How to Buy AAVE - Beginner's Guide

Buying Aave in 2021: A Step-by-Step Guide

Last Updated October 19th 2021
21 Min Read

Are you interested in buying Aave, but not too sure where to begin? You’re not alone. The AAVE digital coin is a hugely popular cryptocurrency to buy, the world over. But, for beginners, this can be quite intimidating.

Aave is currently one of the most prominent lending protocols in the DeFi sector. It was one of the original pioneers in decentralized finance and it enables users to lend, borrow and earn interest on digital assets - all without the need for a middleman. 

The platform's native token - AAVE, first hit the markets in October 2020. In a year, the project has managed to go from zero to $16 billion in locked-up tokenized value. 

In this guide - we give you an extensive breakdown of how you can buy AAVE in the most safe and convenient manner. We also discuss what you need to consider when choosing an online crypto broker to facilitate your AAVE purchase.

Contents: 

Buy AAVE in 5 Steps

Today, there are a number of ways for you to get your hands on cryptocurrencies like AAVE. However, you will find that it is best to purchase this DeFi token via a trusted online crypto broker such as eToro. 

To buy Aave, the first step is to open an accout with a regulated exchange, depost funds, select AAVE from the trading platform list, and lastly check & confirm AAVE tokens have added to your Wallet.

You will find below a simple 5 step run-through of how to buy Compound:

Step 1: Pick a regulated crypto broker that supports Compound.

Step 2: Transfer funds to your trading account via a debit card/credit card, or an e-wallet such as PayPal. 

Step 3: Search for AAVE from the list of available cryptocurrencies. 

Step 4: Specify how many AAVE tokens you want to buy. 

Step 5: Check all the data you have entered, and confirm your AAVE buy order. 

The brokerage platform will process your order right away, and the AAVE coins you purchased will be added to your portfolio immediately. 

Now that you have the basic idea of what to do - let us explain each step in more detail. 

buy Aave

Step 1: Choose an Online AAVE Broker or Exchange

The quality of your broker is crucial to having a successful experience when making any financial investment. The right brokerage platform can make it extremely easy for you to buy AAVE. Conversely, using the wrong provider can lead to a poor experience. 

As such, it is important to know how to select a reputable and professional cryptocurrency platform that can help you reach your financial goals. 

When contemplating how to buy AAVE - you have two choices ahead. The first one is the popular approach of choosing a cryptocurrency exchange. However, many beginners are unaware that most of these platforms function in an unregulated manner. 

The alternative and better option is to opt for a regulated online broker. 

And as you can imagine, it is in your best interest to choose a licensed brokerage platform that aligns with your cryptocurrency goals and investment requirements. 

Keeping this in mind, let us explain some things that you need to look for when choosing an online broker to buy AAVE. 

Regulation

The first and most important step towards your successful investment journey is choosing a regulated crypto broker. 

After all, we are talking about the safety of your capital, and you need a reputable platform that will use your funds solely for the right purposes. 

When you choose a regulated broker for buying AAVE, it means that you will have access to transparent and honest investment operations. This is primarily because licensed brokerage platforms are compelled by their respective regulatory bodies to serve their clients with complete transparency. 

In addition, regulated brokers are also required to submit their financial reports periodically for auditing to the respective governing bodies. 

As such - choosing a regulated platform to buy AAVE will ensure the protection of your investments and funds. 

For instance, eToro is one such heavily regulated trading platform that holds multiple licenses from reputed financial authorities - including the FCA, CySEC, and ASIC. For US residents, the brokerage is also registered with FINRA and the SEC. 

In addition, if you are using eToro for your AAVE purchases, you will also be able to store your crypto assets in its in-built digital wallet.

As the platform is regulated by multiple governing bodies - you will have the ease of mind knowing that your assets are always protected under the vigilant monitoring of respected financial authorities. 

On the other hand, when you choose an unregulated platform - this means that there is no regulatory organization that overlooks their operations. In other words, you will be solely responsible for the safety of your investment funds as well as the AAVE tokens you purchase. 

Payment Methods

Once you have verified that the chosen AAVE broker holds at least one regulatory license - you can then proceed to check which payment methods are accepted by the platform. 

It is common for beginners to overlook this aspect when choosing an online broker. However, the convenience of easily making transactions on your brokerage platform can be a defining factor in your overall investment experience. 

For instance, some brokers only allow you to fund your account using a traditional wire transfer. This can be an extremely cumbersome process - as it can often take 3-7 business days for the transaction to complete. 

