Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
How to buy Avalanche online
This guide to the AVAX coin gives you the lowdown on the Avalanche platform, its history, and what future success might look like. Get tips based on your investing style and find the best place to get the token.
Compare where to buy Avalanche, and open an account
Use one of the brokers below to get Avalanche right away. These platforms are beginner-friendly, easy-to-use, and have been extensively tested by our cryptocurrency experts. If you want to learn more about the Avalanche platform first, read on.
What is Avalanche?
A platform where developers can build applications that serve the financial markets. It’s like an alternative form of the internet, where Avalanche provides the base layer for apps to run on top of. Its cryptocurrency is known as AVAX and can be staked on the platform to earn interest.
Avalanche is designed to challenge the dominance of Ethereum as a building block for decentralised applications. Rather than being controlled by a single company or hosted by a single data centre, it’s run and owned collectively by its users, which makes it more secure and transparent than traditional, centralised, systems.
The Avalanche network launched in 2020 and has a focus on the financial world. The idea is that anyone can easily create an application where you can perform personal finance or investing tasks, such as buying stocks, earning interest, or taking out loans, and all these applications can talk to each other.
How does Avalanche work?
By using three blockchains simultaneously. A blockchain is like a public ledger that stores a history of every transaction, and Avalanche uses three so that it can process these transactions faster and offer as much flexibility as possible to developers.
Where Bitcoin and Ethereum are only able to handle a limited number of transactions every second (about 10-20), Avalanche can handle about 4500. Speed has always been one of the biggest barriers to blockchain technology being used more widely, and Avalanche, along with other platforms like Polkadot and Algorand, aims to remove it.
The other key benefits to its multi-blockchain design are that it can interact with other platforms, such as Ethereum itself, and create custom ‘rules’ for different parts of the network. That is particularly important for widespread financial adoption, because there might need to be different regulations for people accessing it from different countries, for example.
How to buy Avalanche online – a step-by-step guide
Step 1. Find an exchange
To get Avalanche you should use a cryptocurrency exchange. Each exchange is slightly different, but as a rule they are the best place to find any altcoin. Not only is there usually a wide range of coins, there are often many ways to swap one coin for another as well. Here are two top options:
- Binance: Binance is the largest and most popular cryptocurrency exchange. It offers hundreds of coins, including Avalanche, and the Binance Academy is a haven of useful information to help you get started. Join Binance now >
- Kucoin: Kucoin lets you trade more than 250 coins and also boasts quality tutorials along with helpful advice to beginners. The platform accepts payment methods like PayPal and has a pro version for experienced users. Sign up with Kucoin >
Step 2. Sign up and fund your account
To be able to use an exchange, you have to sign up and create an account. That’s usually a simple process that involves submitting some contact details and a form of photo ID for verification.
In terms of depositing money, a bank transfer or credit/debit card is the cheapest and easiest way to do it. However, some exchanges only accept deposits made in cryptocurrency, and some don’t accept any alternative payment methods like PayPal.
Step 3. Purchase
Find Avalanche on your chosen exchange by searching for the coin’s ticker symbol, AVAX. You’ll be presented with a list of pairs, such as AVAX/BTC, and you want to choose the one that fits what you intend to pay for it with.
Note that you might not be able to use a fiat currency (such as GBP or USD) to pay for Avalanche. Don’t worry, that’s quite normal for many cryptocurrencies. The way to get around it is to swap your fiat for either Bitcoin or Ethereum first, and use that to pay for Avalanche.
Step 4. (Optional) Get a suitable wallet
Now that you own your coins, it’s time to think about where to store them. Most of the time it’s fine to leave them in your exchange account, particularly if you’re only planning to hold them for a short time. For a more secure, long term home, you can get a wallet. Wallets store coins behind a password so that you have total control over your money. Here are two options:
- Ledger Nano S: The Ledger Nano S is a hardware wallet, which means it comes in the form of a USB stick that keeps coins in ‘cold storage’ (offline). Even if you plug the USB into an infected computer, the coins remain safe. Get the Ledger Nano S now >
- Freewallet: Freewallet is an online wallet with its own mobile app, so you can access your coins from anywhere. Mobile apps are extremely convenient and come with more than enough security for most users. Sign up with Freewallet >
How to trade Avalanche – a step-by-step guide
Step 1. Find a broker
Your main priority should be to find a platform that charges low trading fees. Trading cryptocurrency is an active process that means making a lot of moves, often opening and closing positions many times a day. It’s important to keep trading costs down, otherwise it can become expensive if you have to pay a high percentage of every trade in fees.
