Tron (TRX) Cryptocurrency Frequently Asked Questions

The Ultimate List for 2021

  1. What is Tron? What does 'Tron' mean?
  2. How does Tron work?
  3. Who invented Tron? How was Tron created? Who is behind Tron?
  4. What is Tron used for?
  5. Why does Tron have value?
  6. How many Tron coins are there? What is the Tron maximum supply?
  7. What is a Tron transaction? How do Tron transactions work? Is Tron a blockchain?
  8. Are Tron transactions anonymous? Can Tron be traced?
  9. Can Tron be mined? What is Tron mining? How does Tron mining work?
  10. Can Tron be taxed? Are Tron gains taxable? Are Tron transactions taxable?
  11. How does a Tron ATM work? Are Tron ATMs safe? Are Tron ATMs anonymous?
  12. Can Tron scale?
  13. Can Tron be stolen?
  14. Can Tron be hacked?
  15. Where is Tron stored? Where to store Tron?
  16. What is a Tron wallet? How do Tron wallets work?
  17. Who uses Tron? Where is Tron used?
  18. Who accepts Tron? Where is Tron accepted?
  19. Why is Tron the future?
  20. Can Tron crash? Will Tron crash?
  21. Is Tron a good investment?
  22. Where to buy Tron? How to get Tron?
  23. Can I buy Tron without ID? Is there a way to get Tron without SSN?
  24. Can I get Tron without KYC? Is it possible to buy Tron without verification?
  25. Is Tron better than Gold or Precious Metals? Should I buy Gold or Tron?
  26. Is Tron publicly traded? What are Tron stocks? How does a Tron ETF work?
  27. Can Tron reach 1? Can Tron reach 10? Can Tron reach 100?
  28. How much time is a Tron transaction? How long does Tron take to transfer?
  29. How many confirmations for a Tron transaction?
  30. How much is a Tron transaction fee? How much does a Tron transaction cost?
  31. Is Tron a blockchain? What is the Tron blockchain? How does the Tron blockchain work?
  32. What is a Tron address? How do Tron addresses work?
  33. What is the Tron network? How does the Tron network work?
  1. What is Tron? What does 'Tron' mean?

  2. Tron is inspired by some of the design concepts of Bitcoin, the world's first decentralized cryptocurrency, but with several attempts at improvement. A decentralized cryptocurrency keeps track of all transactions by all addresses on a peer-to-peer shared record. One of Tron's innovations is extremely low transaction fees and extremely fast transaction times, through a system of proof-of-stake. Tron is traded on bitni.com.

  3. How does Tron work?

  4. Blockchain based cryptocurrencies like Tron work by grouping transactions together in data blocks, then linking the blocks cryptographically. The chain of blocks is stored across a network of nodes which hold a stake in Tron, and distributed as peer-to-peer shared files. Quantities of Tron are stored at addresses, cryptographic sequences paired with a private key used to spend the amount at the address. The user's wallet keeps track of all their Tron addresses and adds up the balance.

  5. Who invented Tron? How was Tron created? Who is behind Tron?

  6. Tron was created by Justin Sun as an attempt to technically improve Bitcoin, reducing transaction times to a few seconds instead of 10 minutes, by replacing computationally expensive proof-of-work with a proof-of-stake. Tron is maintained by the Tron Foundation, and the software is open source, so anyone can improve it.

  7. What is Tron used for?

  8. Tron is used for anything money is used for - buying, selling, donations. But Tron can also be used for even more things than fiat currency: A means of accepting donations or facilitating commerce that cannot be shut down by governments or the banking system. Also storing up wealth that cannot be confiscated.

  9. Why does Tron have value?

  10. Tron has more value than Fiat Currency because it's more useful: It's anonymous, decentralized, irreversible, cannot be devalued, cannot be confiscated, can be sent over the internet to anywhere in the world in minutes. Things that are very useful and scarce tend to be valuable. One reason Tron has value because it fulfills all of the requirements of money: Store of Value, Medium of Exchange, Unit of Account.

  11. How many Tron coins are there? What is the Tron maximum supply?

  12. All the Tron that will supposedly ever exist was created at it's beginning - 100 billion. The designers were very conscious of hyperinflation from fiat currencies, and wanted a currency with a ruthlessly fixed supply. Not only that, but the Tron Foundation has destroyed billions of tokens. This makes Tron a deflationary currency.

  13. What is a Tron transaction? How do Tron transactions work? Is Tron a blockchain?

  14. An Tron transaction is a transfer of value from one address to another. Unlike Bitcoin, which moves value by spending previously unspent transactions, Tron doesn't have proof-of-work which requires solving computational hashes to add new blocks. A transaction is created by a user on their Tron client software, then broadcast out to all the other nodes and becomes part of the Tron Blockchain.

  15. Are Tron transactions anonymous? Can Tron be traced?

  16. The Tron Blockchain is a public record of all transactions by all addresses. However, an address is just a number - it doesn't reveal anything about the identity of the one using it, like a street address can. As long as this number is never linked to an identity, the Tron user is safe. There is no way to "trace" a Tron address to the person using it - unless they leave clues connecting their Tron address to their physical identity. bitni.com has maximum anonymity - we don't ask for personal details.

