|Staking||Adj Reward %||Avg Reward %||Avg Fee %||Inflation||Market Cap||Staked Ratio|
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When it comes to earning passive income on your crypto holdings, you have options. Whether it’s lending your tokens to interested borrowers in return for interest or staking your tokens in return for rewards, you can take advantage of what the crypto market offers and reap the benefits of having extra tokens in your wallet.
That said, not all staking rewards are created equal. When you stake your tokens, you’re typically offering your tokens to a platform on a temporary basis to help streamline the transactions within the blockchain network. This allows transactions to be processed much faster. In return, you are offered rewards, which are typically paid in the form of the crypto you’re staking.
One solid option you have is to stake your TRON (TRX) tokens — which are the native tokens of the Tron protocol — to earn rewards on what you stake. The Tron platform was created to give Bitcoin and Ethereum a run for their money by using the blockchain as the foundation for a future global content-sharing system. With its low transaction fees and fast transactions, the TRON protocol has had a huge impact on the crypto market — and if you stake the TRX token, there’s a chance that it can have an equally big impact on your crypto gains. So, if you have TRX tokens sitting in a wallet just itching to be used, staking TRON might just be the thing for you.
What is TRON?
TRON, or TRX, is the native token of the Tron protocol. The Tron network may not be as familiar a name as Bitcoin or Ethereum, but it’s one of the most widely recognized and prominent blockchains around today. It has grown significantly over the last few years, and the Tron ecosystem has hosted over a billion transactions thus far.
Tron protocol’s growth has been propelled by a number of factors. However, the fact that it hosts numerous prominent projects on the blockchain has been one of the main contributors to its growth. In addition to hosting TRX (the native Tron token), the Tron protocol hosts USDT, USDC, BTT, JST, and NFTs.
And, the TRX token is a crucial part of the protocol. Much like ETH is used to “fuel” the movement of transactions across the Ethereum blockchain, the TRX token also is also used as fuel on the Tron blockchain. In other words, the TRX crypto is used to fuel programs running on the Tron network. Don’t confuse TRX as being a coin, though. It’s considered to be a token because it serves a crucial purpose on the Tron blockchain — it doesn’t just serve as a digital currency.
How does TRON staking work?
When you stake TRON or TRX, you’re allowing your tokens to be used to facilitate transactions and general operations within the TRON blockchain network. While staking terms vary, you are typically allowing your tokens to be used for anywhere from a week to six months or longer. In turn, you are rewarded for allowing your tokens to make a contribution to the network. Not all platforms will require you to lock your tokens when you stake, though. Some offer flexible staking, which means that you can withdraw your assets from being staked at any point.
It’s important to note, though, that while the network is using your TRX tokens to facilitate transactions that occur on the blockchain, you still retain possession of your TRX tokens. That means you don’t have to give up control of your assets in order to earn rewards, which cuts down on the risks of losses or other issues occurring with your tokens. And, once the network is done utilizing your TRX, you can either opt to stake and earn again or use it for another purpose instead.
While staking rates vary, TRON staking can result in some seriously impressive profits, providing you use the right platform to do it. For example, there are platforms that offer up to 5% rewards on TRON staking, which means that if you stake $10,000 worth of TRX for a period of 30 days, your returns would average about $41.66 for the month. And, the longer you stake your tokens for, the higher the returns tend to be.
Numerous staking options
There are multiple platforms on which you can stake TRON, all of which offer varying returns. Most of the big platforms and wallets, including Binance, eToro, Ledger, Atomic, and others, offer staking opportunities for your TRX tokens.
High earning potential
The rates for staking TRX vary, but can be pretty high depending on what platform or staking option you choose. For example, the Atomic wallet allows you to stake your TRON and earn a 5% APY on the tokens you stake, with rewards paid every three days. eToro also allows TRON staking and offers up to 4.3% annually. Binance also offers TRX staking at a rate of over 12% if you stake for a 120-day period.
Flexible time commitment
The time commitments you’re required to make when staking TRON will vary by exchange. Locked and flexible staking are options when you stake TRX, and locked staking terms typically require you to commit your tokens to periods that include 7, 30, 90, 120, or 365 days.
Potential returns for staking TRON
The potential returns you’ll earn when staking TRON will depend on the amount staked, the length of time staked and the APY offered by the platform. Different platforms offer varying APYs, so make sure to do your research for which works best for you.
For example, the Tron platform is currently offering a fixed 3.51% APY on TRX staking, while Atomic and Ledger wallets are offering up to 5% — and the Binance platform is offering over 12% on locked staking of 120 days.
