For those of you wanting to stake the crypto tron for some weekly and monthly passive income, you’ve landed in the right place. Before we explain how that’s possible let’s first give a quick overview of tron and how staking works.
Tron TRX is an open-source blockchain platform that can run smart contracts and be used for building decentralized apps (dApps). It’s similar in functionality to Ethereum, and it even started out as a token built on Ethereum until switching to its own blockchain. Since launching, Tron has built a large ecosystem of dApps and other projects. However, it’s also controversial, with critics claiming it copied code and that the Tron CEO has made money through pump-and-dump cryptocurrency scams.
Best Staking Exchanges – Summarized List
- Uphold – Claim Bonus
- eToro – Claim Bonus
- Kraken – Claim Bonus
- KuCoin – Claim Bonus
- Crypto.com – Claim Bonus
Trons Purpose
But what exactly is the purpose of Tron? Well, tron has a broad range of goals that all come back to its central objective of decentralizing the web. One of Tron’s primary focuses from the beginning has been to change the entertainment industry. It wants to use blockchains for a content-sharing system and get rid of the middleman. Content creators would be able to directly connect with consumers and sell their products.
The second goal is the Tron team also wants it to be the most flexible blockchain platform that can run smart contracts. For that reason, the Tron Virtual Machine (TVM), where developers can build dApps on Tron, is compatible with the Ethereum Virtual Machine (EVM). There are plans to add compatibility with other virtual machines in the future. Tron is also making inroads into the decentralized finance (DeFi) landscape with the JUST Network, a Tron offshoot that includes a package of smart contract-based financial projects.
How Staking Works
Okay, now that we’ve given a brief background on Tron let’s talking about how staking works. And basically, With cryptocurrencies that use the proof-of-stake model, staking is how new transactions are added to the blockchain. First, participants pledge their coins to the cryptocurrency protocol. From those participants, the protocol chooses validators to confirm blocks of transactions. The more coins you pledge, the more likely you are to be chosen as a validator.
Every time a block is added to the blockchain, new cryptocurrency coins are minted and distributed as staking rewards to that block’s validator. In most cases, the rewards are the same type of cryptocurrency that participants are staking. However, some blockchains use a different type of cryptocurrency for rewards. And once all that’s done you receive your free rewards, aka that sweet passive income.
Top 5 Tron Staking Exchanges
1. Uphold
Uphold has some of the best rates for staking, with up to 19.5% returns. It is also considered to be one of the safest ways to buy cryptocurrency by many digital asset experts. Since launching in 2014, Uphold has maintained an exemplary reputation for security among its customers. The site is unique in the sheer amount of assets it offers. You can get started on Uphold here.
Pros
- The steps to stake your coin on Uphold are easy
- It offers some of the best rates in staking
- You receive payouts every week
- Uphold is a secure platform. Third-party organizations perform audits
- There are a lot of educational resources you can use in your staking journey
Cons
- There is a 15% fee on all your withdrawals
- Unstaking requests take three business days to complete
- The FDIC does not insure your funds
2. eToro
Okay, the second exchange that allows you to stake Tron is eToro. eToro is one of the world’s largest social investment networks and aims to revolutionize the way people invest and enhance investors’ financial education. Staking with eToro is simple, secure and hassle-free. Staking rewards are paid out to users every month, in the supported cryptoasset, with no action at all required on their part. The staked cryptoassets remain the property of the eToro users; in turn, eToro users entrust eToro to execute the entire staking procedure for them, securely and effectively. You can get started on eToro here.
Pros
- Very user friendly for beginners
- Good rates for different staking coins
- Payments reinvested into same coin
Cons
- Transaction fees are some what high
- Not a lot of coins available for staking
3. Kraken
Okay, third we have Kraken. Over the years Kraken has built a great reputation for its users, and offers a wide variety of coins to stake. Currently the rates for Tron are set between 4-7 percent so it varies from month to month. However, really nothing to complain about and another exchange worth looking into for staking Tron. You can get started on Kraken here.