On the other hand, regulated brokers such as eToro allow you to pay for your AAVE tokens using a debit/credit card or even an e-wallet like PayPal, Neteller, or Skrill. 

Fees and Commissions

As you might have already guessed, online brokers do not work for free. When you choose a brokerage platform to execute your AAVE buy orders - it will charge you an assortment of fees to cover the costs. 

It is important to know what these charges are and what services you are getting in return for them. 

One of the most common fees that you will incur when you buy AAVE is the commission. This will be denoted in percentage terms and will be depending on the amount you invest. 

For instance, let's say you are looking to buy $10,000 worth of AAVE. If your chosen broker charges you a 2.5% commission - then this will mean that you are liable to pay $250 when buying this digital asset. 

Now, suppose that your AAVE investment is worth $20,000 at the date of selling. This will incur an additional commission of $500 (2.5% of $10,000). 

As you can see, if you are to make multiple investments, this commission can easily add up to a large sum. 

However, not every online broker will charge you a commission. 

On eToro, you can buy and sell AAVE on a commission-free basis. 

Aside from the commission, your chosen broker might also charge you additional fees for processing your deposits and withdrawals. For instance, on popular cryptocurrency exchange Coinbase, you will be charged a 3.99% fee to pay for your AAVE purchases using a debit card. 

In comparison, on eToro - you will not have to pay anything to fund your trading account in US dollars. There will only be a 0.5% exchange fee in case you are depositing money in another currency such as euros or British pounds. 

Other Important Factors

Now that you know the most important aspects to consider, you might already have a list of suitable online AAVE brokers to choose from. 

If you are feeling confused, here are some aspects that will make this decision easier for you. 

  • User-Friendliness:  Always consider whether the platform is easy for you to use. If you are a novice to investing, you need a broker that is intuitive and has beginner-friendly features. Check if the brokerage offers a demo version so you can navigate the site and see whether it is suitable for your needs. 
  • Minimum Investment: When buying AAVE, you might also have to put up a minimum investment amount - which will be decided by your chosen broker. For example, on eToro - you can start purchasing AAVE from just $25. 
  • Storage: Before you purchase any AAVE coins, you should also think of how you are going to store them. A few regulated brokers such as eToro will have an in-built wallet option - allowing you to safely keep your digital assets for free on the platform. 

Consequently, all things considered - if you are thinking of how to buy AAVE, eToro will indeed be a convenient broker that can facilitate cost-effective purchases of this cryptocurrency. 

Step 2: Come up With an Investment Plan

When considering how to buy AAVE, you should be clear about which investment strategy you want to follow. This will help you find an online broker that can offer you services that fit your financial goals. 

If you are a beginner at buying cryptocurrencies, then you could benefit from a bit of guidance in formulating your investment strategy. 

In this section of our guide, we will look into some of the most common investment plans that you can consider when thinking of how to buy AAVE. 

Long-Term or Short-Term

As with any other tradable asset - you can buy cryptocurrencies like AAVE with an investment duration in mind. 

For instance, if you take a long-term investment plan - then you might be looking to make capital gains from the price appreciation of AAVE. In other words - you will buy AAVE and store it in a secure digital wallet for years at a time. 

Once AAVE coins have increased in value - you will cash them out and make a profit. This 'buy and hold' strategy can be ideal for beginners, as there will be no need for you to follow the short-term volatility of your AAVE tokens. 

For example, at the time of its launch in October 2020, AAVE tokens were trading at $54.55 per coin. By May 18th, 2021 - the price of a single AAVE coin hit an all-time high value of $660. This demonstrates an increase of over 1,100% in less than a year. 

As you can see, such long-term 'buy and hold' strategies can turn out to be highly lucrative - given that you are able to sell your AAVE tokens at the right time. 

On the other hand, in a short-term strategy - you will be shifting your attention to the day-to-day price variations of AAVE tokens rather than the potential long-term gains. 

Such a strategy is possible for cryptocurrencies such as AAVE due to their highly volatile nature. The price of AAVE shifts from second to second - so there are plenty of trading opportunities on the table. 

Short-term traders and investors place multiple trades, targeting modest profits. Having said that, in order to be successful in this method, you need to have a clear understanding of how the crypto markets work. 

Moreover, you will have to rely on technical indicators and other trading tools, which can be an advanced undertaking for beginner traders. 

Read Also: Is Aave A Good Investment And Should I Invest In AAVE?

Target AAVE Price

Apart from defining investment strategies based on the duration, you can also craft a plan based on your profit target. 