How much can you make for staking TRON (TRX)?
|Staked amount||APY||Duration||Potential earnings|
|$1,000 in TRX||3.51%||30 days||$2.89|
|$1,000 in TRX||5.00%||60 days||$8.32|
|$5,000 in TRX||3.51%||90 days||$43.29|
|$10,000 in TRX||5.00%||30 days||$41.66|
|$10,000 in TRX||3.51%||90 days||$86.58|
What to know about returns for staking TRON
When it comes to earning returns on TRON staking, it’s important to note that each platform or wallet handles the APYs and requirements differently.
If you’re opting for a locked staking option, you’ll need to leave your tokens untouched for the required time period in order to receive the agreed-upon APY, which will generally be higher than what you’d get with a flexible staking option. As such, locked staking can be more lucrative, but it can also mean that if the market tanks or skyrockets and you want to sell, or if you need your tokens immediately, you may not be able to access them.
But even if you can access your locked tokens, you’ll likely receive a cut-rate due to withdrawing your tokens early. This can result in you facing some tough decisions on how to handle the transactions.
Fees for staking TRON
When you’re staking TRON, the fees can vary. In some cases, you may be fee-free when staking TRX, while others may charge a small fee. It all depends on the platform. In general, though, you typically don’t have to pay much of an up-front fee to the exchange to stake. Any fee you pay will be calculated into the rewards rate you’re receiving.
Pros and cons of staking TRON
- Easy to do — even for beginners
- Annual average return of 5%, though returns can be much higher depending on the platform
- Staking is generally safe
- The highest rates are typically for locked staking
- Market volatility can come into play
Pros of staking TRON
It’s easy to do
Staking TRON is simple. You can use either a DeFi or CeFi platform and you simply log in and offer your tokens to the exchange in return for rewards. Even the most novice crypto users can typically navigate the process.
Returns can be high
The returns on TRON staking can vary, but typically average about 5% and can be much higher depending on the terms and platforms you choose.
Generally safe to do
When you stake your tokens, you’re not offering your TRX to the exchange. You’ll retain ownership of your tokens, even if you lock them during staking. While a centralized exchange will have to take temporary custody of your tokens in order for you to stake them, you won't have to change token ownership or give up other types of control.
Cons of staking TRON
Rates are typically highest for locked staking
The rates you earn on TRX are typically highest if you lock your tokens during staking — and are typically higher if you choose a long term. This means you can’t really access your tokens during the agreed-upon term, which can be tough if you decide you need your tokens or want to sell them.
Market volatility can be a risk
The crypto market is volatile, and if you aren’t in it for the long haul, TRX staking can remove your opportunity to sell if the market tanks or rises — and may also cause some impermanent losses if you aren’t careful.
Is it safe to stake TRON?
Staking TRON is generally considered safe. Here’s why:
- Lower token volatility: In general, TRON has been less volatile than a lot of the crypto market, which means that the prices may not rise and fall as quickly as they would with other coins. This makes it less risky to stake for locked or long periods of time.
- Retain token ownership: While the network is using your tokens to validate transactions or perform other tasks, you never lose ownership of your assets.
How to stake TRON
Staking TRON is an easy process, and will generally take just a few minutes to get started.
Step 1: Determine which platform or wallet you want to use to stake with
You have numerous options to choose from when staking TRX. Determine which platform works best for you by weighing certain factors, like APYs, locked or flexible staking options, whether the platforms are DeFi or CeFi, and other metrics that may matter to you.
Step 2: Log onto the platform using the wallet containing your TRX tokens
If you’re going to use a platform or exchange to stake, you’ll need to log onto it using the wallet containing your TRX tokens and choose “staking” to get started. If you’re staking within a wallet like Atomic or Ledger, you can simply follow the instructions to stake within your wallet.
Step 3: Choose the amount you would like to stake and the term
You may have options for staking terms, so you’ll need to follow the steps for the platform to choose the time frame in which you are staking. As noted, these can be as short as seven days or as long as a year or more — it all depends on the platform itself.
Once you choose the amount you would like to stake, confirm that everything is correct and then commit to staking your tokens.
Is staking TRON right for me?
Whether or not TRON staking is right for you will depend on what your goals for your tokens are. In many cases, your tokens will be locked up for a certain time period in order to validate transactions on the network. What that means is that if you need access to your tokens in the near future, you may not want to stake them. Or, you may want to stake them for a shorter period of time instead.
On the other hand, if you’re planning to hold your TRON for a long period of time and don’t need access in the near future, staking your TRX tokens can result in lucrative returns with little risk. It’s all up to you as to whether it makes sense to stake your tokens.
Final thoughts on staking TRON
When it comes to staking, the returns can be pretty high with TRON, which makes it an alluring option for a lot of crypto users. Whether or not that’s enough for you to overcome a few hurdles, like the potential for locked staking periods and the potential market volatility, is your call. However, with rates of 12% or higher for TRX staking, TRON staking presents an excellent opportunity to earn if you’re willing to take the good with the not-so-good.
Frequently asked questions
How much TRON do I need for staking?
Where can I stake TRON tokens?
Is TRON good for staking?