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Is Avalanche (AVAX) a Good Investment? • Benzinga

Determined AVAX is a good investment? You can get AVAX on Coinbase today!

In the past few months, Ethereum gas fees have skyrocketed. In recent years, Ethereum has been the blockchain of choice for everything to do with decentralized finance (DeFi).

However, with these high gas fees, many users are starting to turn their backs on the crypto giant. Those leaving Ethereum are looking for new blockchains to call home, and Avalanche (AVAX) could be a first choice. Find out more about investing in AVAX now.

What is avalanche (AVAX)?

Avalanche is a blockchain that aims to offer its users speed and low fees. It does this through a unique model that includes three different chains, each with their own purpose. With these chains, Avalanche hopes to create a more scalable and affordable blockchain for everyone.

The first chain in the Avalanche network is the Exchange Chain (X-Chain). This chain enables users to create and trade AVAX-based tokens. It uses a Proof-of-Stake (PoS) consensus model to validate transactions.

Next comes the contract chain (C-chain). This allows users to create smart contracts on the blockchain. These smart contracts are a fork of the Ethereum Virtual Machine (EVM). This necklace uses a snowman consensus method. This is essentially a version of PoS where users vote continuously until consensus is reached.

The last chain is the Platform Chain (P-Chain), which is used to coordinate the consensus protocol. Again, the snowman method of consensus is used.

When users contribute to the PoS or Snowman consensus methods, they can earn rewards in the form of AVAX. The blockchain mints new tokens to pay for those rewards and burns up all of their transaction fees. As a result, the total supply can grow very slowly and maybe even shrink.

Avalanches (AVAX) price history

As of December 2021, AVAX will trade between $ 100 and $ 120 with a market capitalization of just under $ 30 billion. It has a circulation of around 250 million with a maximum circulation of 720 million.

In 2021, it saw highs of nearly $ 150 and lows of less than $ 3. It currently ranks in the top 10 of all cryptocurrencies in terms of market capitalization.

Avalanche (AVAX) competition

Avalanche’s main competitor is Ethereum. Ethereum has gained the upper hand in recent years as it is a robust blockchain that gives users easy access to DeFi technology. However, recent fee hikes and much slower throughput paved the way for blockchains like Avalanche.

Avalanche hopes to offer everything Ethereum can and more. It offers essentially the same smart contracts and token protocols, but Avalanche adds a few different features that set it apart from Ethereum.

Using three separate chains is a revolutionary idea that helps distribute the workload on the blockchain. Ethereum is made up of a single chain, and everything runs on that chain. Avalanche has three separate chains that make up the larger blockchain, and each chain has its own purpose.

Avalanche also uses a PoS verification system. This is much more energy and time efficient than Ethereum’s Proof-of-Work (PoW) system. PoW uses computers that compete for the ability to review transactions and earn rewards, while PoS simply trickes users into putting their tokens on the blockchain to earn a reward. PoS is often much faster and more energy efficient. However, it is worth noting that Ethereum is migrating to ETH2.0 which uses a PoS system.

Eventually, Avalanche burns all of its transaction fees while Ethereum passes them on to its validators. This means that the supply of Ethereum may grow much faster. However, Ethereum burns tokens with every transaction, as implemented in EIP-1559. Only a fraction of the transaction fee is burned on Ethereum. Avalanche burns all transaction fees, which reduces the overall offering.

How to Buy Avalanches (AVAX).

Avalanche is growing in popularity, both in terms of market cap and public awareness. Because of this, it is becoming more common and easier to buy.

Coinbase and FTX are both exchanges that offer AVAX. It only takes a handful of minutes to create an account and users can usually start trading within 24 hours.

1 minute review

Coinbase is one of the largest trading platforms for cryptocurrencies on the Internet. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally easy to buy and sell large cryptocurrency pairs.

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which has more order types and advanced features.

While Coinbase doesn’t offer the cheapest prices or the lowest fees, its simple platform is easy enough for absolute beginners to master with just a single trade.

Best for

  • New cryptocurrency traders
  • Cryptocurrency traders interested in important pairs
  • Cryptocurrency traders interested in a simple platform

benefits

  • Simple platform is easy to use
  • Comprehensive mobile app reflects the desktop functionality
  • The Coinbase Earn feature rewards you with crypto as you learn more about available coins

disadvantage

  • Higher fees than competitors

Best hardware wallet for avalanches (AVAX)

If you want to buy AVAX or already have one, you should consider where to keep your tokens. While a trading platform is the easiest place to store tokens, a hardware wallet is often seen as the safest place to store them.

Hardware wallets store the private keys required to send crypto. Without the physical device, crypto cannot be sent.

Best hardware wallet: Ledger

Ledger is an industry leading hardware wallet brand that supports AVAX sending, receiving, and staking. It currently offers the Nano S and Nano X models.

The Nano S is the entry-level hardware wallet and only offers the necessary features. The Nano X supports ease of use, a bigger screen, and Bluetooth connectivity.

buy now

safely via the Ledger Hardware Wallet website

1 minute review

Ledger was founded in 2014 and has grown into a fast-paced, growing company developing infrastructure and security solutions for cryptocurrencies as well as blockchain applications for businesses and individuals. The Paris-born company has grown to over 130 employees in France and San Francisco.

With 1,500,000 ledger wallets already sold in 165 countries, the company aims to secure the new disruptive class of crypto assets. Ledger has developed a distinctive operating system called BOLOS that integrates it into a secure chip for its wallet line. So far, Ledger prides itself on being the only player in the market to offer this technology.

Best for

  • ERC-20 token
  • All levels of experience

benefits

  • Easy to set up and use
  • Supports more than 1,500 different digital assets
  • Tamper-proof
  • portable
  • Long-lasting battery
  • Bluetooth connectivity functions

BZ

Bonus section:

Keep an eye out for the release and receipt of ETH2.0. This will almost certainly affect Avalanche and AVAX.

Outlook on the cryptocurrency market

At the start of the new year, most cryptocurrencies were pretty stagnant. This is due to a turbulent and volatile fourth quarter of 2021, with tokens flying up and down in bulk.

While things seem to be cooling off, some predict that the beginning of 2022 could be a tipping point for cryptocurrency prices. If you want to see where you are right now, take a look at our current pricing table.

Is AVAX a Good Investment?

Avalanche certainly has distinctive properties that could put it at the top of the blockchain race. It can be a little late for the party, however. If ETH2.0 releases and addresses issues with fees and scalability, Avalanche may not have that many uses.

Should ETH2.0 continue to be delayed or not be as useful as predicted, Avalanche could continue to grow in popularity. In any case, ETH2.0 will certainly play a big role in the future of Avalanche.

Benzinga has developed a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our cryptocurrency methodology page.

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