Aave is a DeFi protocol that has established itself as one of the leading lending and credit protocols on the Ethereum network. As a result, investors sought to buy AAVE as the protocol attracted high network capital. By the end of March 2022, the AAVE token was back pumping above $200, scoring a rally of more than 30% in a single day.
If it has found a bottom, now might be a good time to invest for its next bull cycle. This guide covers where to invest in Aave using secure regulated platforms.
Where to buy Aave
As a pioneer of the DeFi protocol, its native token is available on almost every cryptocurrency exchange. If you want to buy AAVE like a pro, you need to consider which exchange has the best deal, taking into account the fees, deposit options, security and liquidity of the exchange.
Aave has a total blocked value (TVL) of $12.55 billion and is DeFi's top-three protocol according to TVL. The metric indicates that users have confidence in the security of the protocol and translates into more exchanges offering Aave investment opportunities. With so many exchanges offering AAVE as an investment, we reviewed some of the best options for you.
1. eToro - Excellent platform for investing in Aave.
eToro does not resemble an ordinary cryptocurrency exchange, which is why we chose this platform as our number one. Unlike existing cryptocurrency exchanges, eToro focuses more on the social trading aspect than on the analytical approach.
eToro is a social trading platform regulated in top jurisdictions around the world, with a focus on diversified asset trading. The platform offers a wide range of trading opportunities and includes access to ETFs, commodities, stocks and finally cryptocurrencies. As such, this popular cryptocurrency broker Supports some of the best altcoins on the market.
As a market leader in the digital brokerage industry, eToro differentiates itself from the masses. It offers traders a distinct set of instruments than those already traditional for the trading business. To emphasize the social component in trading, eToro has created a channel that allows traders to interact with each other and share their ideas.
eToro has implemented the CopyTrader feature, allowing traders to copy the trading behavior of another trader. Copy-trading or mirror trading are already popular strategies that have yet to find their way into the cryptocurrency market. Nevertheless, traders can use the knowledge and insights of other traders and generate profits without doing much work.
The platform also has a simple approach to their U.I., making it extremely easy to understand and use. The platform skips the complex trading tools often found on regular cryptocurrency exchanges, and is transparent in its business model.
eToro only generates revenue from the spread, without adding any additional trading fees. Because the platform is regulated in top jurisdictions, eToro is highly regarded, and every tool is implemented to make trading profitable and enjoyable.
Traders can deposit as little as $10 and gain access to a community of more than 20 million traders. To make things easier, eToro allows multiple deposit options, including PayPal, debit/credit cards or alternative payment methods.
2. Crypto.com - All-in-one platform for buying and staking AAVE.
Crypto.com became a widely accepted cryptocurrency exchange when cryptocurrencies were normalized by our culture. Crypto.com is an all-in-one cryptocurrency exchange because its platform unlocks every opportunity to trade cryptocurrencies.
Traders can gain exposure to more than 250 cryptocurrencies while accessing DeFi protocols, where they generate passive income without having to leave the platform. Users can earn up to 14.5% interest on stablecoins if they keep their tokens on Crypto.com.
Crypto.com is one of the first platforms to attempt to tie centralized user behavior to cryptocurrencies and allow users to spend their cryptocurrencies. The platform has partnered with Visa to offer users the ability to spend their cryptocurrency assets and receive up to 8% cashback on their spending. Of course, cashback varies depending on the asset.
The platform integrates more native blockchain features into Crypto.com. For example, users can gain access to the NFT market, exchange tokens or earn rates of return by staking AAVE. In this way, Crypto.com turns into a one-stop store for every cryptocurrency need.
As for fees, Crypto.com has a tier system. The more users trade on the platform, the lower the fees become. Tier 1 starts with a 0.4% fee for the creator and the taker, and the fees gradually decrease if trading volumes increase.
3. Coinbase - Popular platform for purchasing AAVEs
Coinbase is systematically becoming the flagship cryptocurrency exchange for cryptocurrency startups. Coinbase is the only exchange dedicated to cryptocurrencies that has launched an IPO breaking the stigma of cryptocurrencies in the US.
