Primarily designed for content sharing and entertainment, TRON network is a public blockchain created to be extremely fast and efficient, with claims of 2,000 transactions per second capability. Due to its faster services and zero-fee structure, it’s TRX coin is in high demand and has gained popularity. Launched as an ERC-20 compliant token on the Ethereum network TRX migrated to its TRON ecosystem and now the TRON network allows everyone to launch their own TRC-20 tokens.
If you are interested in TRX, have a look at our list of the best TRON exchanges in 2021.
Our List of The Top TRON Exchanges
We have scoured the internet to go through different TRON exchanges and have carefully looked at their features and what they bring to the table. Following is our list of the best TRON exchanges.
What is a TRON Exchange?
As the coin that powers the TRON network, TRX’s demand has risen over the years as more and more platforms launch their tokens on the public blockchain. This has created the perfect opportunity for people to invest, buy and sell the coin.
TRON exchanges are online platforms that connect buyers and sellers of TRX, giving them a marketplace to conduct their trades. There are numerous TRON exchanges today that offer trading services, from simple purchasing services to buy TRON tokens and place complex trading orders for maximising profits.
How do TRON Exchanges Work?
Like any other crypto exchange, TRON exchanges also work on the principle of connecting people across the globe to buy, exchange and trade TRX tokens at agreed rates. These trading platforms offer different trading pairs against TRX, allowing people to buy the dips and sell when the price rises, making profits.
Every trading platform will require users to register before they can begin trading. Typically, registration includes giving basic information that includes an email address and possibly the trader’s name. The registration may use the email address as the username for login credentials or ask the user to create one.
Any good and reputable crypto exchange will also request the trader to go through a KYC and AML check. Each trading platform will have its own methodology of doing these checks depending on the locality it is registered in and its internal policies. This process may ask for documentation such as proof of citizenship (driver’s license, passport, or other ID), a utility bill, rental agreement, or ownership of residence (for proof of address and residency). Other information that the crypto exchange may ask can include proof of income such as a salary slip or recent bank statement.
For many people, this may seem like a violation of their privacy, but the checks are in place to combat financial and tax evasions. Cryptocurrencies can be used in money laundering and non-banking transactions and the information required under KYC/AML ensures that every money movement is traceable.
Speaking of KYC, there are exchanges on the internet that can be appealing because they don’t have any checks, usually touting user privacy as the main reason. At first glance, these trading platforms seem attractive, but the risks of the platform being a fraud are on the high side. It would be prudent to use only registered and reputable TRON exchanges.
After the trading account is up and running, the next step is to get funds transferred over. Look up the supported cryptocurrencies on the platform. TRX will be supported, obviously, but if you have another crypto, the platform should accept it. Go to the wallet section of your trading account and select the relevant coin or wallet in the listed options and tap on the deposit button to get the public address. Enter it in your crypto wallet to send the desired coins to the exchange. Once funded, a user can start trading using the main interface.
If users ever need to withdraw their crypto assets, they can simply head over to their wallets and this time select the withdraw option. Entering the number of coins needed to be transferred and the destination wallet address is all that needs to be done.
Using An Exchange Vs Broker
TRON exchanges offer a good way to buy and sell TRX tokens. However, cryptocurrencies can be a bit tricky to understand for some people. Cryptocurrency brokers are individuals and institutions that offer people a chance to profit on the price volatility.
With a broker, the trader never actually gets to buy the cryptocurrency. The trader simply transfers over their fiat (though some brokers do support crypto deposits) and buy complex contracts, each contract against underlying crypto.
Brokers’ services include:
- Contract for Differences: A trader buys a contract, speculating that the price of a cryptocurrency will change in a specific direction. If the price movement is in the same direction as predicted at the time of closing the contract, the trader pockets the difference (minus the trader’s fee). If the bet is wrong, the trader loses money.
- Futures: A time-bound contract that the buyer is obliged to settle at the time of expiry.
- Perpetuals: A variation of Futures, but without the time-bound restriction.
- Options: The buyer has the right to close the contract before expiry, losing nothing but a premium.
Types of Exchanges
- Centralised Exchanges: Hosted on central servers, traders deposit their cryptocurrencies on the trading platforms, with the crypto exchange operating the buy and sell orders without the cryptos changing hands. The cryptos are deposited in traders’ wallets only when withdrawn.
- Decentralised Exchanges: Leveraging blockchain itself, these exchanges never store cryptocurrencies and use smart contracts to swap assets between users.
- Local Exchanges: Serving traders only from the local jurisdiction or within a country’s physical borders.
- Fiat Vs Pure Exchange: Pure exchanges only support crypto to crypto trading pairs, while fiat ones also offer traditional fiat currencies.
Key Things to Consider when Choosing the Best TRON Exchange
Every TRON exchange offers a unique trading experience due to several factors. These factors can drastically affect your decision in selecting the right trading platform.
Security and the reputation of the exchange are paramount. Since cryptos are a prime target for hackers and digital bandits, the platform you choose must have airtight security. Look for second layer security options such as 2FA. The platform itself should be operated by a reputable team, known for their diligence and commitment to running the exchange.
Trading pairs, volume and liquidity also are important aspects. If you are to trade, you should have access to a good number of TRON trading pairs, especially stablecoins for hedging. Higher volume and good liquidity mean that your orders will get executed faster, protecting you against price slipping during the time when your trade sits in the order books.
Every exchange makes money by charging different kinds of fees. The fee is on deposits, withdrawals and trades. Keep a close eye on this as most exchanges have different fee structures for makers and takers.
At the same time, look into the different trading interfaces. Trading platforms at times offer more than one kind of interface, with each UI offering either ease of trade or extra information for power traders.
Pros and Cons of Using TRON Exchanges
TRON network and its TRX tokens offer the public a chance to join the crypto revolution. Though initially created for the media and entertainment industry, TRON has fast become a serious competitor to other blockchain ecosystems. Using this guide that lists some of the best TRON exchanges will help you in selecting an exchange suited to your needs.
Frequently Asked Questions
Exchanges generate revenue by taking commissions on every trade.
A wallet is a better method of storing tokens for the long term.
Two Factor Authentication is additional security that uses one time codes sent to a registered mobile number/email or generated through dedicated apps that users need to enter to execute certain actions such as withdrawals. Certain exchanges make it mandatory.
The TRON network allows roughly 15-20 transactions a day free of cost. For more, either wait a day or freeze (stake) some TRX to transact.
Decentralised exchanges use blockchain to execute transactions and that can cause a delay from order acceptance to the swap. Price fluctuation during this is called slippage.
Crypto exchanges only reveal API keys once. It is best to delete the old and create new ones to reconnect the bot.
Cryptocurrencies like TRX have high volatility. The final amount of TRX in your wallet is based on when the TRX rate when fiat was realised in the exchange’s account.
Your exchange offers broker services as well, with each committed cryptocurrency stored in dedicated wallets.