Where to Buy Tron (TRX)
The invention of the blockchain has significantly changed the development of the financial sector. One of the most famous projects is Ethereum. It allows you to create smart contracts for transactions between two or more parties. However, this network has been shown to have scalability weaknesses. As a result, Ethereum had competitors, one of which was the TRON project. This blockchain, which has its own cryptocurrency and serves the entertainment content segment.
What is Tron cryptocurrency?
Tron (TRX) is a blockchain-based decentralized platform that provides entertainment and financial services. The goal of the network is to give content authors complete control over their data and the ability to profit from their efforts.
The developers are looking to change the approach to the traditional media industry and to decentralize the industry. For example, Facebook or YouTube controls the content that users will post and view. Most of the proceeds go to these companies, while creators and creators make a small profit. Justin Sun’s project should change this situation.
Principle of Operation
The main goal of the project is to counter the high transaction fees charged by the Ethereum blockchain. This was Ethereum’s only uncontrollable flaw. The developers of Tron (TRX) have used this opportunity to raise the technological level of the platform and make themselves known in the digital space. The main core of the blockchain is based on Delegated Proof-of-Stake (DPoS). It is an enhanced version of the Proof-of-Stake (PoS) consensus mechanism.
On the TRON networked system, users initiate transactions without worrying about gas fees. Operation charges are based on the concept of bandwidth and energy. This mechanism allows 15 transfers free of charge. Subsequent transfers will be charged based on the estimated throughput of each individual transaction.
According to the White Paper of the blockchain, the platform conducts 2000 transactions per second. For comparison: the speed of the Ethereum network is 25 TPS, Bitcoin is only 7 TPS. Faster transaction verification times open up the opportunity for network scalability.
Tron is called the future of blockchain technology. It is developed by adding several Ethereum underpinnings to its base. Due to the lack of high transaction fees, this technology is ideal for developing decentralized applications (dApps). The network ensures complete decentralization of programs and excludes the presence of intermediaries. The platform has its own token known as the TRX ticker. The token functions as the basis for all applications built on the blockchain platform.
TRX Cryptocurrency Technology
The official coin is issued on its own network, which is compatible with the Ethereum blockchain and its virtual machine. For business models, this development is a strategic step that leads to high profits. For example, with the help of tokens, authors of media content can release their own digital assets and receive the reward for publications through the sale of tokens.
The blockchain has its own set of TRC token standards to empower all types of transactions on-chain and off-chain. They enable the entire operating system of decentralized applications to run using smart contracts. Basic TRC Token Standards:
- TRC-10 is the most developed token standard that initiates transactions on the blockchain. It allows transactions to be carried out at a low cost without using the TRON Virtual Machine (TVM).
- TRC-20 is an enhanced version of the TRC-10 standard. The standard allows transactions of removable tokens, for example, cryptocurrencies, on the TRON blockchain. Its function is similar to TRC-10. The only difference is that it is connected to the TRON Virtual Machine (TVM). This mechanism ensures compatibility with ERC-20 tokens.
- TRC-721 is the standard for the NFT release.
Developers have issued a limited number of coins, which is 100 billion. According to the CoinMarketCap portal, as of November 2021, there are about 71.7 billion coins in circulation. Cryptocurrency mining is not possible. The Delegated Proof-of-Stake consensus algorithm does not involve traditional mining.
The Tron cryptocurrency (TRX) implies a focus on an innovative way of distributing content and on technology that allows developers to develop decentralized applications on the blockchain.
As of August 2021, more than 500 projects were running on the platform. Among them are stablecoins, games, social services, crypto exchanges, and DeFi. Tron’s security depends on the platform’s growing popularity among both developers and users.
The main use of the platform is to support authors by granting ownership of the content they have created. This is achieved by storing and tracking information on the blockchain.
Content creators can see how their creations are being used and what kind of development rewards they will receive. The middleman is eliminated, the authors receive money directly.
For example, YouTube has a central authority that can censor content, introduce advertisements, or otherwise restrict the use of the platform. Blockchain-based services are managed either automatically or by the community itself. Let’s say YouTube doesn’t have a central headquarters. Then any user has a copy of his source code and a share of ownership based on the number of corresponding tokens he holds. In other words, the user owns the platform. If a visitor wants to support a favorite author, 100% of the tip will end up in the creator’s wallet.
The TRX cryptocurrency is the central asset of the network. It can serve as an intermediary in the exchange of any other coins and is used to pay for transactions. Bitcoin and Ethereum do not yet have a token burn mechanism. The Tron network destroys a certain amount of TRX every time a new dApp appears on the blockchain. This is necessary so that the price of tokens does not fall over time.
Ways to make money
You can get income on the Tron network in 3 ways:
- long-term investments;
- active trading;
Tron is a speculative asset. Its use carries risks even for professional investors. It is important to understand that the investment process is designed for the long term. Digital currencies are highly volatile, and in a short period of time, the price of a coin can rise dramatically or, conversely, fall. As part of the investment, you need to count on 1-2 years. To secure their investments, the user can place a limited order on the exchange. This averages the price and stabilizes the investment. Buying and selling within an order are carried out automatically.
Trading requires knowledge as well as patience. It is important to develop a strategy based on technical and fundamental analysis and strictly follow it. Fear, like other emotions, has a negative impact on the outcome of transactions. The decision to buy or sell should be made based on trading signals, an assessment of the news background, and the behavior of other traders.
Passive income can be earned by holding coins to support the network. Owners invest TRX tokens, for example, on the Binance exchange. The reward is calculated based on the blocking period and the number of invested coins. Profitability is possible up to 8.17% when staked for 90 days on the Binance platform. The bets are among the least risky investments, but the likelihood of losing all the funds also exists.
Where to buy TRX cryptocurrency
Tron is traded on almost all major crypto exchanges along with Bitcoin and Ethereum. You can buy an asset, for example, on the Huobi Global, Binance, Poloniex, and KuCoin platforms. According to the CoinMarketCap service, relevant at the end of November 2021, the trading volume reaches $ 2.25 billion per day.
Before buying a coin on the exchange, you should familiarize yourself with the platform’s commissions, available cryptocurrency pairs, methods of depositing and withdrawing funds. If a user owns any other cryptocurrency and wants to buy a coin anonymously, then the fastest way is to turn to a converter. There are many exchange services, and they differ in the methods of depositing and withdrawing coins, as well as in rates. Cryptocurrency exchanges allow verified visitors to buy coins with fiat funds, as well as digital exchange assets. It is recommended to study the rating and reviews of the site, compare commissions and service capabilities.
What affects the cryptocurrency rate
The following factors affect the quotes of virtual assets:
- general market trends;
- innovations by regulators;
- the emergence of new competitors;
- public statements by experts and opinion leaders;
- actions by developers;
- news background around the project.
Where to store Tron cryptocurrency
You can keep tokens both on the official TRX Wallet and in multicurrency services – for example, Ledger, Trezor, Metamask. It is recommended to be careful when choosing storage since, in the event of a loss of access or a cyber attack, the user will lose coins forever. Paper and hardware wallets are rated as the safest. They do not require constant online access, so it is almost impossible for hackers to reach them.