AAVE is an open-source DeFi protocol that has a native coin called AAVE. The platform is a hub for investors looking to hold long-term because of its multiple staking options. Additionally, clients can borrow or lend funds to maximize yearly returns, making AAVE a powerful platform for crypto users.
This page covers everything you need to know about buying the AAVE token from the best exchanges to storing them safely. Moreover, we’ll answer some frequently asked questions about AAVE.
Best Brokers to Buy AAVE in 2023
AAVE is one of the most established DeFi cryptos in the market. Therefore, it has multiple methods of purchasing assets from brokers to P2P options. We’ve put together this table of the best options to purchase AAVE.
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 8.7 | Visitetoro.com | Don’t invest unless you’re prepared to lose all the money you invest. | |
 | 9.8 | Visitplus500.com | 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | |
 | 9.0 | Visitpepperstone.com | Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | |
 | 8.8 | Visiteightcap.com | ||
 | 8.3 | Visitwebull.com | ||
 | 8.4 | Visitcoinbase.com | ||
 | 7.4 | VisitChangelly.com | ||
 | 8.4 | Visittrading212.com | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. |
Key Takeaways
AAVE offers multiple coins to stake for gaining yearly profits.
There is an amazing range of innovative DeFi products.
AAVE has a transparent team that helped define the DeFi industry.
AAVE has a limited supply of 16 million tokens.
AAVE has several partnerships with leading blockchains to provide the best service to investors.
What Is the Difference Between Owning AAVE Vs a Derivative Product
Currently, there are two methods of owning AAVE - Buying from an exchange or purchasing CFDs. Buying from an exchange means that you’ll own the crypto and can transfer it between accounts freely.
However, with brokers you can purchase CFDs, meaning you can invest in the token but won’t own it. The benefit of brokers and using CFDs is that they are more accessible for new investors because you can purchase crypto with fiat currency. Also, with CFDs, you can speculate on the price if it’s going to go up or down and invest accordingly.
Different Ways to Buy AAVE
AAVE is a well-established coin that has multiple purchasing methods. Below are the main options to buy the AAVE token.
Decentralized Exchanges: Platforms like 1INCH Network and PanCake Swap are excellent for buying AAVE anonymously. To buy from decentralized exchanges you’ll need to have a crypto wallet and connect it to the platform. Also, you’ll need to have Ethereum in your wallet to cover the gas fees.
Centralized Exchanges: Companies like KuCoin, Binance, and CoinBase provide multiple trading pairs for AAVE. Investors can buy AAVE with BTC, USDT, BUSD, ETH, BNB, and CUSD. However, you must verify your identity to unlock any restrictions that your account may have.
Brokers: This type of platform lets you have long and short positions on various cryptocurrencies. Furthermore, you can buy cryptocurrencies at market price and hold them long-term. The downside of this option is that you own CFDs instead of real cryptocurrency. Therefore, no crypto withdrawal options are available with brokers.
Where to Buy AAVE
CoinBase
The most accessible method to purchase AAVE is on the CoinBase platform because of its easy-to-use interface. The buy and sell page is straightforward to use and clearly shows the cryptocurrency you are purchasing. You can purchase cryptocurrency with your bank card so you won’t need to go through the confusing process of using crypto-wallets.
- Accessible for beginners in crypto
- Earning program lets you receive crypto for free
- Wide range of cryptos supported on the platform
- You must verify your identity to withdraw cryptocurrencies
- High fees for purchasing crypto directly with your bank card
- The CoinBase card doesn’t let you spend cryptocurrency anywhere
1INCH Network
However, using a decentralized exchange lets you purchase cryptocurrency anonymously. 1INCH Network is a great option, but compared to CoinBase it has much higher fees due to the price of Ethereum. Moreover, investors can only exchange cryptocurrencies and there is no option to buy with bank cards.
- While using the platform you’re anonymous
- Large variety of cryptos to invest in
- There are no fees for using the service except for network costs
- The cost of using the 1INCH Network is ultra-high due to Ethereum gas fees
- Not friendly for beginners investing in cryptocurrency
- Cannot buy crypto with fiat currency on the platform
How to Buy AAVE Online?
The buying process of AAVE is straightforward if you use a crypto exchange like CoinBase. Here are the guidelines for creating an account and purchasing AAVE:
Step 1: Go to the Official CoinBase Website
Step 2: Create an Account
Step 3: Verify Your Account
Step 4: Verify Your Identity
Step 5: Open the Buy and Sell Page
Step 6: Select AAVE as the Cryptocurrency You Want to Buy
Step 7: Click the Buy Button to Complete the Trade
How to Trade AAVE?
Investors can trade AAVE on brokers and centralized or decentralized exchanges. Using brokers is a potentially easier method for beginners because you can buy AAVE directly with your fiat currency. The most accessible broker for new investors is eToro thanks to its easy-to-use design. Here’s a step-by-step guide to purchasing AAVE with a broker.
Step 1: Create an Account
Step 2: Deposit Funds into Your Account
Step 3: Input the Number of Coins You Want to Buy
Step 4: Click Buy
Crypto Investment Strategy
Before buying AAVE make sure to have an investment strategy in place, especially if you’re a beginner. You want to avoid emotional decision-making that will potentially make your portfolio go negative. Below are two investment strategies that you can implement with AAVE.
Short-term Holding: This strategy is focused on holding AAVE for a short period of time. You’ll want to buy the coin during a dip and wait for the price to increase as the market rises. Afterward, sell the crypto and repeat the process. However, this strategy is riskier because it’s difficult to predict the price movement of altcoins like AAVE.
