Avalanche (AVAX) is one of the most successful crypto projects out there. Like Bitcoin and Ethereum, Avalanche has performed remarkably well since launching in 2020. When Avalanche launched, it sold for $0.50, but today, it is exchanging for $11.71, showing just how valuable the project has been since launching.
If you have thought about adding AVAX tokens to your crypto portfolio but don’t know how to go about it, you’re welcome to read today’s post.
In today’s guide, we will bring you up to speed on everything you need to know about Avalanche and how you can buy AVAX tokens online in 2023.
But before we go into the juicy details, let’s start with an overview of the company.
What is Avalanche?
Avalanche is a remarkable crypto project carefully designed to create decentralized applications (dApps) and custom blockchain networks. Avalanche’s cardinal objective is to challenge Ethereum as a smart contract alternative.
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Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
The project promises greater scalability than Ethereum. Compared to Ethereum, Avalanche offers a higher transaction throughput of 6,500 transactions per second. On top of that, the Avalanche community also gets greater customizability and interoperability. This makes it stand out from other crypto projects, including big names like Ethereum.
Avalanche is a new kid on the block. The project was created by Ava Labs, which is owned by Cornell researcher, Emin Gun Sirer. Before being officially launched in 2020, Avalanche was in the works for nearly one year. The project was funded by leading investment firms like Polychain Capital and Andreesen Horowitz.
When Avalanche launched in 2020, it raised over 42 million within the first 5 hours of its public launch. The project generated a lot of buzz because it promised to outperform Ethereum 2.0 in terms of latency and throughput. That said, since the project launched, we are yet to see if Avalanche will be a long-term threat to Ethereum.
Between 2021 and 2022, the Avalanche team has been working consistently to build its own ecosystem. The project generated a lot of buzz and traction in the DeFi space as it allowed users to seamlessly build Ethereum-based DeFi projects that could easily be integrated with the platform. Some of the popular DeFi-based projects on the Avalanche ecosystem include TrueUSD, Sushiswap, Reef, and more.
Let us also quickly add that Avalanche is currently building a bridge to the Ethereum network. Once this is complete, users will be able to seamlessly transfer assets between two chains. As of the time of writing today’s guide, AVAX had a market cap of $3,664,302,500. Out of the maximum 720 million AVAX tokens, the current token in circulation is 311,581,741 AVAX. Avalanche’s fully diluted market cap is currently worth $8,421,137,656 as per Coinmarketcap data.
The current price of AVAX tokens is $11.71, with experts predicting that AVAX could reach as high as $200 by 2026. What this means is that by holding AVAX for 5 years or more, investors can expect a significant return on investment.
Understanding how Avalanche works
Avalanche was uniquely designed using multiple blockchains. The project is able to achieve increased latency and high throughput of around 6500 transactions per second, using novel proof of stake consensus mechanism.
The Avalanche team was able to combine the ingenuity of Nakamoto’s consensus, decentralization, and scalability with the robustness of Classical consensus speed, energy efficiency, and quick finality to create its own unique consensus.
The Avalanche team believes that the project is a whole new family of systems. By effectively combining the best of Satoshi and classical consensus, Avalanche has been able to demonstrate its uniqueness compared to other projects in the crypto space.
Each chain supported by the Avalanche ecosystem works as a separate virtual machine that can support a variety of custom virtual machines. This makes it possible to use case-specific functionality.
Another unique thing about the Avalanche ecosystem is that each virtual machine is deployed on a custom blockchain network, also referred to as a subnet. What this ensures is that validators will remain honest throughout transactions. With this unique design, Avalanche has demonstrated why it is a force to contend with.
Is AVAX a good investment?
Even though Avalanche has been on the back foot for much of 2022, no thanks to the continued sell-off being experienced in the crypto market, the project has shown a lot of tremendous promise. What’s unique about Avalanche is that it has a lot of use cases. From its DeFi potential to its smart contract design, Avalanche has proven to be a game changer in the crypto space.
