What Might Happen If You Invest $100 In Avalanche (AVAX)?

Should You Invest $100 in Avalanche (AVAX)?    

Last Updated November 24th 2021
15 Min Read

Avalanche (AVAX) is one of the best performing cryptocurrencies in late 2021. In this article, Trading Education provides a detailed analysis as to the potential worth of your investment if you invest $100 in Avalanche today. This will embolden you to know if you should invest $100 in Avalanche and if AVAX could potentially become a millionaire maker. 

Avalanche as a smart contract blockchain aims to become an Ethereum killer by having a higher transactional output of up to 6,500 transactions per second (TPS) while not compromising scalability. 

This has brought huge mileage to its native asset, AVAX in 2021. 

Due to the bullish nature of the cryptocurrency market in 2021 which has seen parent crypto Bitcoin (BTC) and other altcoins such as Binance Coin (BNB), Ripple (XRP), Cardano (ADA), and Solana (SOL) reach new all-time highs, AVAX continues to reach new milestones. This has led millions of people into pouring billions of dollars into AVAX and other cryptocurrencies.

Some of the questions that continue to trend online includes but are not limited to, is Avalanche a good buy, how good is Avalanche crypto, does AVAX have a future, what will Avalanche be worth, is Avalanche a good investment, can Avalanche reach $1,000, and should you invest in Avalanche

One of the most demanded questions being asked by low-income traders and investors is what might happen if you invest $100 in Avalanche (AVAX) today

If you invest $100 in Avalanche today and the value of the cryptocurrency increases as a result of positive crypto market sentiments, which increases your investments to let’s say $260, you stand a chance of making a profit of $160. 

In advanced trading and investing studies, this is called portfolio gains because AVAX is a digital asset that falls into the crypto umbrella. 

Since there are two (2) sides to the financial market (bulls and bears), in the event of negative market sentiments, which decreases your investments to let’s say $8, you stand a chance of making a loss of $92.

However, in the world of financial investing and crypto investing for that matter, it is only at the point of SALE that you will see PROFITS or LOSSES. 

To learn more about the Avalanche crypto project that will help you learn how you can invest in Avalanche (AVAX), Trading Education has several articles on the project that can help you decide for or against investing in Avalanche.

Content:

If You Invest $100 In Avalanche Today, What Happens?

Can I Invest $100 In Avalanche (AVAX)?

What Is Avalanche?

What Makes Avalanche (AVAX) So Valuable?

How To Invest $100 In Avalanche (AVAX)

Will Investing $100 In Avalanche (AVAX) Make You A Millionaire?

What To Consider When Investing $100 In AVAX?

Should You Invest In Avalanche (AVAX)? 

 

If You Invest $100 In Avalanche Today, What Happens? 

The price of Avalanche (AVAX) has been soaring ever since it opened on 1st January 2021 for $3.15, reached a day high of $3.87, a day low of $3.05, and eventually settled at $3.66 for the day. 

With an increasing trading volume of $28,340 in July 2020 to $81.2 million in January to more than $400 million in November 2021, traders and investors continue to see AVAX as an attractive investment

The bullish nature of the cryptocurrency market has seen more than 1,000 digital assets return more than 100% for traders and investors. Therefore, there is a huge chance of seeing at least 100% returns in the near term if you were to invest $100 in Avalanche (AVAX) today.

As of November 2021, Avalanche’s value has increased significantly. As of Tuesday, 23rd November 2021, AVAX has returned 27,451.97% for early investors that believed in the possibilities of the smart contracts-backed blockchain right from the start in July 2020.

The demand for the tokens has taken the market capitalization of AVAX to more than $30 billion

The value of AVAX is going to soar even higher, which will translate to more returns for investors. 

This is as a result of the enormous support the coins enjoy from major players in cryptocurrency exchanges such as Mandala Exchange, Coinbase, Crypto.com, Binance, Huobi Global, and Poloniex

With sixteen (16) months of trading experience, being listed on major exchanges is a boost for the whole project since it took Dogecoin (DOGE) eight (8) years before being considered for listing by reputed cryptocurrency exchanges.

