How To Buy Aave | Ultimate Guide To Buy AAVE
Aave (AAVE) is a decentralized lending platform based on blockchain technology. It allows users to borrow and lend crypto assets in a decentralised manner, and is one of the leading DeFi (decentralised finance) protocols.
Formerly known as EthLend, Aave was born after a rebrand in July 2020, and became one of the fastest growing tokens in crypto. Aave V2 recently launched, adding Layer 2 scaling capabilities for lower fees.
This guide will address your concerns regarding AAVE tokens, giving you the necessary information to ensure you make informed and smart investment decisions. We will provide all the latest data, tips and steps to buy AAVE.
5 Steps to Buy Aave Instantly!
1Visit our recommended platform to buy Aave by clicking the button below.
2Enter your details in the required fields to create a new account.
3Fund your account using your preferred payment method and confirm your new balance.
4Choose Aave and select a "Instant/Market Order” to buy it instantly.
5Enter the amount you want to buy (you’ll see the equivalent in AAVE) and confirm your order!
Our Recommended Platform to Buy Aave
If your intention is to learn about the various processes involved in purchasing AAVE tokens, you need to read to the end of the page to get all the information you need. You might also know the processes and need help in knowing where to buy the coins or how to store them properly.
To help you with that, we have chosen one of the leading platforms to purchase AAVE tokens at the moment, so you can go ahead with your mission.
Where to Buy Aave in 2021
There are various places to purchase AAVE. If you believe in the project and think that it will perform well over the medium or long term, then you should use a crypto exchange to buy the cryptocurrency. This is because crypto exchanges allow you to buy and store a cryptocurrency for a long time.
On the other hand, if your interest is to enjoy quick returns on your AAVE investment, then we recommend using a reputable online cryptocurrency broker to buy the token. The brokers offer CFDs and futures contracts, allowing you to bet on the price-performance of the Aave coin. This way, you can trade the AAVE token without buying or storing the underlying asset.
How to Buy Aave with a Broker
Choosing the right broker is key to becoming a successful Aave investor. The cryptocurrency market is growing, which means that the number of brokers available to you is rising. However, not all of the brokerages are regulated. Finding information about the reputation of a broker shouldn't be hard as they are usually well publicised. Furthermore, user reviews can give you further insight into how the brokerage firm operates and if they are trusted.
Before buying AAVE tokens with a broker, you need to consider factors such as effective user interface, security, liquidity, and more.
1. Register with the Broker
Opening an account with a broker is a swift and easy process. Some of the brokers only require you to get a username, provide an email address, and set a strong password. The preferred password selection usually contains 6-20 characters with at least one capital letter, number, or symbol. Also, some brokers make it easy for users to sign-up by using their existing Google or Facebook accounts. eToro, Plus500 and Pepperstone have easy registration processes. Usually, the registration process takes only a few minutes. These are top-notch brokers that grant traders access to cryptocurrencies.
2. Verify your Identity (KYC Process)
After opening an account with a crypto broker, you will be required to verify your account by submitting the needed documents. The verification process takes roughly 24 hours, but it is automated and easy.
The reputable brokers will require you to complete the standard KYC (Know Your Customer) process, which involves submitting an official ID like a driving license or a passport, proof of residence and sometimes proof of earning. The process is designed to provide greater customer protection.
AML and KYC regulations make the cryptocurrency space more professional and secure, hence boosting adoption. For this reason, several companies are encouraged to set up KYC and AML regulations to provide better protection for themselves and their customers.
Deposit Funds with your Preferred Payment Method
After completing your account verification, you are ready to fund the account and start trading the available cryptocurrencies. You are free to select from the wide range of payment methods provided by the broker. When choosing a payment method, you should consider the following:
The payment method you choose comes with its terms and conditions. PayPal is a great option due to its convenience and low fees, but not all platforms adopt it as a payment option. Credit and debit cards have higher transaction fees. Hence, consider all these factors before deciding on the payment option. Furthermore, ensure that your deposit is successful before you move to the next stage.
