Staking Tron is essentially holding Tron assets within a Tron wallet connected to the Tron Blockchain. When you have Tron crypto assets within the Tron wallets, you allow your tokens to be used to facilitate transactions and general operations within the Tron blockchain network. As a result of your contribution to the Network, you are rewarded as the owner of the crypto tokens.
Several crypto assets are eligible for staking at the moment, and knowing how to stake Tron is arguably lucrative. In this piece, let’s know Tron tokens as well as the overall experience Tron crypto holders should expect when staking on the Tron network.
What is Tron staking?
Tron staking involves holding the TRX tokens within the Tron network to contribute to the blockchain network. Often staking allows transactions within the blockchain network to be processed much faster. For a transaction to be successful on a blockchain network, token holders must verify and validate every transaction request.
Therefore, whenever you stake Tron, you help validate these transactions, and in return, you are rewarded with more Tron tokens. Crypto holders have continued to view staking as an investment opportunity that allows them to earn interests (rewards) for holding a specific token. At the same time, they also profit from the inherent growth in value of the assets they hold the cryptocurrency simultaneously.
Tron staking involves committing a portion or all of your TRX tokens to the Tron ecosystem. Whenever you are staking, you are required to reserve your tokens for a specific period; during this period, you cannot access your tokens. It is similar to having a locked savings account with conventional banks; however, with cryptocurrency staking, the rewards are much more lucrative since they provide better rates of reward.
Why choose Tron?
The Tron network is one of the prominent blockchain networks today; with impressive growth rates, the entire ecosystem already boasts of more than a billion transactions and more than a million accounts. The growth has clearly been facilitated by the several projects running on the blockchain network. Currently, the Tron network hosts six projects, including TRX, USDT, USDC, BTT, JST, and Non-Fungible Tokens (NFT).
Tron, however, is one of the most common crypto assets for staking, but how does Tron staking work? The staking rewards are different in the current crypto market based on the blockchain network involved. For crypto investors, it is essential to conduct research and determine which cryptocurrencies allow staking and provide the most lucrative rewards.
Here are some reasons why staking Tron is advantageous to most crypto holders.
- Staking is an investment route with minimal risks and close to zero risks. It means that the investor assumes no additional risk other than the risk of holding the cryptocurrency itself. Therefore staking TRX coins provides the crypto holder with an extra earning opportunity for the same level of risk.
- Free transactions. When staking Tron TRX tokens, you increase your voting power within the blockchain network. Since you are essentially freezing your assets within the blockchain, the Tron network automatically rewards you with free bandwidth that can cover nearly 20 free transactions within the ecosystem.
- The Tron network is highly optimized, having combined the merits of both Bitcoin blockchain and Ethereum blockchain. The combination has led to a high-performance blockchain ecosystem with high transaction rates. Therefore, the high transaction rates easily translate to higher rewards for clients.
How to stake Tron on Ledger Live
There are several ways one can stake Tron TRX; however, some methods provide better services to crypto holders than others.
There are significant advantages of using hardware wallets to hot wallets, and the most important of them is security. Hardware or cold wallets provide a higher degree of security to your crypto than hot wallets.
In order to stake Tron TRX tokens on the Ledger hardware wallet, you should purchase the hardware wallet where you can store all your crypto coins, including Tron’s TRX.
WIth your Ledger nano plugged in, you can download the Ledger live software to allow you to access all your cryptocurrencies, including Tron. Using the software, you can perform different crypto-related tasks such as staking in order to earn staking rewards.
Using the Ledger live, you can either transfer your Tron to your new address; however, if you want to purchase, you can also achieve that through Ledger live.
On Ledger LIve, you can freeze your TRX tokens to gain more bandwidth as well as more rewards.
Below is a step-by-step guide on how to Stake Tron on Ledger live.
Step 1 – Add Tron TRX tokens to your Ledger account by adding the Tron app to your Ledger live. Ensure the app version is 0.1.6 or later. Now click on the Manager section, which is located on the left sidebar.
Step 2 – Click on the add accounts tab to add Tron to Ledger live. Click the “Tron” option.
Step 3 – Now create your Tron wallet account on a Ledger device. Creating an account will help you to have access to the wallet’s Tron address.
Step 4 – Next, open Tron’s application on a ledger device. Now click on the green button with the label “Sign In.” Copy the shown address, and then you have to deposit your TRX and ERC10 tokens from your exchange wallet, or if you have other wallets.
Step 5 – After receiving your TRX coins, click on the Earn Rewards section on your Tron account page.
Step 6 – An information window will pop up for you to read and understand. Click continue after you are done and select your Energy and Bandwidth. Bandwith points are different from Energy points. Energy points are used to implement smart contracts, while bandwidth points are used to facilitate transactions within the ecosystem without paying TRX coins.
