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Invest in Avalanche in 2022

Last updated 10th May 2022
Disclosure

Avalanche is an advanced blockchain platform developed with the goal of solving scalability issues that are seen on other blockchain networks.

AVAX is the native cryptocurrency token that powers Avalanche.

This guide will give you an in-depth look at how exactly you can invest in the AVAX token and what it is all about.

Best way to invest in Avalanche in 2022

There are multiple methods through which you can invest in Avalanche or the AVAX token in 2022.

To make things easier for you, we have provided a list of some of the best providers in the industry so you can get started today.

1
eToro
Minimum Deposit
$200
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User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
2
Atani
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Popular among traders
Fast system for trading
Popular for beginners
3
Coinmama
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Easy to use tool
High profit potential
Offers Phone Support
4
Coinbase
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers
5
Paybis
Minimum Deposit
$50
Exclusive Promotion
User Score
5
First transaction fee free
24/7 customer service
Instant payouts

What is Avalanche

Anonymous developers originally introduced Avalanche on IPFS in May 2018. However, it was formalized by Cornell University researchers in 2019.

The Avalanche mainnet was launched in September of 2020, and only two months later, managed to raise $42 million in a token sale, which sold out quickly.

The three founders of Avalanche are Dr. Emin Gün Sirer, Kevin Sekniqi, and Maofan Yin.

Ava Labs is the development company behind Avalanche, which was founded in 2018.

Their aim is to enable anyone to create their own multi-functional blockchain or decentralized application (dApp).

Notably, Avalanche was designed to address the limitations of other blockchain networks.

At the time of writing, Avalanche has a market cap of $15,000,000,000, with a circulating supply of 220,286,577 AVAX tokens.

Pros

  • Extremely secure and powerful applications

  • Ability to create assets on existing ecosystems

  • High-speed and scalablity for decentralized applications (dApps)

  • Community of validators in the network

Cons

  • Transactions can be delayed if validators are not in agreement with the status.

  • There is no liveness guarantee when there are conflicting transactions which poses a potential risk to funds

How does Avalanche Work

Avalanche is built as a system of three interoperable blockchains.

It is known for being one of the first to implement this triple-blockchain infrastructure with the goal of simplifying the conversions and development processes on the network.

These are split across the exchange chain, the contract chain, and the platform chain. To better understand how all of this works, we will need to dig in a bit deeper.

When we discuss the exchange chain, also referred to as the X-Chain, it is the chain used to create new digital assets on the network.

Then we have the contract chain, or the C-Chain, which is the Avalanche Ethereum Virtual Machine (EVM) implementation chain.

After that, we have the platform chain (P-Chain), which is used to coordinate validators to create subnets.

The Subnets are the set of validators that are essentially tasked with achieving consensus on one or more of the blockchains on Avalanche.

The C-Chain and P-Chain are both secured through a consensus mechanism called the Snowman Consensus. This Snowman Consensus is responsible for enabling high throughput smart contracts.

Notably, there is also a DAG-optimized Avalanche consensus mechanism that specifically secures the X-Chain.

This is a secure and scalable protocol that achieves transaction finality in a matter of seconds.

By splitting the architecture across three separate blockchain networks, Avalanche can be fully optimized for flexibility, speed, and security without any trade-offs.

The result of this is the possibility of processing 4500 transactions per second on a global scale, which in turn results in a much quicker response time when it comes to confirming any transaction.

This makes it a powerful platform for both public and enterprise-level users.

This is mostly due to the fact that developers will have access to a high level of flexibility in terms of what kind of applications they can actually develop on the network.

It's worth noting that Avalanche uses a combination of multiple, custom-built blockchains alongside a powerful consensus mechanism to achieve a decentralized platform.

This is the Proof-of-Stake (PoS) consensus algorithm.

Avalanche is fully compatible with the Ethereum toolkit and is an excellent way through which developers can launch different decentralized applications on the platform.

In terms of its future development, Avalanche has forged many new partnerships, and there is also a big upgrade in the works that optimizes Snowman++ to reduce C-Chain transaction fees and more.

Ways to buy Avalanche

There are a number of different ways you can buy Avalanche (AVAX). Below we have created a handy little list that you can use to help you make an informed decision.

You can use cryptocurrency exchanges, P2P marketplaces, or in-person trading.

  • Cryptocurrency Exchanges – Cryptocurrency exchanges are platforms that allow you to trade the Avalanche cryptocurrency token and give you access to charting tools and other features that you might need while purchasing the AVAX token.

  • P2P Marketplaces – P2P cryptocurrency marketplaces allow you to buy or sell directly with another user, which means that you can just post that you are selling AVAX on there and connect with someone that wants to purchase AVAX directly from you.

  • In-Person Trading – As the name suggests, this is a process where you essentially need to meet the person you are buying from / selling to in order to make the transaction.

Here is everything you need to know about buying Avalanche (AVAX):

  1. Start by creating and verifying your account on the cryptocurrency brokerage or exchange that you end up picking. If you already have an account created somewhere, simply log into your account.

  2. The second step is to deposit some funds. Once you complete that process, search for Avalanche (AVAX), and once selected, choose how many tokens you would like to purchase.

  3. To complete your transaction, you need to click on "Buy". You should then be able to see your tokens in your exchange wallet.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

How to invest in Avalanche

There are numerous ways through which you can invest in AVAX. Here is everything you need to know about the options which are available to you.

The platform you choose should provide you with options such as entry orders, stop losses, profit-limit orders, and risk-management methods.

Let's dive into everything you have on offer.

  • Exchanges. The price on cryptocurrency exchanges is set by the market. You are usually given access to analytical tools to help you make more informed trading decisions.

  • Debit Cards. Suppose you do not already own cryptocurrency tokens or have a cryptocurrency wallet that you can use to buy Avalanche (AVAX). In that case, you can always purchase the token using a debit card. All you really need to do in this case is simply connect the debit card to the exchange or brokerage in question and just fund your account.

  • Apps. There are mobile applications that will serve the role of exchanges or brokerages and provide you with yet another way to purchase the AVAX cryptocurrency token.

Is it safe to invest in Avalanche right now?

Investing in any cryptocurrency can be risky due to the high level of volatility in these markets, and the AVAX token is no exception.

As such, you should be aware that significant price swings can occur in a short period of time.

That said, Avalanche has a solid team behind the project and is making great progress in upgrading its existing systems which perform very well as is. This has good potential going forward and the price of the token should increase with further adoption of the platform.

As always, only invest money you can afford to lose and make sure you are following the best security practices at all times.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
2
Atani
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Popular among traders
Fast system for trading
Popular for beginners
3
Coinmama
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Easy to use tool
High profit potential
Offers Phone Support
Khashayar Abbasi

Khashayar Abbasi

Khashayar discovered Bitcoin back in 2014 and has since spent countless hours researching the different use cases of cryptocurrencies. He has a bachelor's degree in International Relations and has been a writer in the financial services industry for nearly half a decade. In his spare time, Khashayar enjoys photography, cycling, and ice skating.