4. Open a Position to Long/Short Aave
Some traders lose money because they open long or short positions before they understand what they are, ultimately losing money in the market. Hence, it is crucial to understand the differences between the two before trading AAVE.
Investors who believe that the prices of the coins will increase and intend to make money from the value appreciation open long positions. The investors sell their investments at a later date in hopes of a profit, and they are known as bulls.
On the other hand, investors that open short positions are betting that the price of Aave will decline. If that happens, then they make instant profits. This set of investors is known as the bears. By understanding these principles and how they work, you can use both short and long positions to trade the AAVE tokens.
When using a brokerage platform to trade, it is important to set your risk management limits. These platforms have risk management limits like stop loss and take profit orders to help you take profit or stop a loss on a trade automatically.
5. Close your Position
To ensure that you don't sustain any losses from your trades, you have to implement proper risk management techniques. This is done by setting your stop losses or taking profit limits, making it possible to close your positions automatically.
The cryptocurrency market operates 24/7, and you can't monitor your trades all the time. Setting these limits ensures that your order is executed even when you are away from your computer or busy with other activities. We recommend learning everything about closing positions via the educational resources available on the platform or this website.
How to Buy Aave with an Exchange
Investors who intend to hold Aave tokens for a long time usually buy them from cryptocurrency exchanges. These investors are bullish on the prices of the particular AAVE token they are buying.
For this reason, you need to choose a crypto exchange that suits your investment needs and provides competitive rates for you to deposit funds, buy the coins, and withdraw your funds. The trading fees on exchanges vary, and this is because some platforms offer better security or extra features to the traders and investors.
To ensure your funds are always safe, make sure you consider the regulatory status of a crypto exchange. Some crypto exchanges don't play by the rules put in place by financial regulatory agencies, which means they have no real oversight. We recommend choosing a crypto exchange that is regulatorily compliant as it will offer your investment a level of protection that is absent from the non-regulated platforms.
1. Set up an Aave Wallet
Since Aave is on the Ethereum blockchain, you need to set up an Ethereum wallet before you can buy your AAVE coins. Setting up an Ethereum wallet might seem like a lot of work, but even those new to the cryptocurrency space can do so within a few minutes. You only need to follow the necessary steps and take your time doing it.
It is crucial to know that you have options when setting up your Aave wallet. We will explore the various paths to enable you to make informed decisions when you are ready to set up a wallet.
- Exchange/Online wallets: Keeping your Aave tokens on an exchange or online wallets is riskier than the other options. This is because crypto exchanges don't offer the same level of security the other wallet types offer. However, some exchanges have increased their security in recent years, and you can leave some of your Aave funds there.
- Desktop wallets: You can also save your AAVE tokens on desktop wallets with Ethereum functionalities. Ensure that the wallet provider supports the AAVE token.
- Cold wallets: These are also called hardware wallets, and they are the best way to store your AAVE tokens for long-term investment. They are hardware devices that use standard security features like protocols, hardware chips, and certifications to ensure your crypto funds remain safe at all times. The wallets, such as Ledger and Trezor, are offline, making it harder for hackers to access your funds.
As an investor, you have to take responsibility for the safety of your funds. Ensure you protect your wallet using security features such as 2FA, strong passwords and more. TREZOR One, MetaMask, Ledger Nano, and KeepKey are some popular Aave wallet choices.
2. Choose and Join an Exchange that Offers Aave
As mentioned earlier, you have options when it comes to leading crypto exchanges. Some of the leading exchanges that support AAVE tokens include Binance, KuCoin, and more. Ensure you analyse the features of each exchange and choose one that fits your trading or investment needs.
You shouldn't expect the registration process to be the same since the exchanges operate differently. Some of the exchanges comply with KYC protocols, while others only demand basic data like names and email addresses. However, we recommend trading with regulated exchanges.
3. Choose Your Payment Method for Buying Aave
After selecting the crypto exchange you believe suits you, the next step is to decide how you intend to pay for the AAVE token you want. Our recommendations allow you to pay directly using a credit or debit card. If this is your first time, it is perfectly normal for your bank to call you and notify you of the pending transaction and ask if it was intentional.
