How To Buy Tron (TRX)

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The Tronix (TRX) cryptocurrency is making headlines after gaining 40% in value over the last month. The Tron blockchain on which it operates has also become the second-largest public chain by stablecoin market cap.

If you’re interested in investing in TRX and know the risks associated with cryptocurrency trading, here’s how to go about it.

What is Tronix (TRX)?

Tronix (TRX) is the native currency of the Tron blockchain. Launched in 2017, Tron is designed to share content and decentralized applications (dApps).

This means that Tron aims to be a place where creators can share content without intermediaries such as YouTube or Netflix having to facilitate it, and potentially take their cut.

So, while transactions using the TRX cryptocurrency are possible on the Tron blockchain, that’s not its primary function.

Like Ethereum, with which Tron shares its distributed ledger technology, the Tron blockchain has a proof-of-stake consensus mechanism. This is unlike Bitcoin, which uses a proof of work consensus mechanism.

This means new TRX tokens are not earned by those with the powerful computer hardware necessary to correctly guess massive, unique alphanumeric strings of text (proof of work) – but by those willing to put up their tokens as virtual raffle tickets for the chance to elect a delegate to validate transactions on their behalf.

At the time of writing, one TRX is worth INR 5.23 (£0.05) and Tron has a market cap of just over £5 billion.

How to buy Tronix (TRX) in four steps

1. Choose a crypto exchange

To buy Tronix (TRX) you’ll need to use a crypto exchange. This is a website or app where buyers and sellers can make trades.

There are a lot of exchanges to choose from, and we’ve ranked what we believe to be the best crypto exchanges, but generally speaking you should look out for when choosing an exchange.

Firstly, you’ll need an exchange that trades in TRX. In India WazirX, CoinDCX, CoinSwitch Kuber and many others exchanges trade in TRX.  

Next, check what payment methods are accepted and what, if any, fees apply. Exchanges typically offer several methods, but direct bank transfer is usually the cheapest.

Most exchanges have integrated wallets to house the public and private keys you’ll need to make trades. If you prefer to use a non-custodial wallet elsewhere, check if the exchange allows transfers out and what fees might apply.

2. Choose a payment method

After choosing an exchange, you have to fund your account before you can begin investing in TRX. Depending on the exchange, you can fund your account through bank transfers, net banking, a cryptocurrency wallet or UPI.

Keep in mind, though, that platforms may charge higher transaction fees for certain funding options. For example, CoinDCX doesn’t charge a fee if you use UPI and bank transfers. However, it charges 0.5% on net banking. On the other hand, WazirX charges INR 23.6 (including all taxes) via net banking. Credit cards are not supported for wallet transfer and charges depend on the getaway you use.  

Because fees reduce how much money you can invest (and therefore also how much money you have to grow and compound), it tends to make sense to use electronic transfers from a bank account rather than other methods. Bank transfer is the simplest and cheapest way to pay with most exchanges. 

3. Place an order

Once you’ve chosen an exchange and a way to pay, navigate to the TRX page on the website or in the app and enter the amount you’d like to buy. Once confirmed, the balance should be shown in your account.

4. Choose a storage method

You may be happy storing your public key and private key in the integrated wallet provided by your exchange. This makes things simple as everything is in one place and the exchange could help you with access problems if you ever forgot your password.

That said, hot wallets are a target for hackers. Exchanges big and small have been hacked over the years and people have lost serious assets.

If you hold your keys in a third-party, non-custodial wallet, your keys are more in your control but are still liable to be targeted by hackers.

You could store your keys in an offline ‘cold’ wallet that isn’t connected to the internet. As such, it’s much safer from hackers. The drawback is that you’re solely responsible for access to your wallet, meaning there will be nobody to provide support if you forget your credentials for accessing your keys.

Integrated wallets are usually free, but if you choose a non-custodial wallet or a cold wallet in the form of a hardware storage device, you’ll have to pay for them.