Pros
- Large selection of digital assets
- Low fees for advanced traders
Cons
- Limited options for funding account
- Not available in all US states
4. KuCoin
Fourth we have KuCoin. Experienced cryptocurrency traders can get the most out of KuCoin’s advanced features, low fees, and wide range of coins. However, KuCoin is not licensed to operate in the U.S. If your currently not in the US the rates for Tron are currently set at 5 percent which is pretty decent. You can get started on KuCoin here.
Pros
- Supports a wide range of cryptocurrencies
- Low trading fees
- Very user friendly
Cons
- Staking rewards could be better
- Not available worldwide
5. Crypto.com
Crypto.com Earn is frequently described as a “savings account for cryptocurrencies.” It is a straightforward staking platform or a location to park coins and earn interest. In contrast to more conventional staking systems, Crypto.com Earn incentives vary and are determined on criteria like the token lock-up period and the quantity of CRO staking tokens a user has already staked. Using the profit calculator on Crypto.com, one can quickly determine the interest rate they would receive.
Its mobile App is the primary way customers can use the service, so customers who are looking for a wide range of cryptocurrencies and who feel comfortable making transactions on a mobile device may find Crypto.com to be more appealing than other exchanges. You can get started on Crypto.com here.
Pros
- A wide range of cryptocurrency assets
- Fees are minimal
Cons
- Credit and debit card purchases have high fees
- Some services are unavailable in the US
Benefits To Crypto Staking
- Attractive Rewards: The returns or yields as they’re called in crypto staking are known to be lucrative.
- Passive Income: Earning staking rewards is considered to be a solid way to put otherwise inactive crypto to use for the long term.
- Everybody Wins: When you stake crypto, you participate in boosting the blockchain network’s efficiency and security.
- Efficient: PoS is far more environmentally friendly than PoW where miners use expensive electronic rigs to create new blocks of cryptocurrencies.
Risks To Crypto Staking
- Mandatory Lock-In: Any investment that has a lock-in carries some degree of worry.
- Project-Dependent: Your money through crypto staking will be at the mercy of the project’s strength and ability to attract more investors.
- Volatility: Regardless of how good a crypto project is, it may be subject to the volatility that plagues even the biggest of the lot like Bitcoin.
- Diminishing Returns: Volatility means that you run the risk of receiving rewards that may be worth less than your initial investment.
- Staking Pool Risks: If the staking operator isn’t good at their job or the staking pool gets hacked, you’ll be at the risk of losing a part or whole of your staked cryptocurrencies.
With all of this in mind staking crypto is a fun way to earn little bits of interest every single month doing nothing. It’s very similar to how the stock market works with dividend payments going to users every month. Finally after you’ve started staking Tron we would also recommend checking out these other coins as well.
- Polkadot which is a software based crypto and a great alternative to Ethereum.
- XRP which is a bridge asset for financial institutions, and has been sitting in the top 10 of all cryptos for years.
- Ethereum, because its safe and will likely be here for the next 10 years.
- The Graph which is a crypto that indexes different blockchains, and has been referred to the Google of all crypto’s.
And finally, you should ask yourself these 3 questions before using your hard earned cash to stake. Staking may not be for everyone. There are a few questions to ask before making a decision about whether to stake your crypto.
Will you need access to your staked crypto?
Crypto staking can involve committing your assets for a set period of time during which you might not be able to sell or trade them. If you think you might move your crypto on short notice, make sure you look at the terms carefully before staking it. It’s important to remember that crypto is a volatile asset. While crypto staking can provide a measure of predictability in investment returns, if the market value for your cryptocurrency drops in value by 20% during the time you’re staking it, for instance, the rewards you’re getting may not look as attractive.
Do you believe in the project?
Ultimately, deciding to stake your cryptocurrency may come down to whether you feel confident that it’s a good investment over the long term. If you believe in the value of the Ethereum network, for instance, the day-to-day swings in price may not affect your desire to sell. Staking is one thing you can do to get shorter-term value from a crypto investment you want to hold onto.
Final Thoughts
Crypto staking is one way of earning passive income, which does not require daily effort after an initial investment. And while staking may be a good choice for some cryptocurrency owners, there are many other ways of generating passive income. It may be worth looking into some of those options, as well.
