Investors are constantly on the lookout for earning a passive income, and recently a lot of investors have directed their attention to staking. Tron is among the major staking cryptocurrencies, delivering amazing returns to investors so far and is a top coin in terms of its overall staking market cap. In this guide, we’ll take a look at everything you need to know about how to stake Tron., along with our review of the best platforms and wallets to stake Tron.
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Can You Stake Tron?
Tron follows a Proof-of-Stake consensus mechanism, where validators are chosen -in proportion to their token holdings- to validate the transactions on the network, for which they’re rewarded with Tron tokens. But becoming a validator requires technical expertise, which isn’t accessible to everyone. However, users can contribute their crypto into staking pools as delegators and earn interest on their staked crypto for their contribution to the network. Staking can be done through multiple exchanges and wallets.
How Much Can You Earn From Staking Tron?
The APY for staking depends on multiple factors, such as the duration of staking and the type of staking offered by every platform. While the highest staking APY is 12.38% on Binance, it’s fair to expect an average staking APY of 5% across platforms. Generally, the more the staking duration the better the APY appears to be.
Where To Stake Tron - 5 Best Places To Stake Tron
1. Binance - Overall Best Exchange For Staking Tron
Binance is the number one crypto exchange in the world, mainly due to the numerous services it offers to investors. In terms of volume, Binance has the most trading activity, more than 8 times that of its next competitor. It’s no wonder, therefore, that Binance is the first choice of investors, for any crypto-related services.
Along with being a crypto exchange, Binance also has an NFT marketplace, featuring in-game assets, virtual land and digital art. While ranking number one in the list of the best-centralized NFT marketplaces. Additionally, Binance also has an education platform, Binance academy. Where blockchain and cryptocurrency-related articles and videos are available across 15 languages. This is especially beneficial for newcomers who are having trouble navigating the crypto space.
Of all the services offered by Binance, Crypto Staking is one service that has garnered a lot of attention. More than 100 cryptocurrencies are available under the locked staking program on the platform, and 15 Defi Staking cryptos, including Eth & BNB, are available with 60 other staking products. Staking of Tron was launched by Binance on 20 Oct 2020, where users were able to earn an annualized percentage yield of up to 20.58%. At the time of its launch, Binance had three staking products featuring Tron. Today, however, there are five products available for investors.
Binance gives investors an option to stake their crypto for 30, 60, 90, and 120 days. Wherein the APYs are 4.34%, 5.20%, 6.59% and 12.38% respectively. All four of the products mentioned are of the locked staking type, where investors have to lock their crypto for the number of days mentioned. Additionally, there is one other product with flexible duration, where users can subscribe and redeem their assets any time they want.
One important thing to note is that users who redeem their coins before the completion of the locking duration will have to forgo all the rewards they’ve earned to date. If, as an investor, you’re unsure of your commitment to the mentioned duration, the flexible savings option would be a suggestible choice. Read our Binance review for more information on the exchange.
2. eToro - Best Way To Stake Tron For Beginners
eToro is one of the earlier exchanges to facilitate crypto trading on its platform. Founded in 2007, eToro started by offering only forex trading. Today, however, the platform is known to offer a range of assets including stocks, ETFs and cryptocurrencies. In October 2020, eToro launched its staking services for the first time with Cardano and Tron. Today, they also offer Ethereum staking. The first wave of staking rewards was distributed by eToro in the month of November, as the payout is done every month on the platform.
After a user has staked their crypto, there’s no work required to be done on the user's part as eToro takes care of everything. The payouts are deposited in the user’s wallet every month without requiring any action from their end. However, eToro does charge users 10-25% of their staking APYs for offering staking as a service.
The APYs on the platform range from 0.0-5.0%, with a holding period of 9 days. Bronze members in the US receive 75% of their yields, while Silver, Gold, and Platinum members receive 85% of their staking yields. Diamond and Platinum+ members on the platform receive 90% of their staking yields wherein the rewards begin after the 9th day of holding. In comparison to other exchanges, eToro falls back a little when it comes to better APYs. Binance, for example, offers much better annual interest rates than eToro. Plus, there are no major charges from the exchange for staking crypto.
3. Kucoin - Best Platform For Frequent Traders
Kucoin is a popular crypto exchange known for its wide crypto offerings, with over 600 cryptocurrencies available to trade on the platform. In addition to that, the platform is present in over 200 countries catering to a user base of more than 8 million investors. KuCoin first introduced staking on its platform in 2019, and soon attracted over 300,000 users to this service. As of today, the platform has over 50 coins available to stake, including Tron.