Another recommended method is to link your bank account to your exchange account and deposit or withdraw the funds with ease. Since you are dealing with AAVE tokens, you can purchase them with other paired cryptocurrencies like ETH or BTC. You can buy the ETH or BTC and swap it for the Aave token.
Regardless of your payment method, it is advisable to buy your Aave tokens from an exchange that requires verification. This lets you know that you are protected.
4. Place an Order to Buy Aave
Aave tokens are built on the Ethereum blockchain, which means you sometimes need to buy ETH or BTC before purchasing the tokens. You can purchase the ETH or BTC coins and swap them for the AAVE token on your cryptocurrency exchange.
Choose the fiat currency you intend to use and how much you want to deposit. The funds are automatically converted to how much ETH or BTC you will receive according to the current market rate. Complete the process to buy ETH or BTC. The funds will appear in your account within minutes. Use the ETH or BTC to purchase the Aave token.
5. Safely Storing your Aave
After buying the AAVE tokens from a crypto exchange, you can transfer them to your private cryptocurrency wallet. The process is easy and doesn't cost a lot. Transferring your coins to cold storage wallets is recommended for investors who wish to hold their coins for a long time. However, if you are only holding for the short-term, it is best to leave your investment in the wallet provided freely by the exchange, thereby avoiding any withdrawal charges.
If your funds are in a cold storage wallet and you want to transfer them, you will have to use your public key. Insert the public key into the 'recipient address' field of the withdrawal request and choose the amount of the tokens you wish to transfer.
We recommend enabling 2FA on your wallets, ensuring that an additional code is needed to initiate a transaction. This is for the safety of your funds at all times.
Should you Buy or Trade Aave?
Buying and trading an AAVE token isn't the same thing. Furthermore, trading a cryptocurrency via a broker differs from an exchange. If you wish to be a successful crypto trader, you need to understand your strategy clearly. Trading is better suited to those looking for short-term profits, whereas buyers need not learn how to trade, and won’t have to worry about short-term price volatility.
What's the Difference between an Aave Exchange and a Broker?
Some people confuse brokers with exchanges. However, the two provide different services to cryptocurrency investors and traders. A crypto exchange facilitates trades between various digital currencies. Exchanges allow you to trade the leading cryptocurrencies such as ETH, BTC and USDT against other altcoins and tokens. Furthermore, if you wish to get the best exchange rate for AAVE tokens, then the best place to purchase them is on crypto exchanges.
On the other hand, online cryptocurrency brokers are the best place to go if you intend to leverage the volatility of the cryptos to earn passive income. The brokerage platforms are regulated and provide a safe way for people to earn money via Contracts for Difference (CFDs) and futures contracts. The major difference between an exchange and a broker is that the crypto exchange allows you to hold the actual AAVE tokens. In contrast, brokers allow you to invest in them without actually holding them in your wallet. The brokers offer leverage, which, if used properly, can increase your investment earnings.
Aave: Long vs. Short Term Investment
As a crypto investor, it is crucial to know the fundamental difference between short and long-term investments. As a long-term investor, you will buy a cryptocurrency and hold it for a significant period of time (sometimes for years). You now need to know where to buy Aave tokens. If you fall into this category, buying and storing the Aave tokens via reputable crypto exchanges is the best option for you. You can move the coins to hardware wallets like Ledger or Trezor for safekeeping.
However, if you don't support Aave’s long-term vision and want to hold the coin for the short-term and make a profit, then using a broker is the best way to go. You will need to register with a reputable broker to bet on the price movement of the token. Using a brokerage platform is also recommended for people who don't want to go through the stress of setting up an external wallet and always keeping in touch with developments in the industry.
3 Tips to Buy Aave
Although you have learned the various buying and trading AAVE processes, there are certain things you need to know before you proceed.
