Avalanche is one of the hottest blockchains on the crypto market, offering breakthrough speed, scalability, and low transaction fees.
Hailed as a potential "Ethereum killer," Avalanche aims to solve some of the pain points holding back mainstream blockchain adoption. And with developer activity exploding, its native AVAX token has enormous long-term growth potential.
So how can you get a piece of the action by adding AVAX to your crypto portfolio? This comprehensive guide has everything you need to know, including:
- What is Avalanche and its key benefits
- Step-by-step instructions for buying AVAX
- AVAX price predictions and analysis
- Best storage options to keep your investment safe
Let’s dive in and explore why so many crypto investors are excited about the future of Avalanche.
What is Avalanche? An Ethereum Challenger With Speed
Launched in 2020, Avalanche is a layer one blockchain platform built to enable the fastest smart contracts in the industry. It uses a complex but efficient consensus mechanism to achieve 4,500+ transactions per second and near-instant transaction finality.
To understand Avalanche’s potential, it helps to compare it against Ethereum – the dominant player in decentralized applications (dApps) and decentralized finance (DeFi).
While extremely popular, Ethereum suffers from network congestion and high gas fees during times of peak demand. A single Ethereum transaction can cost $20+ at busy times. Plus, users face wait times of several minutes or longer for transactions to finalize.
Avalanche changes this dynamic completely through its blazing fast throughput. Fees to use Avalanche are usually less than a penny, even with 100,000+ transactions per second. And the network confirms transactions irreversibly in under a second.
These technical advantages solve major speed and cost barriers inhibiting blockchain adoption. And it’s why everyone from enterprise organizations to indie developers is flocking to build dApps, DeFi platforms, NFT marketplaces, and more on Avalanche.
Powering this network is AVAX – Avalanche’s native token. Like Ether (ETH) for Ethereum, AVAX is used to pay for gas fees, participate in staking to uphold network security, and serve as an incentive for validators and developers building on the platform.
AVAX has a fixed max supply of 720 million tokens. Over 265 million are currently in circulation. The token has surged into the top 15 cryptocurrencies by market capitalization on the heels of [Avalanche‘s surging growth].(#adoption-soaring)
Why Buy AVAX? Growth Potential As "The Next Ethereum"
As one of Ethereum’s most promising "killers," Avalanche checks all the boxes that a new blockchain needs to challenge the top dog:
Speed and scalability – By far Avalanche’s biggest advantage. The network can handle exponentially higher throughput and lower latency than competitors.
Low fees – Transactions are a fraction of a penny, allowing users to trade, mint NFTs, provide liquidity and more without worrying about costs.
Compatibility – Avalanche is Ethereum Virtual Machine (EVM) compatible. This makes porting smart contracts and dApps from Ethereum easy for developers.
Rising adoption – DeFi protocols and platforms are launching on Avalanche at a furious pace. The ecosystem saw [700% growth in Q3 2022](), and more bluechip projects are onboarding.
Lucrative staking – Avalanche offers up to 11% APY for staking AVAX to help secure the network. Great way to earn passive income on your investment.
Deflationary supply – AVAX has a fixed maximum number of tokens. Combined with growing demand, this creates positive pressure on AVAX‘s value over the long run.
In other words, Avalanche has quickly built fundamental value and continues gaining momentum. Let‘s look at what‘s driving new adoption.
Adoption Soaring: Developers and Capital Pouring In
Despite launching after Ethereum, Avalanche is evolving faster thanks to heavy incentives for growth across its ecosystem.
In February 2022, Avalanche [launched a $180 million fund]https://Coinmarketcap.com/alexandria/article/crypto-basics-what-is-avalanche) specifically to attract prominent Ethereum developers and projects to its platform. The incentives seem to be working.
In Q3 2022 alone, the number of new projects deploying on Avalanche jumped 700%. bluechip names like Aave and Chainlink have added or are working on Avalanche network integrations.
All this activity is creating a positive feedback loop. The more quality dApps and protocols launch on Avalanche, the more developers want to take advantage of its speed and low fees for their own projects.
This snowball effect will allow Avalanche to siphon activity away from Ethereum over time. Its pace of innovation vastly outpaces Ethereum‘s cumbersome upgrades. Even Vitalik Buterin has praised Avalanche as an impressive competitor applying pressure to Ethereum.
As Avalanche continues maturing into its own robust ecosystem, expect AVAX to emerge as the “next ETH” for investors looking to tap into the growth of DeFi, NFTs, metaverse projects and Web3 applications.
Step-By-Step Guide To Buying AVAX
Sold on Avalanche’s potential? Here’s a walkthrough guide to purchasing AVAX and adding it to your portfolio:
Step 1) Choose Your Exchange
Like most cryptocurrencies, the easiest way to buy Avalanche is through a centralized crypto exchange. These allow you to purchase crypto with fiat currency like USD or EUR.
We recommend using one of the following reputable exchanges for buying AVAX:
- Coinbase – Beginner-friendly exchange for U.S. buyers to purchase crypto using bank account, debit card, or wire transfer.
- Binance – World’s top crypto exchange by volume. Supports hundreds of trading pairs including AVAX.
- KuCoin – Comprehensive exchange supporting Avalanche and 1,000+ altcoins.
These platforms make buying AVAX quick and straightforward. They also offer added security features like 2-factor authentication to protect your account.
Step 2) Fund Your Account
Once signed up, you’ll need to fund your exchange account with USD (fiat currency) in order to trade it for AVAX.
Most exchanges support convenient payment methods like connecting a bank account, debit card, wire transfer, and more.
