Binance offers a user-friendly and secure platform where you can easily purchase Aave. Before purchasing Aave, you need to complete the account verification process and make a deposit into your Binance account. A cold wallet is the most secure way to store Aave tokens. Aave is one of the most popular DeFi (decentralized finance) protocols on the market. Aave is a popular investment because of its strong status in the DeFi sector.
How to Buy Aave: A Quick Guide
Binance offers a user-friendly and secure platform where you can easily buy Aave. The process of buying Aave on Binance is simple, and you have the flexibility to choose from different currency pairs like USDT, BTC, EUR, and BNB. It’s worth mentioning that Binance provides excellent liquidity for Aave, ensuring the seamless execution of large transactions.
Here’s a step-by-step guide on how to buy Aave on Binance:
- Click here to register a new Binance account.
- Complete the KYC (Know Your Customer) process, which involves verifying your personal information.
- Deposit euros into your Binance account either through a bank transfer or debit card.
- Purchase Aave using the funds in your Binance account.
- Store the Aave tokens on Binance or withdraw them to your own wallet.
Below is a screenshot of Binance’s front page.
In addition to Binance, you can also find Aave listed on other popular exchanges like Coinbase and Kraken. To access comprehensive user guides for all the mentioned exchanges, simply click on the Reviews link in the main menu. These guides offer detailed explanations of the key features and functionalities of each exchange.
How to Buy Aave: A Detailed Guide
Before purchasing Aave, you need to complete the account verification process and make a deposit into your Binance account. You can find instructions for verifying your account and making a deposit in our Binance review. If you are new to Binance and haven’t used it before, we recommend reading that article for guidance.
Next, we will provide you with instructions on how to purchase Aave using the Binance mobile app. You can download the app from the Apple Store for iOS devices or the Google Play Store for Android devices.
This guide is based on the Lite mode of the Binance app, which is enabled by default.
Open the trading page
Look for the yellow trading icon in the main menu of the mobile app (refer to the image below). Click that icon to open the trading page for cryptocurrencies.
Choose the Buy option from the pop-up menu that appears.
Search for the Aave token
Next, a selection of cryptocurrencies will be displayed on your screen. You can either scroll through the list to find Aave or directly enter AAVE into the search field, as demonstrated in the following picture.
Select Aave token from the list to open the Buy Crypto form.
Buy Aave
You have now the Buy Crypto page open on your screen. Enter the desired amount in euros or click on the Aave icon as pointed in the picture below with a red arrow. If you click this, the unit will change from EUR to AAVE. This is useful if you want to buy a precise amount of Aave, for example, exactly 10 Aave tokens.
Complete the purchase by clicking the yellow Buy button. By doing so, you will be directed to the confirmation page, where you can choose your preferred payment method.
Choose the payment method
The final step in acquiring Aave is to select your preferred payment method. If you have previously made a fiat deposit, you can utilize your cash balance to cover the cost of the purchase. Alternatively, you have the option to explore other payment options.
Finalize your purchase by clicking the Confirm button. Please bear in mind that the price of Aave tokens remains valid for 60 seconds. If you require more time, you will need to return to the Buy Crypto form to receive a new quote.
How to store Aave safely?
A cold wallet is the most secure way to store Aave tokens. A cold wallet (hardware wallet) is a device similar to a USB stick. It is connected to a computer with a USB cable (or to a smartphone via Bluetooth) only to confirm transactions.
The most popular cold wallet on the market is the Ledger Nano X. Its price is around 150 euros. Click here to buy Ledger Nano X securely from the manufacturer’s website.
There are also free wallet options available for Aave. Of course, the security level is not quite as high as that of a cold wallet. Beginners can also store Aave in the crypto exchange they bought it from. Though, we don’t recommend that for a long-term solution.
Popular free wallets for Aave tokens are, for example, Trust Wallet, Exodus, and Coinomi. The Web3 wallet MetaMask is also a very popular Aave wallet. It is often used as the Chrome extension.
Aave general information
Aave is one of the most popular DeFi (decentralized finance) protocols on the market. If you are not familiar with the term, you can find a comprehensive guide on our website: What Is DeFi – The Beginner’s Guide.
In short, Aave is a decentralized loan protocol. The term liquidity protocol is also used for it. Aave is facilitating peer-to-peer loans without a centralized operator. Everything happens automatically with the help of smart contracts.
Below is a screenshot from the aave.com page.
Aave is one of the oldest DeFi protocols. Its founder is Finnish Stani Kulechov, who launched the project already in 2017 under the name EthLend. EthLend was later rebranded as Aave.
The Aave protocol also has an administrative token called Aave. This is exactly the token you buy when you buy Aave. It is important to understand that it is not a utility token but a governance token. You don’t need an Aave token to use the app. It only gives its holders decision-making power over the development of the app.
Read more about Aave’s history, technology, and the Aave token in our in-depth Aave guide.
Aave as an investment
Aave is a popular investment because of its strong status in the DeFi sector. Next, we will go through a few points that potential Aave investors should consider.
- Development of the DeFi sector
- Aave vs. other loan services
- The nature of the Aave token
When we look at the historical price development of the Aave token, we can see a strong correlation with the entire DeFi market. The price of Aave will rise in the future at the same time as the whole sector gains popularity. This is our guess until proven otherwise.
If you are interested in buying Aave, follow closely the development of the DeFi sector and especially the liquidity. The graph below shows the TVL of the DeFi sector, i.e. the total liquidity throughout its history. You can find up-to-date data on defillama.com.
In addition to the general market development, it is worth monitoring Aave’s liquidity in its own category, i.e. loan services. Aave has maintained its position as the most popular loan protocol in recent years, and it should keep this position in the future.
The nature of the Aave token also makes investing challenging. Since Aave is an administrative token, it is not needed directly to use the service. The popularity and liquidity of the Aave loan service can therefore increase at the same time as the price of the Aave token decreases. This was seen, for example, at the end of 2021.
The challenging nature of the governance token applies to almost all DeFi projects. This makes them difficult to evaluate as investments even for industry professionals.