In this method, you will be defining a goal of how much profit you want to achieve. For example, you can aim to achieve a profit of double your investment amount on AAVE. 

Meaning, if you buy AAVE for $500 - you should be able to sell it for $1,000 to achieve your profit target. 

As we discussed earlier, such lucrative targets are not unlikely in the case of cryptocurrencies like AAVE. That said, your ability to make such profits will depend on your strategy, the market, as well as the timing of your investments. 

Consider Regular Investments

As a cryptocurrency, the price of AAVE keeps fluctuating throughout the day. Given this volatility, many investors choose to spread out their investments. 

For instance, you can invest in AAVE based on the "dollar-cost averaging" method. In this approach, you will be buying AAVE tokens at regular intervals by investing the same amount. 

To illustrate - let's suppose that you have a total of $10,000 available to buy AAVE. You might split it into ten investments of $1,000 each - on a monthly basis.

This way, instead of risking all your money at once, you will be able to limit your exposure to risk. 

Don't Miss: Pros and Cons of Investing in Aave

Step 3: Open an AAVE Broker Account

When you know which investment strategy you want to adopt, you can proceed to create your account on your chosen crypto brokerage platform. 

You can sign up by entering a valid email address, creating a username, and setting a strong password. In addition, you will also have to provide your name, date of birth, phone number, and country of residence. 

If you are using a regulated platform such as eToro, then you will also have to verify your identity. 

This means providing additional supporting documents - such as a copy of your passport or your national identity card. You might also be required to submit proof of address - like a recent utility bill or tax statement. 

Although it sounds complicated, the process is automated on eToro, so you will be able to verify your account instantly and thus - buy AAVE without delay. 

Step 4: Deposit Some Funds

At this stage, you can make a deposit to your account. 

By choosing a regulated online broker like eToro, you will be able to fund your account in a number of ways. This includes a credit card, debit card, or an e-wallet such as Neteller, Skrill, or PayPal. 

You can also go for the more traditional wire transfer. However, as we mentioned before - this might take more time than the other payment methods we have listed above. 

Step 5: Set up a Trading Order

In order to successfully execute your investment plan - you need to know how to place the right trading orders. 

For those who are new to the investment space - you can use different types of trading orders when buying AAVE. Each of these serves a purpose that will give you more control over how you buy and sell this digital asset. 

Here are some of the basic trading order types that you will want to use when buying AAVE. 

Buy Order

As you can imagine, a 'buy order' is most commonly used when you are investing in AAVE. 

This order will tell your broker that you are speculating that the price of AAVE tokens will go up, and you are looking to sell when it does. 

However, you can also enter the market by opening a 'sell order' first. This is used when you expect the price of AAVE to go down. 

If this is the case, you will be placing a 'buy order' to exit the market and make a profit from the reduced price of AAVE tokens. 

Limit or Market Order

Buy and sell orders are the most basic of your AAVE investment strategy. 

However, with the help of a 'market order' and 'limit order'- you can further control at what price you execute your buy and sell orders. 

A 'market order' is used when you are ready to buy or sell AAVE at whatever price is currently available in the marketplace. In other words - this will tell your broker to execute your order immediately. 

The main issue with market orders is that you will not know the exact price at which your position will be executed. Due to the volatile nature of AAVE - you might end up paying a slightly different amount. 

That said, if you know the exact price you want to buy or sell AAVE - that is where you use the 'limit order.' 

In this case, you will specify at what price level you want to buy or sell AAVE. Your broker will activate your order only if and when the value of the digital asset hits your predefined level. 

If not, your order will remain pending - until you cancel it manually. 

Stake

Once you have specified your trading orders, you will then need to consider how much money you want to invest in AAVE.

This will be defined as your 'stake' on your chosen brokerage site. By increasing the size of your stake, your potential profits will be directly proportional to this. But, importantly, so will be your losses. 

However, instead of staking a large lump sum at once, you can also invest using the 'dollar-cost averaging' tactic we covered earlier. 

In this case, your minimum investment in AAVE will be dictated by your chosen broker. On eToro - you will have the option to buy cryptocurrencies like AAVE by staking an amount of $25 or more. 

Confirm Order

Lastly, you will want to make sure that you have entered all the right information and selected the correct trading orders. 

When ready, you can proceed and confirm the order. 

The AAVE tokens you bought will be available at your disposal to withdraw to your private digital wallet. 

buy Aave

Step 6: Storing Your AAVE

When considering how to buy AAVE, many beginners tend to overlook the importance of choosing a digital wallet. 

