How to Buy Avalanche (AVAX)

How to Buy Avalanche 

You can buy Avalanche tokens (AVAX) on almost every cryptocurrency exchnage, but if you are just starting out, you may need some help with the details. 

In this guide, we’ll help you discover not only how to buy Avalanche but also where to store it, so let’s get started.

What Is Avalanche?

Avalanche is a popular blockchain platform that launched in 2020. In some ways, it’s quite similar to Ethereum (and its popular rivals Polkadot and Polygon). It’s a blockchain project hub that supports dApps and smart contracts. 

Where Avalanche differs from Ethereum is its unique approach to consensus mechanism. As you may know, blockchain projects often use proof-of-work and proof-of-stake methods to ensure transaction and network security. Ethereum switched to proof-of-stake in recent years in order to cut down on its energy consumption.

Avalanche also uses a proof-of-stake consensus mechanism, but it’s a unique protocol based on several sub-protocols: transactions are confirmed by randomly chosen validators, whose confirmations are validated by other sets of random validators.

Overall, the unique consensus mechanism, topped with Avalanche’s approach to token economics and structural differences, allows the blockchain to process over 4,500 transactions per second. Ethereum, on the other hand, can process around 30 transactions per second.

As you can guess, this gives Avalanche a huge advantage in terms of scalability, though Ethereum supporters argue that the Ethereum 2.0 update will push the network’s processing rates to the 20,000-100,000 band.

Nonetheless, given Avalanche’s current performance, the blockchain offers a pretty good alternative to Ethereum when it comes to dApps. The high transaction rates also help with network congestion and help AVAX gas fees remain under control. Avalanche users have the power to decide gas fees by voting.

It also helps that Avalanche uses the Solidity programming language native to Ethereum. That means developers can run their apps on both networks and design for more than one blockchain. 

What Is the AVAX token?

Avalanche blockchain’s native token AVAX has important functions: Avalanche users who stake over 2,000 AVAX tokens can become validators for Avalanche. Users and validators can also help govern the network and decide on gas fees.

AVAX is also a popular token among traders: As of October 2023, it’s the 22nd largest cryptocurrency by trading volume. There are over 3 billion AVAX tokens in circulation.

Where Can I Buy Avalanche (AVAX)?

Since AVAX is one of the most traded cryptocurrencies in the world, you can find AVAX tokens on almost any crypto exchange in addition to non-crypto-specific finance apps.

If you are a crypto beginner who wants to invest in multiple digital assets, using a crypto exchange is the best long-term solution. These exchanges sell multiple currencies and allow traders to execute complicated trading strategies to make profits from trades. Since crypto exchanges are designed for effective and rapid trading, it’s a good idea to buy AVAX at a crypto exchange to start learning how to navigate your way.

Of course, not all crypto exchanges are suitable for beginners. If this is your first time purchasing crypto, you want to use a centralized exchange or a CEX (like Binance or Coinbase), as opposed to decentralized exchanges (commonly referred to as DEXs). While DEXs have many advantages, they don’t support fiat currency and are a tad bit complicated compared to user-friendly CEXs.

However, if you are not very interested in learning the intricacies of crypto exchanges and don’t plan on trading actively for profit, you can also use third-party sellers or financial apps to buy AVAX. For example, Uphold, eToro, and Moonpay are not focused on crypto per se, but if you are already using these apps, you can also invest in Avalanche through them.

Overall, the decision lies with you, so consider what would be the most convenient and useful option. Keep in mind that opening an account at a centralized crypto exchange is very easy, and most exchanges offer straightforward methods to purchase AVAX and other digital assets in a few minutes.

We created short reviews of the most popular cryptocurrency exchanges, laying out their benefits and drawbacks to help you find the right platform. We also have individual reviews for each platform to help you understand their services and fee structures.

If you don’t want to check out each exchange, don’t worry. In the next section, we’ll suggest the best centralized exchanges you can use to buy AVAX and other digital assets.

How to Buy Avalanche?

You can easily buy Avalanche on a crypto exchange. Most exchanges offer an easy buy feature that helps beginners buy cryptocurrencies with a few clicks. 