As an exchange-listed company, Coinbase is a transparent company. Coinbase also acts as an escrow service for emerging exchange-traded funds, including Grayscale, which has also filed with the SEC to change their cryptocurrency mutual fund to a point-based ETF. This means that liquidity on Coinbase is not an issue, especially given that the platform is regulated in most jurisdictions where users can trade.
The platform has an easy-to-use interface and, unlike a cryptocurrency exchange, has a somewhat limited number of tokens available for trading. Users can make deposits with their credit cards, and can also use Apple Pay or Google Pay to deposit FIAT.
The focus of Coinbase is on both retail and institutional investors. Coinbase attracts novice traders who are just getting started with cryptocurrencies because the platform offers user-friendly trading tools.
4. Binance - Leading cryptocurrency platform for investing in AAVE and other DeFi protocols.
Binance is the most liquid exchange on the market, with a wide variety of trading. Binance is the number one trading platform in terms of daily trading volume, as it provides investors with more exciting trading opportunities.
Founded by Changpeng Zhao in China in 2017, Binance moved out of China after a law was enacted banning cryptocurrency exchanges. So even though users have to fill out KYC, Binance is only partially regulated. Therefore, Binance offers its users trading options, such as derivatives, futures or margin trading.
Users can deposit via domestic deposit options or use a credit/debit card. Binance has also developed its blockchain (Binance Smart Chain) with its native cryptocurrency Binance Coin(BNB). Unlike previously reviewed exchanges, users can deposit cryptocurrencies from multiple chains, including Ethereum, Solana, Binance Smart Chain or TRON.
What is Aave?
Aave is an Ethereum-based protocol that provides financial opportunities for cryptocurrency users. The protocol became popular when users began to engage with DeFi in the summer of 2020.
Aave is a decentralized financial protocol that allows users to interact with financial products without interacting with third parties. Aave allows users who have cryptocurrencies to borrow or lend cryptocurrencies. Each interaction occurs using ERC-20 token standards.
The idea for the protocol originated in 2017 and was first presented to investors through an initial cryptocurrency offering, or ICO. During the crowdfunding phase, Aave, which was previously titled ETHLend, sold a total of $16.2 million worth of their native LEND token - 1 billion tokens in total. In 2018, the platform changed its name to AAVE, while transforming its approach to the protocol network.
At its core, Aave is a non-custodial liquidity protocol that took the blockchain industry by storm in 2020 after revolutionizing the concept of decentralized finance. Users can use Aave to borrow or lend ERC-20 compliant currencies through a lending pool. Unlike traditional finance, where banks demand collateral to borrow money, users deposit their cryptocurrencies as collateral.
Aave is a for-profit organization, but it has a decentralized autonomous governance model implemented. Thus, token holders govern and direct the protocol by voting with AAVE tokens.
An innovation introduced by Aave is the liquidity pool. Users deposit their assets in liquidity pools and earn annual interest on their deposits. The protocol, in turn, borrows tokens from the pool while paying out interest. In this way, participants in the ecosystem do not have to interact with any other third party. Aave creates a peer-to-peer system enforced through Ethereum smart contracts.
One of the main features of Aave is flash loans, where users are not required to provide Liquidity. Instead, the protocol feature only works if Liquidity is returned in the same block. This has enabled more networks to use Aave's open source as a basis for offering users the listed Liquidity. This is a form of DeFi-related arbitrage trading, where users can make instant trades within a block while profiting from price fluctuations.
The total value locked up on Aave is $11.17 billion, while the network has a total liquidity of $18 billion. While DeFi has moved away from Ethereum due to high network fees, AAVE is still a top-three network according to TVL. Although the interest paid on deposits is lower than other protocols, Aave guarantees risk-free cryptocurrency lending and staking.
Is AAVE a good investment?
To eliminate decision errors, insights into the underlying protocols of the function can indicate whether you should buy AAVE now or wait until the market pulls back further. We think AAVE could be a good investment opportunity because it changes the way users interact with financial products and offers an alternative product.
First mover advantage.