1. Choose the Right Time and Do Your Own Research on Aave
DYOR (do your own research) is a popular phrase within the crypto space, and there is a good reason for that. As an investor, you should take your time and carry out extensive research on an AAVE token and the project it represents. Do not rely on a single source when getting information about the token you intend to buy. Read the opinions of numerous experts and check out news sites to get the latest information about the token.
You can leverage this to know when opportunities arise in the market. As a professional trader, you have to constantly look at the technical indicators for trends and key levels to buy and sell the tokens. You will need technical analysis to become a successful trader.
2. Comparing Costs to Buy Aave
Some traders overlook this but comparing the rates between exchanges and brokers can save you a lot of money. You need to know the charges you will incur when you buy a cryptocurrency from an exchange or a broker and compare it with another trading platform. The fee structures on exchanges differ, which means you need to know what you are getting and choose the best platform for your needs.
3. Safety and Security when Buying Aave
Some investors are so focused on buying a coin at certain moments that they fail to properly look at the security protocols put in place by the platform they intend to use. Security is a crucial area of crypto trading and investment, which is why we have mentioned it numerous times in this post. The security protocols implemented by the platforms help protect your funds and personal information. Ensure that the platform has adequate security measures in place before you deposit any money with them.
What is the Best Payment Method to Buy Aave?
- Buy Aave with cash: P2P (peer-to-peer) exchanges will allow you to buy Aave tokens from an individual using cash. Be aware that this method carries more risk, as buyers have little recourse if the trade goes awry.
- Buy Aave with Credit Card: Buying ETH or BTC and swapping it for an AAVE token, a fast option.
- Buy Aave with Bank Transfer: Depositing funds to buy ETH or BTC and swapping it for an AAVE token. Low fees for this option.
- Buy AAVE with Bitcoin: For those who want to acquire Aave tokens by using major cryptos such as Ethereum and Bitcoin.
- Buy Aave with PayPal: Buying ETH or BTC and swapping it for an AAVE token. The PayPal payment feature is not available in all countries.
Other Ways to Buy Aave
The methods explained above are the most common and practical ways to buy and trade Aave tokens. However, we feel that you should know all the options available to allow you to make an informed decision whenever you are trading or buying the tokens.
The methods explained below are not so popular, but they are viable options for buying AAVE tokens.
- P2P (Peer to Peer) exchanges allow their users to transfer coins directly between themselves. Here, the platforms connect you to sellers (in case you wish to buy) and buyers (in case you wish to sell). The transaction fees on P2P platforms are the lowest, though it varies based on the network congestion at the transaction size.
- Borrowing: You can get AAVE when you borrow from other holders on the platform.
With this information, you are now set to start your AAVE trading and investment journey. Keep in mind that we have taken the time to select a shortlist of crypto exchanges and brokers that support AAVE tokens. These are companies with stellar reputations, and have become very reliable.
Frequently Asked Questions
No, fees are how crypto exchanges and brokers make money. Purchasing AAVE tokens through one of our recommended exchanges or brokers does not incur high fees, however.
Yes, you can. You can buy the Aave tokens using other coins such as BTC and USDT.
You can trade the Aave tokens for short-term profits or store them in a wallet and hold it for long-term gains. Furthermore, you can use the AAVE tokens for other activities such as staking.
The decision on when to buy AAVE tokens depends on you. This post aims to give you the necessary information to make an informed trading decision.
The legality of buying Aave tokens depends on which part of the world you live in. Some countries have banned crypto trading platforms, making it tough for traders and investors to buy Aave tokens and other cryptocurrencies. However, in most countries, buying Aave tokens is safe and legal.
You can store the Aave tokens on desktop wallets, exchange wallets or cold storage wallets. However, it would be best if you prioritise the security of your coins when deciding on the wallet to use. Cold storage wallets offer the best security, and you can use a Ledger or Trezor model to store your AAVE coins.
You can get the latest AAVE news from our platform. We provide you with the latest news regarding the entire cryptocurrency market. Also, there are other leading news platforms you can explore to get the latest information.
The amount you invest in the coin is for you to decide. However, you need to consider several things before you make this decision. You need to look at your risk level and how much you have spare to invest in the token.