Despite losing a bulk of its value from its all-time high of $146.22, Avalanche has shown a lot of promise for the future.
If you missed out on this project because you felt it was too expensive a year ago, you can get it for cheap now as it is currently trading at $11.71.
Keep in mind that Avalanche has been largely pressured down by the continued sell-off being experienced in the crypto market. A careful look at the entire crypto market shows that most crypto projects have lost at least 90% of their value, so AVAX’s poor performance this year isn’t an isolated case.
Experts predict that we could see a bullish crypto market within a couple of years, so jumping in right now wouldn’t be such a bad idea.
How to trade Avalanche
You can either hold AVAX tokens in your wallet or trade it on a crypto exchange. Let’s assume you no longer want to hold your AVAX token in your wallet, you can sell it for fiat or exchange it for other digital currencies. If you want to sell your tokens, you can do so on different exchanges where Avalanche is supported.
All you need to do is place a sell order and wait for your exchange to complete the trade. Some of the exchanges where Avalanche is currently supported include Binance, KuCoin, and 7B. To trade Avalanche, you need to have AVAX in your wallet.
All you need to do is select the crypto asset you want to trade, choose the number of tokens you want, and hit the “Buy” button. It’s honestly that simple.
How to trade Avalanche on eToro
- Before you can start trading Avalanche on eToro, you need to first open an account, that’s if you don’t already have one. If you’re signing up for an account for the first time, it will interest you to know that signing up for an account on eToro takes only a few minutes. More so, you’re only required to submit basic information.
- After signing up for an account, you’ll need to have your eToro account funded. Thankfully, eToro supports multiple payment methods, including credit/debit cards, PayPal, bank transfer, and more, so funding your account won’t be an issue.
- With your account now funded, you can navigate the eToro dashboard and click on the “Trade Markets” option.
- On the page that pops up, select crypto.
- Scroll down through eToro’s crypto selection and choose Avalanche (AVAX).
- Click on the buy button and choose the amount of Avalanche you would love to purchase.
- Click on the open trade option, and you’re good to go.
Now, the big question is, how do you know that you’re getting a good Avalanche price on your trade? Well, that’s pretty simple. eToro provides you with different features, including a chart, which lets you see the current Avalanche price. Also, you get added information about this digital asset, making it easy for you to decide if investing in Avalanche is a good move.
Besides making it easy for investors to buy Avalanche tokens, eToro is loved by many users because of its transparent trading fees. With eToro, you don’t have to worry about being charged any hidden fees.
If your goal is to invest in Avalanche and you’re looking for a broker that makes the entire process seamless, you won’t go wrong to give eToro a try.
Conclusion
Avalanche is leveraging its smart contract functionality to improve the ingenuity of decentralization. In terms of performance, Avalanche has proven to be better than Ethereum and Bitcoin. What’s especially unique about Avalanche is it is quick and energy efficient. Thanks to Avalanche, users have a simple switch that allows them to seamlessly transfer their dApps from Ethereum. This has made Avalanche a force to contend with in the smart contract race.
What’s particularly interesting about Avalanche is its high scalability and low cost. This unique selling point has made Avalanche ideal and resilient, especially in a bearish market that has negatively impacted hundreds of crypto projects.
When Avalanche launched, one of its main objectives was to be interoperable and flexible and it has managed to achieve that. As crypto adoption continues to grow and more use cases are developed, Avalanche is poised to become a big player in the crypto space. Avalanche Core recently unveiled support for the Ethereum network and EVM-compatible chains. Besides launching custom Avalanche Subnets, this crypto project has set a new standard for multichain UX in Web3.
The blockchain seeks to collaborate solely to promote the “subnet” functionality of the Avalanche blockchain smart contract. Likely collaborations that would occur this year include partnerships with the likes of GoldenTree Asset Management, Wintermute, Jump Crypto, Valkyrie, and Securitize. These collaborations will undoubtedly affect its price, and we may see the coin move to greater heights in the coming years.
