As one of the top cryptocurrencies by market cap, Avalanche’s native coin, AVAX, has garnered a substantial global following. However, does its credibility and popularity make it a smart investment? This guide covers everything you need to know about Avalanche, including how and where to buy AVAX in 2024.
KEY TAKEAWAYS
• Avalanche is a layer-1 blockchain optimized for decentralized application development with fast transaction confirmations.
• AVAX, the native coin on the Avalanche network, is one of the largest cryptocurrencies by market cap.
• AVAX powers the Avalanche network by securing it through staking, enabling transactions, and managing network governance.
• Due to its popularity, AVAX is available on most major platforms, including Binance, Coinbase, Kraken, and Bitfinex.
How to buy Avalanche (AVAX)
Buying and selling AVAX is simple if you know the basics of cryptocurrencies and trading. In short you need to:
- Create an account on a crypto exchange like Coinbase, Binance, Kraken, or Bitfinex and complete identity verification.
- Transfer money into your exchange account using a bank transfer, credit card, or crypto deposit.
- Find AVAX in the trading section, choose the amount, and place your order.
- Securely transfer your AVAX to a personal wallet, such as MetaMask or a hardware wallet.
Now let’s look a little bit closer. For this step-by-step guide, we’ll demonstrate how to buy Avalanche on Coinbase.
1. Visit the Coinbase website or download the Coinbase app from the App Store or Google Play. Click on the sign-up button. You’ll be prompted to enter your email address, create a strong password, and agree to Coinbase’s terms and conditions.
2. Next, verify your identity by uploading a government-issued ID, such as a passport or driver’s license. Coinbase may also require a selfie or additional documentation for security purposes. To further secure your account, set up two-factor authentication (2FA) using an app like Google Authenticator.
3. Once your account is set up and verified, you’ll need to deposit funds before you can buy AVAX. Go to the “Deposit” section in the Coinbase app or website. Here, you can choose to deposit funds via bank transfer, credit/debit card, or even by transferring cryptocurrency from another wallet.
After that, open the Coinbase app (or website) and select “Trade.”
4. Select the amount of AVAX that you would like to purchase to continue.
3. Lastly, select “Place Order” to confirm your order.
How to buy Avalanche with a credit card
To buy Avalanche with a credit card on Coinbase, verify your account, link your card, select AVAX in the “Trade” section, enter the purchase amount, and confirm. Your card will be charged, and AVAX will be added to your wallet.
Remember that credit card transactions may involve additional fees, so it’s essential to review the terms and conditions before proceeding for a seamless transaction experience.
How to sell AVAX: Demo
The procedure is more or less the same as buying AVAX. Here’s a quick overview:
- Move your AVAX from a personal wallet back to your exchange account.
- Go to the trading section, find AVAX, and enter the amount you wish to sell.
- Choose between a market or limit order, then confirm the sale.
- Ensure any remaining AVAX is securely stored in your personal wallet if you are not selling all holdings.
Now let’s explore the step-by-step procedure in detail.
1. Begin by logging into your Coinbase account on either the app or website. Once logged in, head over to the “Trade” section where you can search for and select AVAX from your list of assets.
2. After selecting AVAX, decide how much you want to sell. You can opt for a market order, which sells at the current market price, or set a limit order, allowing you to specify the price at which you want to sell.
3. Before finalizing the transaction, double-check all the details, including the amount and order type. Once everything looks correct, click “Place Order” to complete the sale, and the proceeds will be reflected in your account.
Is AVAX a good buy?
As of Sept. 03, 2024, the AVAX price is hovering around $22. Our AVAX price prediction shows that Avalanche has the potential to reach the three-figure mark over time, provided the market conditions turn. Also, with the DeFi ecosystem growing, AVAX does look like a decent buying option.
Note that this article does not represent investment advice. Price predictions are inherently speculative and may not always be accurate. It’s important to conduct your own research and consider your risk tolerance before making any investment decisions.
Understanding Avalanche (AVAX)
Before you set aside funds to buy Avalanche (AVAX), let’s explore the blockchain itself.
What is Avalanche?
Avalanche (AVAX) is a layer-1, EVM-compatible blockchain that facilitates DApp development. Its unique consensus mechanism, inspired by proof-of-stake, adds to the platform’s decentralization quotient.
The ecosystem is known for its quick transaction finality, high throughput, and low transaction fees.
Avalanche is often considered an Ethereum killer due to its widespread DApp support and ability to host smart contracts. The brain behind this blockchain ecosystem is Emin Gun Sirer, a Professor at Cornell University, to whom we owe much gratitude.
Did you know? Avalanche’s consensus mechanism is known as the “Avalanche Consensus” and employs the Direct Acyclic Graph (DAG) protocol.
How does Avalanche work?
