With the rise of lending and borrowing circles in the DeFi community, many users shifted their interest to the AAVE (AAVE) protocol. Recently, users ask interesting questions such as “How to buy AAVE (AAVE)” or “Where to buy AAVE?”
If you’re curious about AAVE, you can learn a lot from reading and understanding this article. We will show you the basics of buying AAVE and some easy ways to protect your new crypto investment.
AAVE Buying Guide
Step 1: Register For An Account In An Exchange That Supports AAVE
To start buying AAVE, you must create an account in a crypto exchange. Finding this exchange is easy because there AAVE is popular and widely accepted today.
Always remember that cryptocurrency exchanges differ from one another. Some of them have high-scale functionality while others have premium-grade security and reasonable fees. Other exchanges also have sign-up bonuses.
- 500+ Cryptocurrencies Available for Trade
- Fees (Maker/Taker) : 0.075%*-0.1%*
- Sign-up bonus: 10% reduced trading fees*
- Available in Europe, Asia, Oceania, Africa
- 300+ Cryptocurrencies Available for Trade
- Fees (Maker/Taker) : 0.020%*-0.070%*
- Sign-up bonus: 5% reduced trading fees*
- Available in Europe, Asia, Oceania, Africa
- 150+ Cryptocurrencies Available for Trade
- Fees (Maker/Taker) : 1.49%*-3.99%*
- 10$ Sign up bonus
- Available in North America, South America, Europe, Asia, Oceania, Africa
Registering for an exchange account will take only a few minutes. To start, you must enter your basic information details such as full name, email address, and a custom password. Some exchanges may require you to input a phone number.
Highly regulated crypto exchanges may ask you to fill up a KYC (Know Your Customer) form. The KYC process is a security option implemented by financial organizations as well.
Step 2: Deposit Funds to Your Exchange Account
Before buying an AAVE token, you must add funds to your registered account. Depositing funds is easy because crypto exchanges allow users to purchase AAVE through fiat currency. Some of the common examples of fiat currency are AUD, CAD, USD, and EUR. You can also add funds to your account through debit cards, credit cards, bank transfers, and convenient e-wallet transfers.
Crypto exchanges offer various payment methods. These methods possibly have higher fees than the ones you’re comfortable using. So, before adding funds to your exchange account, do your own research about the relevant fees. This way, you can prioritize the best method for your current budget.
Step 3: How to Buy AAVE Officially?
Learning how to buy AAVE isn’t too confusing. The first thing you have to do is to go to an exchange’s search bar. Most of the time, the search bar is located on top of the web page. Once you’ve located the search bar, start looking for AAVE. You can also look for AAVE trading pairs. Afterwards, simply enter the amount of the AAVE tokens that you want to buy.
Always double-check the transaction details to avoid errors or inconsistencies. Additionally, crypto exchanges will also refer you to their exclusive wallet software. This wallet is necessary for storing your crypto coins and tokens. However, you always have the option to create an individual software wallet. If you have extra money to spare, you can even purchase a highly encrypted hardware wallet with top-notch security features.
Everything You Have to Know About AAVE
AAVE is a competent, decentralized liquidity system that invites users to become crypto depositors or borrowers. Through the AAVE protocol, you can apply for stable rate loans and also lend such loans to other users. By lending your tokens, you can earn generous returns over time.
Currently, AAVE has a large supply of circulating tokens in the global DeFi community. This large token supply contributed to the popularity of AAVE, attracting many investors far and wide.
The AAVE protocol is the result of the discontinued ETHLEND platform. In 2018, the ETHLEND system suffered from massive liquidity problems. Thus, the Core Team focused on the functions of AAVE and its steady growth.
What Makes AAVE Unique?
The AAVE protocol is unique because of its dynamic lending-borrowing framework. If you want to take out a loan through AAVE, you must go through a pool of dedicated funds or tokens. This process is different from the common peer-to-peer lending system where the borrower should match with the lender. The interest rate and return rate depend on the utilization level of the pool, making the system more enticing to potential depositors.
You can also take out an AAVE loan using a different cryptocurrency. Before choosing a different cryptocurrency, you must know that AAVE protocol loans have higher collateral. So, you must deposit a higher amount of funds for the cryptocurrency that you want to borrow.