We recommend bank account transfers for U.S. buyers, as these are generally low-cost and faster than sending a wire. Debit/credit card purchases are another solid option.
Be aware that some payment methods incur higher fees than others. Check your exchange’s pricing page for specifics on deposit/withdrawal fees and processing times.
Step 3) Find the AVAX Listing
Head over to your exchange’s trading screen and search for the AVAX/USD (or AVAX/EUR etc) trading pair.
For example, on Coinbase this looks as follows:
This shows the current market price of AVAX quoted against the dollar.
Step 4) Enter Your Trade
With the AVAX/USD pair displayed, you’re ready to enter a buy order.
Decide how much you want to invest in AVAX or how many tokens you wish to purchase. Then click the “Buy” button.
For example, entering $500 for the buy amount will purchase roughly 5.5 AVAX tokens at the time of writing.
Confirm all order details look correct, then complete your purchase! The AVAX will immediately be added to your exchange wallet upon completing the trade.
Pro Tip: Consider setting buy limit orders below current market prices to potentially save on costs. This allows you to automatically purchase if the price dips to your target.
And that’s it! Not so difficult, right? By following these steps you now own the native token behind one the highest potential "Ethereum killers" in crypto.
How To Safely Store Your AVAX Investment
Now that you know how to buy AVAX, where should you keep it securely stored?
You have two main options for storing crypto investments:
- Custodial wallet (exchange account or mobile app)
- Non-custodial wallet (external hardware/software wallet)
Custodial Wallet Storage
Leaving your AVAX on the exchange account where you purchased is the most convenient option. Exchanges like Coinbase and Binance invest heavily in security measures to reduce the risk of hacks or theft.
However, there is still a small chance of the exchange itself being breached. For anyone holding larger crypto investments, we recommend…
Non-Custodial Wallet Storage
Non-custodial wallets give users 100% control of their own private keys for maximum security. When paired with cold storage options (storing keys offline), this offers nearly unhackable protection.
Here are some of the best wallet solutions for storing AVAX and other crypto assets:
- Ledger – Top hardware wallet brand supporting AVAX and 1,800+ coins. All assets stored offline providing virtually impenetrable security.
- Exodus – User-friendly software wallet for iOS, Android, desktop. Good for storing 100+ crypto assets.
- Math Wallet – Cross-chain crypto storage supporting AVAX, BSC, Polkadot, Ethereum, and more.
The minor hassle of transferring crypto from your exchange to an external wallet comes with major security benefits and peace of mind. It also allows you to participate in staking from non-custodial wallets to earn yield on your AVAX.
We recommend the Ledger Nano X hardware wallet as best-in-class cold storage.
Price History and Future Price Predictions
Understanding the historical price trends can provide clues into how high AVAX can climb in the years ahead. Despite being less than 2 years old, Avalanche has already posted huge returns for early investors.
Let’s analyze the price action to date and forecast where AVAX is heading next.
Price Performance Since Launch
Avalanche launched its mainnet in September 2020 and immediately began distributing AVAX tokens. At this time, the price traded from around $0.34 up to $8 per token.
Like most leading crypto assets, Avalanche saw massive price appreciation throughout the 2021 bull market. Major milestones include:
- March 2021 – AVAX surpasses $20 for the first time
- April 2021 – Token enters price discovery, surging past $50
- September 2021 – Continued parabolic rally towards $80+
- November 2021 – New all-time high of $144 as crypto market buzzes
After peaking in late 2021, AVAX traded sideways in a range until…
- June 2022 – Impacted by broad crypto market selloff, AVAX drops below $20
- September 2022 – Signs of reversal back into uptrend forming with move above $20
With the crypto markets looking stronger entering 2023 on renewed risk appetite – and Avalanche adoption growing faster than ever – AVAX seems poised to rechallenge its highs.
Zooming out, Avalanche and AVAX have both made tremendous progress in a very short timeframe. But how much room is there left to grow?
Future Price Targets For AVAX
According to the analysis from experts, AVAX still looks undervalued relative to its potential. Here are price predictions from algorithms, researchers and traders:
End of 2022 – $100+
AVAX has strong support near $20, with upside potential triple digits by EOY 2022 if bullish sentiment continues.
End of 2024 – $250 to $350
As more activity shifts to Avalanche in the coming years, a rally towards a quarter trillion+ market cap and $250+ per AVAX is feasible.
Long-term (2026+) – $1,000+
In a best-case scenario if Avalanche nears Ethereum-levels of adoption over 5+ years, gains exceeding 1,000% for a $1,000+ token price are achievable.
These long-term projections indicate AVAX could still have 10X or greater upside, even after already impressive gains since launching. With so much developer activity flooding into Avalanche to take advantage of its speed and technical advantages, don‘t underestimate its future growth potential.
Conclusion: Avalanche Looks Unstoppable
As blockchain adoption continues accelerating into 2023, platforms able to scale without compromising speed or fees will capture the most value. This makes Avalanche one of the most promising ‘Ethereum killers‘ that could dominate blockchain use cases ranging from DeFi to Web3.
And as more projects choose to build on Avalanche, the native AVAX token serves as the key investment vehicle to benefit financially from its growth.
By following this guide on buying Avalanche and understanding what gives it so much long-term upside, you now have all the tools to get positioned early while AVAX still looks undervalued relative to its multi-year growth prospects.
So what are you waiting for? Sign up for an account on a leading crypto exchange today to buy into the future of speedy, low-cost decentralized applications powered by Avalanche.