Today, Coin98 will show you how to:
- Purchase and store AVAX.
- Transfer funds to Avalanche blockchain by transferring AVAX coins from an exchange (CEX) or using a cross-chain bridge.
- Seek Investment Opportunities on Avalanche
Let's jump right into Avalanche Network!
About Avalanche Network
Avalanche is a revolutionary blockchain that is created to build and scale decentralized applications (dApps). The project seeks to unseat Ethereum as the most widely utilized smart contract in blockchain ecosystems, with features that include easier access for all users of any level of experience.
The Avalanche’s primary network consists of 3 built-in separate blockchains:
- P-Chain (Platform Chain) is a platform chain that implements the Snowman consensus protocol that helps coordinate validators and tracks active subnets.
- X-Chain (Exchange Chain) is an example of the Avalanche Virtual Machine as a decentralized platform used to create and trade assets on X-Chain with other digital assets that have their own rules.
- C-Chain (Contract Chain) is an instance of the Ethereum Virtual supported by Avalanche that allows users to create smart contracts using C-Chain's API. You will have to use C-Chain if you want to interact with DApps based on Avalanche.
There are many different chains, but in general, an Avalanche wallet is used to store coins, an Avalanche X-Chain wallet will store AVAX (X-Chain) and an Avalanche C-Chain wallet is where AVAX C-Chain, ARC20 standard tokens are stored on the Avalanche blockchain platform.
Similar to other blockchains, to participate in DeFi on Avalanche, you also need the native token of the corresponding chain for a fee, also known as "gas fee" (the fee you need to pay to the network). The gas gwei level on the Avalanche Network is currently around $0.04 - $0.06/transaction. So, to make transactions, only 0.2 AVAX (~$12) can go a long way.
Step 1: Prepare tokens
Since nearly all CEXs currently support AVAX, you have complete freedom to choose where to make your AVAX purchase(s). The most popular Avalanche-supported exchanges include Binance, Huobi, Gate.io, KuCoin, and many more.
In the following section, I'll go into greater detail about which exchange you should use to purchase AVAX.
Step 2: Prepare your ARC-20 wallet to store tokens
It is necessary to have a non-custodial wallet after you buy tokens on CEX to store tokens and interact with DeFi. At this time, many different wallets, including the Coin98 Super App, can store AVAX coins.
First, you should have an Avalanche Wallet to store your AVAX, this article will be usefull for you: How to create & use Avalanche Wallet
Following these simple steps, you can store AVAX and other ARC-20 tokens.
- Step 1: Click on the Avalanche wallet on the main screen.
- Step 2: Select "Receive."
- Step 3: Copy the wallet address or scan the QR code address and send your assets to this address
Step 3: Transfer tokens from other Blockchains to Avalanche Network (ARC-20)
After buying AVAX and having an Avalanche wallet (ARC-20), you can participate in events or skin in the game in the Avalanche Ecosystem, such as joining lending, yield farming or staking activities on this chain.
However, you should note that there will be multiple token standards for AVAX in the market, such as BSC (BEP-20), Ethereum (ERC-20), Heco Chain (HRC-20), etc. You can change the token standard to match the chain you need.
For example, if I have an ERC-20 AVAX token and need to convert it to an ARC-20 AVAX token, some options are:
- Option 1: Buy AVAX Coins from CEXs and transfer them to a Avalanche-supported wallet.
- Option 2: Convert that token from the Ethereum blockchain to the Avalanche Network using the Cross-chain Bridge.
To make it easier for you to visualize, I'll walk you through the process for the two methods listed above.
Option 1: Buy tokens on CEXs & withdraw to an ARC-20 Wallet
Transfer and withdrawal fees will vary depending on the exchange. If you want to transfer your assets, you should pick the CEX that is most convenient for you to use.
To begin, you'll need USDT or USDC stablecoins in order to purchase AVAX. US dollars (USD) or other currencies in your country can be used to buy USDT if you don't have stablecoin yet.
Step 1: Login to the Binance Mobile App. I recommend reading this "How to use Binance" article.
Step 2: Choose “P2P Trading” in your Binance Homepage
Step 3: In this step, you will see:
- Number 2 indicates which fiat currency you have now to buy USDT
- Number 3 indicates which token you want to buy (e.g. USDT, BTC, BUSD, etc.)
- Number 4 displays a list of sellers who will sell you USDT in exchange for your fiat currency.
After you've decided on your preferred sellers, simply follow the Binance instructions to complete the transaction (Remember to read the instructions carefully).
Now that you have USDT, you can purchase AVAX from any exchange, such as Binance, Kucoin, Gate, etc. and transfer the tokens to the Coin98 Wallet by doing as follows:
Step 1: On Binance exchange, use USDT to purchase AVAX.
Step 2: Transfer AVAX to the Avalanche C-Chain wallet by typing in your Coin98 Wallet Address.
How to convert AVAX C-Chain to X-Chain and vice versa
However, if you have the AVAX token standard of Avalanche X-Chain already, or if you withdraw your AVAX from Binance in the form of AVAX X-Chain by mistake, you may sometimes need to convert the token standard between C-Chain and X-Chain.
