How to Buy Aave - Where to Purchase AAVE?
Developed on the Ethereum network, Aave is a decentralised finance protocol that enables users to lend and borrow cryptocurrencies. The protocol allows people to borrow and lend more than 20 cryptocurrencies giving users a wide range of choice.
Founded by Stani Kulechov, Aave has a native token denoted by the initials AAVE. The digital currency is available on multiple exchanges and at the time of writing, it was being traded at $354 with a market capitalisation of close to $4.5 billion.
In this guide, we are going to discuss how you can buy AAVE with different cryptocurrency platforms.
Buy Aave in 3 Easy Steps
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Why Trade rather than Buy Aave for Cheap and Fast Returns?
No Need for a Crypto Wallet:
You don't actually have to buy and hold AAVE, you can simply bet on the price and earn profits.
Support for Multiple Payment Modes:
Trading is often carried out through brokers which are regulated and support a diverse range of payment modes such as debit and credit card.
Quick Trading and Withdrawals:
You don't have to go through a long process and you can start trading in a matter of minutes. Withdrawals are also quick.
What is the Easiest and Best Way to Buy? Compare the Top Aave Brokers
If you want to buy Aave but aren't sure where to begin, then we suggest you take a look at different broker websites. Online brokers provide one of the easiest ways to buy AAVE and you can open and close your trades quickly. That being said, it is recommended that you do your research to identify those brokers that adhere to your needs.
5 Things to Consider if you Want to Buy Aave
Before buying Aave, you will need to take important factors into account to ensure the security of all of your transactions.
1. Carefully choose your preferred secure payment method
One of the first things that you will need to consider is that the support for payment modes varies from country to country. Having said that, you should consider factors like security, speed of transaction and reliability before you start trading.
2. Will you need to set up your own wallet?
If you plan to hold onto your AAVE coins for more than a few days, we suggest that you get a cryptocurrency wallet so you can ensure the security of your tokens. Don't forget that web wallets that are often built into your exchange website are vulnerable to breaches and you can lose your AAVE tokens. If you don't want to set up a wallet, the best way to invest in Aave is through trading as you won't require a crypto wallet.
3. Comparing costs
Prior to trading Aave, we also recommend that you compare and assess the price of buying AAVE coins. There will be a network fee, transaction costs, commission and other kinds of expenses that may reduce your profit. If you are using a digital currency to buy Aave, then it will be cheaper for you relative to conventional payment methods.
4. Safety and security
You have to keep in mind that different blockchains use different protocols and technologies to secure the network. Remember that every blockchain and network has its own method to ensure security. Different technologies are deployed by the protocol to secure its network. Few of the security features are quite popular including peer-to-peer network, decentralisation, and encrypted public and private keys.
Since Aave is built on the Ethereum network, it features all of the security protocols that the blockchain offers to its users. The first thing that you need to know about is that the protocol is completely decentralised which means that your funds are not owned by a single entity. It also means that no central authority has any control over the matters of the network and it’s the stakers who make big decisions and govern the project.
5. Can you understand and navigate the platform?
As Aave makes inroads to become one of the well-performing cryptocurrencies, its price surge is backed by the usability of crypto lending and borrowing. This means that people who are using Aave find it helpful which can potentially drive the price up in the future.
You also have the option to use a broker website or crypto exchange to buy AAVE. We suggest that you familiarise yourself with the chosen platform so you can trade AAVE with ease. It makes sense to learn about the user interface and all the options as well as features the website offers so you can use them to maximise your financial gains.
Ultimate Beginner’s Guide to Trading Aave
What is an Aave Broker?
Cryptocurrency broker websites allow you to carry out trades without actually buying the digital currency. Now that digital currency trading and investing has gained immense popularity, cryptocurrency brokerage services are now used across the globe in many different countries.
As Aave is comparatively a new digital token as compared to other popular coins, there are only a few brokers who let you trade AAVE coins. Prior to choosing a broker, ensure that they offer support for Aave.
What is an Aave CFD?
CFD is a short form for Contract for Differences. It is a financial instrument that enables traders to trade AAVE and other digital currencies without actually buying them. Aave CFDs allow traders to speculate on the price of AAVE coin through buy and sell trades.
One of the reasons why trading CFDs of Aave is advantageous is because it enables traders to make a profit whether the market is going through a bull or bear run. If you buy AAVE coins, you are bound to wait for the time until the price increases so you can make a profit. However, that's not the case with CFD trading as you can earn financial gains by simply speculating on the price whether it is going up or down.
What is the Benefit of Aave Regulation?
As cryptocurrency trading including buying and selling of AAVE has become more popular, legal authorities and financial regulators all over the globe are now coming up with legislation and regulations to make trading safer for consumers. On one hand, while regulatory compliance adds a few more steps to AAVE trading, on the other hand, it also ensures that your funds, as well as personal information, remains safe. The regulations allow brokers to deliver a secure trading environment.