  17. Can Tron be mined? What is Tron mining? How does Tron mining work?

  18. Tezos is not minable. Traditional cryptocurrency mining is the computational process of adding new blocks to the blockchain. New transactions are grouped together in a block. New blocks must cryptographically connect to previous blocks with a proof-of-work hash function. Tron also has a blockchain, but with a critical difference - it is proof-of-stake rather than proof-of-work. The blockchain is a record of all transactions, but rather than validation by anyone who performs the proof-of-work, transactions are validated by consensus proof-of-stake.

  19. Can Tron be taxed? Are Tron gains taxable? Are Tron transactions taxable?

  20. Tron was not designed to be taxed. If no one reports their Tron gains, there is no way an authoritarian regime can know who gained what. However, centralized exchanges with accounts and IDs do report their user's Tron balance to tax authorities. If you want privacy from authoritarian regimes, you need an accountless exchange that doesn't ask for your ID - bitni.com is the best exchange in this regard.

  21. How does a Tron ATM work? Are Tron ATMs safe? Are Tron ATMs anonymous?

  22. Tron ATMs allow a customer to buy Tron by inserting physical cash, like a vending machine, or send Tron to receive physical cash. (The former are called "1 way" ATMs and the latter are called "2 way".) If the Tron ATM is from a trusted manufacturer and operator, it should be safe to use. Different Tron ATMs have differing AML/KYC requirements.

  23. Can Tron scale?

  24. Tron has scaled to handle millions of transactions per month. Tron is software, and it can evolve to scale - the code can be modified with better algorithms and the network then upgrades to the more advanced version. Tron attempts to improve on Bitcoin to solve scaling issues, by processing transactions every few seconds instead of 10 minutes.

  25. Can Tron be stolen?

  26. Anyone who knows the private key can move the coins from an address. If the private key is not known, it's not possible to spend the coins at an address. Tron stored in the wallets of a centralized exchange can be stolen - it happens all the time. At a Non-custodial exchange like bitni.com, you are in charge of your wallet at all times.

  27. Can Tron be hacked?

  28. If Tron network could be hacked, it would have probably already happened. The blockchain is decentralized across many independent nodes - the more nodes on the network, the higher the security. If any one node is compromised, it will not compromise the others. However, centralized Tron exchanges are hacked all the time! That's why you need a non-custodial exchange like bitni.com.

  29. Where is Tron stored? Where to store Tron?

  30. The data of all Tron transactions is stored in a public Tron Blockchain distributed as peer-to-peer shared files. Each node has a complete copy of all transactions ever made - the Tron Blockchain. So the transactions are stored in the cloud - not on a centralized server, but on many independent nodes. Each user's Tron balance is also kept track of in their wallet.

  31. What is a Tron wallet? How do Tron wallets work?

  32. A Tron wallet stores all of the user's Tron addresses. The sum value of all of the addresses in a wallet is automatically added up - this is the total balance of a wallet. Centralized exchanges store the user's wallet, which is risky. Non-custodial exchanges like bitni.com do NOT store user's wallets, which is much safer.

  33. Who uses Tron? Where is Tron used?

  34. Millions of people everywhere in the world use Tron for all the same things as any other money is used for - buying, selling, and donations - and the number of users is growing rapidly. Anyone needing to transfer wealth internationally, especially outside the grasp of authoritarian regimes, for ridiculously low cost, will find Tron useful if they are not already using it. Tron is also used as an investment and a hedge against inflation.

  35. Who accepts Tron? Where is Tron accepted?

  36. Many merchants, especially online, accept cryptocurrencies as payment. Charities like Wikipedia accept donations in crypto. Web Hosts and Domain registrars often accept crypto. Large brick and mortar stores are starting to accept crypto payment. Some local restaurants are also coming on board. bitni.com accepts Tron to convert to other currencies, of course.

  37. Why is Tron the future?

  38. The reason why a cryptocurrency is the future can be summed up in 3 words: Because it's better. Tron is a huge improvement over fiat currency. It is also an improvement over precious metals - they can't be wired over the internet. If central banks continue destroying the value of fiat currencies, cryptocurrencies will become even more important to the future of money.

  39. Can Tron crash? Will Tron crash?

  40. If Tron were going to crash to zero, it would have probably done it already. There have been wild price swings - because it's new and there's a lot of speculation, like the internet when it first came out. But there are wild price swings with other commodities like oil. Tron's low after it's all-time high of several tens of cents is still a cent. For Tron to crash to $0, demand would need to be zero or supply would need to be infinite - a highly unlikely scenerio.

  41. Is Tron a good investment?

  42. The Original Bitcoin has gone from pennies to thousands and thousands of dollars in less than a decade, utterly blown away the stock market, even gold and other precious metals, and far outperformed pretty much any other investment. While Tron has not reached Bitcoin's high, it has performed relatively well, going from a fraction of a penny to several dollars at it's high - a pretty good investment.

