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How To Buy Aave (AAVE)?

AAVE 500x286 1 - How To Buy 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

 Binance

Create Binance Account - How To Buy Aave

Fees (Maker/Taker)            0.075%*-0.1%*

Cryptocurrencies
Available for Trade                             500
+

Sign-up bonus
 10% reduced trading fees*

Available in
Europe, Asia, Oceania, Africa

2

 Coinbase

Create Coinbase Account - How To Buy Aave

Fees (Maker/Taker)             1.49%*-3.99%*

Cryptocurrencies
Available for Trade                              75
+

Sign-up bonus
 $10 sign-up bonus*

Available in
North America, South America, Europe, Asia, Oceania, Africa

3

 FTX US

Create FTX US Account

Fees (Maker/Taker)            0.10%*-0.40%*

Cryptocurrencies
Available for Trade                             45
+

Sign-up bonus
 5% reduced trading fees*

Available in
North America, South America, Europe, Asia, Oceania, Africa

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.

Due to Aave being one of the leading decentralized finance (DeFi) protocols, the AAVE token is one of the largest DeFi coins by market cap. Ethereum investors can easily borrow and lend their cryptocurrencies in a decentralized manner through Aave.

ETHLend

Aave’s origins stretch back to 2017. Stani Kulechov and a team of developers released ETHLend in an Initial Coin Offering (ICO) in November 2017. The idea was to enable users to lend and borrow cryptocurrencies with each other by allowing users to post loan requests and offers.
While ETHLend was a novel idea, the platform, along with its token LEND, lost traction heading into the 2018 bear market. Key pain points with the platform were a lack of liquidity and the difficulty in matching loan requests to offers.

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.

Aave also allows users to take out loans in a different cryptocurrency than they deposited. For instance, a user may deposit Ethereum (ETH), then withdraw stablecoins to deposit into Yearn.finance (YFI) to earn a regular yield.
Like ETHLend, all loans are overcollateralized. This means that if one wanted to borrow $100 worth of cryptocurrency through Aave, they would need to deposit more than that amount.
Due to the volatility of cryptocurrencies, Aave includes a liquidation process. If the collateral you provide falls under the collateralization ratio specified by the protocol, your collateral may be liquidated. Note that a fee is charged in case of liquidations. Make sure you understand the risks of depositing funds into Aave before posting collateral.

Other key features

Aave is expanding its scope beyond just money markets. The platform has gained popularity as a place where DeFi users can obtain flash loans.

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).

This allows for those without large amounts of capital to arbitrage and enact other opportunities – all within a single blockchain transaction. For instance, if you see Ethereum trading for 500 USDC on Uniswap and 505 USDC on another decentralized exchange, you could try to arbitrage the price difference by borrowing a large amount of USDC and making quick trades.
Apart from flash loans and other features, Aave is also working on a non-fungible token (NFT) game called Aavegotchi.

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.

AAVE, as a new Ethereum-based ERC-20 token, brought a number of new use cases.

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 decentralizes the DeFi application further and adds an important backstop to the ecosystem to mitigate black swan events.

Official website: https://aave.com/

Market Overview

Coinmarketcap.com

Find the latest AAVE (AAVE) price chart, trade volume, market cap, and other vital information to help you with your cryptocurrency trading and investing.

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).

CMC - How To Buy Aave

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