However, before you start, there are a few things you should consider. First, pick a good, reputable exchange that you can trust. Secondly, decide where to store your AVAX coins. 

Let’s tackle the issues in order.

Where to Buy Avalanche?

You can buy Avalanche on centralized crypto exchanges, but choosing the right exchange can be a challenge.

Before you commit to an exchange, it’s important to check out its general reputation, fee structure, and coin selection. You want to select an exchange with a liquid AVAX market that will give you many opportunities to buy and trade the asset.

The biggest AVAX markets, unsurprisingly, belong to the world’s top exchanges like Binance and Coinbase. Kucoin, Kraken, and Bitfinex also offer deep liquidity for AVAX trading. Luckily, all these exchanges also offer easy-buy features that make buying AVAX easier for beginners.

If you are based in the US, Coinbase can be a good option for you. The exchange is one of the oldest crypto exchanges in the US and has played a huge role in making crypto more mainstream. It offers a handy ‘easy buy’ feature that lets you buy AVAX and many other currencies.

Kraken is also a US-based crypto exchange. The platform’s excellent customer service and powerful security have made it one of the top crypto trading hubs in North America and around the world. Kraken offers several trading markets in different fiat currencies (EUR, USD, CAD, and so on).

While Kraken and Coinbase may work well for US-based customers, some functionalities may not be available to users overseas. If that’s the case, there is always Binance, the world’s largest crypto exchange by trading volume. Binance has very low fees and is used by beginner and expert traders all over the world.

Kucoin is an offshore exchange that has a very liquid USDT/AVAX market. The exchange also offers advanced trading products like margin and futures trading. 

Finally, Bitfinex offers both USDT and USD markets for AVAX. You can buy AVAX with fiat and digital currencies on the platform easily.

How to Buy Avalanche

Once you pick a centralized crypto exchange, go ahead and create a free account on their website. Once you log in, all you need to do is verify your identity and add a payment method to your account.

Identity verification is automated and usually only takes a few minutes. 

Most exchanges allow you to make a fiat deposit via your bank account. You can also add a debit or credit card to your account, or use other payment methods to complete your transaction.

Easy Buy

As we said above, almost every crypto exchange has an easy buy feature that lets you purchase digital assets in a few clicks. Just look for the “Buy Crypto” tab on your main page. 

When you click Buy Crypto, you will be redirected to the easy buy form.

The form is pretty much the same in all the exchanges we suggested. All you have to do is enter the amount you want to invest in AVAX and click “Buy.”

Next, you can add a payment option, like a credit card, or a third-party payment service, such as MoonPay, Banxa, or Simplex.

Using the easy buy can be a bit expensive since the fees are higher compared to spot market fees. Most exchanges charge you a 1% fee for the convenience.

Different payment methods may also affect the fees. For example, third-party processors usually charge a processing fee, and the same is true for credit card companies. You will see a detailed breakdown of the fees before you complete your transaction, so you can decide on the best payment option.

Spot Market

You can also buy Avalanche and other cryptocurrencies through the exchange’s spot market. Most beginners shy away from the spot market because of its complicated user interface, but it’s actually not that hard to navigate once you spend a few minutes studying it.

The spot market is the most profitable way to buy and trade cryptocurrencies. Unlike the easy buy feature, crypto assets on the spot market don’t have set rates, and the fees are much lower.

You can find hundreds of different currency pairs on the spot market. Most trading is based on USDT and USDC, though some platforms also offer USD and EUR markets for popular assets like Bitcoin, Ethereum, Polkadot, and Avalanche.

You can navigate to the spot trading interface through the “Trade” tab on your home screen. Each exchange has a slightly different spot market, but the basics are the same. There is a market panel where you can see different trading pairs, charts that track price changes, and finally, an order form.

You can select the pairing you want to trade through the markets panel (for example, USD/AVAX) and head to the order form to place a buy order.

You can find more detailed explanations on how to buy AVAX on different exchanges in our “How to Buy Avax” guides for Coinbase, Binance, Kraken, and Kucoin.

How to Store Avalanche (AVAX)?

