Posing stiff competition to crypto giants like Ethereum, Avalanche (AVAX) sets prelude to a new dawn in the crypto scape. One of the fastest-growing cryptos, Avalanche stands out with blazing high transaction speed, near-instant finality, revolutionary consensus mechanism, innovative triple-blockchain infrastructure, and many such breakthrough features. A game-changer in the contemporary DeFi industry, the Avalanche platform offers excellent opportunities for the development of innovative and functional dApps. The AVAX token is the native token of the Avalanche ecosystem. It is a utility token which is used for staking and paying for transaction fees on Avalanche network. Check out more at
multibank.io.
Should you buy or invest in Avalanche in 2022?
Before the May crypto crash, AVAX was one among the top 10 cryptocurrencies. Unfortunately, the coin price took a dip after the crash, shifting AVAX to one among the top 15. But, according to experts, Avalanche boasts excellent potential for spectacular growth in future- the coin would be especially great for long-term investment.
It’s to note here, Avalanche has always commanded increased attention ever since its maiden days. The platform raised a whopping amount of 42 million USD and that too in just 4.5 hours in AVAX public sale.
In less than 5 months of the launch of its mainnet (September 2020), the AVAX ecosystem showed a rapid expansion with multiple fintech developments- ILOs, Private Securities, Synthetics, Decentralized Exchanges, Prediction Markets, Stablecoins, and more.
Growth in long-term
For those speculating on whether to buy AVAX, a large section of experts have advised to make the most of “buy the dip”. As the AVAX price has plummeted after the crash, now is possibly the best time to buy some AVAX coins for a growing ROI portfolio in near future. As per crypto evangelists, AVAX shows potential to witness a bullish phase especially in 2024. The currency, which is trading at something around $27.192 at present, might wrap up 2022 with more than $35. In 2023, the Avalanche coin could reach around $40 and near to $60 in 2024.
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The Avalanche (Avax) difference
Here is a brief on game-changing features and benefits of Avalanche that make AVAX a rising favorite among smart investors today.
- Cutting-edge transaction speed and near-instant finality
Avalanche is reportedly the fastest of blockchain platforms till date. In fact, one of the major reasons behind its development was to introduce a faster, more affordable, greener, and higher performing alternative to the Ethereum network.
Avalanche proudly boasts 45,000 TPS while that of Ethereum is 10-15 TPS. Bitcoin is even slower than Ethereum. Thanks to its sub-second transaction speed, Avalanche is now considered as one in the same elite line graced by payment processing giants like PayPal and VISA.
Avalanche attains finality almost instantly, in 1 second. On the other hand, Bitcoin takes 60-long-minutes and Ethereum 2.0 is expected to take 6 minutes. Polkadot, a strong rival of Avalanche, takes 60 seconds to attain finality.
- Innovative triple blockchain network
Dubbed as “platform of platforms”, Avalanche is empowered by not one but 3 different blockchains. The 3 blockchains constituting the Avalanche ecosystem are-
X-chain
An easily programmable and decentralized blockchain, X-chain allows developers to develop as well as mint various digital assets like NFTS, stablecoins, equity, utility tokens, wrapped tokens, and so on.
C-Chain
It mostly functions as a conversion chain and helps to make conversion easier for Ethereum decentralized app developers.
P-Chain
It takes care of network utilities and enables staking of AVAX tokens on Avalanche network.
Avalanche assures much lower fees compared to Ethereum network.
- Revolutionary consensus mechanism
Another factor that renders huge leverage to the Avalanche network is its revolutionary consensus mechanism. Avalanche stands out as a state-of-the-art DPoS ecosystem which is way faster compared to both PoW and PoS.
DPoS is an exclusive blend of the best of both Nakamoto Consensus and Classical Consensus. It assures a high level of decentralization, scalability, and excellent robustness. On the other hand, it is armed with the core advantages of the Classical consensus, such near-instant finality, industry-leading speed, as well as high energy efficiency.
Avalanche is easily programmable and allows developers to build a variety of dApps and application-specific blockchains. The C-Chain particularly offers a conducive environment for creating cutting-edge smart contracts like regulatory-compliant dApps and NFTs.
- Scarcity and inflation hedge
There are 720 million AVAX in total. As the supply is fixed, it creates a scarcity in the market every time some AVAX is minted out. The scarcity quotient drives up the price of AVAX.
Also, Avalanche follows a policy of burning all fees – including fees for transaction, creation and minting, as well as development of subnets and blockchains. Burning of AVAX further reduces total supply of the token that results in more scarcity- and eventually higher price.
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https://multibank.io/page/leverage
As the token supply is fixed, AVAX also assures strong inflation hedge. This is another factor that makes it a safe bet for investors.
How do you buy Avalanche?
Well, you can buy Avalanche from a long list of crypto exchanges out there. Just go to your favorite search engine and type a query on the top exchanges that are accepting Avalanche or Avax. Choose 4-5 among them and take a comparative study. Below is a list of factors you should check while looking for an exchange to buy or invest in AVAX-
- Geographical compatibility with your country
- Reputation
- Security measures taken
- Trading dashboard and interface
- If you are planning to use fiat for buying AVAX, make sure your chosen exchange accepts fiat
- Type of wallet used for AVAX storage
Storing your AVAX
When you will buy AVAX, considering you are planning for HODL, you have to store the tokens in a safe place. One popular option for storing Avalanche or any other crypto is a hot wallet. It’s a software that you will have to download on your device to store Avalanche.
However, a hot wallet is not immune from hacking attacks. The smartest option to store your AVAX is probably a cold wallet. Unlike a hot wallet, a cold wallet is a hardware and hence would be able to keep your AVAX safe from hackers.