Note that any transactions that involve USDT TRC20 require you to have sufficient Energy points, a failure to which your TRX tokens will be consumed.
Step 7 – Finally, specify the amount of TRX tokens you’d like to freeze. Essentially freezing more tokens allows you to vote more, and in return, you receive more rewards.
Note that for Tron staking, the frozen tokens will be unavailable for transfer for at least three days one the freezing time.
Step 8 – Click on Continue; proceed to confirm and verify the process on Ledger. You can either Accept and proceed with the operation or cancel the procedure at this point by pressing Reject.
Step 9 – Press the green “Vote” button. Search for a candidate and press the black “Vote” button. Select amount of your votes for this node and press the “Vote” button again.
Press the “Confirm to Vote” button. Enjoy your TRX staking rewards with Non-Custodial Staking from Ledger Live.
How to Stake Tron on Binance
To stake Tron on Binance, you have to follow the below-mentioned steps:
Step 1 – Log in to your Binance account.
Step 2 – At the top menu bar, click on the “staking option.”
Step 3 – A new window will display a complete cryptocurrency list with the details of staking rewards.
Step 4 – In the next step, deposit the cryptocurrency from your setup Binance Wallet.
Step 5 – This is how your Binance wallet is all set to stake Tron.
How to Stake Tron on TronWallet
If you want to learn how to stake Tron on a TronWallet, you should have at least one TRX in the mobile wallet. That’s all! After it follows the given steps below:
Step 1 – Open your Tron wallet.
Step 2 – Visit the freeze menu, choose the total number of coins you want to freeze, and confirm freezing.
Step 3 – For every freeze TRX, you will be getting a Tron power. To earn some amount of rewards, make sure you have to vote for the super representative.
Step 4 – Once the app has given the “successful” text sign, once again confirm your staking transaction on the blockchain ledger.
How much can I earn staking rewards with Tron blockchain?
Staking can be done through several wallets, including but not limited to Guarda wallet, Atomic wallet and Metamask, and even Trust wallet. However, the idea is the same; all these wallets are linked to the Trons network that allows all crypto enthusiasts to benefit from the block rewards.
As of today, the Ledger reports that Tron’s annual average staking returns are about 7% of the total staked tokens. These impressive returns encourage crypto holders to venture more into staking rather than keeping their crypto holdings idling.
For a crypto investor, earning an additional 7% in reward annually allows them to increase their potential earnings. Often the inherent value of crypto assets fluctuates from time to time, and losses can easily be incurred within one year.
Benefits of staking Tron
- Staking Conserves Energy
Staking barely reduces energy utilization, which benefits the environment. Any ordinary mobile phone and laptop are adequate for staking.
- Staking Without Internet
Cold staking,” or staking of coins is possible without an internet connection. You can keep on earning interest even if you forget that you’re staking.
- The Ability of Mining
Staking conception is making a refundable deposit that aims to prove that you have invested in the profit of anything you’re mining off. So, you can earn twice by mining and staking Tron. Mining for TRX is simply a matter of using a computer to successfully hash another coin, and the mining pool will do the conversion on the backend and pay you out even though Tron uses Proof Of Stake (POS) as the consensus method.
- Simple and Safe
Staking is safe and straightforward. It is much more effective against attacks that have an economic drawback. Apart from this, staking doesn’t need much knowledge but wit. The procedure is to buy coins on the trades and deposit them. This will increase the rate of coins in your digital wallets.
- Guarantee of Profit
The market evaluation of the coin goes up, which enhances the worth of staked coins. Hence, crypto staking provides a guaranteed and predictable earning interest from time to time. Staking allows the investor to increase the number of coins they hold over that period since they claim rewards in Tron.
Risks of staking Tron
- Volatility of crypto
The biggest risk is just holding a very volatile asset, but that’s really independent of staking since all cryptocurrencies are volatile.
- Dumps and other missed benefits during the locked/freeze period
There is the risk that when you initially vote (stake) you have to freeze your funds for 3 days. If the price moons, then dumps you miss out. But after those first 3 days you can unfreeze anytime.
- Development Changes
Other than that there aren’t any risks like having to check your votes once in a while. But its always smart to keep up with Tron development cause the network does change often
- Payment Delays
Every 24 hours is a payout. But those payouts are delayed sometimes, but they do pay for every day, so some days you might receive 2 payments for 2 days.
Should I stake Tron?
Staking rewards are a new method for crypto investors with a strong belief in a truly decentralized internet to earn passive income. Although it is an investment opportunity, it doesn’t expose the crypto investor to any additional risk other than the risk assumed by holding a Tron TRX token, for instance. Therefore, with the high availability of staking platforms, crypto investors should take advantage of such opportunities.