Unlike most other exchanges, KuCoin has something called soft staking. Wherein users aren’t required to lock their crypto for any particular duration but can use their coins whenever they want. Considering the volatility of crypto, this is a great way to stake. Not only will you be able to withdraw your funds when the markets are underperforming, but you can even participate in the market when cryptocurrencies are following an uptrend.
Talking about the options available to stake, KuCoin provides an APY of 2.2% and 3.13% on two of its crypto products that don’t require users to lock in their funds. There’s also an option to lock funds, where users can receive an APY of 5.27% by locking their funds for 14 days. It’s quite evident that KuCoin isn’t the exchange offering the best yield, but it can be a preference for users who don’t wish to lock their crypto and prefer having control over it.
In comparison to other exchanges, KuCoin is known to have much lesser trading fees, normally ranging between 0.0125% to 0.10%. The only issue with KuCoin is that it isn’t licensed in the US. So, users in the US may have to consider other exchanges for their crypto-related needs.
4. Ledger Wallet - Best Hardware Wallet For Tron Staking
There are multiple ways to stake Tron, or any cryptocurrency for that matter, and while exchanges are some of the most popular ways of staking your crypto, they aren’t necessarily the most secure. Ledger Wallet is a trusted name when it comes to cold wallets. As the wallet allows stakers to store more than 1000 cryptocurrencies without any hassle. The Ledger Live software can perform many crypto-related tasks, including staking Tron while safely holding the tokens in cold storage.
Staking Tron on a Ledger device is pretty identical to the process on most exchanges, where the user must choose the locking period, enter the amount of Tron you want to stake and confirm the transaction. The staking reward at the time of return is approximately 5% but does vary on the network conditions. Using the software, holders of the tokens can choose the best delegator pool to join. The delegator fees will be taken from the yield.
For crypto enthusiasts who value the security of their investment over staking rewards, then using the Ledger wallet for earning yield on TRX is a great option.
5. Trust Wallet - Great Software Wallet For Staking TRX
Trust wallet is a crypto wallet offered by Binance, where you can store all your cryptocurrencies. It is available on both iOS and Android devices and opening your own wallet doesn't take more than a few minutes. In the discover section of the app, there are several staking features that can be accessed effortlessly. A full list of tokens is viewable with their respective staking APYs. Trust wallet also has a staking reward calculator on its official website, where they show the estimated earnings according to the current APYs, on a per day, month, or yearly basis.
Every cryptocurrency has a minimum amount you need in a wallet to be able to stake, in the case of Tron, it is $1. Additionally, they need to have the required transaction fees in your wallet, which can be 1 TRX at minimum. After entering the amount of TRX to stake, users will be required to choose a validator. Select one from the options presented.
Users should be aware that the tokens will be frozen for 3 days, under which they cannot move or transfer them anywhere. After this period, the owners of the funds can unfreeze the TRX tokens or leave them there in order to earn staking rewards. Overall, Trust Wallet is a convenient way to stake Tron, however, is not as robust as using the Ledger wallet in terms of security.
Read our full review of the Trust Wallet.
What Is Tron?
Tron is an open-source blockchain, established in 2017 by Justin Sun, and launched in the following year. Tron was founded with the intention of revolutionizing the entertainment industry, by using blockchain as a means for sharing content and eliminating intermediaries. To supplement the vision, Tron bought BitTorrent in 2018, a peer-to-peer file sharing company created in 2001. The Tron ecosystem is now home to various projects, including several dApps and smart contracts built on the platform.
Tron is particularly known for the transactions it can handle, where it claims to handle 2000 transactions per second, whereas Bitcoin is known to handle roughly 6 transactions per second. This is partly the reason why Tron has been one of the fastest growing blockchains with over 90 Million users on the network. TRONIX is the native token of the Tron Protocol, initially built on the Ethereum Blockchain until it switched to a blockchain of its own. Currently, the token has a market cap of $6.5 Billion and is ranked #17 on coinmarketcap.com.
Benefits of Staking Tron
- Promising returns: We know that crypto is very volatile and although speculations give you a fair idea of where a coin is heading, there’s no surety when it comes to accurately estimate the profits. Staking, therefore, comes out to be a better option wherein, under the worst market conditions, the interest earned through staking can cover the unrealized loss due to a drop in token price.
