{"id":4901,"date":"2022-12-16T16:09:49","date_gmt":"2022-12-16T08:09:49","guid":{"rendered":"https:\/\/blog.btse.com\/?p=4901"},"modified":"2023-03-07T03:05:35","modified_gmt":"2023-03-07T03:05:35","slug":"before-you-invest-avalanche-avax","status":"publish","type":"post","link":"https:\/\/www.btse.com\/blog\/before-you-invest-avalanche-avax\/","title":{"rendered":"Before You Invest: Avalanche (AVAX)"},"content":{"rendered":"

Here\u2019s another article from our Before You Invest series! In this series, we\u2019ll provide you with all of the information you need to know before investing in certain cryptocurrencies.<\/span><\/i><\/p>\n

Avalanche is a Layer-1 blockchain that serves as a platform for specialized decentralized applications (dApps) and customized blockchain networks. Avalanche is a highly scalable blockchain with quick transaction speeds, low fees, and a multitude of use cases. Avalanche has developed its own ecosystem of dApps, decentralized finance (DeFi) protocols, a token bridge, and more since its launch in 2020.\u00a0<\/span><\/p>\n

Here is a detailed rundown of everything you need to know about Avalanche and its token \u2014 AVAX \u2014 which can be bought and sold using <\/span>BTSE\u2019s exchange<\/span><\/a>.<\/span><\/p>\n

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What is AVAX Coin?<\/b><\/h2>\n

AVAX is the native token of the Avalanche blockchain and serves as the ecosystem\u2019s common medium of exchange across all subnets. Using AVAX across the network\u2019s subnets creates interoperability between subnets that would otherwise need to use their own internal cryptocurrencies.<\/span><\/p>\n

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What can AVAX do?<\/b><\/h2>\n

AVAX can be used to pay transaction fees and enable smart contracts, but it can also be used in the creation of custom tokens and subnets and verification of transactions on the network through proof-of-stake (PoS). Blockchain developers can use Avalanche to deploy new NFT collections, DeFi protocols, games, and much more.<\/span><\/p>\n

One feature of AVAX that is very appealing to users is the benefits of staking AVAX tokens. On top of the annual percentage rate (APR) of between 8% and 9% on the Avalanche network, staking AVAX brings security to the network and helps verify transactions. Running a validator node can be very expensive for most users as you need a minimum of 2,000 AVAX tokens, but your APR will be higher than staking to an existing validator. Most users opt to stake to an existing validator, which requires as little as 25 AVAX. By joining an existing validator, you are staking with a larger pool of investors.<\/span><\/p>\n

AVAX holders also have the option to stake on dApps such as <\/span>Beefy Finance<\/span><\/a>, <\/span>Pangolin<\/span><\/a>, and <\/span>Trader Joe<\/span><\/a> to earn passive income.<\/span><\/p>\n

AVAX can also be used in the governance of the Avalanche network. For example, AVAX users vote on where transaction fees are set and how fast new AVAX tokens are minted. To participate in Avalanche governance proposals, you must possess AVAX tokens.<\/span><\/p>\n

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Who founded Avalanche?<\/b><\/h2>\n

Avalanche was founded and launched by Ava Labs in 2020. Ava Labs was founded in 2018 at Cornell University by computer science professor Emin G\u00fcn Sirer, CEO, along with computer science Ph.D. students Kevin Sekniqi, COO, and Maofan \u201cTed\u201d Yin, Chief Protocol Architect.<\/span><\/p>\n

The founders of Avalanche created a blockchain network that consists of three individual built-in blockchain networks, each with its own functions:<\/span><\/p>\n