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Avalanche Wallet is a cryptocurrency web wallet on the Avalanche blockchain. It allows users to connect to Avalanche's ecosystem of decentralized applications (DApps).
Avalanche Wallet has three types of addresses: X-Chain, C-Chain and P-Chain. Each of them allows you to store cryptocurrency for different purposes. X-Chain is primarily used for storing assets, C-Chain allows interaction with smart contracts, and P-Chain is intended for staking. Avalanche Wallet allows you to move tokens between these three blockchains.
When transferring assets from Avalanche Wallet, be sure to use a blockchain that is compatible with your chosen withdrawal wallet. For example, only C-Chain is compatible with MetaMask and Binance wallets, so to transfer assets, first move Avalanche tokens to the C-Chain wallet using the cross-chain function.
Introduction
Avalanche is an open-source platform for decentralized applications (DApps) that aims to improve scalability, interoperability, and usability across its three blockchains. If you want to explore and use the Avalanche ecosystem and its DApps, you will need the Avalanche Wallet.
What is Avalanche Wallet and how does it work?
Avalanche Wallet is a browser-based cryptocurrency wallet that allows you to interact with the Avalanche ecosystem. With Avalanche Wallet, you can store, transfer and stake hundreds of different cryptocurrencies and even create your own NFTs (non-fungible tokens). You can also transfer DeFi tokens from Binance Smart Chain, Ethereum, Polygon and other blockchains to Avalanche using middleware services such as MultiChain (formerly AnySwap).
There are 3 types of blockchain on the Avalanche network: exchange chain (X-Chain), contract chain (C-Chain) and platform chain (P-Chain). X-Chain is a decentralized platform for creating and trading Avalanche's native token called AVAX and other cryptocurrencies. C-Chain allows users to create smart contracts and interact with DApps and DeFi services. P-Chain coordinates network validators and can be used for staking in the Avalanche Wallet. To learn more about the design of these three blockchains, check out the article What is Avalanche (AVAX).
Each of Avalanche's three blockchains allows you to store cryptocurrency for different purposes. Take the AVAX token as an example: it can be stored and traded on X-Chain, used on C-Chain to pay transaction fees and interact with smart contracts, and staking on P-Chain to earn rewards. It may seem complicated at first, but you can easily move tokens from one blockchain to another using Avalanche Wallet's cross-chain feature.
Please note that each chain has its own format and wallet address. All X-Chain wallet addresses start with "X", P-Chain addresses start with "P", and C-Chain addresses start with "0", similar to Ethereum and Binance Smart Chain (BSC) addresses.
To transfer tokens to and from your Avalanche wallet, select the appropriate address. For example, Binance and MetaMask wallets are only compatible with C-Chain. Be careful and be sure to double-check addresses before making transactions. If you transfer tokens to an incompatible network, you may lose your funds.
How to create an Avalanche Wallet?
1. Go to the official website of Avalanche Wallet and click [Create New Wallet]. Beware of fake sites created by scammers. Make sure you are using the official wallet URL.
2. Click [Generate Key Phrase] to get the key phrase.
3. 24 words will appear on the screen - this is the key phrase (or seed phrase) of your wallet. If you lose it, you will lose access to your wallet. It is impossible to recover a lost key phrase.
Write down these 24 words in the order given and check the box. Store the seed phrase in several safe places offline and do not tell anyone. To continue, click [Access Wallet].
4. The system will ask you to repeat certain words from the seed phrase to ensure that you have written it correctly. Enter the missing words and click [Verify].
5. Avalanche Wallet is ready to use. Click [Access Wallet] to open it.
How to send AVAX tokens from Binance to Avalanche?
To interact with DeFi DApps on Avalanche, you must have AVAX tokens in your Avalanche Wallet to pay transaction fees. You can purchase AVAX on exchanges like Binance and then send it to your Avalanche wallet.
Let's look at how to transfer AVAX tokens from Binance to Avalanche.
Please note that only the C-Chain blockchain is compatible with the Binance exchange, so you can only use it to transfer AVAX from Binance to Avalanche Wallet. Be careful! If you choose the wrong chain, you may lose your funds.
1. Login to your Binance account, go to [Wallet Overview] and click [Withdraw].
2. Select [AVAX] from the list of available tokens.
3. Go to Avalanche Wallet and press [C] to view and copy the C-Chain wallet address.
4. Return to Binance and paste the address into the [Address] field. Then click [Network] to select the Avalanche C-Chain [AVAXC] network.
5. Enter the amount you want to transfer and click [Withdraw].
6. Please read the risk warning carefully and click [Confirm].
7. Check the withdrawal details.
8. Confirm your request using two-factor authentication and click [Submit]. After this, AVAX tokens will be sent to the Avalanche C-Chain wallet.
How to transfer tokens between X-Chain, C-Chain and P-Chain of the Avalanche network?
To move funds from one blockchain to another, you must use the cross-chain transfer function. For example, in order to send AVAX to the MetaMask wallet, you must first move the tokens to the C-Chain wallet, since only the C-Chain blockchain is compatible with MetaMask. If you choose the wrong chain, you can permanently lose your funds.
In this example, we will use a cross-chain transfer to move AVAX from X-Chain to C-Chain.
1. Log into Avalanche Wallet and check your balance at the top of the window. In our case, AVAX tokens are in the X-Chain wallet.
2. Click [Cross Chain] on the left menu.
3. Select [C Chain] as the end chain and enter the amount you want to transfer. Click [Confirm] to continue. Please note that each transfer of assets between blockchains incurs a small transaction fee.
4. AVAX tokens are now in the C-Chain wallet and are ready to be transferred to MetaMask or another compatible wallet.
How does AVAX staking work (validators and delegates)?
The Avalanche Wallet allows you to stake AVAX tokens to increase your supply. There are two ways to earn AVAX rewards: become either a validator or a delegate.
Validators are active nodes that verify transactions and protect the blockchain. The more AVAX tokens you stake, the higher your chance of becoming a block validator.
Delegates do not process transactions, but support validators. When validators receive their rewards, delegates can receive a share proportional to the number of staking AVAX tokens.
As of January 2022, the following staking requirements apply:
To be a validator, you need to have more technical knowledge and the ability to run an Avalanche node through special computer software. We won't go into technical details in this guide, so check out the official Avalanche documentation for more information.
How can a delegate add AVAX to staking through Avalanche Wallet?
Before staking, transfer the required number of AVAX tokens to your P-Chain wallet.
1. Log into Avalanche Wallet and click [Earn] on the left menu.
2. Click [Add Delegator].
3. You will see a list of active validators. Select who you want to delegate your AVAX tokens to by clicking [Select].
4. Select the staking duration and enter the number of AVAX tokens to stake. Please note that you cannot set the duration of delegation after the end date set by the validator.
Check the reward address: it must match your P-Chain wallet address. Click [Confirm].
5. After this, you will see the delegation details and start receiving AVAX rewards.
Summary
The Avalanche Wallet allows you to interact with the ever-growing collection of decentralized DeFi applications in the Avalanche ecosystem. It consists of three Avalanche blockchains that have different uses and purposes. To learn more about the Avalanche blockchain, check out the article What is Avalanche (AVAX).
