Where to Buy Avalanche AVAX Crypto Token (& How To): Guide 2022

Avalanche, one of the famous Ethereum killers, is the fastest smart contract network based on time-to-finality. The blockchain protocol enables the development of decentralised applications (dApps) and subsequent access to the decentralised finance (DeFi) ecosystem.

Investors are looking to learn how to buy Avalanche’s utility token, AVAX, to gain from its high throughput and low fees.

Interested in this ground-breaking solution? This review should come in handy. We consider the layer-0 blockchain solution and the best platform to buy the token.

What Is Avalanche?

Avalanche (AVAX) is a multi-chain smart contract designed to operate as a secured, globally distributed decentralised network.

The Avalanche ecosystem has been compared to the Ethereum network. However, it has an upper advantage because it is compatible with Ethereum. Three blockchains power avalanche to create an interoperable, trustless network that allows developers to build upon it seamlessly.

Like many other blockchains, Avalanche supports the creation and operation of decentralised applications (dApps). Its smart contracts are written in the same Solidity programming language that was used to write Ethereum’s smart contracts. As a result, Avalanche can create easier interoperability with Ethereum – as seen in decentralised finance (DeFi) protocols, like Curve Finance and Aave, that operate seamlessly across Avalanche and Ethereum.

How Avalanche Works

Avalanche ecosystem supports three in-built blockchains that process different tasks. Here are the blockchains and how they power the Avalanche ecosystem:

Exchange Chain (X-Chain) – Exchange chain is a decentralised platform that enables the creation, minting, and trading of digital assets. These assets could be stablecoins, utility tokens, non-fungible tokens (NFTs), and crypto assets. Avalanche’s native token, AVAX, pays all transaction fees on the X-chain.Platform Chain (P-Chain) – Platform Chain is responsible for all network utilities. It is a metadata platform that controls Avalanche’s validators and tracks and facilitates the creation of new subnets. These subnets allow network developers to create their blockchains easily.Contract Chain (C-Chain) – Contract blockchain uses the Ethereum Virtual Machine (EVM), powered by Avalanche, to simplify the conversion of Ethereum decentralised application (Dapp) developers. Users can migrate their Dapps to the Contract Chain. It also supports popular Ethereum features like MetaMask, Remix, Truffle Suite, Embark Platform, and Web3.

Transactions on the Avalanche ecosystem are validated via the Avalanche consensus protocol, which integrates a delegated proof-of-stake (DPoS) system. Validators on the network secure and approve transactions. The DPoS network is much faster when compared to proof-of-stake or proof-of-work networks, and this is due to their smaller consensus requirements. The Avalanche network can contain millions of validators all participating in the network, providing layers of decentralisation.

Avalanche consensus

For a blockchain to effectively validate transactions, it needs to adopt a consensus mechanism. Avalanche uses a novel consensus module built on the foundation of proof-of-stake (PoS). Whenever a transaction is processed, a validator node receives it and runs a quick sample of other validators, looking for agreement.

In this way, the original validator sends out a message to other validators, who in turn send the same message to other validators – and on and on until the entire network can reach a consensus.

AVAX Coin

AVAX is the utility token powering the Avalanche ecosystem. Users receive benefits and pay fees using this token. AVAX is also a speculative investment option as it can be used to generate passive income via staking.

This crypto asset basically powers all operations on the Avalanche blockchain. This cuts across all dapps working on it. Over 350 projects are deployed on the Avalanche ecosystem, and more are expected in the future. The more projects and integrations there are, the more valuable AVAX gets. Currently trading at $23.80, investors can be excited about the future of this token.

What Can You Do With Avalanche?

Avalanche was created to solve multiple issues in most blockchain networks today. It eradicates centralisation by providing a trusted, viable alternative network like Ethereum.

Since Avalanche is scalable, it can rapidly process transactions on par with payment processors like VISA and PayPal. The blockchain can process about 6,500 transactions per second (TPS).

Regarding cost, Gas fees on the Avalanche network are leased and more affordable than other blockchains like Ethereum.

Avalanche Wallets

As important as learning how to buy Avalanche is, it is also crucial to learn how to store Avalanche and the type of wallet to employ. A crypto wallet enables investors to receive, send, store, and secure their crypto and digital assets. However, they differ in type.

Here are the different types of wallet available to store your AVAX

Software Wallet

Hot wallets, also called software wallets, are one of the most popular cryptocurrency storage options. They are always online, hence the affiliation with the ‘hot’ tag. Investors can easily get a hot wallet once they open an account with a crypto exchange. This allows them to store and manage their private keys, which prove their ownership of their assets to the blockchain network. Hot wallets are usually more convenient for everyday crypto transactions and can be custodial or non-custodial.

