How to Buy Avalanche - a Beginner’s Guide
It is beneficial to have a guide when buying Cryptocurrencies for the first time. This is useful when you look at Avalanche (AVAX), one of the most promising cryptocurrencies on the market. The availability to buy it has increased as more exchanges integrate with its native chain.
Within this unique guide, we have broken down the process of buying Avalanche into a digestible format. We have highlighted the steps needed when looking to deposit to your preferred Exchange—breaking down the requirements such as identification documents, deposit methods, and assistance in becoming either a short-term trader or a long-term investor.
Below, we’re detailing the characteristics that could help you make AVAX one of your first investments in the cryptocurrency space.
5 Steps to Buy Avalanche Instantly!
1Visit our recommended platform to buy Avalanche by clicking the button below.
2Enter your details in the required fields to create a new account.
3Fund your account using your preferred payment method and confirm your new balance.
4Choose Avalanche and select a "Instant/Market Order” to buy it instantly.
5Enter the amount you want to buy (you’ll see the equivalent in AVAX) and confirm your order!
5 Quick Steps to Buy Avalanche
1. Sign up to a broker or Exchange
You’ll need to sign up for an exchange or broker when buying cryptocurrencies; in the case of AVAX, it currently isn't on any brokerages but is on many exchanges. You will need to sign up for an exchange listed on our partner table below.
2. Fill out the questionnaire
Once you sign-up, you will be presented with a list of options on how you would like to move forward. These options will ask questions such as have you traded before, are you professional and what deposit method is you would prefer to use.
3. Navigate to ‘Deposit’
You can fund your account type with all the major currencies, USD, EUR, & GBP. Some exchanges will also enable a selection of cryptocurrency deposits. Once this process is confirmed, you will be able to begin buying & selling.
4. Follow the simple steps to link your payment
Different exchanges have different deposit steps to link your account with an exchange. Guidance on how to complete each step will typically be provided but the exchange you decide on using.
5. Buy Avalanche
Once your payment method of choice is selected & the process is confirmed, you can use the deposited funds on the investments of your choosing. Utilise the search bar or dashboard on the homepage to AVAX. Be sure it's on the correct cryptocurrency pairing when you would like to buy or sell.
Where to buy Avalanche
If you would like to buy AVAX, it will be through a centralised exchange (CEX). Consider selecting from our partners in the table below to get started with your first buy.
Payment methods you can use to buy Avalanche
The methods you can use to buy Avalanche will depend on the payments accepted by the Exchange you will be using. The options which you can use are listed below & apply to major exchanges like Binance & Coinbase.
● Credit card: Credit cards are an option that can be used, which are typically quite fast. But be aware that some major banks prevent buying cryptocurrency with a credit card and might block its use.
● Debit card: Debit cards are by far one of the fastest methods of deposits and can be one of the cheapest depending on which exchange you decide to select.
● PayPal: PayPal is also a viable option if you would like to use this method, it can be fast, but PayPal might charge you or the exchange a fee, which the exchange might pass on to you.
● Bank transfer (SEPA) & (WIRE): Bank Transfers SEPA in the EU and wire transfers in the US. It will often take a few more days and incur a higher cost than other payments mentioned.
Buying vs Trading Avalanche
When you start buying Avalanche, decide if you’d like to commit to a long term strategy. With this strategy, you can be considered to be a holder, which would mean you would prefer holding a cryptocurrency rather than trading it. This would entail less regular oversight on your part, meaning you would be less active in checking markets, as you have long term conviction.
Alternatively, you could choose to pursue a short-term buying and selling strategy of day-trading, even weekly trading, it will require more of your time to focus on what is going on with the cryptocurrency markets. What you choose will be based on the type of investor you feel you are most comfortable with.
How to Trade Avalanche
When applied to cryptocurrency trading, technical analysis is helpful if done correctly, with the correct set of indicators to support you. It should be in every serious investor's arsenal to know some basics when applying technical analysis to trading because it is the money you are putting on the line. Understanding these technical indicators will help you decide on your strategy and manage the risks in a logical step-by-step way.
A useful piece of technical analysis is being able to understand a moving average (MA) indicator. What this indicator does is smooth out the price trend over the past given time period, by filtering out the "noise" or anomalies from random short-term price fluctuations. It essentially takes an average of the price in the past, to provide a calmer look at the price in the future.
What to consider before buying Avalanche
Understanding what you are investing or trading in can provide an edge to an investor, which is no different when applying it to Avalanche. It's important to consider the unique characteristics of Avalanche.