Avalanche’s operation hinges on the availability of three built-in blockchains. First, there is the X-Chain for asset creation and trades. Second, there is the C-Chain, which focuses on DApp deployment.
Finally, there is the P-Chain, which comprises validators and tracks subnets.
As Avalanche employs a version of DAG, subnets help keep the network secure. Subnets also help developers host other blockchain platforms on top of Avalanche.
Why is Avalanche popular?
There are several reasons why Avalanche is one of the more popular EVM-compatible blockchains. These include:
- High speed and scalability with the ability to handle almost 6,500 transactions per second
- Low transaction fees
- The ability to create interoperable and customizable blockchains
- An extensive DeFi presence with Avalanche ranked 5th in terms of DeFi TVL
- Driving institutional adoption
“It’s cool to see the world’s most innovative companies diving head-first into blockchain via @AVAX.”
Jay Kurahashi-Sofue, VP of marketing at Ava Labs: Twitter
Avalanche vs. Solana vs. Cardano vs. Ethereum
Before you go ahead and buy Avalanche, let us compare and see how the layer-1 blockchain compares to some of the bigger names in the crypto space:
| Feature | Avalanche | Solana | Cardano | Ethereum |
|---|---|---|---|---|
| Consensus mechanism | DAG-powered proof-of-stake (PoS) | Proof-of-history (PoH) | Proof-of-stake (PoS), Haskell Programming | Proof-of-stake (PoS) |
| Transaction throughput | Up to 6,500 transactions per second | Up to 65,000 transactions per second | Lower throughput compared to Solana and Avalanche | Varies; significantly lower than Avalanche and Solana |
| Programming language | EVM-compatible (supports Solidity) | Rust and C++ | Haskell (less common in the blockchain space) | EVM-compatible (supports Solidity) |
| Development focus | Rapid development, community governance | High performance, decentralized web apps (DApps) | Research-heavy, emphasis on formal verification | Established network, strong developer community |
| Transaction finality | Under two seconds | Very fast, but depends on network conditions | Longer transaction finality | Typically longer than Avalanche |
Avalanche wallets & MetaMask integration
If you wish to buy an Avalanche, you must make it a point to store it safely. To do so, you can rely on different wallets, including the official Avalanche Wallet, MetaMask, third-party wallets like the Trust Wallet, and the compatible hardware wallet.
While MetaMask is one of the most commonly used wallets, knowing how to add Avalanche to MetaMask is useful. The process is straightforward: you simply need to click on the dropdown icon at the top and set the Avalanche C-Chain as the preferred network.
Once done, you can import AVAX directly to MetaMask and even use the currency for transactions.
When it comes to actually storing your AVAX, keep in mind that while convenient, leaving large sums on an exchange long-term presents some security risks. A hardware wallet is by far the safer choice for truly cold storage. But something like MetaMask is also a decent software wallet alternative that offers good levels of protection, especially if you properly back up your recovery phrase.”
– Leo Smigel, Founder of Analyzing Alpha: BeInCrypto Interview
Where to buy Avalanche? Top 5 platforms
- Binance: With its market-leading liquidity, Binance ensured our AVAX purchases were seamlessly executed at predictable prices. Thanks to the abundance of buy/sell orders, we faced minimal slippage when buying. Binance’s intuitive interface also made navigating the purchase process pretty straightforward.
- Coinbase: For U.S. buyers, Coinbase provides peace of mind thanks to robust security and compliance with local regulations. We found purchases easy, especially on the mobile app. Switching to Coinbase Pro granted a more advanced trading experience with lower fees.
- Kraken: Kraken enables control over buy prices through efficient order types like market and limit orders. The platform’s robust security features and a comprehensive suite of financial products, like futures, were particularly impressive — more so if you are interested in advanced trading strategies. We found Kraken’s detailed trading view charts to be quite handy for making informed purchase decisions.
- Bitfinex: According to CoinMarketCap, Bitfinex has the fifth-highest trading volume for AVAX. Given its liquidity and advanced interface, it offers a high-quality trading experience. In fact, our experience with it was top-notch due to the simple yet feature-packed interface and trading desk.
Is AVAX a worthy long-term investment?
If you want to buy Avalanche in 2024, it is better to consider the crypto as a long-term investment. With the market still in the bearish zone as of early September 2024 and most cryptocurrencies languishing at the bottom, it might take AVAX some time to move out of its sideways price action.
Therefore, traders might have to account for heightened volatility at the counter. And as always, do your due diligence before investing in AVAX, or any other crypto, for that matter.
Frequently asked questions
What is Avalanche?
How do I make an AVAX wallet?
Where can I buy AVAX?
How can I buy AVAX in the U.S.?
Can AVAX hit 1k?
How high can AVAX go?
Which is better, Solana or Avalanche?
Is AVAX risky?
Is AVAX better than Cardano?
Why is AVAX so popular?
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