A custody wallet is responsible for storing assets to an exchange or a third-party platform. The user only places an order for a transfer or receipt, and the exchange signs off on the transaction, much like the traditional banking system. Meanwhile, a non-custodial or self-custody wallet gives the full responsibility to the end-user.

Hot wallets are usually free, but they are largely considered less secure due to their constant internet connectivity. An instance of a hot wallet is the Binance Wallet.

Hardware Wallet

A Hardware wallet is a device which has been created to provide an extra layer of security when interacting with your various cryptocurrency wallets.

Normally you would use your private key to move funds, the problem is though, if your computer has been compromised with malware or a virus, it is possible for your private keys to be captured and used to steal your funds.

With a hardware wallet, the private keys are stored on the device and never exposed to your computer, which means even if you are infected with such a program your private keys will remain safe. These options are safest way to store your crypto if you have more than a small amount.

Popular examples of cold storage offerings are the Ledger and Trezor line of hardware wallet solutions, read our reviews:

Mobile wallet

A mobile wallet is essentially a hot wallet on a smartphone device. They offer users an even more convenient way to use their coins for daily activities. Mobile wallets store and manage users’ private keys while enabling them to pay for things they love with their digital assets.

These wallets are usually free and always online for transactions to be processed. Popular mobile wallets are eToro Money Wallet and Coinbase Wallet.

Desktop wallet

A desktop wallet is a PC version of a hot wallet. It is essentially software that an investor downloads into their personal computer or laptop for easy interaction with their digital coins. They also offer a browser extension which allows users to interact using an extension instead of downloading the entire software. Desktop wallets are also hack-prone due to their online nature. A popular example is the Exodus Wallet.

Paper Wallet

The paper wallet is arguably the oldest form of crypto wallet. They are no longer common in the modern crypto industry. It contains users’ public and private keys. The paper wallet is the least secure type of wallet as it can easily be lost, stolen, or torched.

Best Wallet for Avalanche

For investors who want custodianship and peak security, the eToro money wallet is the best option. This wallet offers a user-friendly interface that appeals to both beginners and well-experienced investors, as well as control and sign-off transactions on behalf of users.

Apart from security, eToro offers many services, including an in-built crypto exchange, real-time crypto market access for converting crypto assets to other assets without sending tokens to other wallets, and an advanced signature mechanism to keep the tokens safe 24/7.

Existing eToro users can access the eToro money wallet with the same login details used on the main platform.

How To Buy The Avalanche On eToro

Avalanche has proven to be very scalable and has the potential to take a great amount of market share in blockchains that provide decentralised finance apps. Want to buy AVAX? eToro is the best overall platform to buy Avalanche in less than 10 minutes.

This broker offers low fees, high liquidity, a wide range of crypto offerings, top-notch security, and in-built wallet functionality. To get started seamlessly, follow these detailed steps:

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

1. Sign Up

Visit eToro and click on the ‘Start Investing’ visible in the middle of the home page. This will redirect the investor to a registration page where they must enter a username, email address, and a strong password.

They can skip this process and sign up by connecting to a Google or Facebook account.

2. Verify ID

 

As a regulated broker, eToro requires that investors complete a know-your-customer (KYC) process on eToro. This process enables them to unlock this broker’s full trading features and functionalities. To get started, click on the newly created profile icon and proceed to select the ‘Verification’ icon. Once done, upload a valid ID card. This could be in the form of a driver’s license or any government-issued identity card.

Investors will also be asked to submit a recent utility bill or bank statement to validate their addresses.

3. Deposit Funds

Once the verification process is complete, investors can proceed to initiate a deposit on their newly created eToro account. Click on the action tab, select ‘Deposit Funds’, choose a payment channel, and input the investment amount.

Investors in the UK and US can invest with a minimum deposit of $10 with cards and a minimum deposit of $500 for bank transfers. Once done, tap on the ‘Deposit’ icon to place an order.

Buy AVAX

This is the final step to buy AVAX on eToro. Locate the search bar on top of the page, type ‘AVAX’, and click on the pop-up result. Proceed to click on ‘Trade’ to open an order page and input how many AVAX tokens to purchase. Click on ‘Open Trade’ to complete the purchase.

Conclusion

Avalanche is one of the new generations of protocols making waves. Because it is the fastest protocol by time-to-finality, top crypto investors are adding the AVAX token to their portfolio to tap into the platform’s benefits.

In this guide, we explained how to buy the Avalanche token on our number one recommended platform, eToro. The crypto broker operates as a social network, allowing investors to trade, learn and interact with one another. It also has a user-friendly interface, competitive fees, and CopyTrader and CopyPortfolio for optimised user profit-making.

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