Aside from this, the valuation of the digital token continues to benefit from integration with mainstream projects TrueUSD, Aave, Avalanche, Curve, KUU, Chainlink, ChartEx, and SushiSwap among others. 

What's more, AVAX enjoys being the governance token that oversees transactions on decentralized applications Pangolin Exchange, Elk Finance, Penguin Finance, Yeti Swap, Teddy Cash, Canary Exchange, Swift Finance, Avaware, and StormSwap Finance among others. 

This sets AVAX apart from other tokens that lack the necessary technology to support their novel tokens.

These are the reasons why analysts at Wallet Investor (a technical analysis-backed crypto portal) believe AVAX has great potential in a saturated cryptocurrency market. 

According to the analysts, price drivers such as favourable technical indicators, positive crypto market sentiment, and increased adoption and utility of the Avalanche blockchain could see the coin increase to an average price of $145.666, the lowest possible price of $130.039, and best possible price of $161.262 by the end of 2021. On the last day of 2024, AVAX could reach an average price of $499.715, the lowest possible price of $416.258, and the best possible price of $588.490

Towards the close of November 2026, AVAX could trade for an average price of $724.457, the lowest possible price of $562.610, and the best possible price of $902.572.

This means that investing $100 in Avalanche (AVAX) today could see you with more than 20% returns in the short term, more than 350% returns in the medium term, and more than 590% returns in the long term.

But it might have occurred to you, can you really invest $100 in Avalanche (AVAX)

Let us find out!

Can I Invest $100 In Avalanche (AVAX)? 

You can invest as little as $100 in Avalanche (AVAX). 

AVAX, like all cryptocurrencies, has the attribute of divisibility. Cryptocurrencies follow the format of Satoshi Nakamoto’s Bitcoin. Therefore, digital tokens are divisible by 8 decimal points in the form of 1.00000000

In the event you are unable to buy a full AVAX token, you can purchase a fraction of the coin. 

In fact, you can buy approximately 0.76923076 AVAX worth a $100 investment.

If you decide to hold onto your AVAX tokens for the long term, there is a huge chance that the coin could reach new milestones which will, in turn, increase the worth of your investment. 

But before you invest in Avalanche (AVAX) with $100 or any other sum of money that fits your investment budget, let us discuss what Avalanche is.

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What Is Avalanche? 

Avalanche is one of the most popular smart contracts crypto projects. 

Its native asset, AVAX, is one of the most popular, most traded cryptocurrencies, and largest digital assets by market capitalization. In the new world of cryptocurrency and digital asset investing, AVAX falls below mainstream players Ethereum (ETH), Cardano (ADA), Solana (SOL), Ripple (XRP), and Bitcoin (BTC) among others. 

Launched in July 2020 by Cornell University Professor Emin Gün Sirer and computer science PhDs Maofan Ted Yin and Kevin Sekniqi, the Avalanche blockchain project was launched by Ava Labs. Avalanche comprises three entities that ensure its efficiency and survival in the cryptocurrency market.

They are the Avalanche Blockchain Protocol, its cryptocurrency AVAX, and the Avalanche Foundation that keeps the intensity of the project going by launching funds to entice developers to the Avalanche Chain. 

After appearing on cryptocurrency exchanges on 13th July 2020, AVAX opened at $4.61. Benefiting invaluably from the crypto boom of 2021, AVAX has enjoyed bullish rides and bearish declines to reach a new all-time high price of $146.22 on Sunday, 21st November 2021).

Once you buy AVAX tokens on a centralized or decentralized cryptocurrency exchange, you store your AVAX in digital wallets that can be accessed through passwords and private keys. 

On Centralized Exchanges such as Mandala Exchange, Binance, FTX, and BitMart, after inputting legal details of your name and residential address which are later verified, you are asked to set up a password. 

This can come in the form of a random set of names or digits provided by the exchange or you can set your own password. Trading Education requires you to set up a complex password that comprises names, numbers, and symbols. 

On Decentralized Exchanges such as Pangolin, you will need to connect wallets such as MetaMask, Coin98, Math Wallet, Coinomi Wallet, Avalanche Wallet, or Ledger Nano X or S

You must download and install these wallets on your phone or desktop. Unlike other centralized exchanges, aside from giving you the chance to create a password, you are also given private keys. These private keys come in the form of words with a minimum of 12 and a maximum of 24

You will be cautioned to write the words in the way they are arranged in a safe place. 

