Do you want to jump directly to the answer? You can buy AAVE at SoFi.
The world of decentralized finance is an exciting sector of the cryptocurrency sphere. Aave (AAVE) is a decentralized financial protocol aimed at using the power of blockchain technology to help users borrow and lend cryptocurrencies using the framework established by Ethereum.
If you are thinking about expanding your investment in the cryptocurrency sphere, Aave can be a great token to start with. Our guide will help you learn how to buy Aave, how the token works where you can store your tokens for the highest level of protection, and more.
Brief history of Aave
Aave is a decentralized financial protocol that allows users to borrow and lend cryptocurrency using a largely anonymous platform. Previously known as ETHLend, Aave was launched in November 2017.
Using the Aave network and the token as governance, lenders can earn interest on the amount of cryptocurrency available to borrowers by depositing tokens into a liquidity pool. Borrowers ensure that they repay what they are lent by depositing cryptocurrencies as collateral.
In addition to securing the system, Aave tokens also provide owners with a vote on future company matters in the same way that shareholders can vote on company matters based on how many shares they own.
Steps to buy Aave
- Open an account online. The first step to purchasing Aave begins with opening an account with an exchange that supports Aave. A cryptocurrency exchange will provide you with a trading platform that you can use to buy and sell cryptocurrencies for a fee. There are a wide range of cryptocurrency exchanges that support Aave, and the best broker for you will vary depending on where you live and the types of cryptocurrencies you want to invest in. Not sure where you would like to open an account? Consider some of our favorite cryptocurrency exchanges that are available to investors based in the United States. Some great options are Coinbase, eToro, and SoFi.
- Buy a wallet (optional). After deciding where you want to buy Aave and opening your account, you can open a wallet to store your tokens securely. A cryptocurrency wallet provides you with a private set of keys that you can use to store your tokens outside of your exchange, limiting your liability if your account is hacked. There are 2 types of cryptocurrency wallets (hardware and software) and each comes with its own unique benefits and drawbacks. As an ERC-20 token, you will have a number of options when it comes to storing your Aave. Consider our favorite hardware and software wallets below.
- Make your purchase. When your wallet is set up and you have opened and fully funded your brokerage account, you can place an order to buy AAVE. Placing an order to buy cryptocurrency involves a few steps.
- Step 1: Choose your order type. The order type you choose will determine when your order is completed and how much you pay for each coin. You can browse some of the common order types here.
- Step 2: Decide how much AAVE you want to purchase. Cryptocurrency prices are constantly changing. Take a look at the current market rate of Aave before deciding how many tokens you want to buy.
- Step 3: Place your order. Depending on the order type you are using, you may need to specify a maximum price you are willing to pay per token, as well as the number of tokens you would like to purchase.
- Step 4: Wait for your broker to complete your order. After you have submitted your order, your broker will fill it according to your instructions. When the order is completed, you will see your tokens in your brokerage wallet. If your broker is unable to fill your order, you can cancel it at the end of the trading day or you can leave it open indefinitely depending on the broker.
Recommended bags for AAVE
- SoFi
- Gemini
- Coinbase
- iTrustCapital
Recommended Wallets for Aave Tokens
Best Hardware Wallet: SecuX V20 – The SecuX hardware wallet has a full set of security features in place, from the protected production chain to the tamper-resistant packaging, to its military-grade hardened secure element to keep your assets safe and without candles.
If you are looking for the perfect combination of security and portability, the SecX V20 could be the right cryptocurrency wallet for you. The durability of the SecuX V20 starts with its tamper-proof casing, giving you peace of mind when you take your device with you on your travels.
The wallet features Bluetooth connectivity and a full-color touch screen to view and manage your tokens without connecting to local, unsecured Wi-Fi. Best of all, the device supports over 1,000 individual cryptocurrencies, giving you a single place to store all your blockchain investments.
Best Software Wallet: MyEtherWallet
MyEtherWallet is the original cryptocurrency wallet used to store Ethereum, but the software has expanded to also include all types of ERC-20 tokens. MyEtherWallet features simple setup and a mobile app, allowing most users to create their account and start transferring their tokens in just a few minutes.
You can connect your mobile app to your desktop using a QR code. If your phone moves too far from your computer, the wallet will automatically disconnect, meaning you won’t have to worry about leaving your wallet connected if you’re on a public internet connection or device.
Aave is an ERC-20 token, meaning it runs using the network established by Ethereum. If you are looking for a way to diversify your investment while also buying emerging decentralized financial technology, an investment in Ethereum could be right for you.
Trade or sell your cryptocurrency
If your broker is able to fill your order, you will need to decide if you want to hold your Aave for the long term or if you want to take advantage of short-term price movements. If you think the price of Aave will increase in the future, you may want to store your tokens in your private wallet.
And if you think the price of Aave will fluctuate in the coming days or weeks, you may want to short or short your tokens to accumulate more Aave.
When you decide to profit, you can convert your excess Aave into a stablecoin like Tether or USD Coin. Selected brokers can also allow you to convert Aave directly to fiat currency.
If you plan to execute multiple trades throughout the day, you’ll want to choose a cryptocurrency broker with lower fees and a responsive platform. Consider some of our favorite options below.
Current cryptocurrency prices
The cryptocurrency market is notoriously volatile. You may notice that the price of Aave changes drastically on a day-to-day basis. Some of the factors that can influence how the cryptocurrency market is moving include:
Laws and regulations. The cryptocurrency market is still largely unregulated. However, individual states and countries have instituted their own rules regarding the buying and selling of cryptocurrencies. The introduction of stricter regulations or bans can cause the price of coins to plummet.
- Media, news and advertisements. Like stock trading, cryptocurrency trading can be influenced by the announcement of major upgrades, new partnerships, and network upgrades. Keeping your eyes on cryptocurrency news and major developments can help you predict how the market will move.
- Financial markets. When traditional markets crash or see a sudden drop in value, investors tend to move their assets into alternative forms of investment. While these alternative investments typically include things like real estate and precious metals, in recent years more investors have seen more investors put their money into major cryptocurrencies when markets drop.
- Offer and demand. Unlike fiat currency, there are a limited number of most types of cryptocurrencies. The higher the demand for a particular currency, the higher the price. When demand drops, the price of the coin or token will also drop because there are fewer buyers available.
- Mining costs. Cryptocurrencies like Bitcoin must be created using a process called “mining.” Mining requires a specialized computing device called an “extractor,” which uses a large amount of energy and becomes more difficult as more coins are produced. As mining costs increase, you can expect the price you pay per token or coin to increase as well.
Keeping your eyes on how the market is moving can help you decide when is the best time to buy and sell your coins. See a summary of current market movements using the chart below.
Should Aave be your next investment?
Aave is one of many exciting projects running using the decentralized application functionality of the Ethereum network. Decentralized application projects are currently being developed in a wide range of industries, including banking, gaming, and file storage.
Learning more about the Ethereum network and diversifying your investments can help increase your success in the cryptocurrency market. Get started today with 1 of Benzinga’s recommended brokers.
Frequent questions
This information provided for informational purposes only; It is not intended to be used as accounting, legal or tax advice. Regarding these issues, speak with your accountant, tax or legal advisor.
Investing involves risk that includes loss of capital. This guide contains the current opinions of the author, but not necessarily those of Gigonway. These opinions are subject to change without prior notice. This guide has been distributed for educational purposes only and should not be considered investment advice or a recommendation of any particular security, strategy or investment product. The information contained in this guide has been obtained from sources considered reliable, but is not guaranteed. Gigonway does not provide legal or tax advice. Please consult your tax and/or legal advisor for specific tax or legal questions and concerns.