During the last year, we have seen the fast expansion of decentralized finance (DeFi) projects. Aave is one of the leading DeFi platforms that crypto enthusiasts use. Aave crypto is also one of the largest virtual currencies in the world (among the top 30) and it is offering different services to users from all over the world.
In this guide, we are going to tell you how to buy Aave, how the Aave coin works, and more. We will also do a recap of why decentralized finance became so popular and which are the services offered by Aave.
What is Decentralized Finance?
Decentralized Finance (DeFi) is a relatively new industry that has been growing on top of the cryptocurrency market in the last few years. The main goal is to offer users from all over the world the possibility to get access to financial solutions without depending on centralized authorities.
DeFi platforms have also been offering services offered not only by banks but also by cryptocurrency exchanges. This has enabled individuals to get access to a wide range of services that before were not available or required several documents and information.
Thus, decentralized finance lowered the barrier of the entrance to financial markets to users that were before not connected to it. Moreover, it made it easier, faster and more profitable for individuals to easily get access to a wide range of finance solutions.
Some of the solutions offered include lending, borrowing, swapping, decentralized exchanges (DEX), insurance and more. In the future, other services could be offered by crypto companies and blockchain firms.
The positive thing about DeFi apps and solutions is related to the fact that they do not depend on centralized parties. Rather than being managed by a company, smart contracts do all the work. Moreover, decentralized networks engage in different activities and expand the solutions offered by DeFi projects.
What is Aave?
Aave, as you might already know, is one of the largest and most promising cryptocurrency projects in the blockchain market. It works as an open-source and non-custodial liquidity protocol for earning interest on deposits and borrowing assets.
The project is powered by a series of smart contracts that run on top of the Ethereum (ETH) network that offer financial solutions to users. In this way, they are able not only to help users to lend their funds but also to borrow assets.
Aave works with an online platform that is very simple to use and that focuses on simplicity. This makes it faster and easier for users to get access to the solutions they are looking for. Moreover, compared to traditional finance, it is much faster to get credit through this platform rather than using legacy solutions.
Through Aave, users can lend their stablecoins and also other virtual currencies. For example, some of the largest markets right now include USD Coin (USDC), Tether (USDT), Dai (DAI) or Decentraland (MANA).
Users that deposit Tether (USDT) could receive 18,75% per year on their funds. However, borrowers of USDT coins would have to pay 38.02% per year on the digital assets they borrow. In this way, the whole ecosystem works seamlessly and without centralized authorities.
It is worth taking into consideration that borrowers should deposit collateral before borrowing the funds.
Aave is also offering other services such as staking or swapping. This shows the solutions offered by this platform are more than simply lending and borrowing but go beyond what traditional users are looking for. Thus, Aave offers entry and advanced decentralized finance solutions to users from all over the world.
In order to interact with the platform, users should have a cryptocurrency wallet such as Metamask. It is worth mentioning that if the Ethereum network is congested, it might be difficult for users to make several transfers due to the high fees and long transaction times.
AAVE coin is the digital currency used on the Aave platform and it is now the 28th largest in the cryptocurrency market. If you pay close attention, this virtual currency fluctuates like any other digital asset in the market.
At the moment there is no clear explanation to Aave meaning. However, the Aave cryptocurrency is among the most demanded in recent months. Indeed, the cryptocurrency reached an all-time high in February this year when it surpassed $500 per coin.
Thus, it became one of the largest in less than a year after being released to the market. It is not an easy task to reach the top 30, and Aave achieved this in a very short period of time. This shows that the great solutions offered by this project are certainly among the most valued in the DeFi market.
In the Decentralized Finance market, Aave is the third-largest cryptocurrency after Uniswap (UNI) and Terra (LUNA). It has a market valuation of $5.9 billion and a price per coin of $472. However, as we mentioned before, the price of the asset fluctuates on a daily basis. By the time you read this, the price of the coin might have increased or decreased.
Due to the fact that demand for the cryptocurrency increased, users and investors are searching for different ways in which to get access to
Aave. Moreover, investors get other advantages when holding AAVE. When they take certain loans and use AAVE as collateral, users can get additional discounts. Additionally, users could also get access to funds before they are even released to the market.
There are many different mechanisms in which to get access to Aave which will be analyzed in the next section.
How to buy AAVE?
This is the part we all want to know: how to buy AAVE? There are different ways to get access to this virtual currency. Not all of the solutions are the same. The best platform for you might not be the best platform for other investors. It is certainly important to understand which are the benefits of each of the solutions available.
The easiest way to get access to AAVE is by using a cryptocurrency exchange. Exchanges are platforms that offer users the possibility to buy and sell virtual currencies. Some platforms have the benefit of having a large number of fiat on-ramp solutions.