Trading Education will caution you to write the words in multiple places so that losing access to one will be made up for by the other sources your passcodes are held. 

Fortunately, accounts held on centralized exchanges are custodial. This means that as a trader or investor, you have access to your account through your password. 

Access to your AVAX and other tokens is in the hands of the cryptocurrency exchange. They have private keys that can access your holdings. 

As a result, in the event of a loss of a password, you can restore your account through links sent to your email address or codes sent to your registered phone number. 

It does not matter the number of times you forget your password, you will always have a chance of restoring your account. 

Unfortunately, accounts held on wallets are non-custodial

This means that as a trader or investor, you have access to your AVAX holdings through your passcodes (private keys). 

In the event of a loss of your smartphone, you will have to log into your wallet with the passcodes on another phone. 

If you fail to remember your passcodes, it does not matter the size of your AVAX and overall crypto holdings, access to your tokens will be lost forever.

The creation, storage, trading, and distribution of virtual currencies including Avalanche (AVAX) employs a decentralized ledger system popularly termed blockchain technology. 

Peer-to-Peer (P2P) technology is used in facilitating payments involving AVAX. 

To maintain and update the Avalanche Blockchain Protocol to meet the modern standards of decentralized finance, there is a reliance on upgrades on the Avalanche Network. 

What’s more, the Avalanche Foundation periodically launches funds such as the $200 Million Blizzard Fund. This fund is to entice development and innovation in the Avalanche ecosystem. 

To illustrate how Avalanche works as a financial instrument, anyone who purchased AVAX in July 2020 and believed in its possibilities in a market of more than 14,000 coins has seen huge returns today. More importantly, depending on the number of AVAX tokens purchased when it was trading in the range of $1 to $10, your returns could be in thousands and millions of dollars, if you were a HODLER. 

For instance, if you invested $100 on 1st January 2021 when AVAX traded for $3.15, you could have purchased approximately 31.74603174 AVAXs. 

If you held onto your AVAX tokens when it reached an all-time high in November 2021, the value of your $100 AVAX holdings would have been worth $4,641 (a 4,541% increase on your $100 investment capital). 

What Makes Avalanche (AVAX) So Valuable? 

Avalanche (AVAX), like all cryptocurrencies, holds no intrinsic value. For an asset to have intrinsic value, it should have a value of its own. Unfortunately, AVAX, like fiat currencies, is representative money. As a result, their value comes in the form of the faith traders and investors have in the token as a transactional currency in decentralized finance and not by any value of its own. 

To put it simply, AVAX is not backed by physical assets such as gold, diamond, or silver. 

The real market value of AVAX increases when there is more demand for the cryptocurrency. 

The real market value of AVAX decreases when there is less demand for the digital token. 

Because of its status as a digital currency, no government or central bank supports its usage as a transactional currency. 

Therefore, AVAX does not qualify as a legal tender. 

As of Tuesday, 23rd November 2021, there are no physical representations of Avalanche’s native asset. 

Yet, AVAX is among the noteworthy cryptocurrencies in the market today. Ranked as a top 10 digital asset by market value, Avalanche (AVAX) is more valuable than some mainstream companies such as KIA Motors, Panasonic, National Bank of Canada, Devon Energy, UniCredit, Pinterest, and Galaxy Entertainment,  whose market capitalization is below $30 billion

Many proponents of decentralized finance view Avalanche as a potential Ethereum Killer. 

Many experts believe that Avalanche provides a blazingly fast, low-cost, and eco-friendly platform that can transform global transactions.

Although its primary competitors Ethereum (ETH), Solana (SOL), Algorand (ALGO), Polkadot (DOT), Tron (TRX), and Cardano (ADA) have extensive use cases, Avalanche (AVAX) has amassed a following of its own. 

This is the primary reason why AVAXs value has risen significantly due to increased demand by traders and investors who consider it as a safe way of making consistent passive income.

Check Out: What Cryptocurrencies Have The Best Chance For 1000x?