The key to consider for Avalanche is its competition — how does it compare relative to other Layer 1's? For instance, after going live in 2020, Avalanche went on to become one of the main competing Layer 1 blockchains.
What sets Avalanche apart from its competition is that its consensus combines "Nakamoto consensus" (robustness, scale, and decentralisation) and "classical consensus" (speed, quick finality, and energy efficiency).
What Features Does Avalanche Have?
Smart-Contracts: Avalanche can execute programmable smart contracts that enable the development of Decentralised Apps (DApps) & NFTs.
Ethereum Virtual Machine (EVM): Smart contracts can be coded and used using the Ethereum Virtual Machine, this is important as it can incentivise Ethereum developers who code in solidity to use their coding skills on Avalanche. Important to consider as Ethereum developers are the largest pool of developers in the crypto space.
Infinite Customisable Subnets: Subnets on AVAX enable a developer to build their unique virtual machine and dictate exactly how the blockchain should operate. Each subnet has its own set of validators that validate a set of blockchains. This fosters development to create completely customisable applications that developers have the freedom themselves to decide on.
Minting ERC-20 Tokens: By using the c-chain on Avalanche, you can mint ERC-20 tokens to the network. Creating new types of tokens.
Cheap transactions: Roughly the cost of sending a transaction is 0.30c - O.60c.
Network speed: Avalanche is one of the fastest networks in transaction speed when measured in Time-to-Finality (TtF). TtF measures the time one has to wait to guarantee that a crypto transaction has been executed on the blockchain and that it will not be reversed or changed.
Proof of Stake (Pos): Unlike Proof-of-Work cryptocurrencies like Bitcoin & Ethereum, Avalanche thrives on being one of the most eco-friendly blockchains. Bitcoin & Ethereum, for example, are cryptocurrencies that use proof-of-work, whereas AVAX uses proof-of-stake (PoS). The critical aspect of this PoS is that it doesn't need miners that operate using excessive amounts of energy usage, this can deem it more friendly to the environment.
Will Buying Avalanche Make Me Money?
The first step to answering if Avalanche will make you money will be to consider the long-term. What are some of the factors that will impact a long term outlook?
Well, as a project which is relatively new, it has grown considerably with many projects looking to build on it now and into the future. Strong financial incentives by the Avalanche foundation have propelled these incentives; the foundation in 2021 announced a $180 million fund to encourage more development on the blockchain, especially within DeFi. These all help to create an optimistic outlook for the project in terms of buying for the long term.
However, it is difficult to predict whether buying Avalanche will make you money in the short term because price action in the short term is extremely volatile.
Should I Buy AVAX?
Buying AVAX is a decision you need to make for yourself. It would help if you had a solid strategy to implement. Diving into research to understand what functionality AVAX has might help you identify if AVAX looks promising in the long term.
Pros For Buying AVAX
- Fastest Layer 1 blockchain if we account for time-of-finality
- Strong multi-million dollar DeFi incentive programs
- EVM compatibility means developers who are solidity proficient can build or fork projects onto AVAX
- Subnets enable the project building on it to be its own Layer 1. A huge benefit of subnets is benefiting from the AVAX networks interoperability. Meaning you can benefit from the AVAX ecosystem's communication, swap, or pool functions within its DeFi ecosystem
- Fast transactions
- Relatively cheap to use
Cons For Buying AVAX
- Exponential price growth in a short space of time could mean upside in the short term could be limited
- Competition from competing Layer 1
- Threat from Ethereum 2.0
Frequently Asked Questions
Buying Avalanche (AVAX) is possible with both fiat currency and cryptocurrencies. What impacts your ability to do this will be the medium you use. This means the type of exchange you are using, Centralised or Decentralised, and will depend on the policy of the exchange.
No, Avalanche is not the same as Bitcoin. They each have their own blockchain and cryptocurrencies. Avalanche has a consensus operating using a Proof-Of-Stake consensus, and Bitcoin operates on Proof-Of Work consensus. One cannot be sent to the other. However, it is possible to send wrapped BTC (WBTC) on Avalanche.
There is much debate on how fast Avalanche is due to the measurements used to differentiate between the two blockchains. With Solana using Proof of History and Avalanche using time-to-finality to measure the speed.
Yes, it is possible to participate in DeFI with Avalanche. It has a blossoming ecosystem with large amounts of incentive to drive the numerous DeFi applications.
Avalanche uses Proof Of Stake over Proof of Work. PoS uses less energy than PoW because it doesn't rely on miners on the network to maintain its consensus. Miners, which are essentially computers, use lots of energy to validate and discover new blocks. PoS uses a staking mechanism to do this, and this is deemed as more eco friendly.