Buying AAVE is only one part of your investment process. Perhaps, the most important of all is to safely store your digital tokens until you are ready to sell them. 

As we have mentioned earlier, if you choose a regulated broker such as eToro - you will have nothing to worry about concerning the storage of your AAVE tokens. 

The coins you purchase will be instantly added to your eToro portfolio and will be stored securely under the monitoring of the financial authorities we discussed above. 

On the other hand, if you choose an unregulated exchange - you will have to find a third-party digital wallet service. It will not only require thorough research to find one - but you will also have to go through the hassle of withdrawing the coins from your brokerage platform. 

Check Out: Is It Worth Investing in Aave?

Step 7: Selling Your AAVE

When it comes to selling your AAVE tokens - the process is more or less the same. 

However, if you are using a regulated broker, it will be more convenient for you to sell your AAVE tokens through the same platform.

For instance, when you are using eToro - all you need to do is find AAVE tokens from within your portfolio and click on the 'sell' button next to it. The proceeds will then be available on the platform to withdraw upon request.  

On the other hand, if you have chosen a cryptocurrency exchange - you will first have to transfer your AAVE coins from your digital wallet to the trading platform. 

This will take more time and also cost you additional trading charges. 

In a nutshell - whether you are thinking of how to buy or sell AAVE - it is in your best interest to stick with a regulated broker for all your cryptocurrency transactions. 

Don't Miss: Aave Price Predictions

Other Ways to Buy AAVE in 2021

Until now, we have discussed how you can buy AAVE by funding your online brokerage account. However, today it is possible for you to purchase this digital asset directly by paying through one of the following methods. 

Buy AAVE Debit Card

Debit cards are becoming the go-to payment method used for all online transactions. 

Therefore, if you prefer paying for AAVE using your debit card - it is no longer a distant reality. Many regulated brokers such as eToro allow you to fund your AAVE purchases with a debit card. 

You will simply need to provide your card details at the time of buying AAVE. When cashing out, the proceeds can be withdrawn to the same debit card.

Buy AAVE Credit Card

For those who prefer a credit card, the process is the same as that of using a debit card. 

That said, you might want to check with your credit card issuer if there is any 'cash advance fee' when placing transactions on an online brokerage platform. 

Buy AAVE Paypal

E-wallets such as PayPal are also accepted on brokerage platforms like eToro in order to fund your AAVE purchases. 

On eToro - you will also be able to find other popular e-wallets like Neteller and Skrill. 

AAVE ATM

Cryptocurrency ATMs enable you to buy digital tokens like AAVE directly through the machines. 

When you enter your cash, the ATM will print out a receipt and details of how you can claim your AAVE coins. 

However, although there are thousands of crypto ATMs located across the world, there are not many that support AAVE. Additionally, you will also find that these machines charge you a hefty fee of at least 10% to process your AAVE purchase. 

Therefore, your best method to buy AAVE is always from a regulated online broker like eToro - which offers both convenient and commission-free ways to facilitate your cryptocurrency purchases. 

Read Also: Could Aave Be A Millionaire-Maker Coin?

How to Buy AAVE 2021 - The Verdict

Our How to Buy AAVE Guide has given you a detailed account of every step you need to follow to purchase this DeFi token in the safest way possible. 

The key takeaway is that you need to find a regulated online broker such as eToro. The platform is highly regulated and gives you access to cryptocurrency marketplaces on a 100% commission-free basis. 

Moreover, you will also be able to store your AAVE tokens for free on the platform - knowing that your coins will be protected by the guidelines of the most reputable regulatory bodies. 

eToro – The Best Platform to Buy Aave

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

FAQs

How can I buy AAVE?

In order to buy AAVE in a safe and secure manner, you need to find a regulated crypto broker such as eToro. The platform is regulated by the FCA, ASIC, and CySEC - and offers commission-free access to the cryptocurrency marketplace.

What is Aave?

Aave is a decentralized finance application that allows users to loan and borrow digital assets. At the time of writing, the platform's native token - AAVE, is available for purchase at $298. 

What is the minimum stake required to buy AAVE?

Regulated broker eToro allows you to buy AAVE from just $25.

What is the highest price of AAVE coins?

On May 18th, 2021 - the price of AAVE tokens hit an all-time high of $660.

Is AAVE a good choice of investment in 2021?

According to its performance history, the AAVE token has performed exceptionally well - gaining over 1,100% in value. That said, there is no guarantee that the coin will continue to increase in value in the future. As such, you need to consider your risk tolerance and study the market well before you decide to invest in this digital asset. 

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