How To Make (Or Lose) Money With Tron (TRX) | Trading Education (2024)

With little research, you will realize that there are numerous ways through which virtually anyone can make money with Tron Tokens. Most of these require capital commitment and a few let you earn free Tron tokens that you can later invest or exchange for cash.

You will also realize that there are countless ways through which Tron investors can lose their investments. This research will also show you that as the Tron network’s popularity and TRX token prices soared, so did its appeal to cybercriminals. These have crafted different strategies that they use to steal Tron investor funds.

But we want you to help you retain as much as you earn with Tron. In this post, therefore, we introduce to you the different ways of making money with Tron tokens, we also brief you on the different strategies criminals are using to steal TRX tokens from investors, and importantly, show you how to keep your Tron safe.

Read on.

Ways to Make Money With Tron (TRX)

There are multiple ways of making money with Tron, and in this section, we look at the four most common.

Investing

Investing is perhaps the easiest and one of the most beginner-friendly methods of making money with Tron. It involves buying TRX tokens and holding on to them for the longer term, hoping that their price will rise to unprecedented levels and earn you huge returns in future. This method of making money with Tron is recommended for beginners because it carries less risk.

It is preferred to other forms of trading because of Tron’s proven resilience and sustainability. Resilience is seen in the fact that in the four years that Tron has been around, it has maintained an overall positive return on investment (ROI), exceeding 4500%. It also has the backing of a relevant and speedily expanding network with a clearly defined roadmap that most crypto experts believe will help influence Tron’s sustainability.

Trading

Trading is a hands-on and highly lucrative method of making money with Tron. It involves buying TRX tokens when their price is relatively low and selling them for a profit as soon as their value rises. In this case, you are essentially leveraging the token’s volatile price action.

When trading, you can choose to be a day trader who opens and closes multiple TRX trades in a single day, holding on to the tokens for a few seconds, minutes or hours for every trade. You could also be a swing trader who buys when TRX are lowly priced, rides their uptrend for days or months and sells when they peak. In either of these cases, you have the option of trading TRX derivatives, especially the CFDs, which let you go long or short on the trade.

Given the highly volatile and unpredictable nature of the Tron token prices, we only recommend TRX token trading to highly experienced crypto traders.

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Staking and Lending

The Tron network is secured via the delegated proof of stake consensus mechanism. Therefore, if you have invested in TRX tokens, you could stake them and be elected to validate transactions on the platform and earn free TRX tokens in return. Alternatively, you could lend them to a transaction validator on the network who shares the earned TRX tokens with you.

There also are numerous third-party lending platforms that let you earn interest on staked Tron tokens. The Atomic Wallet and Trust wallet staking programs, for instance, promises Tron investors up to 10% interest on staked TRX tokens.

Both the on-network and third party lending apps give you a chance to earn doubly on your Tron investment. For starters, you make money when the TRX token prices rise. Secondly, you earn interest and rewards from the staking platforms.

Share/sell creative skills

Tron is a specialist blockchain network dedicated to helping creatives like artists and gaming industry professionals bypass the middleman and establish direct connections with their audience and clients. It has created a platform that lets you (if you are a creative) sell your artistry directly to your clients/listeners/audience and be paid in TRX tokens.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Ways to Lose Money With Tron (TRX)

The untamed volatility of such crypto-assets as Tron, as well as the increased cyber security threats, have made crypto investing quite risky. They have also introduced numerous loopholes through which Tron investors have lost money. Here are the three most common and how to avoid them.

Trading

Trading is as risky as it is profitable. Because of its volatile price action, Tron trading has turned into one of the most common ways of losing money. In most cases, investors are often whipsawed when the crypto market and Tron token prices defy their analysis/prediction and run against their bets.

In most cases, the loss is proportionate to the tokens percentage loss of value. This implies that if Tron tokens shed 10% of their value before you close an open position, you stand to lose 10% of your trading capital. Margin traders, however, get to lose even more.

How to prevent this: You cannot control Tron’s or crypto market’s volatility, but you can limit the impact it has on your trading capital by embracing the risk management tools provided by the brokerage/exchange. You may also want to limit your dependence on leveraged funds. But more importantly, you are advised to practice trading and constantly improve your strategy in a demo environment.

Read Also: The Top 5 Advanced Crypto Trading Strategies

Hacking

The number of individuals taking up hacking as a career is on the rise, and so is the number of hacking incidences in the crypto space. These hackers are also grouping into teams, pooling their resources and expertise to organize and carry out largescale hacks against crypto wallets, crypto exchanges/brokerages, and data centres containing crypto investor data.

At the moment, hackers are terrorizing Coinbase wallet holders by draining their crypto assets. In August 2021, they hacked Japan-based Liquid exchange and made away with $90 million worth of digital currencies. Before this, they had breached Ledger, the hardware wallet development company security, and stole customer data.

How to prevent this: At the moment, the only sure way of keeping your digital assets away from hackers is by storing them in an offline hardware wallet. Verizon also reports that most of the hacks were made possible by weak passwords. Therefore, you might want to use unique and strong passwords for your crypto exchange and wallet accounts.

Scams

Crypto scams, especially the get rich quick schemes like MLM networks, Ponzi, and pyramid schemes, have been on the rise. They are more appealing with their messaging and more innovative in crafting investing platforms. Recently, the FTC reported that fake website scams are on the rise before adding that crypto investors lost more than $80 Million worth of crypto to scammers between October 2020 and May 2021.

How to prevent this: You can avoid falling prey to crypto scammers by orienting yourself with all the common scams around, how they operate, and taking steps to avoid them. Similarly, you need to keep in touch with crypto news and security reports to learn of emerging crypto scams, and how to detect/avoid them. Importantly, you need to get rid of the get rich quick mentality when it comes to crypto investing/trading.

Bottom Line: How to Make (or Lose) Money With Tron (TRX)

After climbing to the top 30 cryptocurrencies and posting a net positive ROI of 3,144.87%+, Tron has its acclaim as one of the most profitable and one of the most popular cryptocurrencies. But this popularity and demand for the TRX tokens bring about huge volatility and a chance to make or lose money. If timed correctly and proper risk management tools activated, Tron can earn you handsome profits, but if done recklessly, this volatility may wipe your trading account.

In this post, we have highlighted the most popular and most common ways of making and losing money with Tron. Go through these again, pick the method that works best for you, familiarise yourself with all the ways to lose money with Tron and learn how to avoid them.

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