What is the Best Payment Method for Buying Aave?
If you are looking to buy AAVE coins, you have the option to choose from a wide range of payment methods. However, you have to bear in mind that the availability of these payment methods depends on the country you reside in and your chosen broker. That's why we recommend that you explore all the options available to you.
Buying Aave with PayPal: It is no secret that PayPal is one of the most widely used payment methods when it comes to online retail. If you are looking to purchase Aave using PayPal, you have the option to do so through multiple broker websites. However, there are other payment options available that are more convenient and affordable.
You have to remember that PayPal isn't supported in many countries around the world and only a handful of platforms offer it. While PayPal is now actively embracing cryptocurrencies because of their surging popularity, it will still take a few years until you can buy AAVE coins easily using the payment method.
Buying Aave with Cash: Although buying AAVE coins using cash has no transaction fees, it is next to impossible unless you can find someone who owns Aave and is willing to sell the tokens at the price you want. We suggest that you skip this payment method and look for other alternatives which are far safer, user-friendly and reliable.
Buying Aave with Bank Transfer: If you want to buy AAVE tokens at minimal transaction cost, then bank transfer is the best payment method available. This payment mode will also facilitate sending and receiving funds to and from a broker. The only downside of using a bank transfer is that it's comparatively a slow payment method as it can take days to deposit and withdraw your money.
Buying Aave with Credit Cards or Debit Cards: If you don't care about the transaction charges as much and only want speedy transactions, then the best option for you is to use a debit or credit card. The transaction charges will be higher as compared to other payment modes but withdrawals and deposits will be almost instantaneous.
The Verification Process for Trading Aave
When you make your account on a broker website, you will need to complete a personal identity verification procedure. This verification process is there to ensure that the service adheres to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. You can verify your identity by submitting a government-issued identification including a driver's license or an ID card. While this takes a little bit more time, it also secures your personal information and funds.
Aave: Long vs Short Term Investment
If you want to buy and sell AAVE coins leveraging the price surges and downfalls, you can make quick gains but it also carries more risk. This is usually done through short-term investment strategy. You don’t have to buy cryptocurrencies as you can speculate on the price through instruments like CFDs. You also don’t need a crypto wallet.
On the other hand, a long-term trading strategy requires you to have a thorough understanding of the market and you will need to come up with a proper exit strategy to make financial gains. When you go for a long-term strategy, you have the benefit of holding the tokens and you can sell or exchange them anytime you want.
Why Buy Aave rather than Trade?
There are many traders who look up how to buy AAVE coins and whether purchasing the token can be potentially more profitable relative to trading. You need to remember that while both investment strategies can be profitable, there are multiple advantages of purchasing AAVE.
The biggest advantage of purchasing AAVE is that you actually own and hold the tokens. It means that you are free to store, spend and sell the coins anytime you want. This investment strategy is often used by traders who want to hodl and earn substantial profits in the long term.
Moreover, trading AAVE is also comparatively less secure than outright purchasing the tokens. When you buy the tokens, you become impervious to sudden price movements which can completely wipe out your seed capital. Short term traders are usually motivated when to invest in a coin when they see there's sufficient price volatility in the cryptocurrency project.
The biggest benefit of purchasing Aave is that you have full control over your own digital assets. While exchanges, as well as brokers, have enhanced their security, they still remain vulnerable to cyberattacks and bearish trends which can pose a challenge when you are trying to access your AAVE coins.
Although there are a number of benefits to buying AAVE coins, you need to bear in mind that long-term investment requires your complete focus. Before you invest, do your homework and evaluate market variables to ensure there's a potential for profit. Moreover, you also have to identify a wallet that will help you store AAVE coins in a safe and secure manner.
What Fees are involved in Buying Aave?
If you want to trade or buy AAVE coins, you will be required to pay different types of transactional charges including network fee, deposit and withdrawal fee. Having said that, the expenses are comparatively low, especially if you are purchasing and holding AAVE coins on your own. Some of the expenses that you should know about include the following.
Transaction Fees: Aave transactions occur on a network that operates using a Proof of Stake protocol. Since the contributors have invested money to validate transactions, they need to be paid for their stake. Typically, transaction charges range between 0.1% and 0.2% of the total order amount. However, it will also depend on the exchange or broker you are using for trading. This is why we recommend that you evaluate the transaction charges of every platform before you start trading.
Deposit Fees: Although a majority of the cryptocurrency exchanges and brokerage websites do not charge deposit fees anymore, there are few platforms that do. When you are reviewing different platforms for trading, make sure you check out if there's a deposit fee or not.
Withdrawal FeesJust like deposit fees, withdrawal charges are also platform dependent. There are many cryptocurrency brokers and exchanges that will not require any fee for withdrawing your funds. Needless to say, it is a good idea to identify such services.
