Launched in 2020, Avalanche bills itself as the fastest blockchain for decentralised apps (dApps). The chain’s native cryptocurrency, AVAX, is important for staking and paying fees and is seen by many as a direct rival to Ethereum (ETH).
This guide will take you through where and how to buy Avalanche (AVAX) yourself, as well as everything you need to know about the project.
The easiest way to buy Avalanche is to purchase it online from a crypto exchange. Exchanges make it easy to buy and sell Avalanche and other cryptocurrencies directly from your smartphone, tablet or computer. Check out our recommended platforms below and follow the steps to safely buy Avalanche.
Selecting a platform will be the first stage of your journey to buy Avalanche. We’ve compared a few of the best later in this guide, but before making a decision, you will want to consider aspects such as what fees it charges and how easy it is to use. Here are our recommended platforms to get started.
Next, you will need to create an account. This will mean providing personal information and, for regulated platforms, will likely involve verifying your identity with a photo ID and proof of address. Once that is done, you can fund your account with any accepted payment method.
You are now ready to make your Avalanche purchase. Look for AVAX on your platform and select an AVAX trading pair that contains the currency already in your account. You can buy AVAX instantly by creating a market order, or purchase it when it reaches a certain price with a limit order.
If you would like to buy AVAX, it will be through a centralised exchange (CEX). Consider selecting from our partners in the table below to get started with your first buy.
Avalanche is a smart contract platform designed for the creation of decentralised applications (dApps). The project aims to solve a problem known as the blockchain trilemma—namely that a blockchain can’t be decentralised, scalable, and secure at the same time. Avalanche claims to have achieved all three, with a secure network of thousands of nodes that can process more than 4,500 transactions per second.
This is possible thanks to a unique blockchain architecture and a Proof of Stake (PoS) consensus mechanism that makes Avalanche highly efficient and eco-friendly. At the heart of the PoS system is the native AVAX token, which is also used as a means of value exchange and for paying network fees.
The ecosystem of dApps on Avalanche is constantly evolving and growing. It already includes decentralised finance (DeFi) applications such as decentralised exchanges (DEXs) and lending protocols, assets and applications launched by governments and institutions, and non-fungible tokens (NFTs) in the form of art and digital collectibles.
People often purchase AVAX with different intentions. Some may want to sell it for a small profit as quickly as possible, while others might want to hold onto it for the long term. Both of these are valid options and it is simply a matter of preference which you choose.
Avalanche is fast becoming a popular asset for long-term investors. Retail and institutional investors alike often buy and hold the native tokens of programmable blockchains and Avalanche has proved itself a worthy contender in this field. A long-term investment is an easy strategy to follow and, with the right asset, can lead to significant returns over time.
It’s also possible to generate even more returns while holding AVAX. Holders can stake their tokens to help secure the network and be rewarded with interest in the form of more AVAX.
Those who buy and hold AVAX may prefer to transfer their tokens to a private wallet. This ensures that the holder is the only person capable of accessing the wallet, and security is especially important when a significant amount of AVAX is being stored for the long term. The proprietary Avalanche Wallet is a popular choice.
Private wallets may be software or hardware. Software wallets are free, easier to use, and often preferred by those who want to move or check on their funds regularly. Meanwhile, hardware wallets provide the strongest security available, though they are more complicated and often expensive. Popular hardware wallets include Trezor, KeepKey, and Ledger.
As with most cryptocurrencies, AVAX is a volatile asset, which means it is also possible to take advantage of short-term price fluctuations to generate more frequent returns. Traders are able to speculate on AVAX price without even owning the asset through derivative products such as futures, options, and contracts for difference (CFDs).
People who do so don’t require a wallet as they don’t actually hold any AVAX tokens. Short-term investors who do hold AVAX may also not want to set up a private wallet as the web wallet provided by their exchange or broker is often more convenient than regularly transferring tokens between a private wallet and their platform.
The methods you can use to buy Avalanche will depend on the payments accepted by the Exchange you will be using. The options which you can use are listed below & apply to major exchanges like Binance & Coinbase.
● Credit card: Credit cards are an option that can be used, which are typically quite fast. But be aware that some major banks prevent buying cryptocurrency with a credit card and might block its use.
● Debit card: Debit cards are by far one of the fastest methods of deposits and can be one of the cheapest depending on which exchange you decide to select.