  43. Where to buy Tron? How to get Tron?

  44. Exchanges are where Tron is bought and sold, however there are several types: Centralized Exchanges store the user's coins like a bank and require ID. Decentralized Exchanges (DEX) facilitate peer-to-peer buying and selling between users - and these can be done locally in-person or online. Non-Custodial exchanges like bitni.com are a quick and easy way of swapping cryptocurrencies without signing up.

  45. Can I buy Tron without ID? Is there a way to get Tron without SSN?

  46. Many Centralized exchanges have rigorous requirements for identification, such as uploading a scan of passport or other government documents. Decentralized exchanges usually have less stringent requirements for identification, especially if the transaction is in-person. Non-custodial exchange bitni.com does not require identification for crypto-to-crypto swaps. If you want Tron without SSN, you've come to the right place.

  47. Can I get Tron without KYC? Is it possible to buy Tron without verification?

  48. KYC stands for Know Your Customer. Many regimes have become increasingly authoritarian towards cryptocurrency and seek to crack down on anonymous trading, by requiring the customer to upload documents proving their identity. Many exchanges have caved in to the pressure and now have KYC policies. Centralized exchanges almost always have KYC, some Decentralized exchanges do as well. bitni.com does not require KYC for crypto-to-crypto swaps.

  49. Is Tron better than Gold or Precious Metals? Should I buy Gold or Tron?

  50. Gold has been used as money for millenia. Tron has been used as money for a few years. Gold has a proven track record as a relatively stable store of value. It has gone up and down over the years, but no severe crashes or jumps. Tron on the other hand is unstable, can swing wildly in a day. Gold has been physically confiscated by governments in the past. Tron is mathematically impossible to confiscate by anyone who does not know the private key.

  51. Is Tron publicly traded? What are Tron stocks? How does a Tron ETF work?

  52. Most Tron trading is done by buying and selling coins directly by individual investors. However, there are cryptocurrency funds listed on stock markets. A Cryptocurrency Exchange Traded Fund (ETF) holds assets in single cryptocurrencies or a basket of them. It may be more convenient to buy into one basket fund instead of manually managing dozens of different cryptos and their respective wallets. In the case of Tron, it is probable some Cryptocurrency ETFs are holding it.

  53. Can Tron reach 1? Can Tron reach 10? Can Tron reach 100?

  54. Ones, tens, or even hundreds for a Tron coin may seem speculative, but Tron's high is already in the tens of cents. Tron started out at practically nothing and rose in a parabolic curve to it's high a hundred times higher than the starting price. 1 is only five times higher than the all time high. If the long term trend continues, Tron could reach new highs orders of magnitude greater.

  55. How much time is a Tron transaction? How long does Tron take to transfer?

  56. A new block on the Tron blockchain is added every 3 seconds. The number of transactions in each block is limited to several thousand. Transactions paying higher fees are given priority over those paying lower fees, which must sometimes wait to be included in future blocks instead of the current one. A Tron transaction time can be as short as the generation of one block in a 3 seconds. However, 20 levels of blocks is needed for irreversibility, thus the safe transaction time is 1 minute.

  57. How many confirmations for a Tron transaction?

  58. A Tron transaction can be tentatively completed in as little as 1 confirmation in a 3 seconds. However, the latest blocks in the blockchain are changeable until more blocks are added after them. For irreversibility, 20 levels of blocks and thus 20 confirmations are needed. The latest block in the process of being added to the blockchain is changeable. Not till several more blocks have been added after it is that part of the blockchain considered immutable.

  59. How much is a Tron transaction fee? How much does a Tron transaction cost?

  60. A Tron transaction fee is the cost of having transaction data included in blocks added to the blockchain permanent record, which fluctuates under market supply and demand. The average transaction fees are a fraction of a penny. Stakeholders get free, zero fee transactions. Lots of factors affect transaction fees, such as the cost of electricity, the hardware capacity and competition between miners, the number of simultaneous transactions competing to be included in a block.

  61. Is Tron a blockchain? What is the Tron blockchain? How does the Tron blockchain work?

  62. Tron transactions are records of balances moved amongst addresses. Blocks are 1mb groups of Tron transactions for the purpose of easier verification and sharing accross the network. New blocks are generated at a fixed time interval of 15 seconds. Each block is connected to the one chronologically preceeding it by a cryptographic hash. Once a block has been verified, it is distibuted to the other nodes as a peer-to-peer shared file.

  63. What is a Tron address? How do Tron addresses work?

  64. An Tron address is a sequence of characters associated with a balance of Tron coins on the blockchain. Cryptographically, an address is just a Public Key, which is generated from a Private Key. Anyone with a Private Key can "sign" a transaction for a corresponding Public Key. Anyone with a Public Key can verify a signature. Signing a transaction approves a transfer of value at the current address to a different address.

  65. What is the Tron network? How does the Tron network work?

  66. The Tron network is a completely decentralized connection of peer-to-peer nodes, which process transactions and record them on the blockchain. Anyone anywhere with internet and a computer can join the Tron network by running a node. Any node can process transactions into blocks, which are added to the final blockchain by consensus of the network as a whole. Voting power is determined by delegates, which are elected by stakeholders (owners of tokens).

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