Buying Layer 1 Tokens: Ethereum, Solana, Avalanche & More

Alright, let’s kick this off with the basics. Imagine a blockchain as a city. Now, the foundation of that city—the infrastructure like roads, power lines, and water systems—is what we call a Layer 1 blockchain. Think of Layer 1 tokens as the fuel or currency used to build and power that city. These tokens aren’t just digital money. They give you access, allow you to interact with smart contracts, pay for transactions, and even stake your coins to earn passive income. Popular examples? Ethereum (ETH), Solana (SOL), Avalanche (AVAX), Binance Coin (BNB), and a few more that we’ll dive into shortly.

Why Should You Even Care About Layer 1 Tokens?

Let’s be real—crypto’s a rollercoaster. One day you see a meme coin soaring to the moon, and the next it’s crashing down like a lead balloon. But Layer 1 tokens? They play by a different set of rules. These tokens form the very foundation of the entire crypto universe. Think of the whole crypto scene as a massive video game: while some coins might be flashy side quests or mini-games, Layer 1 tokens are the main storyline you can’t skip. They’re the base layer where everything else is built on, and that’s what makes them so crucial.

What sets Layer 1 tokens apart is their inherent security. Most of these blockchains have stood the test of time, weathering hacking attempts, network congestion, and scalability challenges. Their networks are battle-tested and robust, providing a safe environment where decentralized applications (dApps) and financial transactions can operate smoothly. When you own a Layer 1 token, you’re essentially trusting a blockchain with proven resilience and stability—something not all crypto projects can claim.

But security is only part of the story. Layer 1 tokens are incredibly practical. They’re the fuel that powers every transaction on their native blockchain, whether you’re swapping tokens, minting NFTs, or interacting with dApps. Without these tokens, none of that would be possible. You can think of them as the toll fees on the highway of blockchain activity—without paying, you can’t get anywhere. This utility ensures a steady demand for these tokens, as they are constantly needed to keep the ecosystem alive and buzzing.

Finally, the growth potential behind Layer 1 tokens is huge. As more developers build on these blockchains and more users join the network, the demand for the native tokens grows naturally. This makes Layer 1 tokens a strong candidate for long-term value appreciation. They’re not just coins to trade; they represent ownership and participation in an expanding digital infrastructure. If crypto truly reshapes finance, gaming, or even social media, it’s the Layer 1 blockchains that will carry the weight—and their tokens will ride the wave of success alongside them.

Top Layer 1 Tokens to Watch (and Buy)

• Ethereum (ETH) is the original smart contract platform that laid the groundwork for decentralized applications as we know them today. It’s widely regarded as the kingpin in the Layer 1 space. Since its transition to proof-of-stake with the Merge, Ethereum has become much more energy-efficient and scalable, addressing some of the biggest criticisms it faced. The vast majority of dApps, DeFi projects, and NFTs run on Ethereum, making it the hub of blockchain innovation. A massive developer community constantly works on upgrades like sharding and rollups to improve speed and lower fees, which means Ethereum’s ecosystem keeps growing and evolving. Its sheer size and continuous improvements make ETH a must-watch token for anyone interested in the blockchain space.
• Solana (SOL) is known as the speed demon of Layer 1 blockchains. If Ethereum is like a busy four-lane highway, Solana is the bullet train speeding ahead with lightning-fast transaction speeds of up to 65,000 transactions per second (TPS) and very low fees. This makes Solana especially attractive for NFT projects and decentralized finance applications that require quick, cheap transactions. Solana’s ecosystem has attracted big-name investors like Andreessen Horowitz (a16z) and the now-defunct FTX, which helped propel its growth despite some hiccups and network outages. SOL’s focus on speed and affordability gives it a unique edge in the crowded Layer 1 space.
• Avalanche (AVAX) stands out for its focus on customization and scalability. Its unique three-chain architecture separates the platform into the Exchange Chain (X-Chain), the Platform Chain (P-Chain), and the Contract Chain (C-Chain), allowing developers to build custom subnets—essentially mini-blockchains tailored to specific use cases. This flexibility makes Avalanche a favorite for projects that need specialized blockchain environments while still benefiting from a shared security model. Avalanche offers near-instant transaction finality, low latency, and a highly scalable infrastructure, which means users don’t have to trade off speed for security or decentralization. AVAX’s modular design is a powerful draw for developers aiming to innovate with blockchain technology.
• Binance Smart Chain (BNB), now known simply as BNB Chain, is the giant playground powered by Binance, one of the world’s largest crypto exchanges. BNB Chain is optimized for speed and low transaction costs, which has helped it achieve massive adoption, especially among projects targeting everyday users. BNB is used to pay gas fees and stake in the network, fueling the ecosystem’s growth. Beyond simple transactions, Binance continues to expand the platform’s reach into Web3, NFTs, and decentralized finance, making BNB a versatile token with broad appeal. Thanks to Binance’s global footprint and marketing power, BNB remains a dominant force in the Layer 1 landscape.
• Cardano (ADA) aims to combine security, scalability, and sustainability using a research-driven approach. Unlike many projects that rush to market, Cardano emphasizes peer-reviewed development and formal methods to ensure robustness. Its proof-of-stake consensus mechanism, Ouroboros, is designed to provide secure and efficient transactions with minimal energy use. Cardano has steadily grown its ecosystem of dApps, especially in emerging markets, and continues to roll out smart contract capabilities to compete with Ethereum. ADA’s focus on long-term sustainability and real-world applications makes it an interesting Layer 1 token to follow.

