The team at digital assets platform Celsius Network notes that since their goal is “to bring the next 100 million consumers to crypto“, they are constantly looking to offer (what they consider to be) the “best” experiences and “opportunities” for their community.
This reportedly includes looking for ways to onboard new crypto tokens from initiatives on their platform. The Celsius Network team is now pleased to confirm that they are supporting Avalanche — the “fastest smart contracts platform in the blockchain industry, as measured by time-to-finality”, and its native token, AVAX.
Celsius Network wrote in a blog post that they “look forward to continuing to bring the Celsius and Avalanche communities together.”
You now have the option to purchase AVAX tokens via the Celsius Network platform.
As noted in the update:
“With the help of our partners, we are able to provide our users the option to buy AVAX within the app. Celsius does not charge any fees for the services we provide, however, some services offered via the app are provided by our partners, who do charge fees.”
If you are looking to buy AVAX via Celsius, please refer to the steps shared here by the firm.
As covered, Avalanche is an open-source programmable smart contracts platform for decentralized applications or dApps.
AVAX is the native token of the Avalanche platform and is “used to secure the network through staking, pay for fees, and provide a basic unit of account between the multiple subnetworks created on the Avalanche platform.”
As reported by the firm in December 2021, Celsius lowered its minimum request amount for fiat loans. You may “borrow USD against 40+ cryptocurrencies starting at only $1,000” (terms may apply). The minimum amount for USD loans “may vary in certain locations,” the firm clarified.
Celsius further noted that applying for a loan through the Celsius mobile app “takes just a couple of minutes, and most eligible borrowers are approved for a loan the same day.”
Plus, when you borrow with Celsius, you’ll “get matched with one of [their] awesome team members to assist you through the entire loan journey.” (Note: to learn more, check here.)
What is AVAX?
Avalanche (AVAX) is a layer-1 smart contract platform built by Ava Labs, which is headquartered in Singapore. It is a proprietary proof-of-stake blockchain that is Ethereum-compatible. Developers can build and deploy decentralized applications (dApps) on the platform.
The Avalanche network is regulated by its primary network, which validates its three subnets:
- The Exchange Chain (X-Chain), used to create and exchange tokens, which is an instance of the Avalanche Virtual Machine (AVM)
- The Platform Chain (P-Chain), a metadata blockchain that coordinates validators to create/track subnets
- The Contract Chain (C-Chain), an instance of the Ethereum Virtual Machine (EVM) which creates and deploys smart contracts
These subnets enable the Avalanche network to offer a wide range of features without sacrificing speed, as each subchain only needs to perform a single set of operations specific to its purpose. This speed and variety make it an attractive platform for developers looking to deploy custom blockchains, which they can do on the P-Chain.
The case for AVAX
AVAX is the primary token of the Avalanche network, though developers can issue their own tokens on its custom blockchains. The max supply of AVAX is 720 million tokens, half of which were created with the genesis block.
However, similar to the Ethereum network, fees in Avalanche are burned, progressively deflating the token supply.
As a proof-of-stake platform, Avalanche relies on validators that stake AVAX to earn block rewards. Validators can earn up to 11% APY on staked AVAX, with the average yearly return currently around 9.75%.
Ava Labs and the Avalanche Foundation are the primary organizations associated with the Avalanche network. Ava Labs is responsible for internal research and development, especially the development of the Avalanche network.
The Avalanche Foundation handles economic prospects, such as the Blizzard Fund, which supports third-party innovation on the Avalanche network.
The foundation also has a startup accelerator, Avalanche-X, which offers blockchain developers funding for decentralized finance (DeFi) and community projects.
The core aim of the Avalanche network is to be faster and cheaper than other layer-1 smart contract protocols. Some hope meeting this goal would give it an edge in the battle for dominance against the slower Ethereum network, which is known to suffer from gas fees upwards of $100 per transaction in some cases.
Headquartered in Singapore, Avalanche’s Ava Labs has offices in New York City and Miami, and an international core team comprising developers, economists and legal experts. Members of the Avalanche team have experience from companies and organizations like Microsoft, Google, NASA and other noteworthy institutions.
