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Avalanche (AVAX) Coin Investing: A Complete Guide!

Avalanche is a relatively new blockchain, which was launched in September 2019. It focuses on blazingly high-speed transactions and low costs. Emin Gün Sirer is the founder of this project. He is a Turkish-American computer scientist, an associate professor of computer science at Cornell University, and the co-director of IC3. 

In June 2021, the Avalanche project made a private sale of AVAX tokens of around US$230 million to cryptocurrency funds including Polychain, Three Arrows Capital, Lvna Capital, Collab+Currency, CMS Holdings, Dragonfly, R/Crypto Fund, and others.

The Avalanche Foundation, just like Solana, is trying to solve the scalability issue of older blockchains such as Ethereum. This foundation is placing itself as a leading alternative to Ethereum because of its high gas price and comparatively slower transaction. Moreover, you can run decentralized applications or Dapps at a fraction of the costs of the Ethereum platform. In fact, the time to finality is also faster on the Avalanche platform. One of the main benefits of this platform is that it supports smart contracts, the main feature for enabling DeFi (decentralized finance) projects. 

Now, let me walk you through the different aspects of Avalanche and its native coin AVAX crypto in this article. 

What is Avalanche Crypto (AVAX)?

In the blockchain industry, Avalanche (AVAX) is the fastest smart contracts platform (measured in terms of time-to-finality). This project has the most numbers of validators to secure all the activities involved in the proof-of-stake (PoS) protocol. Avalanche project is:

  • Superfast
  • Low cost
  • Environment-friendly

On the Avalanche platform, any smart contract-enabled app can outperform its peers.

On mainnet, Avalanche was launched on September 21, 2020. In the last 1-year since its launch, this platform has grown exponentially. Avalanche project has:

  • Secured more than 200 individual projects.
  • Burned over US$14-million AVAX coins, thereby reducing the supply of AVAX coins.
  • Secured more than 1,000 validators, who produce blocks.
  • More than 600,000 Avalanche community members globally.

Avalanche (AVAX): Facts & Figures

All these facts and figures will help you to make a decision on investing in Avalanche’s native token by making AVAX to USD price predictions:

  • Current Avalanche Price: US$71.14 (as of Sep 25, 2021)
  • Trading Volume (24h volume): US$2,056,809,045
  • All-Time High (ATH) Price: US$79.52 (reached on Sep 23, 2021)
  • All Time Low (ATL) Price: US$2.79 (reached on Dec 31, 2020)
  • 24h Low: US$67.14 (as of Sep 25, 2021)
  • 7d Low: US$52.87 (as of Sep 25, 2021)
  • YTD (Year-To-Date) Return: +1,840.32% (Jan 1, 2021 to Sep 25, 2021)
  • Market Capitalization: US$15,467,415,469
  • Crypto Rank (in terms of market cap): 11
  • Fully Diluted Market Cap: US$50,746,389,944
  • Max Supply: 720,000,000
  • Total Supply: 391,128,419
  • Circulating Supply: 220,286,577.21 AVAX (31%)

What are the Use Cases of Avalanche (AVAX)? What does it Solve?

Most blockchain networks suffer from many issues. For combating centralization, the Avalanche platform provides a viable alternative to Ethereum-like networks. This project has incorporated more programmability, functionalities, and features for doing away with the shortcomings of the network. 

  • Congestion

Avalanche provides users with amazing scalability. It features sub-second transaction times, which is similar in speed as the leading payment processors such as PayPal and VISA. It has the capability of processing 6,500 transactions per second. The sub-second finality feature is also there in these transactions. 

  • Low Fees

When compared to Ethereum, the gas fees on Avalanche are significantly low. To create and mint assets, fees are there. Fees also need to be made on blockchain creation, staking, and transactions. These fees are burned. 

How Does Avalanche Work?

For simplifying conversions and development processes, a triple-blockchain strategy is introduced by Avalanche. A Segwit-like protocol is used for reducing network congestion. 

  • Subnet

You can create new blockchains on Avalanche, which is one of the core components of this platform. Within the Avalanche ecosystem, these new blockchains are called Subnets. By paying a subscription fee in AVAX, anyone can create their own subnets having their own rules, fee structures, and unique tokens. 

  • X-chain

It is the first blockchain, which is decentralized and also designed in such a way that programing is done in an easy way. Anyone can create and mint other smart digital assets (NFTs, utility tokens, stablecoins, equity, wrapped tokens, etc.) on the Avalanche network. 

C-Chain

It helps Ethereum Dapp developers in simplifying the conversion process. That’s why, you’ll find C-Chain’s compatibility with all vital Ethereum tooling. As a user, you can migrate your Dapps seamlessly to this blockchain. Popular Ethereum features including Web3.js, MetaMask, Embark Platform, Truffle Suite, Remix, and others are supported by this network. 

