How To Buy Aave (AAVE)?
A common question you often see on social media from crypto beginners is “Where can I buy AAVE?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy AAVE on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Aave (AAVE)
First, you will need to open an account on a cryptocurrency exchange that supports Aave (AAVE).
We recommend the following based on functionality, reputation, security, support and fees:
1
Bybit
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2
Binance
Fees (Maker/Taker) 0.075%*-0.1%*
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3
MEXC
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Aave (AAVE) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Aave (AAVE)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Aave (AAVE) or Aave (AAVE) trading pairs. Look for the section that will allow you to buy Aave (AAVE), and enter the amount of the cryptocurrency that you want to spend for Aave (AAVE) or the amount of fiat currency that you want to spend towards buying Aave (AAVE). The exchange will then calculate the equivalent amount of Aave (AAVE) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Aave (AAVE) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
Simplecryptoguide.com
What Is Aave (AAVE)?
AAVE is the native governance token of the Aave protocol. Holders of the Ethereum-based cryptocurrency can discuss and vote on proposals that affect the direction of the project.
ETHLend
So, through the 2018 and 2019 bear market, the ETHLend team overhauled its product, releasing Aave at the start of 2020.
In a podcast, Kulechov said that the bear market was one of the best things that could have happened to ETHLend. This is in reference to the opportunity he and his team was given to revamp the concept of decentralized cryptocurrency lending, creating what we now know as Aave.
How Aave works
The new-and-improved Aave is similar in concept to ETHLend. Both allow Ethereum users to obtain cryptocurrency loans or earn a return by lending out their holdings. But, at their core, they are different.
Aave is an algorithmic money market, meaning loans are obtained from a pool instead of being individually matched to a lender.
The interest rate charged is dependent on the “utilization rate” of the assets in a pool. If nearly all assets in a pool are used, the interest rate is high to entice liquidity providers to deposit more capital. If nearly no assets in a pool are used, the interest rate charged is low to entice borrowing.
Other key features
More often than not, there is much more liquidity in Aave’s money-market pools than loans required by borrowers. This unused liquidity can be used by those that take flash loans, which are uncollateralized loans that only exist for the span of one Ethereum block.
Basically, a flash loan allows a user to borrow a large amount of cryptocurrency without posting collateral, then return the loan within the same transaction (as long as they pay the one-block interest fee).
Enter AAVE
While ETHLend rebranded as Aave, its token LEND stuck around. This was a concern because LEND did not have the proper code to work in the way that the Aave team wanted. Namely, LEND holders could not control the direction the Aave protocol was heading in.
This was an issue as Aave garnered an increasing amount of liquidity and its users couldn’t enact change on the protocol. Then, it was proposed that LEND would be transitioned to a new coin called AAVE at a 100 LEND to one AAVE ratio.
First, AAVE holders will act as a backstop for the protocol. The release of AAVE introduces a new concept called “Safety Module,” which protects the system from a shortage of capital. This means that if there isn’t enough capital in the protocol to cover lenders’ funds, the AAVE in the Safety Module will be sold for the assets needed to cover the deficit.
Only AAVE that is deposited in the module will get liquidated for the deficit. Deposits into the module are incentivized with a regular yield paid in AAVE.
AAVE’s second key use case is related to the governance of the Aave protocol. Holders of the cryptocurrency can discuss and vote on Aave Improvement Proposals, which can be implemented if accepted by a minimum number of AAVE tokens. This includes changing the parameters of Aave’s money market, along with managing the funds in the ecosystem reserve. Like with many other governance tokens, one AAVE is equal to one vote.
AAVE development updates in 2023
Aave (AAVE) experienced several noteworthy developments in 2023, emphasizing its ongoing role in the decentralized finance (DeFi) landscape:
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GHO Stablecoin’s Struggle and Recovery: A significant event for Aave in 2023 was the journey of its GHO stablecoin. Initially struggling to maintain its peg to $1, GHO saw improvements thanks to targeted strategies. These efforts, led by TokenBrice, a DeFi engineer, involved innovative liquidity strategies on the Maverick DeFi protocol.
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Price Volatility and Predictions: Aave’s price experienced significant fluctuations throughout the year. Analysts projected a wide range of future prices for AAVE, reflecting the speculative nature of the cryptocurrency market.
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Whale Activity: A notable instance of whale activity occurred in June 2023 when an entity known as “0x5a80” accumulated $31.8 million worth of AAVE, causing a 30% price increase. This event highlighted the impact of major players on market dynamics.
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Aave’s Evolution and Growth: Since its initial launch as ETHlend in 2017 and rebranding to Aave in 2018, the platform has continued to evolve. It supports various ERC-20 tokens and features like liquidity pool token exchanges and flash loans.
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Resuming Operations After Security Vulnerabilities: Aave successfully resumed operations of its V3 markets after implementing measures in response to security vulnerabilities. This included unpausing affected Aave V3 markets and updating stable borrow parameters for tokens with stable debt.
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Development Update on GHO Stability Module: In August 2023, the Aave development team provided an update on the GHO Stability Module (GSM), including several security audits from DAO and external service providers. This included audits by SigmaPrime, a security review by BGD Labs, and formal verification by Certora.
These developments underscore Aave’s adaptability and innovation within the fast-paced world of cryptocurrency and its significant impact on the DeFi ecosystem.
Official website: https://aave.com/
Best cryptocurrency wallet for AAVE (AAVE)
There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.
HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for AAVE (AAVE)?
Deciding which type of wallet to use depends on a variety of factors, including:
- How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades.
- What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
- Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
- How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
- What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.
For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.
If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.
Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).
Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).
Market Overview
Coinmarketcap.com
Coinmarketcap will be your cryptocurrency go-to for just about everything. Here you can see the following:
Market Capitalization And Daily Trading Volume
Current Market Price Of Every Cryptocurrency Relative To USD (And Some Local Currencies)
Circulating And Total Supply
Historical Charts With Prices Relative To USD, Bitcoin (BTC), And Ethereum (ETH).
