and clutch onto your coins.
Buy Tron ETF/CFD
What is it?
ETF is a monetary instrument that represents an Exchange-Traded Fund and it provides you with a straightforward method for buying and investing in TRX. The instrument is generally used by stockbrokers as it tracks the cost of the coin. For the most part, ETFs include more than one assets such as stocks and cryptocurrencies to enhance your portfolio and minimise your financial risk. It is perhaps the most effective approach to invest in TRX for the individuals who would prefer not to manage the issues related to owning cryptocurrencies and the financial market.
If you simply need to wager on the cost of TRX, you can use Contract for Difference (CFD) which permits you to purchase an order or position without really buying the coin. This allows you to invest without managing the issues that accompany TRX ownership like buying and managing a TRX wallet.
How to use this strategy
You can use the monetary instrument investment strategy by signing up and validating your own identity on a broker site like Plus500 and eToro. It gives you the alternative to purchase and sell crypto monetary instruments including ETFs and CFDs. You should always try to verify your identity as significant brokerage services follow AML and KYC guidelines to guarantee they are delivering a risk-free trading and investment platform to their users.
When to use this strategy
If you are kind of an individual or a financial investor who simply needs to keep it all business as opposed to getting the hang of everything related to cryptocurrencies, monetary instruments including CFDs and ETFs are great for you. Owning Tron will involve some technical knowledge like finding out about wallets, blockchains, and other specialised stuff which can be both tedious and hard for the vast majority. You can overcome those issues by investing in TRX through these financial instruments.
Long Position on Tron
What is it?
Long position trading is about opening a wagering position on the upward price development of TRX. Long positions are regularly opened through leveraged trading which permits you to put up more capital than you have in your exchange account. This specific venture strategy isn't recommended for those brokers who are simply beginners as it accompanies a ton of financial risk and requires a profound comprehension of the monetary business sectors.
One more method to engage in price betting on TRX is through Contracts for Differences or CFDs. They are financial instruments that allow an investor to bet on the asset price without buying the asset. If the price moves as per the investor’s prediction, they get to keep the price difference as a profit. Otherwise, they have to bear a loss.
How to use this strategy
When you are keen on opening a long position on TRX, you should sign up on your favoured brokerage site. Enter the amount of your position and select your leverage which can range from 2X to 500X depending on the platform. You will also need to indicate the price of TRX at which you desire to start the position. When the Tron value hits that mark, your position will be opened and you can close it any time if the value keeps on rising.
When to use this strategy
The long position and leveraged trading technique should just be used by experienced brokers in a market that is experiencing a bullish pattern. At the point when the TRX token's cost is encountering an upwards rally because of several market factors, you have the opportunity to exploit the bull run when you know and comprehend the market elements.
That is the reason why it pays to keep yourself market savvy and find out about market improvements, as it gives you the chance to procure monetary benefits. You have to remember that minor devaluation can prompt liquidation if you are not cautious. That is the reason it is significant that you just invest the sum you can bear to lose, particularly in the event when you are attempting highly risky wagers through leveraged trading.
Benefits of Investing in Tron
- No Miners –Tron is pre-mined which means it is an environment-friendly currency where commercial miners cannot monopolise the token acquisition.
- Versatile Blockchain – Tron is designed to connect content creators with the audience directly without any centralised platform like YouTube.
- Quicker Transaction Validation – The network can validate up to 2,000 transactions a second which is faster compared to Bitcoin and Ethereum.
- Accessibility – Since you can store your TRX coins in your wallet, the currency remains accessible to you as long as you have that wallet along with an internet connection.
- Autonomy – As the blockchain is decentralised, there is no central authority. You will have complete control over your TRX coins.
- Anonymity – Buying TRX tokens and trading on blockchain makes it nearly impossible for hackers as well as other malignant elements to find out your personal identity.
- P2P Investment – Using P2P platforms, you can buy and sell TRX tokens directly from credible individuals that enables you to negotiate your own terms including price and payment mode.
Disadvantages of Investing in Tron
- High price volatility – Just like every other crypto asset, Tron is also a victim of price volatility. That’s why you must carry out due diligence and minimise your risk.
- Beware of scams – As the cryptocurrency and blockchain market are still in their early phase relative to traditional financial markets, there are several scams in this space that you should learn to avoid.
Other Ways of Investing in Tron
If you are looking for alternate approaches to invest in Tron, you have the option to do so. You can decide to purchase Tron tokens from a user face to face whom you can discover on a P2P platform. Before you go for such a transaction, just make sure that you are meeting in a public and safe spot. Another approach to buy Tron is through ATMs if you have one in your general vicinity. To discover the ATM close to you, you can use the ATM Radar site. One more alternative is PayPal. You can also use leverage to amplify your capital.
Trade Tron on Leverage
Leveraged trading empowers you to put more capital in Tron investment than you actually have in your account. Your capital is increased by a specific rate chosen by you and you can acquire benefits proportionally. However, you should be extremely cautious as the higher your leverage, the higher the chance of liquidation, even with minute value depreciation. This trading strategy should be used through a crypto brokerage, for instance, eToro, Plus500, Skilling, and many more.
Stake Tron to Get Passive Income
One more way to invest in Tron is through staking. This process involves putting away your TRX tokens in a crypto wallet to support the Tron project, its blockchain and its operations. For your financial support in the form of stake, you are rewarded for the contribution. This is one of the reasons why Tron acquires a high rate of TPS or transactions per second relying on delegated Proof of Stake protocol.
Frequently Asked Questions
Yes, especially if you plan to invest for the long term, storing tokens in a safe wallet is the best option.
Most platforms allow both fiat and crypto payments for the purchase of TRON.
It depends on your country of residence. In most countries, tax gains acquired from crypto trading, you will have to check out your country’s tax regulations to be sure.
Unfortunately, Tron cannot be mined. The cryptocurrency has a capped supply of 10 billion TRX tokens that have been pre-mined. The current supply that is in circulation is close to 72 billion.
The investment platforms have chosen to adhere to KYC and AML regulations that help them prevent fraudulent as well as illegal financial activities on their platform. This may cause a bit of inconvenience, but it also makes sure that you get a safe investment platform where your TRX funds are secure.