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Understanding Blockchain Networks Before Buying Crypto

· 2 min read

Before I show you how to buy cryptocurrency using a P2P exchange on a centralized platform, let’s briefly talk about blockchain networks and how they work in your wallet.

Core Wallet Default Networks​

By default, the Core wallet supports:

  • Ethereum blockchain
  • Avalanche blockchain
  • Bitcoin blockchain (runs on its own separate chain)

Ethereum and Avalanche share the same architecture, so they use the same address format.
👉 Switching between them won’t change your wallet address.

Adding New Networks​

You can add many other networks to your wallet as you explore the Web3 ecosystem.

  • Each blockchain has its own:
    • Fees
    • Transaction speed
    • Features

For example:

  • Polygon runs on Ethereum’s architecture.
  • Adding it is simple — press “Connect” in the wallet, and details fill in automatically.
  • Once confirmed, Polygon appears in your wallet’s list of networks.
  • Your address remains the same across Ethereum, Avalanche, and Polygon — but the networks are different.

Transaction Fees and Native Tokens​

The most important difference between blockchains is the token used for paying fees:

  • Ethereum → ETH
  • Avalanche → AVAX
  • Polygon → MATIC
  • Optimism → ETH (since it’s built on Ethereum)

👉 Every transaction (send, swap, transfer) requires fees in the native token of the network.

Example:
If you want to transfer assets on Avalanche, you must hold AVAX to pay the fee, even if you’re sending USDT or another token.

Tools and Features Across Networks​

Blockchains also differ in their ecosystem tools:

  • Some apps may exist on Ethereum but not on Avalanche, and vice versa.
  • By connecting to multiple blockchains, you expand your options and work more efficiently in Web3.

Fee Levels: Why It Matters​

  • On Ethereum, fees are relatively high (≈ $15–20 per transaction).
  • On other blockchains (e.g., Polygon, Avalanche), fees can be just a few cents (≈ $0.05–0.15).

💡 If your deposit is small, using low-fee networks helps you save significantly and trade more efficiently.

Key Takeaway​

  • Your wallet can hold multiple networks with the same address format (Ethereum, Avalanche, Polygon).
  • Always keep some of the native token for fees.
  • By strategically choosing blockchains, you can reduce costs and unlock more tools in DeFi.

What’s Next​

In the next post, I’ll show you how to:

  • Buy cryptocurrency using P2P exchange on a centralized platform
  • Withdraw assets to your wallet using one of the connected networks

Disclaimer: These materials are created for educational purposes only and do not constitute financial advice.