How To Invest $100 In Avalanche (AVAX)

There are several ways through which you can invest $100 in Avalanche (AVAX). 

As an e-learning organization, we would advise you to take anonymity, speed, limits, customer service, geographical restriction, insurance, security, regulation, ease of use, fees, payment methods, and liquidity into consideration when selecting an exchange.

Although the primary thesis of the article focuses on what might happen if you invest $100 in Avalanche (AVAX) today, there are no limits with regards to the amount you can invest in AVAX from the exchange of your choice. 

Since many exchanges have a minimum deposit below $100, it is possible to start investing in AVAX with $100. 

The FIRST STEP is to register for an account with a centralized exchange. 

The SECOND STEP is to verify your account as per compliance with Anti-Money Laundering (AML) and Knowing Your Customer (KYC) regulations. 

The THIRD STEP is to deposit funds in the form of fiat (USD, EUR, or GBP). 

The FOURTH STEP is to navigate to the Avalanche (AVAX) page. You can buy $100 worth of AVAXs and your order will be calculated, processed, and completed.

Will Investing $100 In Avalanche (AVAX) Make You A Millionaire? 

Investing $100 in Avalanche (AVAX) could make you a millionaire if you hold onto your AVAX investment for the long term and the coin reaches $1,300,000 (1.3 million) in value. 

Fortunately, AVAX could reach that milestone due to the unpredictable nature of the cryptocurrency market. 

At $100, you could purchase 0.76923076 AVAX coins. 

At $1,300,000 and 0.76923076 coins in holdings, (1,300,000 × 0.76923076) which equals $1,000,000 ($1 million). 

Avalanche continues to be an integral part of the current space of decentralized finance. 

Avalanche through its Custom Chain allows the hosting of smart contracts and decentralized applications (DAPPS) that come with an Avalanche Virtual Machine (AVM). 

This allows developers to fork Ethereum Virtual Machine (EVM)-Compatible DApps. 

This helps expose AVAX to several forms of liquidity through the many markets on its blockchain. 

Despite this, many analysts consider AVAX a risky investment due to its relatively low trading experience. 

With that said, AVAX has recorded more than $400 million as daily volume since 1st November which symbolizes investor interest. Aside from that, AVAX continues to enjoy listings from major exchanges which increase its accessibility. 

Therefore, AVAX is an asset you should consider adding to your investment portfolio. 

Read Also: 7 Top Cryptocurrencies That Could Make You A Millionaire

What To Consider When Investing $100 In AVAX? 

When investing $100 in Avalanche (AVAX), it would be in your interest to consider the following; 

Virtual Currencies and Blockchain Technology Is a New Concept 

No one knows the future of cryptocurrencies due to the numerous controversies digital coins continue to be involved in daily. 

Investing $100 in Avalanche (AVAX) or any other digital currency is not a sure way to enormous riches. 

Aside from the information obtained through this article, conduct independent research about the Avalanche crypto project before risking funds. 

Invest in AVAX and other digital assets with caution due to the novelty of decentralized finance. 

Know the Actual Costs Involved 

One thing you would not see as a new trader or investor is hidden costs. 

These are deposit, processing, and withdrawal costs. 

You should know the amount of money you have to deposit for you to buy $100 worth of AVAX tokens. 

If the deposit fees are $4.99 and processing fees for the buying of AVAX are $2.99, you should know that you can only buy $100 worth of AVAX tokens if you deposit $107.98

Do not take your eyes off costs. 

Know Your Risk Tolerance        

If AVAX should drop to new high lows, can you afford to lose $100? Should AVAX trade in irrecoverable zones in the future, will you be affected by the loss of your capital?

You should assess your level of risk and if it falls in line with your budget, you can go on and invest $100 in Avalanche (AVAX). 

If it does not, you should avoid investing in AVAX.

Should You Invest In Avalanche (AVAX)? 

YES, AVAX is an asset you should consider investing in as per analysts at Wallet Investor. 

While it may have been better to have invested in AVAX earlier, it is not too late to invest now. 

Always ask the question, do the potential rewards of investing $100 in AVAX exceed the consequences of the risks associated with the investment

Investing in AVAX has worked for millions and could be the missing digital asset that could transform your investment portfolio. 

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