Safely Storing Your Aave
When you want to hold your AAVE coins in a secure manner, you will require a crypto wallet to do so that supports ERC-20 tokens. Wallets can be found in different variants including the following.
Web Wallet: These are those wallets that have been built into your chosen broker or crypto exchange platform. While they make it easier to access your digital funds, they are also not as secure as some other types of wallets.
Mobile Wallet: If you are looking to trade your AAVE coins on the go, then you need a mobile wallet. These are specifically designed for smartphones and have multiple security features along with extended functionality. To store AAVE coins, you can use any wallet that offers support for ERC-20 tokens including Coinbank.
Desktop Wallet: Desktop wallets are like software programs that you can install on your computer. When it comes to accessibility and user-friendliness, they are not as good as web and mobile wallets. However, they are far more feature-rich and offer robust security including two-factor authentication and passphrase protection. Atomic Wallet is one of the most popular AAVE wallets.
Hardware Wallet: If the security of your AAVE coins is your top priority, then the best option available to you is hardware wallets which are also called cold wallets. These wallets store your confidential private keys on a physical device that has zero connectivity. This means that you can only access your tokens if you have physical access to the device. Some of the best wallets that you can use to store AAVE coins include Ledger Nano X, Ledger Nano S and Trezor Wallet.
What Other Coins Can I Trade or Use to Buy Aave?
If you don't want to use fiat currency to buy AAVE, you have the option to purchase the digital currency using other cryptocurrencies. One of the most popular digital currencies to purchase AAVE is Ethereum but you can also use XRP, BTC and more. One of the benefits of using cryptocurrency as your payment mode is that you don't have to incur exchange fees since there's no need for conversion.
What’s the Smallest and Largest Amount of Aave I Can Buy?
Many traders are looking to figure out how many AAVE coins they can purchase while many want to find out the smallest unit of Aave that can be bought. Remember that AAVE is the smallest unit you can buy and there are 30 million total coins out of which 6 million are in circulation. Many platforms allow purchase in fractions but most exchanges will impose limits on the minimum amount for an order ranging from $10 to $30. Most brokers also require a minimum deposit so do your own research before you decide to invest.
Can I Buy Aave Anonymously with no ID? Is it Safe and Legal to Buy Aave?
The majority of the exchanges and broker websites will require you to verify your personal identity before you can invest your money in AAVE. This procedure is required to ensure compliance with KYC and AML regulations which help crypto platforms provide a secure trading environment. That's exactly why we recommend that you shouldn't buy AAVE anonymously. Instead, you should trade AAVE coins through a regulated and secure exchange or broker website.
Having said that, if you still want to purchase AAVE anonymously through a certain platform, ensure that you have researched it and have taken all the measures that are required to keep your fund secure as your transactions will not be traceable if you buy anonymously.
Will Buying Aave Make Me Money?
This depends on a multitude of factors and you will need to find the answer yourself. It is essential that you familiarise yourself with the Aave platform and its native token. We recommend that you read the analyses and opinions of renowned analysts, familiarise yourself with graphs and charts, and keep an eye on market factors that can have an impact on AAVE's price. If you wish to read more about the price history of this token, please see our AAVE Price Page.
How to Spend your Aave
Aave is not a conventional blockchain. Instead, it is a protocol that facilitates lending and borrowing of cryptocurrencies with a native token. That's why you cannot use AAVE coins for purchasing products and services through online retail outlets. However, the cryptocurrency can be used for staking to earn more coins and voting on upgrades and changes to the protocol.
How to Sell your Aave
Selling AAVE tokens using an exchange is relatively convenient and simple. Simply transfer the tokens and sell them on an exchange. The easiest way to sell your AAVE coins is through a broker or exchange website. You will find this option to be one of the most basic features on a multitude of crypto platforms including exchanges and broker websites. If you hold AAVE CFDs, you can sell them much quicker through a broker service.
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Frequently Asked Questions
Aave was developed by Stani Kulechov and it was initially called ETHLend.
Aave is a crypto lending and borrowing protocol and you can use it to acquire or loan your funds to earn profits.
Unfortunately, AAVE cannot be mined. Aave is a proof of stake based project which means that it doesn’t use computing resources to mint coins.
Built on the Ethereum network, Aave is an open-source project which is managed and governed by its community.
It is dependent on the country you live in. You will need to check local regulations and laws before you invest your money in Aave or any other cryptocurrency.
Just like any other cryptocurrency, Aave is also vulnerable to market variables including supply and demand dynamics. That’s why Aave along with other altcoins witness such dramatic fluctuations.
The purpose of the Aave network is to be a crypto borrowing and lending platform which means becoming an alternative payment network isn’t the main goal.
Once again this depends on the tax regulations of the country you live in. Check your taxation laws to find out if you will need to pay taxes on capital gains earned through cryptocurrency investment.