Avalanche (AVAX) is a relatively recent addition to the cryptocurrency landscape. Despite its emergence in 2020, it has swiftly garnered significant attention as an Ethereum developers’ alternative. With a market capitalization of approximately $7 billion, Avalanche has solidified its position as one of the prominent cryptocurrencies.

Avalanche’s Role in the Digital Economy

Ethereum, plagued by issues like exorbitant gas fees and sluggish transaction speeds, paved the way for the creation of Avalanche. This highly scalable blockchain platform was designed to tackle these challenges effectively. AVAX is renowned as “the fastest smart chain contracts platform in the blockchain industry.”

While Avalanche boasts a plethora of commendable features, its agility stands out as a key attraction for crypto users.

AVAX supports three blockchains, among which the Contract Chain (C-Chain) shines as an ideal choice for smart contracts, including non-fungible tokens (NFTs) and decentralized applications (DApps). The C-Chain’s compatibility with the Ethereum Virtual Machine enables Ethereum developers to seamlessly deploy applications on this platform.

To operate on Avalanche’s blockchain, users pay a subscription fee in AVAX, which significantly undercuts Ethereum’s gas fees. Gas, in Ethereum parlance, denotes the ETH amount required to execute a transaction on its blockchain.

Another noteworthy aspect of Avalanche is that AVAX is a capped-supply token, with a maximum limit of 720 million tokens. Currently, over 270 million tokens are in circulation.

Furthermore, AVAX holders have the option to stake their tokens since Avalanche operates on a proof-of-stake consensus mechanism.

Where to Acquire AVAX?

To purchase AVAX, one must engage with exchanges that offer AVAX tokens. Platforms like Coinbase facilitate the acquisition of AVAX either through fiat currency transactions or direct trading for AVAX tokens.

• KuCoin
• Crypto.com

Alternatively, one can engage in buying and trading Avalanche using Tether (USDT), a prominent stablecoin.

Purchasing AVAX: A Simple Guide

If you opt to invest in Avalanche, the process of acquiring AVAX tokens can be distilled into three straightforward steps:

1. Select a Cryptocurrency Exchange

Before delving into AVAX or any other cryptocurrency, you need to set up an account with a cryptocurrency exchange. These platforms streamline the trading process, making token transactions seamless. While some exchanges cater to novice traders with user-friendly interfaces, others target advanced traders with additional features like crypto staking. Opt for exchanges that offer a wide array of cryptocurrencies at competitive trading fees.

2. Procure AVAX

Upon establishing an account and choosing a payment method, you can initiate your initial investment in AVAX. Access the exchange’s trading platform, input Avalanche’s ticker symbol—AVAX—and specify the desired investment amount. You can either input the token quantity or opt for a dollar amount to invest. Additionally, you can select an order type; market orders are swiftly processed, while limit orders are executed once the token hits a predetermined price. Consider using a limit order if you anticipate significant price fluctuations in the near future. By placing a market order, your transaction will be promptly processed, transforming you into a proud AVAX investor.

While credit card transactions are feasible for purchasing AVAX, it is strongly advised against due to the typically high transaction fees associated with crypto exchanges. Moreover, using a credit card for crypto purchases often incurs a cash advance fee, subject to a higher interest rate compared to regular charges.

3. Secure Your AVAX Holdings

Protecting your investment entails contemplating storage options for AVAX. AVAX can be stored through various means:

• Hardware Wallets: These physical devices store your crypto assets’ private keys offline, providing enhanced security. Popular hardware wallets include Trezor and Ledger, with the Ledger Nano X supporting third-party wallets compatible with Avalanche.
• Paper Wallets: Printed documents containing your private and public keys. While less prevalent due to the risk of physical loss, paper wallets remain an option.
• Software Wallets: These applications or programs store crypto assets on your device, offering convenient access for trading. While less secure than hardware wallets, software wallets provide easy asset accessibility. The Avalanche network also features its noncustodial Avalanche Wallet for storing AVAX assets, requiring your keystore file, private key, and recovery phase for access.
• Crypto Exchanges: Some exchanges, such as Crypto.com, offer storage services for crypto assets. For instance, the Crypto.com DeFi Wallet accommodates Avalanche-C (AVAX) storage.

Utilizing AVAX

AVAX serves multiple purposes, including covering transaction fees within the Avalanche network and serving as a tradable asset among crypto investors. Alternatively, investors can speculate on AVAX price movements by engaging in buying and selling activities with fellow crypto enthusiasts.

As of the latest data, AVAX’s price has surged by approximately 28% year-over-year, contrasting with the downward trends observed in other major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

Before delving into Avalanche investments, it is crucial to acknowledge the inherent volatility in crypto markets. Financial experts recommend allocating only a small portion of your investment portfolio to crypto assets due to their unpredictable nature.