TRON is a decentralised P2P entertainment and content sharing platform powered by blockchain. Tronix (TRX) is the TRON cryptocurrency that traders are getting excited about. This guide shows you how to buy and trade TRON in 2020.
Where to buy Tron
Read on to find out more about TRON (TRX) and how it works or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is TRON?
The developers at TRON envisaged a platform that people from all over the world could use to easily source digital content direct from the publisher.
The use of blockchain and P2P technology will help facilitate the bridging of the gap between content producers and content consumers.
How does TRON TRX work?
To encourage great content, TRON created Tronix – the cryptocurrency that’s used within the TRON community. TRON Users can pay for the content they want to see using TRX. The coins go to the content producer so, in theory at least, the better the content you produce, the more TRX you can earn.
Once you’ve started earning TRX you can exchange it for BitCoin (BTC) or any number of other cryptocurrencies, but if you don’t have the time or patience to earn TRX by creating content, you can always buy some.
How to buy TRON online – step-by-step guide
Step 1. Get a suitable wallet
Finding a wallet for your TRX is fairly easy these days as plenty of reputable developers have opened up compatibility. We’ve had a look around and picked out three of our favourites:
Ledger Nano X: In our humble opinion, there’s no safer way to store your cryptocurrencies than in a hardware wallet, and the Ledger Nano X is one of our top picks. It’s not the most expensive HW wallet on the market, but it’s also not the cheapest so it might not be perfect for casual traders.
Trust Wallet: With its clean, easy to use and mobile-friendly interface, you won’t go too far wrong with the Trust Wallet. And with Android and iOS versions it will be suitable for most users.
Exodus Wallet: If you’re looking for a slick desktop client then the Exodus wallet could be the one. There’s also a mobile version, but we like the desktop version best.
Step 2. Find a TRON exchange
There are plenty of exchanges out there if you’re looking to buy TRON. Here are some of the more popular options:
Binance: This is usually the first port of call for us when we’re in the market for cryptocurrencies and it’s as good a place as any to grab some TRON.
Bitpanda: If you can’t find what you’re looking for at Binance, the next best place for buying TRON is BitPanda. If you’re on mobile, you can download the Bitpanda app and buy TRON on the go.
Step 3. Withdraw your TRON
Once you’ve acquired your TRX, it’s wise to withdraw it from the exchange as soon as possible. While exchange security has generally improved, it’s always safer to keep your cryptocurrencies in a wallet.
How to trade TRON – step-by-step guide
If you’re only intending to trade TRX, there’s no need to bother with a digital wallet because you’ll be speculating on the value of your chosen currency rather than actually buying it.
Step 1. Find a broker
When you start out, the first thing you’ll want to do is find a broker. There are plenty of brokers that specialise in cryptocurrency trading, but we like eToro and Plus500.
Step 2. Deposit money
Most trading platforms will allow you to deposit Fiat money (USD, GBP, EUR etc.). It’s worth noting that trading platforms offer leveraged trading, which means you don’t have to put up the full value of a trade. Instead you can pay a deposit, known as a ‘margin’. This means you can potentially make bigger profits and, of course, bigger losses.
Step 3. Decide how you’d like to trade
There are two methods to trade cryptocurrencies: CFDs (contracts for difference) and Spread Betting. Both methods essentially entail speculating on the price movements of your chosen currency. If you aren’t sure which option to go for, we recommend researching the differences between spreads and CFDs.
Step 4. Start trading
Before you jump in, you might want to open a demo account with your broker. This is the best way to get a feel for the platform and develop a better understanding of what crypto trading is all about.
When you feel you’re ready to trade with real money you can step up to a live account, but please bear in mind that cryptocurrencies are highly volatile and it’s easy to win and lose money very quickly.
As a crypto trader you’re speculating on the currency’s price movements by taking a short (sell) or long (buy) position. If you think TRX will fall in value you should take a short position, if you think it will rise in value you should take a long position.
You may choose to incorporate leverage into your trading strategy. Leveraged trading allows you to put up a fraction of the trade’s value as a deposit or ‘margin’. This can be risky, though, so make sure you have a stop loss in place for damage limitation.