● PayPal: PayPal is also a viable option if you would like to use this method, it can be fast, but PayPal might charge you or the exchange a fee, which the exchange might pass on to you.
● Bank transfer (SEPA) & (WIRE): Bank Transfers SEPA in the EU and wire transfers in the US. It will often take a few more days and incur a higher cost than other payments mentioned.
Understanding what you are investing or trading in can provide an edge to an investor, which is no different when applying it to Avalanche. It’s important to consider the unique characteristics of Avalanche.
The key to consider for Avalanche is its competition — how does it compare relative to other Layer 1’s? For instance, after going live in 2020, Avalanche went on to become one of the main competing Layer 1 blockchains.
What sets Avalanche apart from its competition is that its consensus combines “Nakamoto consensus” (robustness, scale, and decentralisation) and “classical consensus” (speed, quick finality, and energy efficiency).
Smart-Contracts: Avalanche can execute programmable smart contracts that enable the development of Decentralised Apps (DApps) & NFTs.
Ethereum Virtual Machine (EVM): Smart contracts can be coded and used using the Ethereum Virtual Machine, this is important as it can incentivise Ethereum developers who code in solidity to use their coding skills on Avalanche. Important to consider as Ethereum developers are the largest pool of developers in the crypto space.
Infinite Customisable Subnets: Subnets on AVAX enable a developer to build their unique virtual machine and dictate exactly how the blockchain should operate. Each subnet has its own set of validators that validate a set of blockchains. This fosters development to create completely customisable applications that developers have the freedom themselves to decide on.
Minting ERC-20 Tokens: By using the c-chain on Avalanche, you can mint ERC-20 tokens to the network. Creating new types of tokens.Cheap transactions: Roughly the cost of sending a transaction is 0.30c – O.60c.
Network speed: Avalanche is one of the fastest networks in transaction speed when measured in Time-to-Finality (TtF). TtF measures the time one has to wait to guarantee that a crypto transaction has been executed on the blockchain and that it will not be reversed or changed.
Proof of Stake (Pos): Unlike Proof-of-Work cryptocurrencies like Bitcoin & Ethereum, Avalanche thrives on being one of the most eco-friendly blockchains. Bitcoin & Ethereum, for example, are cryptocurrencies that use proof-of-work, whereas AVAX uses proof-of-stake (PoS). The critical aspect of this PoS is that it doesn’t need miners that operate using excessive amounts of energy usage, this can deem it more friendly to the environment.
The first step to answering if Avalanche will make you money will be to consider the long-term. What are some of the factors that will impact a long term outlook?
Well, as a project which is relatively new, it has grown considerably with many projects looking to build on it now and into the future. Strong financial incentives by the Avalanche foundation have propelled these incentives; the foundation in 2021 announced a $180 million fund to encourage more development on the blockchain, especially within DeFi. These all help to create an optimistic outlook for the project in terms of buying for the long term.
However, it is difficult to predict whether buying Avalanche will make you money in the short term because price action in the short term is extremely volatile.
Pros For Buying AVAX
Cons For Buying AVAX
"One of the biggest mistakes that investors make is frequently changing their investment strategy. Investors often come into the market with a thesis about a coin's value or the market itself. That is the bedrock of the investment. However, too often, a new piece of regulation or tweet can set off emotional reactions and cause them to change their investment strategy."
Dmitry Gooshchin COO & Co-Founder of EndoTech
This is something each investor will have to decide for themselves but information about Avalanche’s fundamentals and its future prospects should help inform that decision. There is a scarce supply of AVAX, which is encouraging for investors as it may prove to be a strong store of value, while the ability to earn staking rewards also drives demand for this coin.
While Ethereum is still the most popular smart contract blockchain, many people like to invest in its rivals as well to hedge against any potential issues with Ethereum. The cheap, fast, and high-throughput nature of Avalanche make it a popular diversifier, while its efficiency also makes it attractive to investors with environmental concerns.
In fact, Ethereum dApps can easily be deployed on Avalanche—and many have been already. This, along with the development of bridges to other networks, has created a vibrant and interoperable Avalanche ecosystem.
In some respects, Avalanche is already ahead of the competition, and continued growth and development could see AVAX establish itself as one of the strongest investments in the blockchain space.
Buying AVAX is a decision you need to make for yourself. It would help if you had a solid strategy to implement. Diving into research to understand what functionality AVAX has might help you identify if AVAX looks promising in the long term.