Note that at the moment, you’re unlikely to find Avalanche available on any broker platforms. Again, that’s quite normal for an altcoin, it just means you might have to wait until it becomes more popular. When it does, a broker like eToro or Robinhood is the best place to go to find it.
Step 2. Deposit money
To use a broker you have to sign up and fund your account. It’s worth keeping an eye on fees, as these platforms often make their money by charging a commission on deposits and withdrawals as well as trades. Look out for a first time deposit bonus as well, as it can often be worth shopping around for the best deal.
Step 3. Decide how you’d like to trade
The way most people choose to trade is with contracts for difference (CFDs). A CFD is a contract that represents the price of an asset – the AVAX coin in this case – and your profit is the difference between the price on the day you sell it compared to when you bought it. You never take ownership of the coin itself.
Step 4. Start trading
If you’re new to cryptocurrency, it’s worth starting with a beginner or demo account. This is a feature in your broker’s settings that lets you trade with virtual money. That way, you can practice on the real market without putting your own capital at risk.
When you trade, you’re speculating on future price changes by taking either a long (buy) or short (sell) position. Follow the latest news and analysis to help you decide which way you expect the coin to go.
You can also use some more advanced strategies to try to make a bigger profit. The most common is known as using ‘leverage’. You put down a small amount as a deposit and borrow a much larger amount – which can be 5x, 10x, or even more – from your broker to make a trade. This can lead to much bigger wins, but it’s extremely risky and can lead to big losses as well.
To help you make a decision about whether Avalanche is the right investment, we’ve summarised the platform’s pros and cons. Find those below, followed by some final points about the best time to invest and what the future might look like.
- You can earn extra money by staking your coins on the network itself
- Developers require AVAX to create their apps, so a more popular platform equals more demand for the coin
- It’s designed to meet the real-world needs of financial markets, making it well-placed for widespread adoption
In addition to those pros and cons, here are three final things to think about before you invest in Avalanche.
1. Is it a good time to buy Avalanche?
It could be, although it depends on the state of the market as a whole and whether you’re planning to hold for the long term. If you are, and the current price looks appealing, then it might be that sooner is better.
For those with a short term view, the decision rests more on whether your trading indicators give you a buy signal. For more on how to use technical analysis and indicators, check out our short term trading course, or you can use our crypto analysts work below to help you time your entry into the market.
2. What problem does Avalanche solve, and what are the coin’s investment prospects?
It solves the problem of Ethereum being too slow to run a financial market on the blockchain. It’s also built specifically with the financial world in mind, with features like custom rules and interoperability that are absolutely necessary to generate widespread adoption.
That puts it in a good place to work alongside the existing market, rather than facing the challenge of totally changing it. As an investment prospect, the fact developers must use AVAX to build applications means demand should keep growing, while the platform offers an incentive to hold coins by staking them and earning interest.
The biggest issue is the sheer number of competitors. Ethereum 2.0 aims to solve a lot of its speed and scalability issues, and there are the likes of Cardano, Zilliqa, and others, all trying to fix the same problems. Whether one platform can get ahead of the others is a big question and it’s worth keeping track of the latest news to see how the battle develops.
Avalanche price prediction: AVAX bucks the trend
Avalanche’s Vee Finance loses $35m to hackers a day after hitting $300m TVL
AVAX received $230 million in funding from institutional investors, should you buy it now?
3. Do you want to hold Avalanche for the long term?
That depends on a lot of factors, most notably your investing style but also on its price fluctuations and whether you want to take advantage of its rewards. Here are a couple of final points to consider depending on whether your focus is short or long term.
Considerations for a long term investment strategy
If you expect the price to keep going up, or want to get AVAX and stake it to earn interest, it’s best to go ahead and get started. Sign up for an exchange to get the coins and then think about using a wallet to store them, if you aren’t going to stake them.
Considerations for a short term trading strategy
Short term traders should find a broker that charges low trading fees. Then you can pick your moments based on your analysis of the latest price information to try to take advantage of small fluctuations.
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >