What Is Tron (TRX)?
Tron (TRX) is one of the fastest and most useful cryptocurrencies in the market. This virtual currency has been in the market for several years now and it is making it easier for developers and blockchain projects to release and create new decentralized applications (dApps).
In this guide about what is Tron (TRX), we are going to tell you everything you should know about this virtual currency and why this blockchain network is playing such an important role in the market. Furthermore, we will tell you where to buy this digital asset and how to buy this virtual currency, among other things.
What is Tron (TRX)?
Tron is one of the largest cryptocurrencies in the world. It was released by Justin Sun and a group of developers in 2017 when the cryptocurrency industry was moving towards one of the largest bull markets it has ever experienced.
But to understand what Tron is, we should also understand the cryptocurrency market at the time in which this virtual currency was released. We should know that Ethereum (ETH) was the largest blockchain network after Bitcoin (BTC) and it was offering crypto and blockchain companies the possibility to release their own tokens and projects (including dApps) on top of it.
However, there have been so many different initiatives released on the Ethereum network that it became very difficult for it to process so many transactions without experiencing bottlenecks. Indeed, the Ethereum network was congested and almost impossible to use for many.
This is where Tron became a very useful virtual currency to send and receive fast transactions as an alternative to ETH. However, Tron’s mainnet was released in 2018, which means that it required some time for Tron to start offering solutions to the cryptocurrency market. Nowadays, Tron became one of the main blockchain networks for companies and projects to release their dApps and other decentralized finance (DeFi) solutions.
Thanks to its unique architecture, the Tron network is able to offer fast and cheap transactions. Furthermore, the network does not get congested and it is possible for crypto initiatives to create smart contracts and release them for just a few cents. The same happens to users that want to interact with these smart contracts. It is easier and cheaper for users to manage them.
Considering that congestion continued in the cryptocurrency market, Tron has been a key player in the space. It has offered the possibility to many projects to try and test their solutions and let users engage in a wide range of on-chain activities that would not be possible otherwise. In the future, Tron is expected to continue expanding and offering solutions to an even larger number of people and companies from all over the world.
Tron in the Cryptocurrency Market
Let’s now talk about TRX’s path in the cryptocurrency market since it was released in 2017. At the moment of writing this article, Tron is the 28th largest cryptocurrency in the world. It has been one of the top 10 in the past and it is trying to keep among the top 30th largest digital currencies. Tron also has a market capitalization of $6.89 billion and a price per coin of $0.06775.
When the coin was released in September 2017, it was traded until December close to $0.0022 per coin. This is less than a cent per TRX. However, things changed in December 2017. The coin suddenly moved to $0.05 per coin and then it extended its gains to $0.20 per coin. This was the highest price ever registered by TRX. Of course, in some exchanges, the price was even higher at that time.
Between January 2018 and early 2021, TRX has been in an accumulation phase (or bear market). The virtual currency moved from its all-time highs to below $0.01 in March 2020 when the market experienced fast and strong selling pressure due to the expansion of the Coronavirus all around the world.
This was the lowest point ever reached by this virtual currency since it was released and since it hit an all-time high of $0.20. Nevertheless, as soon as the market started recovering in 2020, things completely changed. In early 2021 we have seen Tron moving from $0.03 (and below) and reaching local highs of $0.16 for a brief period of time.
This local high was registered in mid-2021, when Bitcoin was hitting new highs and other virtual currencies were getting closer to their maximum levels. Additionally, we see that Tron has been in an accumulation period for several months now. However, in recent weeks, TRX has been falling and losing part of its price. This is something that did not only happen to Tron but also to other digital assets. Hence, we see that TRX is usually following the market and the general trend of virtual currencies.
How to buy Tron (TRX)?
If you want to get exposure to Tron… how to buy it? The easiest way to get access to this virtual currency is by using some of the most popular cryptocurrency exchanges in the market. There are different options available that would let you deposit fiat currencies and purchase TRX. The buying process is quite standardized and it would require you to open an account at a crypto exchange, deposit funds and buy TRX. You can optionally withdraw your funds if you buy large amounts of TRX.
Search for a Crypto Exchange
The first thing that you have to do if you want to buy Tron is to search for a cryptocurrency exchange. This would let you create an account and deposit funds to start buying Tron. You can participate in other activities that are promoted by this cryptocurrency exchange and you would also be able to buy many other cryptocurrencies. This would highly depend on your interest and portfolio.
The best thing that you can do is search for a cryptocurrency exchange that would let you deposit fiat currencies. If you can do so, then things will be much easier for you.
Deposit Funds
The second thing that you have to do after creating an account at a cryptocurrency exchange is deposit funds. This can be done in minutes if you found a good digital currency platform. Some exchanges would let you deposit your local fiat currency without major issues.
Most of the largest exchanges are offering not only bank transfers but also purchases with debit and credit cards. In this way, it becomes faster and easier for investors to get access to the crypto industry.