Not surprisingly, Aave is DeFi's top cryptocurrency according to TVL with a total liquidity capital of $18 billion. Aave has a first-mover advantage that conveys trust by providing low-risk passive income. Although the rate of return delivered to lenders on the platform is much lower, the protocol is attracting larger investors, attracting more institutional capital as the DeFi sector matures.
DeFi is still in its early stages of development. However, the blockchain sector has passed its initial hype phase, and the idea behind decentralized finance is beginning to take shape as individuals continue to lose confidence in traditional financial institutions. The next five years will lead to greater adoption of DeFi around the world. As cryptocurrencies become normalized, users will see the value of using DeFi for their financial needs, increasing regulation and adoption for institutions and eventual governments.
First unsecured loans
Aave was a pioneer in the DeFi space after creating the first unsecured loan option. As a result, traders in the space are offering more trading liquidity to expand their trades and perhaps lock in some profits.
Upcoming growth potential
As the cryptocurrency market cooled, retail traders shifted towards risk-free assets. Even so, the AAVE price is more than 200% away from its initial price. If retail mania kicks the bank and users start deploying cash on innovative projects such as Aave or other DeFi protocols, the AAVE price could surpass its previous all-time record of $666.86, and that means 600% in profit.
Aave offers traders the opportunity to generate passive income. Users can borrow through Aave and allocate their new capital to other protocols, generating additional profits. Aave is a gateway to the DeFi space, as it provides additional capital for income farms. In addition, AAVE token holders can stake their assets and increase their holdings without risking any of their portfolios.
Low fees for Ethereum
DeFi was a pioneer on the Ethereum network, which led to the start of the DeFi summer in 2020, when AAVE or CURVE sparked interest for a more transparent financial model. DeFi migrated to other Layer 1s or Layer 2s protocols due to high network fees. With Ethereum 2.0 expected to merge by 2022, Aave will soon lure new users, even if now, with current high gas fees, Aave still offers profitable lending and borrowing.
The AAVE price has not disconnected from Bitcoin. Instead, Bitcoin's price continues to move sideways, directly affecting the possibility of an upward push by altcoins like AAVE. At the time of this writing, AAVE was trading at $75, down about 80% from its previous peak in May 2021, when the AAVE price reached $631 as retail mania tore the market apart.
Over the past 24 hours, AAVE has risen by 1.8%; however, the price is still down 13.8% over the past 14 days. The relative strength index (RSI) has not yet passed the bearish sentiment and is still below the 40 limit. Nevertheless, investors consider the current price range to be the bottom, and users should buy AAVE cryptocurrencies within this range. Data shows that Aave has registered a record number of new users over the past nine months, reflecting the platform's deposit growth.
Aave price forecast
The change in narrative has prompted investors to exit most of their DeFi positions and jump into the NFT trend and metaverse. If we look at the token's previous price action, when interest in DeFi was high, we can put our Aave price forecast above its previous all-time high of $630.
Aave's current market capitalization is in the $1.1 billion range with a fully diluted value of $1.6 billion, showing strong growth potential in the long term. Experts predict that the price of AAVE could reach $5274.25 by 2030 and smash its previous all-time record, as the cryptocurrency enters a new phase of adoption.
In the short term, we can expect AAVE to trade in the $198.52 range, especially if bitcoin continues to move sideways.
Ways to Buy Aave
The benefit of cryptocurrency adoption is that it has reduced the complexity of buying cryptocurrencies. So if you want to know how to buy AAVE cryptocurrency using traditional forms of payment, when here are some options that can get you started:
Buy Aave with PayPal.
PayPal is a friendly platform for millions of people that allows users to transfer funds between friends instantly or pay for services/products securely. Now PayPal has enabled a feature where users of the platform can get exposure to cryptocurrencies and use them to make payments. But if you're looking to invest in cryptocurrencies on PayPal, it's not entirely possible, as PayPal has limited options available. Instead, you can sign up with an international broker such as eToro, which allows PayPal deposits without any deposit fees. Users are then able to purchase AAVE for as little as $10.
Buy Aave with a credit card or debit card.