Therefore, Coin98 Wallet has integrated the SpaceGate Cross-chain Bridge with a leading technology that could “help blockchains to communicate with each other”, allowing users to trade tokens between 2 different blockchains easily and conveniently. Users can easily convert between AVAX C-Chain and AVAX X-Chain with the following guide:
- Step 1: On the Coin98 Super App’s main interface, click Swap.
- Step 2: Choose SpaceGate and choose AVAX C-Chain or X-Chain with the corresponding wallets.
- Step 3: Input (or slide) the amount you want to convert. Then, click Convert.
- Step 4: After that, there will be a confirmation step, you need to select Done to execute your order, or you can Cancel.
Option 2: Use Cross-chain Bridges to transfer tokens to PRC-20 Tokens
As Avalanche is also a well-known blockchain, almost all bridges on the market currently support asset transfers to and from the Avalanche Network. You are free to select any bridge that makes you feel at ease, such as Multichain, Coin98 Bridge, Celer Bridge, Allbridge, Ren Bridge, Hot Cross, Boring DAO, etc. I'll suggest a few bridges here:
cBridge introduces cross-chain token bridging experience with deep liquidity for users, highly efficient and easy-to-use liquidity management for both cBridge node operators and Liquidity Providers, and new developer-oriented features such as general message bridging for cases like cross-chain DEXs and NFTs.
cBridge currently supports 26 blockchains, ranking 8th in the market with more than $720M in TVL.
Multichain is a fully decentralized cross-chain swap protocol for various tokens with an automated pricing and liquidity system. Additionally, the protocol is powered by Fusion’s Decentralized Control Rights Management (DCRM) technology, boosting Multichain's ability to swap any coins/tokens on any blockchains that uses ECDSA or EdDSA as a signature algorithm.
Multichain now supports more than 40+ different blockchains, allowing users to have multiple choices when transferring assets.
Allbridge provides an easy and reliable way to transfer assets between different blockchains. It acts as the bridge between EVM and non-EVM chains. Allbridge supports up to 13 chains and more to be announced in the future
The mission of Allbride is to remove any borders among different blockchains, which maximizes the capital efficiency in the DeFi ecosystem. Therefore, if you need to move assets from any network to the Avalanche blockchain, Allbridge is a good option.
Step 4: Add tokens to the Coin98 Super App
Because AVAX is the native token of the Avalanche Network, it will be displayed by default in multi-chain wallets. If you need to add a new token to this multichain wallet, follow these simple steps:
Step 1: On the homepage, select More → Custom Tokens.
Step 2: Fill in the following information:
- Select Avalanche Blockchain.
- Enter the token's Contract Address.
- Token symbol.
- Token name
You can check this information on block explorers.
Users only need to select Blockchain and enter the Contract Address of the token they want to add to the wallet. The remaining data will be automatically updated after users enter the correct contract address.
In case the system fails to extract the data, you can manually fill in the remaining data into the required cells.
Select “Create” and you're done.
Step 5: Transfer AVAX coins (ARC-20) from the Coin98 Super App
To transfer tokens from a decentralized wallet to another, follow these simple steps. I'll show you how to transfer AVAX from your mobile wallet.
Step 1: Click the Avalanche wallet.
Step 2: Choose Send.
Step 3: Select the token, the number of tokens you want to send & the wallet address to send to. Adjust the Gas fee slider to suit your needs → Slide the Send bar to confirm.
In addition, you can also click Send on the main interface, then select the Avalanche wallet you want to send from.
- The gas fee for each transaction is paid with AVAX, approximately 0,000521 AVAX.
- The default gas fee on the Coin98 Super App has been set at the standard rate that offers the most optimized speed at a reasonable cost.
Step 6: Skin in the game with Avalanche Network
After transferring AVAX to Avalanche Blockchain, you can skin in the game in Avalanche Ecosystem and earn interests.
Learn more: Avalanche Ecosystem Overview
Disclaimer: The information in this article is provided solely for informational purposes and should NOT be considered as investment advice. Investing in cryptocurrencies involves a high level of risk, and you should only invest what you are willing to lose.
Lending is a money market that allows you to deposit your assets in order to receive interest. Benqi and Aave are two of the most prominent Avalanche-based lending platforms.
Benqi is a money market protocol that allows borrowers and lenders to use the project. Users are able to lend their digital assets, while earning passive income in return for providing stability at risk-free rates of interest through Benqi's proprietary smart contract system on the Avalanche network.
Launchpad has always been a place that attracts a lot of users with investment opportunities that bring high returns and attract users. In the market, there have been many successful and profitable launchpads like Polkastarter, Dao Maker or Red Kite.
Pominent Launchpad platform in Avalanche ecosystem is:
Avalaunch: Avalaunch is the first Launchpad project in the ecosystem and is supported by Ava Labs. There have been quite a few projects listed on Avalaunch, including the Crabada (Play-to-earn) game that has had a massive ROI of more than 100x (ATH-price) since IDO.
So far, I've shown you how to transfer coins to Avalanche Network in order to skin in the game. Hopefully, after reading this article, you will have a better understanding of the DeFi market and find suitable ways to maximize your profits.