Simplecryptoguide.com

Simplecryptoguide.com

How To Buy Aave (AAVE)

Global:

Coinbase
Binance

United States:

Coinbase

Start by creating your account by clicking one of the buttons above.
Sign up with your email address or mobile phone number, and choose a strong password.
Before you get started and buy anything, you first need to verify your identity.
Then simply scroll down on this page to the exchange you have chosen and follow the steps.

 

Coinbase

  • Step 1: Select ‘Buy/Sell’ from your dashboard
    Once your account is verified there are two main ways to buy.
    By linking your debit/credit card or by linking your bank account.

  • Step 2: Start buying Aave (AAVE)
    You are now led to a new page where you can proceed with your Aave (AAVE) purchase.
    Select your preferred local currency and enter the amount you want to spend.

Binance

  • Step 1: Select ‘Buy Crypto’ from your dashboard
    Once your account is verified there are two main ways to buy.
    By linking your debit/credit card or by linking your bank account.

  • Step 2: Start buying Aave (AAVE)
    You are now led to a new page where you can proceed with your Aave (AAVE) purchase.
    Select your preferred local currency and enter the amount you want to spend.
    Note that not all local currencies can be converted directly into Aave (AAVE) – If this option is not available for you, simply follow the two remaining optional steps to complete your purchase.

  • Step 3: (optional) Start by buying Binance Coin (BNB)
    Select your preferred local currency and enter the amount you want to spend.
    We will then be converting that directly into Aave (AAVE).
  • Step 4: (optional) Convert Binance Coin (BNB) into Aave (AAVE)
    Return to your dashboard, then under the ‘Trade’ tab you will select ‘Convert’.
    From there you can directly convert your Binance Coin (BNB) into Aave (AAVE) based on the current market price.

For more in-depth instructions, our ‘Get Started‘ guide will take you through the process step-by step.
In addition to providing instructions for sending and receiving your cryptocurrency. And our ‘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 (AAVE) is a decentralized financial protocol running on the Ethereum blockchain. Founded in 2017 by Finnish entrepreneur Stani Kulechov, the platform comprises a series of smart contracts that facilitate, sans middleman, the lending and borrowing of more than a dozen cryptocurrencies. 

Interest-yielding digital assets deposited on the platform are authenticated and kept safe autonomously via a distributed network of computers (as opposed to one singular company). 

Assets go into their own large, Aave-software-enabled liquidity pools tapped by borrowers. Aave’s system of smart contracts sets rates, whether fixed or variable. Only borrowing up to the value of posted collateral, users get special tokens, dubbed “aTokens,” which are pegged to the value of that collateral and encoded, allowing lenders to receive interest. For instance, a user who deposited DAI would receive an “aDAI” token in exchange.

Interest on a Token accrues and compounds almost continuously with each new block on the Ethereum blockchain. Depositors can redeem the tokens at any time, receiving both their original deposit plus any interest. As of January 2021, there were upwards of $3.75 billion in deposits earning interest on the platform. That put Aave the network 2nd in terms of global total value locked (TVL). 

AAVE is the platform’s native crypto; it’s a governance token that gives holders a voting interest in future decisions. Investors are incentivized to hold the token by way of reduced fees for using the platform. Holders of AAVE can also stake their funds into the protocol’s security module used to cover deposits in the event of a liquidity shortfall. 

Currently, some 25% of the total AAVE in circulation is staked to the security module, with depositors receiving a 6.1% annual percentage rate for doing so. 

Key to the platform’s appeal: flash loans. These are extremely short-term, uncollateralized loans issued and settled almost instantly. Flash loans require repayment before the block on which the transaction appears is authenticated. Such loans commonly are utilized by sophisticated traders or developers in need of short-term liquidity solutions.

Official website: https://aave.com/

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