Now you know where and how to buy AVAX, but you aren’t done yet. While most beginners don’t really spend a lot of thought on crypto storage, this is a crucial step to secure your investment.

If you follow our guide and buy AVAX on a centralized crypto exchange, your assets will be deposited to the exchange wallet. As long as the assets are in the exchange wallet, you can seamlessly execute transactions and make near-instant trades. Moreover, you can stake your assets or loan them to others to make profits from your coins.

However, there are also some pretty big drawbacks to using exchange wallets. 

Firstly, exchange wallets are custodial wallets, which means the exchange has complete control over the funds. Therefore, the exchange can easily steal or transfer your assets to others, an unfortunately common scenario that has happened quite a few times in the short history of crypto.

When an exchange steals users’ funds, recovering those assets could take years (if it ever happens). Your assets may lose their value before they are ever recovered.

Secondly, crypto exchanges are often targeted by hackers, and many exchanges lose substantial amounts of crypto in these attacks. While some exchanges cover these losses, most don’t have the financial means to completely recover your loss. Also, please keep in mind that FDIC insurance doesn’t cover crypto assets, and any exchange that claims your crypto is protected by FDIC coverage is lying to you.

Finally, the exchange may go bankrupt, taking your assets with them as they go down. This has happened with many exchanges, most famously with FTX.

Overall, it isn’t a good idea to leave huge sums of crypto in your exchange wallet. So, what other options do you have?

Official Avalanche Wallet

The official Avalanche wallet is a great way to send and receive Avalanche assets. You can manage, stake, and store AVAX and other Avalanche-based assets (including NFTs) in the official Avalanche wallet. 

However, the wallet is only for Avalanche-based assets. If you are considering buying other digital currencies, you may want a wallet that can monitor and control several cryptocurrencies at the same time.

Multicurrency Software Wallets for Avalanche

Multicurrency software wallets help you manage different cryptocurrencies through one interface. Trust Wallet and Exodus are popular software wallets that support Avalanche assets.

Both wallets have integrated DEXs that allow you to swap crypto assets without leaving the wallet interface.

If you are using Binance, you can make seamless transfers between the Trust Wallet and your Binance account.

Exodus wallet, on the other hand, can be paired with a Trezor hardware wallet to increase the security of your assets. This pairing allows you to enjoy the convenience of using a software wallet with the benefit of increased security.

Hard Wallets for Avalanche

Both exchange wallets and software wallets share a core feature that makes them vulnerable to hackers, given that these wallets are hosted on devices connected to the internet. On one hand, the internet connection is beneficial because traders can quickly send and swap digital assets in an instant. On the other hand, hackers can also access these wallets through the internet if your security system isn’t top-notch.

But there are some wallets that aren’t connected to the internet at all. These are known as cold wallets and come in two categories: paper wallets and hardware wallets.

A paper wallet is simply a printout of your wallet key. You can keep it in a safe location and certainly no hacker can reach it through the internet, but it’s also somewhat useless if you want to make crypto trades with some frequency.

Hardware wallets are basically hard drives that contain wallet software. You can connect these hardware wallets to your computer and manage your transactions within the wallet’ interface. The best part is that these wallets are safe from hackers, even if your computer is hacked or compromised.

Avalanche is supported on many hardware wallet models, including Ledger, Trezor,  Coolwalet, and Ellipal Titan. These wallets support hundreds of different cryptocurrencies and make crypto ownership a lot more easy.

For example, you can use the Exodus software wallet in tandem with a Trezor hardware wallet for a secure and convenient trading experience.

Moreover, hardware wallets are also protected against physical dangers: You can secure the wallet with a PIN code or biometric measures. Even if someone steals your hardware wallet, they won’t be able to access your funds.

The best part is that you can still access your funds even if your device is stolen or lost. Each hardware wallet can be backed up with the use of recovery keys that allow you to set up your wallet on a new device in case of loss.

However, hardware wallets are quite expensive. Most software wallets are completely free to use, while a hardware wallet may cost you between 70-500 USD, depending on the model and the functionalities.

If you are a beginner, you may not yet need a hardware wallet, but it’s a good long-term solution for more serious investors.