Emerging Layer 1 Tokens You Shouldn’t Ignore

How to Buy Layer 1 Tokens (Step-by-Step)

Buying Layer 1 tokens might seem complicated at first, but once you get the hang of it, it’s actually pretty straightforward. The first step is picking a reliable cryptocurrency exchange. These platforms act as the marketplace where you’ll trade your fiat currency (like dollars or euros) for the tokens you want. Popular exchanges like Binance, Coinbase, Kraken, and KuCoin each have their pros and cons — some offer a huge variety of tokens and low fees, while others are more beginner-friendly or provide extra security features. It’s important to choose an exchange that suits your location and trading needs, so you don’t get stuck with limited options or unexpected restrictions.

Once you’ve chosen an exchange, the next step is to create your account and go through the verification process. Most exchanges require KYC (Know Your Customer) verification, where you provide ID and personal information. While it might feel like a hassle, this process is crucial for security and compliance with legal regulations, protecting you from fraud and keeping the platform trustworthy. After your account is verified, you can deposit funds into it. Depositing usually gives you several options — you can transfer money directly from your bank, use a credit or debit card, or even deposit other cryptocurrencies if you already own some. Each method has different fees and processing times, so it’s good to pick the one that works best for you.

Now comes the fun part: searching for and buying your Layer 1 tokens. Most exchanges have a search bar where you type in the token’s ticker symbol — like ETH for Ethereum, SOL for Solana, AVAX for Avalanche, or BNB for Binance Coin. After finding the token, you just enter the amount you want to buy and hit “Buy.” Simple as that. However, keep in mind that prices fluctuate rapidly, so it’s wise to check the current rates and maybe set a limit order if you want to buy at a specific price point rather than immediately.

Finally, it’s super important to move your tokens off the exchange and into a personal wallet once you’ve made your purchase. Leaving crypto on exchanges can be risky since exchanges can get hacked or restrict your access. You have two main wallet choices: hot wallets and cold wallets. Hot wallets, like MetaMask or Phantom, are software wallets connected to the internet and great for quick access and trading. Cold wallets, such as Ledger or Trezor, are hardware devices that store your crypto offline, providing much stronger security for long-term holding. Deciding where to store your tokens depends on how active you plan to be with trading and your personal security preferences.

Should You Stake Layer 1 Tokens? (Hint: Yes)

• Ethereum (ETH) offers an average annual percentage yield (APY) of around 4 to 5 percent. The lockup period is variable depending on the staking platform you use. Popular places to stake ETH include Lido and Coinbase, where you can earn passive income by participating in Ethereum’s proof-of-stake consensus mechanism without needing to run your own node.
• Solana (SOL) staking generally provides an APY between 6 and 7 percent. The typical lockup period for SOL is about 5 to 7 days, which is relatively short compared to other tokens. You can stake SOL directly through wallets like Phantom Wallet, which makes it simple to start earning rewards while still maintaining control over your tokens.
• Avalanche (AVAX) staking yields are a bit higher, usually ranging from 8 to 9 percent APY. The lockup period for AVAX staking is approximately two weeks, giving you a balance between liquidity and earning potential. The best place to stake AVAX is through the official Avalanche Wallet, where you can delegate your tokens and start earning rewards easily.
• Binance Coin (BNB) staking offers an APY that varies from 3 to 6 percent, depending on the staking program or product you choose within the Binance ecosystem. The lockup periods can also vary, providing flexibility if you want to stake for shorter or longer durations. Binance Earn is a popular platform within Binance for staking BNB, where users can earn rewards while contributing to network security and operations.

Risks to Know Before Buying Layer 1 Tokens

How to Evaluate a Layer 1 Token Before You Buy

When you’re thinking about buying a Layer 1 token, the first thing you want to check is the team behind it. Are there credible developers who have a solid track record? Is the project backed by well-known investors or venture capital firms? A strong, experienced team and reputable backers can be a good sign that the project is built to last and has resources to overcome challenges. Without this, even the most promising technology can struggle to gain traction.

Next up, consider the token’s actual use cases. Does it serve a real purpose in the crypto ecosystem? Is it powering decentralized applications (dApps), enabling decentralized finance (DeFi) projects, or supporting popular NFTs? A token that’s just a concept with no practical applications is risky, while one that’s actively used in multiple areas tends to have stronger staying power. The more ways a token is integrated into daily crypto activities, the higher the chances it’ll grow in value.

The health of the ecosystem around the token is another big factor. Are there lots of dApps, developer tools, bridges, and wallets built on top of this blockchain? A vibrant, active ecosystem means the network is useful and attractive to developers and users alike, which often drives demand for the native token. Blockchains with thriving ecosystems usually have better innovation, more partnerships, and higher user engagement, all of which can boost the token’s potential.

Lastly, don’t forget to dig into the tokenomics. Look at the total supply of tokens and how inflation or token release schedules are structured. Is the supply capped or unlimited? How many tokens are circulating right now versus locked or reserved for the future? Good tokenomics balance scarcity and utility, helping maintain or increase value over time. Also, check the community—are there active discussions, support, and development updates? A passionate, engaged community often plays a crucial role in a token’s long-term success. If a Layer 1 token scores well across these areas, it could very well be worth adding to your portfolio.