What Is Avalanche Crypto (AVAX)?
As mentioned, Avalanche crypto is one of the new project in the decentralized space. It was launched by the Ava Labs team, led by Emin Gün Sirer and Kevin Sekniqi, in September 2020. Ava Labs raised $6 million through its funding campaign and a private and public sale of AVAX took place immediately after, for a total of $48 million.
Within the protocol there are interoperable open-source blockchains, decentralized and primitive financial applications or DeFi (decentralized finance) industry applications. If the project can sustain its growth, a time when Avalanche becomes the main competitor of Ethereum, the current second-largest blockchain in the world. It can also compete with other cryptos in the field, like Solana, for example, another very fast and cheap blockchain. That’s one of the main reasons why Avalanche crypto and its network are attracting the attention of crypto enthusiasts and investors.
How Does Avalanche Work?
You may be wondering how Avalanche crypto and its network operate. The network of this blockchain solves several problems related to the volume of transactions and the speed with which they can be completed. In fact, with Avalanche it is possible to have millions of validators with the potential to process approximately 6500 transactions in 1 or 2 seconds. Because of these attractive qualities of the project, it could soon become a favored option for DeFi applications that require fast and cheap transactions.
The Avalanche Crypto Price
Avalanche crypto (AVAX) reached its current all-time high price of $146.22 in November 2021. The current price of the token has been influenced by several factors, mainly the continuous bear market, so AVAX is trading well below this high. However, to understand the crypto better and to know when to buy and sell it, it’s essential to follow its price movements.
You can consult the graph below to see how the Avalanche crypto price is doing at the moment.
Where to Buy Avalanche Crypto (AVAX)
The Avalanche crypto AVAX can be used for payments, rewards and governance within the platform. However, it’s also shown its potential as a investment with good returns in the past. So if you’re wondering where to buy Avalanche coin, you have a few options at your disposal.
One of the easiest and quickest ways to buy AVAX is on a platform for crypto trading. This new token is fairly popular so you may be able to find it on quite a few platforms. The places where you could search for Avalanche crypto online are brokers and exchanges. Brokers like eToro offer Avalanche and other cryptos among other assets for trading, such as stocks or bonds.
Crypto exchanges, on the other hand, provide only digital assets for trading. You can find Avalanche on centralized exchanges (CEXs) like Binance, OKEx, Crypto.com, Coinbase, and FTX, where your transactions will be monitored by a third party. Unlike them, decentralized exchanges (DEXs) allow for peer-to-peer transactions. An example of a DEX that provides Avalanche is JellySwap.
What Is the Best Wallet for Avalanche Crypto
The storage for digital assets is called wallets. You could store your newly acquired Avalanche cryptos either online, on a hot storage wallet, or offline, on a cold storage one.
Hot storage wallets like MetaMask are always connected with the internet and store your private keys online. Another type of online-connected wallet are the built-in wallets, provided by some exchanges. For example, exchanges that offer Avalanche crypto and also the option to store it on them, are Binance and Coibase. However, if you’re worried for online theft, this type of storage for your AVAX coins may not be for you.
If you prefer to store your cryptos offline and connect your wallet to a computer only for transactions, then cold or hardware wallets are for you. The external devices like Ledger and Trezor store your AVAX cryptos offline and you only have to connect them to a device with internet when you’re receiving or sending your crypto.
How to Make Money With Avalanche Crypto
There are two main ways to make money with Avalanche crypto – trading and staking.
If you choose trading, you’ll have to find an exchange that lists AVAX first. Then you’ll have to follow the Avalanche crypto price and ideally buy when it’s low and sell when it’s high. You could also use contracts for difference (CFDs) on brokers that provide Avalanche for trading, and speculate on the changes in the value of the asset.
The other way to earn from Avalanche is through staking. This means that AVAX uses Proof-of-Stake consensus mechanism for its creation, instead of Proof-of-Work, so you can’t mine the coin. But what you can do is stake Avalanche and obtain rewards on the network for it.
What Are the Pros and Cons Of Avalanche Crypto
Pros of Avalanche Crypto
✔️ The project is very versatile as it brings together all the features of DeFi
✔️ Scalable, the count of supported transactions per second constantly increases
✔️ Low blockchain energy consumption
Cons of Avalanche Crypto
❌ It’s difficult to exchange the tokens outside the classic circuits
❌ The amount of projects of Avalanche can be confusing for beginners
Is Avalanche Crypto Worth Following?
The overall opinions on Avalanche crypto remain quite positive. The project may seem complex to some users, however, it’s very reliable and stable-looking.
Avalanche could be an interesting project to follow for people interested in Web 3.0 and dApps, as well as more tech-devoted crypto fans. The future of the whole project may go in two ways. If the team behind Avalanche crypto and the network manage to achieve their goals and make the may projects they’ve began successful, nothing will be able to stop them, not even Ethereum. However, if they get overwhelmed at some point by all the things they’ve created, the big potential of Avalanche may wilt out. These possibilities only make the future of AVAX more interesting to follow, right?
FAQs About Avalanche Crypto (AVAX)
We already mentioned it, but Avalanche is a very new project on the market. However, in the short period of time it’s been around, it has managed to attract the attention of many users and crypto lovers, and take up a good part of the market. If it continues to prove its value, the price of the token may be able to reach new highs again as the blockchain evolves.
As with all cryptocurrencies, no institution determines the price of AVAX, instead it’s determined by supply and demand. If more people are buying it, the price grows, and if more are selling – it decreases. The fear and greed on the crypto market influence the price of every digital asset.
The price of no cryptocurrency can be predicted with certainty, as the past performances of digital assets aren’t bound to repeat by default. That’s why nobody can be certain about the Avalanche crypto price in the near or more distant future. The overall sentiment from websites and experts, though, is that AVAX has the potential to rise in price again, once the broad market consolidates.