However, users can also purchase AAVE using DeFi platforms such as Uniswap (V2). If you want to get access to these platforms, then you should check the one that offers the best solutions in your region.
Cryptocurrency Platforms Supporting AAVE
There are different cryptocurrency platforms that offer support to AAVE. Some of them include the following:
Binance is known for being one of the best platforms to buy and sell virtual currencies in the cryptocurrency market. This is one of the best places for you to get access not only to Bitcoin (BTC) and other major virtual currencies but also to AAVE.
This platform is a traditional and centralized platform that became very useful for those users that handle different digital assets. Binance expanded as a crypto exchange for tokens rather than for just legacy coins. Furthermore, the exchange has been adding other services in recent years.
Launched in 2017, Binance started offering most of the trading pairs available at that time. Compared to other exchanges such as Coinbase, Binance offered users the possibility to trade smaller coins such as those released through Initial Coin Offerings (ICOs).
Nowadays, Binance is not only offering basic trading services but they have evolved into a more advanced trading platform. Users can trade futures contracts (perpetual or quarterly), trade with leverage and even participate in different events and promotions. You would not only be able to buy AAVE but also enjoy many of the benefits related to all the other Binance services.
Coinbase is also among the largest crypto exchanges in the world. Indeed, all the platforms mentioned in this article will allow you to get access to AAVE. Coinbase is a recognized platform that became very useful for newcomers due to the easy-to-use interface they offered.
Moreover, Coinbase expanded offering just a few coins but supporting fiat currencies. This advantage over other exchanges allowed it to become a clear leader in the industry. Users that want to buy AAVE can do it through this platform and diversify their portfolio with some of the digital assets offered by Coinbase.
If you are a newcomer and you want to get access to cryptocurrencies, then Coinbase is one of the best platforms to do so. Moreover, for advanced traders, they offer Coinbase Pro, where users can analyse charts and trends.
Moving forward with the different exchanges where you can buy AAVE, we have Huobi Global. This platform was able to get a place among the largest in terms of trading volume despite the large number of competitors offering very valuable services.
If you want to buy AAVE using Huobi Global you will have an advantage. According to data provided by CoinMarketCap, this platform has the second-largest trading volume for the AAVE/USDT trading pair. If you are searching for liquidity, then this one could be the platform you are looking for.
At the same time, Huobi Global operates in different jurisdictions and has more than 300 cryptocurrencies available for trading. Compared to other exchanges, this platform offers margin trading, futures, options and more. If you are a trader and you want to get access to AAVE, then Huobi Global could be a great option.
KuCoin became popular as a cryptocurrency exchange that didn’t require users to pass KYC controls. Due to this reason, the platform attracted several users that cared about their privacy. This exchange allowed traders to exchange different virtual currencies rather than just the most popular ones.
Indeed, it had a large number of coins supported, including tokens from ICOs. With the expansion of the DeFi market, the exchange decided to add support to AAVE, which is now among the largest digital assets in the world.
The main benefits of this platform include low trading fees, fewer KYC controls and a large number of coins supported.
Uniswap is our first decentralized exchange (DEX) or swapping platform that we could use to buy or sell AAVE. Uniswap became a flagship of the DeFi industry and it is allowing users to buy and sell digital assets without having to register an account.
Yes, this is how simple it works.
You should only have a cryptocurrency wallet (such as Metamask) and you would be able to exchange the coins you want, including AAVE. Considering the platform is running on top of Ethereum (ETH), you can only buy and sell ERC-20 coins.
Uniswap works without an order book. The platform users a set of liquidity pools that reward users that deposit funds and provide liquidity. Rewards are calculated from the trades from each of the pairs listed on the platform.
If you prefer to use a DEX platform, then Uniswap could be the best solution.
Kraken is a recognized and established virtual currency platform that was created in 2011 and it is offering services not only to retail users but also to a large number of companies from all over the world. The firm accepts fiat currencies such as USD, EUR, JPY and GBP, among others.
Thus, if you want to get access to the crypto market with fiat currencies, Kraken could be a great solution for you. This is also one of the platforms that support the AAVE virtual currency. If you want to get access to this virtual currency, you can easily do it with fiat currencies.
For example, you can buy BTC or ETH with any of the currencies supported and then exchange it for AAVE. This could be one of the fastest ways to get access to AAVE without relying only on digital assets.
Buying AAVE requires you to select the cryptocurrency exchange you want. Indeed, each of these exchanges mentioned in this post has different functionalities and would meet different needs. However, all of them support AAVE and would let you get exposure to this virtual currency and the entire DeFi industry.