Long-term Holding: HODL (holding on for dear life) is a good strategy when investing in a great project. This method requires you to purchase AAVE and hold the coins for years, waiting for the price to increase. Additionally, make sure to have sell points once the price increases to take out profits. Often, investors HODL for too long and the market corrects itself, leaving profits behind.
How to Store AAVE?
Storing your coins safely is a crucial part of cryptocurrency that is often overlooked by new investors. AAVE is an Ethereum-based cryptocurrency, meaning you’ll need a crypto wallet that is compatible with ERC-20. Depending on your investment strategy you can use either a hot or cold wallet.
Hot Wallets: Hot wallets are excellent for short-term holding because you can quickly trade AAVE once the price increases. Exodus and MetaMask are amazing options that are well-known in the crypto space for providing advanced security and an easy-to-use interface. Below are the best hot wallets for AAVE:
Exodus
MetaMask
CoinBase Wallet
Trust Wallet
Cold Wallets: On the other hand, if you plan to hold your crypto for a long period then a cold wallet is the best option. Cold wallets have the best security and are unhackable if you keep your seed phrase secure. Currently, there are two brilliant options for cold wallets that have affordable prices for the service they deliver:
Ledger Nano S
Trezor One
What Are the Different Ways to Pay For AAVE?
Buying AAVE is a straightforward process because of the multiple payment options available. The first step to buying AAVE is to deposit funds onto an exchange or broker and then trade the fiat currency for tokens. However, the availability of the payment methods depends on the broker or exchange you use. Here are the main methods to pay for AAVE.
Bank Transfer
Arguably the most reliable method to buy AAVE is via bank transfer. Almost all brokers and exchanges accept this as a payment method. However, don’t pay for crypto directly with a service like CoinBase because the fees are ultra-high. It’s better to first deposit the funds into a trading account and purchase AAVE this way to avoid fees.
- Transferring funds is easy
- Secure payments
- Compatible with most crypto brokers and exchanges
- Your bank can deny the transfer if the exchange or broker is blacklisted
Debit /Credit Cards
The most common method to fund your account to purchase AAVE is with a debit or credit card. It’s the most popular option on most platforms and transfers are instant. Therefore, you can buy AAVE straightaway without needing to wait on processing times. Also, it’s the most convenient method since all you need to do is input your details and the amount you wish to deposit.
- Transfers are instant
- Widely available
- Easy to use
- Some platforms have high transfer fees
- Not anonymous when depositing
- Your bank can deny the payment if the platform is on their blacklist
Cryptocurrency
Exchanges allow cryptocurrency deposits from various wallets like Exodus and MetaMask. It’s a brilliant option if you want to purchase crypto anonymously and not hassle with a KYC process. However, transfer times and fees heavily depend on the coin you’re sending so make sure to use a blockchain that is designed for instant payments.
- Anonymous transfers
- Fast payments
- All exchanges accept crypto as a deposit method
- Expensive fees when using an ERC-20 wallet
- Buying from a decentralized exchange is expensive due to high gas fees
What to Consider When Buying AAVE?
Before purchasing AAVE, there are a few considerations you need to make. Here are the most important factors that should go into your final decision.
Fees: Platforms charge different fees for using their services. It’s worth researching the market and finding the best options for yourself. Centralized exchanges like CoinBase and Binance have excellent rates. However, they are not available in all countries.
Volatility: Cryptocurrencies are highly volatile assets, making them risky investments. Therefore, you should only invest an amount that you can afford to lose.
Regulation: Before creating an account with a platform make sure it’s legal to use in your region. Also, ensure the crypto platform you use is regulated by a respected authority to avoid being scammed.
Investment Strategy: It’s important to have a strategy in place before buying AAVE. Often new investors make trades with emotion and end up losing money. Therefore, implementing a strategy like HODling your coins is a brilliant choice since you don’t need to focus on the daily market movements.
Is It Safe to Buy AAVE Online?
They offer the highest level of security to protect your funds from getting stolen. Also, the KYC process ensures no illegal activities are happening on the platform.
Moreover, you can improve your account security by using 2-step authentication. This can help prevent hackers from gaining access to your coins. Also, whitelisting your crypto addresses is the best method of protecting your assets because if your account gets compromised the coins can't be sent anywhere else.
How to Sell AAVE?
Selling AAVE tokens is similar to the buying process mentioned previously. First, open your platform’s trading interface and select AAVE. You’ll notice multiple options that you can exchange AAVE into - BTC, ETH, USDT, and USDC. Choose the currency you want and input the amount of AAVE you want to sell. After, click the sell button for the trade to complete.
Is It Worth Buying AAVE Right Now?
AAVE has fallen far from its all-time high of $632. Currently, it sits at around $250, making it a great buy-in price for new investors. However, remember AAVE is highly volatile crypto, meaning the price can swing in either direction. Therefore, you should do your own research before committing to the investment.
Final Thoughts
The best method to purchase AAVE is through a centralized exchange because they offer the lowest fees. These platforms offer multiple methods of depositing funds into your account - bank transfer, credit/debit cards, and cryptocurrency. Also, the KYC process is fast and you’ll have access to all your account features within a day.
Remember to activate 2-factor authentication on all your accounts to provide an extra layer of security. Also, whitelist your crypto addresses so your assets can only be transferred into your wallets.
