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Avalanche (AVAX): How it works and where to buy

Learn more about how Avalanche works, why the AVAX token is useful and how to buy it.

Learn about AVAX Learn more
Where to buy AVAX Find AVAX exchanges

AVAX is the native token of Avalanche.

Avalanche is a decentralised network that introduces a unique consensus protocol in order to host a network of high-speed blockchains, smart contracts and applications. The AVAX token is primarily used for transactions, staking and network fees.

Buy Avalanche (AVAX) by comparing options in the table below.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

How to buy AVAX

Here’s a step by step guide to one way of buying AVAX. Note that there might be other options available, so you may want to compare cryptocurrency exchanges to find the one that’s right for you.

  1. Find an exchange that supports AVAX, such as Binance.
  2. Create a Binance account and make a deposit.
  3. Search for an AVAX market, and trade a suitable cryptocurrency for AVAX. For example, to buy AVAX on the AVAX/BTC market you will need to have some Bitcoin to trade for AVAX.

Name Product Deposit methods Fiat Currencies Cryptocurrencies
Gate.io Cryptocurrency Exchange
Cryptocurrency
USD, EUR, GBP, HKD, SGD, AUD, CHF, MXN

818
cryptocurrencies

Finder exclusive: New users get $90 worth of Gate.IO points and an airdrop of $5 in GateTokens if trade volume exceeds $100 in their first week. T&Cs apply.
A feature-rich exchange with over 700 tokens including derivatives, yield farming and lending products.
AAX Cryptocurrency Exchange
AAX Cryptocurrency Exchange
Alipay, Bank transfer, Cash, Neteller, PayPal, Qiwi, SWIFT, WeChat, Western Union, UPI, IMPS, Paytm, Faster Payments (FPS), PayNow, Swish, Payme
AUD, CAD, CNH, CHF, EUR, GBP, HKD, NZD, SGD, USD

110
cryptocurrencies

Binance Cryptocurrency Exchange
Bank transfer (ACH)
USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK & 20+ more

314
cryptocurrencies

Promo: New users earn up to USD 100 in bonus rewards on qualified deposits and trades. Valid till 31 December 2021. T&Cs apply.
Finder Exclusive: Get 10% discount on your fees when signing up through Finder.
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.

US residents: As of September 2019, US-based users can only trade USD on the American dollar onramp of Binance, Binance.US.
UK residents: In addition to normal crypto trading services, Binance offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.
KuCoin Cryptocurrency Exchange
Cryptocurrency, PayPal, Wire transfer, Credit or Debit Card, SEPA
USD, EUR, GBP, RUB, CNY, AUD, KRW, JPY, TRY, VND & 40+ more

434
cryptocurrencies

Finder exclusive: Sign up and use code 1xf56 for one month of VIP 1 benefits. Deposit/transfer more than 0.1 BTC to KuCoin within 7 days of registration for 1 month of VIP 2 benefits. T&Cs apply.
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.
OKEx Cryptocurrency Exchange
Bank transfer, Cryptocurrency, iDEAL, PayPal, POLi, SEPA, Faster Payments (FPS)
USD, CNY, EUR, ARS, AUD, BGN, BRL, CAD, CHF, COP & 20+ more

271
cryptocurrencies

Promo: Earn US$10 in BTC when you refer a friend and they purchase $100 of cryptocurrency. T&Cs apply.
Listing over 100 cryptocurrencies, OKEx offers its users a variety of payment methods and coins to choose from.
Huobi Cryptocurrency Exchange
AdvCash, Cryptocurrency, SWIFT, Wire transfer
GBP, USD, AUD, EUR, INR, BRL, KHR, CAD,CNY, NZD & 15+ more

228
cryptocurrencies

Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
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Compare up to 4 providers

Live Avalanche (AVAX) price

What is DeFi? Read the beginner’s guide.

How does Avalanche work?

CryptocurrencyAVAX
Circulating supply (approx. as of November 2020)24,500,000
Maximum supply720,000,000
BlockchainAvalanche
PurposeProof-of-stake and fees

The Avalanche network was designed in response to the scalability issues encountered by earlier generations of smart contract platforms, in particular Ethereum.

At the core of the Avalanche platform is its novel consensus protocol, which is also known as Avalanche. The Avalanche consensus protocol was developed in response to the scalability issues encountered by earlier generations of blockchains, such as slow transaction speeds on Bitcoin and Ethereum. Instead of using Nakamoto consensus which was introduced by Bitcoin and adopted by many blockchains that followed, Avalanche consensus is a brand new method of validating transactions, which allows for in excess of 4,500 transactions per second using a proof-of-stake model.

Sitting on top of the consensus protocol is the Avalanche network itself, which essentially supports a myriad of blockchains interoperating with one another. You can think of Avalanche as the parent network (like the Internet), with a series of subnetworks (blockchains) operating within it. This allows for a granular approach to programming, meaning that blockchains with different rules, purposes and users can all operate somewhat independently while remaining part of a greater whole.

As for users, Avalanche will look like any other blockchain network.

It will host an array of familiar features, such as decentralised applications (dApps), tokenised assets, decentralised exchanges and smart contracts – albeit with a different set of rules dictating how it all works behind the scenes. To demonstrate this, the creators of Avalanche, Ava Labs, launched Athereum. Athereum is an Avalanche-based version of Ethereum with all the features and applications of Ethereum, but instead running on the much faster Avalanche protocol.

What does AVAX do?

AVAX is the native token of the Avalanche network, which means it is used as the primary currency for network transactions, including gas fees and payments. AVAX is also used as the basic unit of account between the different blockchains which operate on the network, despite each of these networks potentially having their own currency.

Staking is another one of the primary uses for AVAX.

Avalanche uses a proof-of-stake consensus protocol to keep the network secure, which means users will be able to lock-up their coins to become a validator. In return for faithfully verifying transactions on the network, validators will be rewarded with additional AVAX tokens. To participate in staking, users will need to deposit a minimum of 2,000 tokens, with 50% of the total supply of AVAX tokens set to be distributed through staking rewards over the lifetime of the network.

What to watch out for

Avalanche is yet another new protocol competing in the over-saturated market of base-layer blockchains which include platforms such as Ethereum, EOS and Tezos.

As a new protocol, it is yet to have its vulnerabilities and potential weaknesses thoroughly tested.

AVAX block rewards are set to vary over time in accordance with governance decisions, which means any return on investment via staking will be dynamic. In the first year after launch, the staking reward is set at a target between 7% and 12%.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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