Buy Tron
Furthermore, if you have already deposited funds into the exchange, you would be now able to buy TRX. This would take a few minutes depending on the type of service offered by the exchange. Some exchanges, to make it even easier for users, would let you buy TRX and other digital assets without having to pass through the trading platform.
However, the best way to buy Tron is through a limit or market order from the trading section offered by the exchange.
Withdraw Your Funds (Optional)
Finally, if you care about your funds and about being the real owner of your funds, then you should carefully analyse the possibility of withdrawing your Tron tokens from the exchange. Remember that cryptocurrency platforms are constantly being targeted by hackers trying to steal users’ funds.
If you withdraw your TRX to a wallet that you control, then the funds are going to be taken care of by you rather than by a third party.
Where to buy Tron (TRX)?
Now it is time to analyse which are the platforms that are offering users the possibility to buy Tron. There are several exchanges. We have decided to create a list that would let you understand which are the largest platforms and the benefits they offer to traders.
Binance
Let’s start with Binance. This is one of the largest cryptocurrency exchanges in the world. It has been operating since 2017 and it is known for offering a wide range of digital assets and tokens compared to other crypto platforms. Moreover, over the last few years, Binance has been adding many different features. Thanks to great leadership, Binance has also built an entire ecosystem relying on the Binance Coin (BNB), the native token to the Binance ecosystem.
At the moment, Binance has 12 different trading pairs for Tron. These trading pairs include TRX/USDT, TRX/BTC, TRX/BUSD, TRX/BNB, BTT/TRX, TRX/ETH, TRX/TRY, TRX/USDC, WIN/TRX, TRX/XRP, TRX/EUR and TRX/TUSD.
At the time of writing, Binance is handling more than 11.4% of the total trading volume for the Tron cryptocurrency around the world. This shows that this exchange is a clear leader and it is offering some of the best options for users to get access to TRX.
Huobi Global
Huobi Global is another cryptocurrency trading platform that is letting users get access to Tron. Currently, they are offering 5 different trading pairs for the Tron cryptocurrency with the most popular being TRX/USDT, which registered the second-largest trading volume for TRX around the world.
All the five trading pairs on the Huobi Global exchange represent 5.40% of the total trading volume for this digital currency. The trading pairs currently offered include TRX/USDT, TRX/BTC, TRX/ETH, TRX/HUSD and BTT/TRX.
Let’s not forget that Huobi Global is also a clear leader in the market when it comes to new features added and offered to users. If you want to get access to one of the largest and most recognized cryptocurrency exchanges around the world, then Huobi Global is definitely one of the best options if you want to get access to TRX and other digital currencies.
KuCoin
KuCoin is another cryptocurrency exchange offering users the possibility to buy TRX and other virtual currencies. KuCoin is considered to be one of the most user-friendly exchanges in the industry thanks to the fact that it was a reluctant exchange to include KYC checks and information.
At the moment, there are seven different trading pairs on the KuCoin exchange. These trading pairs include TRX/USDT, TRX/BTC, KLV/TRX, WIN/TRC, TRX/ETH, TRX/KCS and NFT/TRX. KuCoin is also considered to be an exchange with a large number of trading pairs and tokens supported.
At the time of writing this article, KuCoin represents more than 0.70% of the total TRX volume around the world. However, this could change if new pairs are added or if more people start using this platform.
Bitfinex
Finally, Bitfinex is another cryptocurrency exchange that lets users buy and sell TRX and other cryptocurrencies. This platform is considered to be one of the best for USDT traders as the company behind USDT is also the owner of the Bitfinex exchange.
Bitfinex has 5 different trading pairs for TRX traders. These trading pairs include TRX/USD, TRX/EUR, TRX/BTC, TRX/UST and TRX/ETH. As you can see, this cryptocurrency exchange allows users to deposit fiat currencies, which makes things easier for users that want to have access to digital assets with their local currency.
These trading pairs represent close to 1% of the total trading volume of this virtual currency around the world and in all the available exchanges in the market.
USDT on Tron
It is also worth taking into consideration that Tron has been allowing Tether to issue USDT tokens on the Tron network. That means that rather than relying just on the Ethereum (ETH) network, users would also be able to send and receive USDT on top of the Tron network. This makes it easier for users to send and receive fiat value across borders without having to pay very high fees on the Ethereum network.
Moreover, there are several DeFi platforms that are also accepting USDT payments and deposits through smart contracts. This could be one of the best ways for investors to handle USDT rather than relying on Ethereum, which is congested and expensive to use most of the time.
Final Words
Tron is one of the largest cryptocurrency and blockchain networks in the market. It is expanding as an alternative to Ethereum and legacy blockchains that make it more difficult for investors to move funds. Additionally, TRX is currently among the top 30 largest digital assets and it has also been one of the top 10 largest a few years ago. Nowadays, Tether is also using the Tron network to issue new TRX tokens in order to make it easier for users to send and receive payments with USDT.
Source: Read Full Article