The AAVE system will also help you hedge risk through debt swapping and timely margin-based deposits. Through efficient timing, you can gain noticeable returns from the AAVE protocol.
Who Are the Founders of AAVE?
The Founder and CEO of AAVE is Stani Kolechov. Before leading AAVE to its current status, Kulechov utilized his skills to support various initiatives in crypto and blockchain circles. Eventually, he became a renowned mentor and advisor to blockchain project leaders and well-developed ICOs.
Stani Kulechov is also a well-respected speaker at many FinTech events.
What Are the Use Cases of AAVE?
Most of the use cases AAVE are related to crypto lending and borrowing. If you want to benefit from the AAVE protocol, you must understand its main purposes.
Check out the common use cases of AAVE:
- AAVE Flash loans
- Collateral trading
- Debt swapping
- Lending and borrowing
Official website: https://aave.com/
Essential Points of the AAVE Whitepaper
The AAVE whitepaper focused on many important points related to crypto lending and borrowing. Reviewing the aspects of the AAVE whitepaper is essential to understanding the structural framework of the protocol.
Check out the strong points of the AAVE whitepaper:
- Debts in the AAVE system are represented as tokens
- Lending through credit delegation (i.e. lenders open credit lines to other addresses)
- Flash loans with possible high returns
- AAVE liquidation process (for risk management)
- Collateral repayments
The Best Cryptocurrency Wallet for AAVE (AAVE)
After knowing how to buy AAVE, you should consider the security of your cryptocurrencies next. It’s easy to choose from dozens of available cryptocurrency wallets. You just need to understand your trading habits and security preferences.
The first type of wallet that you will likely encounter is a hot storage wallet. Basically, a hot storage wallet is the same as a digital wallet. This type of wallet is always linked to your crypto exchange account, allowing easy access. Hot wallets are also variably cheaper than cold storage wallets. One downside of a hot wallet is its vulnerability to online attacks. You probably need to use extra security measures to keep your hot wallet safe.
The second type of wallet that you should know about is a cold storage wallet. Cold wallets are, practically, physical wallets. One advantage of cold wallets over hot wallets is the security level. A physical cold wallet is encrypted, and it also has tons of reliable technical features. You can even put your valuable cold wallet in a safety deposit box!
What Factors Affect My Choice of Crypto Wallet for AAVE?
Check out the important factors affecting your choice of AAVE wallet:
- Are you fond of trading regularly? If so, then a hot storage wallet is the best choice for you. A hot wallet allows a quick log-in method to your chosen platform or exchange. In less than a minute, the hot wallet will let you trade AAVE without problems.
- Not all hot wallets support a wide range of cryptocurrencies. The best crypto wallets are those that will let you trade hundreds of cryptocurrencies easily.
- When it comes to security, a cold storage wallet is better than a hot wallet. You’re in full control regarding the security aspects of a cold wallet.
- Setting up a digital wallet is free. On the other hand, you must spend money to get a reliable cold wallet.
- Do you care about detailed analytics? In that case, you can never go wrong with hot storage wallets. Most of the time, hot wallets generate technical analytics for making useful market insights.
Do you want to know how crypto wallets work? Check out our “Crypto Wallets Overview” article to know more!
Ledger Nano vs. Trezor – Upgrading Your Wallet
Now that you already know how to buy AAVE, you can go all-out by buying a high-quality cold wallet. Getting a cold wallet will protect your AAVE tokens and other cryptocurrencies for a long time.
You can start by shopping around for the popular products of Ledger and Trezor.
Ledger is a popular cold storage brand because of its premium-grade security parameters. The Ledger hardware setting will only allow crypto sending if it is connected to your computer and exchange account. Additionally, Ledger wallets have different aesthetically pleasing styles.
Trezor is a great alternative if you care about seamless UI and flexible technical features. With Trezor’s impressive UI, you can engage in fast and efficient trades. Trezor’s security level is also competent enough for long-term cryptocurrency trading.
General Market Overview for AAVE
Do you want to learn more about AAVE and other cryptocurrencies? Check out our cryptocurrency blog and get the information that you need!
Here are the common topics in our blog:
- Trading speculation about AAVE (AAVE) and other cryptos
- The current market prices of cryptocurrencies
- Detailed crypto price charts with a comprehensive history
- Approximate current supplies of most crypto coins and tokens
- Whitepaper summaries of cryptocurrencies