Avalanche is a decentralized blockchain that focuses on interoperability and performance. Its native token, AVAX, is the 24th biggest cryptocurrency by market capitalization. Do you wish to buy it? This guide takes you through the buying process. But first, it is important we understand how Avalanche works.
Exploring Avalanche
Avalanche is an EVM-compatible layer-1 blockchain, facilitating the development of decentralized applications (dApps). It uses the proof-of-stake consensus mechanism and is known for its fast transaction speeds. Avalanche is the brainchild of Cornell University professor Emin Gun Sirer.
How Avalanche Works
There are three in-built blockchains on Avalanche, including the X-Chain, which facilitates the creation of tokens; the P-Chain for validators; and the C-Chain, which enables the deployment of decentralized applications.
Why is Avalanche Becoming Popular?
Here is why Avalanche has gained popularity in recent years:
- It executes transactions at low fees.
- Fuels institutional adoptions.
- Has the ability to create customizable and interoperable blockchains.
- Alavanche can process over 6,000 transactions per second (TPS).
- Supports the development of decentralized finance protocols.
How Does Alavanche Compare to Its Competitors?
Avalanche Versus Solana
The big difference between these two is the consensus mechanisms used. While Solana uses proof-of-history consensus, Avalanche adopts Proof-of-stake consensus. Moreover, Avalanche processes 6,000 TPS, while Solana boasts 65,000 TPS.
Avalanche Versus Ethereum
Avalanche has quicker transaction finality than Ethereum. Nonetheless, Ethereum is better when it comes to network inflation. While its inflation rate is below 0.3%, Avalanche’s is nearly 3.9%.
Avalanche Wallets
Before buying AVAX, ensure you know which crypto wallets support the token. You can use Avalanche Wallet, Trust Wallet, and Metamask to store your AVAX safely. To add Avalanche to your MetaMask wallet, go to subnets.avax.network and click the “Add to MetaMask” button at the bottom-right corner of the homepage. After that, you can go ahead and import your AVAX tokens to MetaMask.
How to Buy and Sell Avalanche
Trading AVAX is a straightforward process. The simplest way to purchase this token is through centralized crypto exchanges. It is available on popular trading platforms like Binance, Kraken, Coinbase, and Kucoin. To buy it on Binance, you first need to create an account and then verify it. Next, deposit funds using the various supported payment methods. Convert the fiat into USDT and go to the spot market. Search the AVAX/USDT trading pair and place your buy order. Your AXAX tokens will arrive within seconds in your wallet after the order is executed. To sell them, go back to the spot market and place a sell order. You will receive USDT, which you can convert to cash at any time.
If you are in the United States, you can use Coinbase to buy AVAX. The process is also simple. First, create a Coinbase trading account and complete the Know-Your-Customer (KYC) process to access all features on the trading platform. After that, fund your account using bank transfer or debit cards. Ensure you deposit US dollars or Euros. Once the fiat money reaches your trading account, search for AVAX/USD or AVAX/EUR trading pairs, depending on the fiat currency deposited. Next, place a buy order to receive AVAX tokens. To sell, simply press “Sell” to exchange AVAX for USD or Euro.
If you have some USDT in your MetaMask, go to Pangolin decentralized exchange and connect the wallet to swap them for AVAX. The platform executes trades fast, so expect your AVAX tokens to arrive in under a minute.
Is Buying AVAX Advisable?
AVAX’s current value is 93% below its peak price of $146. This presents a perfect opportunity for those who like buying the dip. Moreover, the Avalanche ecosystem is growing, so AVAX’s use cases are likely to increase in the future, boasting its value. Also, Some crypto experts believe the token could reach $100 by 2025 if market conditions improve.
Conclusion
If you wish to buy AVAX, we advise you to consider it a long-term investment. That’s because the token may take some time to witness an uptrend, given the current bearish momentum. With all said, AVAX is as volatile as any other crypto, meaning you could lose your funds in a flash. So invest what you are willing to lose.
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