In September 2021, Avalanche held a token sale to raise funds for development, which yielded $230 million and garnered support from Polychain and Three Arrows Capital.
As an Ethereum-compatible layer-1 smart contract platform, Avalanche is capable of hosting just about any Web3 protocol.
Numerous popular layer-2 projects built on Avalanche across a wide range of use cases:
- Decentralized exchanges — Trader Joe, SushiSwap, ParaSwap
- NFT marketplaces — Topps NFTs, Curate, Niftyx Protocol
- Borrowing/lending — Aave, Curve, Nexo
- Optimized yield — Yield, Snowball, Yield Yak
- Portfolio management — DeBank, Ape Board, Markr
For a full list of layer-2 platforms built on or integrated with Avalanche, explore their ecosystem page.
How to invest in AVAX
Step 1 – Buy AVAX
As with all layer-1s, the most current opportunities to invest in Avalanche start with buying AVAX tokens. That is unless you find a DeFi index fund with exposure to Avalanche or its layer-2s, which is effectively asking someone else to hold AVAX for you.
If you want to buy AVAX, you can do so on centralized exchanges such as Coinbase, Kraken and Gemini, as well as decentralized exchanges like Trader Joe, Pangolin and Rubic Exchange.
Step 2 – Choose your use case
Once you’ve bought AVAX, you can hold it in hopes that the token value appreciates. Alternatively, you can choose to put your AVAX to work earning yield. The drawback is that most, if not all, yield farming options have some degree of wait time before your tokens are returned to you, meaning you could miss an opportunity to sell if you can’t pull your tokens out in time.
The most common way to earn yield on AVAX is to become a validator for the Avalanche network. To do this, stake your AVAX on the platform. Your share of block rewards as a validator depends on how many tokens are currently staked but currently averages about 9.75% annually.
Another popular yield farming method is to supply your AVAX as liquidity for a cryptocurrency exchange. One such layer-2 method built on Avalanche is the Pangolin Exchange. Liquidity providers on Pangolin earn at least 0.25% of all trades on the deposited token pair proportional to the share of the pool.
Be aware, however, that when you provide liquidity for an exchange, you may experience impermanent loss. Impermanent loss is a phenomenon that occurs when you supply two-sided liquidity and withdraw it later, but you don’t receive an equal ratio back and suffer a loss of value.
For example, if you provide $1,000 worth of ETH and 1,000 USDT as liquidity in a decentralized exchange (DEX), and other users sell their ETH to buy your USDT, when you withdraw your liquidity you will get back more ETH than USDT, even though you originally supplied equal parts. This is to keep liquidity pools balanced against trades. However, if the value of ETH has decreased since you originally supplied liquidity, then the value of what you’ve withdrawn is now less than the original $2000 you provided.
This is considered an impermanent loss because the user can leave their provision within the DEX until the ratio evens out again.
Invest more than just money
If you’re feeling entrepreneurial, you may want to take the far less common investing route with Avalanche. Alone or with a team of developers, you can build a dApp, create a token protocol or integrate an exchange on the Avalanche platform.
As always, consider your desired level of involvement and your appetite for risk.
There is no such thing as a good investment because every person has different interests, resources and skill-sets. However, there are bad investments. A bad investment is easy to spot — it’s the person that asks you if they should invest in (insert asset here) because they heard about it on the news.
When a project speaks to your experience, interests or beliefs, it’s much easier to dive deeper and comprehend it intimately. Therefore, it becomes a much safer investment. Emotional investing often leads to ruin, but passionate investing can change lives and, often, portfolios for the better.
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high-risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions. CelsiusCow.com does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is CelsiusCow.com an investment advisor. Please note that CelsiusCow.com participates in affiliate marketing.
Resources and further reading:
-Origination Article: Celsius Network is Now Supporting Avalanche (AVAX) Token Purchases
-Also Referenced: The Investor’s Guide to Avalanche (AVAX) – Blockworks