- Easy to stake: While it may take a while to wrap your head around how staking works, the actual process of stalking is really easy. Just as easy as purchasing a coin on an exchange. Even as a beginner you can navigate through the process pretty easily. If you’re having any trouble, refer to the guide above for a run-through.
- Not limited by the Internet: Users can stake their cryptocurrency in an offline wallet and earn rewards for the same. A cold wallet isn’t connected to the internet reducing any attacks, although uncommon, on your staked crypto.
- Environmentally beneficial: The PoW consensus mechanism followed by Bitcoin has received a lot of skepticism, and almost everyone is aware of why. The energy consumption to keep the network operational is concerning. Conversely, the PoS mechanism is said to be better. By playing your part in keeping the network functional, by staking your crypto, you’re lending a hand in saving the environment.
Risks of Staking Tron
- Volatility: A common risk with staking, and across crypto in general, is the market volatility. Not only are you holding a risky asset, but the interest you earn may not amount to anything if you’re locked in for a specific time, within which the asset drops in price, leading to an effective loss.
- Locked Period: Staking on most platforms has either a locking period or a freeze period, where your assets are either locked for months on end or a few days respectively. In this period, you won’t be able to make any changes or respond to market action.
- Delays in Payments: While most platforms promise everyday payouts, delays in payments aren’t uncommon. This may not be a serious issue for many as staking in crypto is thought to be long-term, and the delays usually don’t occur for more than a couple of days.
- Developmental Changes: Developmental changes and votes can influence the way the network functions, causing a potential negative price trend if any news raises a negative sentiment. This can possibly lower your estimated APY on your staked Tron.
How to Stake Tron (TRX) - Full Guide
Staking is a really easy process, and although the exact process may differ slightly from platform to platform, it’s pretty much the same and users shouldn’t have much problem navigating through it.
Step 1: Compare staking platforms
The first step is to find a cryptocurrency staking platform or wallet that supports the Tron network. Important aspects to consider are the ease of use, staking options (fixed and/or flexible), lock-up terms and commission fees. For this tutorial that demonstrates the staking process for Tron, we will use Binance as a platform for reference. For those that do not have an account, sign up with Binance and complete ID verification.
Step 2: Hold the minimum amount of Tron (TRX)
Each platform and token has a minimum number of coins you need to have before you can stake them. Depending on the platform you’re using, make sure you have enough crypto in your wallet before you check out the staking options. With Binance, the minimum amount of TRX tokens to begin the process is 0.1 TRX. Purchase or transfer the tokens and hold them in the Binance wallet.
Step 3: Search & Filter through the staking options
The next obvious step is to go through the staking options available on the platform. Binance, for example, has 4 products for Tron. Each of these comes under a different category- locked and flexible. Further, all of these options have different APY, wherein the product with the longest locking period delivers the most returns. Depending on what APY & locking duration you’re comfortable with, you can choose a product that fits you best.
Step 4: Stake your Tron
After you’re done reviewing all the options, choose “stake” and you will be directed towards the next step. Enter the amount of Tron you want to lock in and you’re good to go.
Frequently Asked Questions
There are a lot of platforms that offer Tron Staking, however, completely from a standpoint of interest rates, Binance appears to be the best option for staking Tron.
Yes, individuals can stake Tron on Binance under a fixed-term arrangement. The estimated staking rewards for 30, 60, 90 and 120 days are 4.34%, 5.20%, 6.59%, and 12.38% APY respectively.
Yes, there are many crypto wallets that allow users to stake Tron (TRX). Some examples of the best wallets to stake TRX include Trust Wallet and Ledger wallet.
Staking rewards depend on multiple factors such as the platform used for staking, the amount of TRX staked and the duration for which the coins are staked. These figures differ dramatically, however, most exchanges have an average APY of 5% for Tron.
Staking crypto involves some amount of risk which can’t entirely be mitigated. However, staking crypto is much safer than most other crypto products. And can be a great way to earn a profit, or a passive income with your already lying crypto holdings.
Staking is an incredibly profitable way to make money on the already dormant crypto in your wallet. Not only do you earn a passive income, but also helps in the growth of the Tron network. Plus, the process is very simple, taking not more than a few minutes. In this guide, we covered everything you need to know about how & where to stake Tron. We compared exchanges and wallets, citing the pros and cons of each platform and explained the steps involved to stake TRX.