P-Chain

It is responsible for the network’s utilities. P-Chain helps in coordinating Validators. The blockchain plays an important role in creating and monitoring new subnets. It is the P-chain that helps to stake Avalanche tokens on the Avalanche network. 

AVAX Staking

Rewards can be earned by the users on the network. To stake on Avalanche network, the requirements include:

  • A dual-core processor
  • 4 GB Memory
  • 40 GB SSD (for running a Validator)

A staker on Avalanche receives an average reward of anything from 9.69% to 11.54%. For getting qualified as a Validator, you have to hold at least 2,000 AVAX coins. Multiple subnets can be validated by the validators. However, validating the primary network is not mandatory. If you are a regular user, you can delegate your tokens to a validator for receiving rewards for their participation. 

Consensus

This ecosystem works as a DPoS (Delegated-Proof-of-Work). DPoS networks have less consensus requirements and that’s why they are significantly faster than the networks that run on PoS (Proof of Stake) or PoW (Proof of Work) options. 

Validators have two main functions:

  1. Secure the network
  2. Approve transactions

The blockchain of Avalanche is set up in such a way that it is capable of accommodating millions of participating Validators in the consensus mechanism. Multiple decentralization layers are provided by this strategy. 

What are the Benefits of Avalanche (AVAX)?

Avalanche network provides a wide array of impressive benefits to both individual and corporate users. Let’s take a look at those benefits:

  1. Programmable

Developers can build application-specific blockchains and Dapps on the Avalanche network. You can execute Avalanche Virtual Machine (AVM) along with multiple customized virtual machines. Many languages such as WASM and EVM can be used for programming on Avalanche (AVAX). The popular Go language was used for coding the network. Digital smart assets can easily be created and traded by the network participants. The newly formed coins can be customized as per the technical and regulatory needs of the developers. That’s why Avalanche has placed itself as the ideal network for creating DeFi platforms. 

  1. Avalanche (AVAX) Compliant Dapps

Dapp developers are allowed by Avalanche network for coding complex customized sets of rules. This enables developers in creating regulatory compliant assets. How the asset is handled and traded can be determined through coding. For ensuring compliance, this approach is easier. 

  1. Deflationary

One of the main reasons for the skyrocketing price of the AVAX coins is the deflationary nature of the blockchain. Fees are collected by the network from various actions and services such as blockchain creation, staking, and transactions. These tokens are then burned, which in turn decreases the total number of AVAX tokens in circulation. Control on the demand for tokens and stabilization in Avalanche AVAX price can be done in the future. 

  1. Avalanche (AVAX): Enterprise Blockchain 2.0

The inclusive nature of the Avalanche blockchain in addition to its technical aspects makes AVAX stand out from the rest in the sector. It is the unique features provided by this network that makes it best suited for enterprise-level blockchain creation. With more and more Ethereum developers continuing to find more cost-effective alternatives, the demand for the Avalanche project will increase significantly.

How to Buy Avalanche AVAX Coins?

You can buy AVAX cryptos from many top cryptocurrency exchanges:

  • Binance: Canada, Australia, Singapore, United Kingdom, and most parts of the world. The US residents can’t buy AVAX.
  • Gate.io: It is the best crypto API for USA residents to buy AVAX coins.

AVAX is still not available for trade on Coinbase or Coinbase Pro.

How to Store Avalanche (AVAX)?

The best cryptocurrency wallets to store Avalanche coins (AVAX) are:

  • Ledger Nano X
  • Ledger Nano S

Invest in AVAX and Other Cryptocurrencies

You can buy and sell Avalanche AVAX and other cryptocurrencies against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges (centralized or decentralized exchanges). Use Dollar Cost Averaging DCA strategy to invest in cryptos to minimize the risks associated with high volatility. 

If you want to increase your investment explosively in the coming 5-to-10 years, buy crypto coins now. Keep an eye on the market news, price statistics, block times, blockchain news, and others to time your trading of Defi systems and tokens for maximum profit. 

You can also diversify your crypto coin portfolio by including other cryptocurrencies such as AVAX, Yearn Finance YFI, AAVE, Shiba Inu, Ripple XRP, Bitcoin Ether ETH, Bitcoin Gold (also called Bit Gold), Bitcoin Cash BCH, Basic Attention Token, Ethereum Classic, Binance Coin, Wrapped Bitcoin (some also call it wrap bitcoin or wBTC), USD Coin, Gemini Dollar, ERC20 tokens (created on Ethereum blockchain), nonfungible tokens NFTs, and others. 

Also, invest in various types of stocks, mutual funds, index funds, real estate, and others to improve your personal finance. If possible, get help from a portfolio manager or wealth management firm for maximum return. 

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NapBots provides you various indices that include a basket of tokens with high market capitalization and are categorized by theme (such as Solana, NFT, DeFi, and others). This platform introduces an intuitive interface as well as advanced allocation tools for enabling new investors to create and manage advanced crypto indices easily.

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