Everyone has a credit debit card. More people rely on their cards to make payments. However, not every cryptocurrency exchange offers dual deposit options. If you want to invest in Aave with a credit card, you need to consider the credit card fees that regular cryptocurrency exchanges charge for deposits. eToro is an ideal broker because the platform does not charge additional fees while offering exposure to many cryptocurrencies, including AAVE.
Best Aave wallet
Cryptocurrency wallets are essential components of cryptocurrency trading because they ensure the safety of your assets. You can find two different categories of cryptocurrency wallets. Hot wallets are software wallets that are always connected to the Internet and present some form of risk when storing large amounts of AAVE. Cold wallets, on the other hand, are not connected to the Internet. Data is stored on USB and is often recovered when connected to the Internet.
Cryptocurrency exchanges have created a system of hot and cold wallet storage, allowing users to push out a small portion to their active trading account, while most of AAVE's savings are kept in cold storage.
If you are looking for a reliable and highly secure hot wallet, we recommend using the eToro Money Crypto Wallet. Not only does this wallet provide security key recovery features, but it is also GSFC regulated, which adds an extra layer of security to your investments.
Through the eToro Money cryptocurrency wallet, you can trade cryptocurrencies directly on the chain. The platform offers more than 500 trading pairs and supports more than 120 different cryptocurrencies. Users can store the most popular blockchain networks on the wallet. If you know where to buy AAVE now, you also know where to store it safely, even if you have an Android or iOS operating system.How to buy Aave - guide
If you are wondering how to invest in Aave, then follow the steps below:
Step 1: Open an eToro account
Open the eToro website and select "Join Now" to open your account. On the new screen, fill in your full name, set a unique password that no one knows, add your cell phone number and enter your email address. eToro also offers the option to register using a Facebook or Google account. When all the information is currently filled out, click "Create Account."
Step 2: Verification step
Unlike a cryptocurrency exchange, eToro is a regulated platform. Therefore, users must complete the KYC process. First, have your driver's license or passport ready. Then click "Verify," upload your personal document and make sure all information is clearly visible. You'll also need to upload a proof of utility bill or bank statement.
Step 3: Deposit funds
You need to deposit funds to start trading. Click on the button in the lower left corner of the screen that says "Deposit." Add the total amount you want to deposit in the first box with a minimum of 10$. Then choose a payment method and fill in the details. After filling in all the information, tap "Deposit Now" to fund your account.
Step 4: Search for AAVE
Drag the cursor to the top of the page and tap the search box. Type the name of the AAVE token and select trade to open the trade screen.
Step 5: Buy AAVE
Enter the amount you want to invest in your purchase and click "Open Trade" to finalize your action and buy your tokens. You cannot buy more than you have deposited.
How to sell AAVE
When you want to close your position in Aave, simply tap the red cross symbol to the right of your portfolio. To go a step further and withdraw your money from eToro, you can select the "Withdraw" option and choose your preferred withdrawal method. The withdrawal process will then be initiated, and you will have to pay a fee of 5$ for each withdrawal.
The AAVE protocol is an industry favorite and can be considered a great long-term investment because it provides alternatives to centralized financial products in a trusted network.
If you decide to buy AAVE, we recommend using eToro. The platform offers a new and secure way to trade cryptocurrencies thanks to its CopyTrader feature and social platform structure.
FAQ - when purchasing
You can buy AAVE on centralized exchanges or decentralized protocols that support ERC-20 tokens. We recommend using eToro to buy cryptocurrencies, as it is the best place to buy AAVE coin. In addition, the platform has an intuitive and easy-to-understand U.I., even if you are a veteran trader or just starting to trade cryptocurrencies.
You can buy AAVE using centralized or decentralized platforms. The best way to buy AAVE using traditional means such as credit card, PayPal or other methods. We strongly recommend using eToro, as there are no hidden fees.
Yes,AAVE is available on Binance.
Aave is an established DeFi project that has already been battle-tested. You should buy Aave if you want to gain exposure to DeFi's assets, especially considering that the project serves as a reference pillar for emerging projects. Using Aave is also a great way to generate passive income through staking on the platform.
The views and opinions expressed here are solely those of the author and should not be taken as financial advice either. Every investment and transactional activity involves risk, so you are advised to do your own research when making any trading, investment or financial decisions.