How to Invest in Tron TRX

Tron aims to decentralize the entire internet. Is this ambitious network worth your investment? Review three major factors working in Tron's favor.

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With massive potential and a small market cap, Tron is an attractive cryptocurrency for many.

But is it a safe investment? And does it have a future?

Below, learn what Tron is, and what makes this cryptocurrency so appealing. Plus, find out how and where to buy Tron online.

What is Tron?

Founded by Justin Sun in 2017, Tron is one of the most ambitious blockchain projects to date. It aims to decentralize the entire internet.

With 46 million accounts and 2.1 billion transactions, the Tron network is currently the world's fastest-growing public chain.

One big issue Tron is trying to address is the centralization of content across the internet. Consider, for example, how much of the internet is controlled, distributed, and governed by FAANG stocks like Facebook, Amazon, Apple, Netflix, Google, etc.

Tron aims to allow content creators to host all their content on its public blockchain. Creators can be financially supported by consumers directly on the blockchain, using their native token, Tronix (TRX). All without the management and oversight of third-party entities and big tech giants.

In short, the Tron network enables free, decentralized, peer-to-peer content distribution and storage.

Pros and Cons of Investing in Tron

It's important to weigh the pros and cons before making any investment. Review the points below to see if Tron lines up with your investment goals.

Pros

• Created by a strong team of developers
  
• Fast transaction times and lower fees
  
• Supports many applications
  
• Has a large circulation of stablecoins
  
• Aims to decentralize entertainment; users can monetize content without intermediaries

Cons

• Some consider it too centralized (50% of TRX tokens are stored in 10 addresses)
  
• Highly susceptible to negative news about parent coin, Bitcoin
  
• Ethereum has first-mover advantage
  
• Has many competitors in addition to Ethereum

Is Tron a Good Investment? 3 Reasons to Invest

Now you understand what Tron is, but is it a good investment? Let's take a look at some bullish factors working in Tron's favor:

1. Big-Name Partnerships

One of the forces behind Tron's growth is its strategic use of acquisitions and partnerships. The blockchain platform has already partnered with several premier tech players such as Samsung.

Tron even has its very own section in the Samsung Galaxy Store. This section features decentralized applications that are currently running on the Tron blockchain, such as:

• Blockchain Cuties
  
• Super Player
  
• Meerkat Mining
  
• Timeloop

The fact that Tron already has real-world apps in wide use and adoption by large companies such as Samsung highlights the future growth potential of this relatively young blockchain network.

2. Strategic Acquisitions

Tron has made impressive acquisitions to further fuel their growth, like their 2018 acquisition of BitTorrent.

BitTorrent is currently the largest decentralized P2P communications protocol, and it helps distribute data and large files over the internet to over 100 million active users each month.

3. Huge Market Potential

For such ambitious goals, Tron's market cap is still a modest $4.2 billion. You can see the growth potential of this investment if you compare this market cap to just one of the FAANG stocks.

Google, for example, has a $1.74 trillion market cap. Combined, the market cap of all FAANG stocks is over $6 trillion.

Now, is it realistic to expect Tron to steal the market cap of all these companies? Of course not. But with the size of the total market and the problems Tron aims to address, it's not impossible that it could hit a $100 billion market cap in the coming years.

That's an extremely modest valuation compared to many other tech stocks, but still would represent a 25x increase in the current market cap, and thus the price, of Tron and Tronix (TRX).

Tron's Competitors

There are other players aiming to use the blockchain to distribute content online.

Some may argue that, just as there are multiple FAANG stocks, it's unlikely there will be just one winner in this blockchain niche. If you're considering investing in Tron, it's worth knowing the competition.

Filecoin - The Filecoin network is a decentralized peer-to-peer file storage network that aims to let anyone store, retrieve, and host digital information.

FIL tokens are used as payment for these services and as an economic incentive to ensure files are stored reliably over time. FIL's market cap is almost exactly the same as Tron's, at around $4 billion.

Theta - Theta is also focused on content distribution, but with a specific focus on video streaming.

The Theta blockchain is currently the only end-to-end infrastructure for decentralized video streaming and delivery that provides both technical and economic solutions.

How to Invest in Tron

Ready to invest in Tron? While it's not still available to trade on Coinbase, Tron is making its way onto many exchanges. You can see a full list of where it's available on the Tron website, but here are our favorite exchanges to use to invest in Tron:

Kraken
Kraken allows new users to start buying cryptocurrency with as little as $10, and has over 50 coins currently available for purchase, including Tron.

Kraken's user interface can be a bit confusing if you're new to cryptocurrency but is excellent for more experienced crypto investors.

That said, even if you're new, Kraken recently started publishing a lot of helpful guides and learning resources.

Binance
Binance is a favorite exchange for crypto investors because of its low fees. However, the coins available to users varies geographically, which can sometimes be frustrating.

For example, Binance restricts many coins for U.S. users on its U.S. exchange (binance.us).

Still, if you know the coin you desire is available on Binance (as Tron is), then it's a great option to invest in cryptocurrency while minimizing fees.

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KuCoin
KuCoin is one of the fastest-growing exchanges today.

They intend to be a "people's exchange" that allows everyone to get involved with the world of crypto. KuCoin features low fees and ease of use, and they have a very user-oriented business model.

Many people find the company's origin story down to earth and relatable, as it was founded by two tech geeks who fell in love with the blockchain early on.

Bottom Line

Tron has tremendous growth potential, as it's aiming to revolutionize the entire internet by decentralizing content. If it succeeds, an investment in Tron could certainly pay off handsomely.

However, like all investments, Tron carries risk. The network has several prominent competitors and is also up against some of the biggest players in the NASDAQ.

Now that you know how to invest in Tron, you will still need to do your own due diligence and decide whether investing in Tron fits your risk tolerance, temperament, and goals.