Aave is an open-source and non-custodial liquidity protocol for borrowing interests and for earning interests on deposits. The protocol is one of the exciting projects running on the Ethereum network’s decentralized application functionality.
Its cryptocurrency, AAVE, has become increasingly being used to earn rewards and traded on different cryptocurrency exchanges.
If you’re looking to become an investor or trader of the crypto asset, you will first need to buy the token from a reputable marketplace. Thankfully, that’s why we are here. The following is a step-by-step process of buying and selling Aave in the UK.
What's in This Guide?
- QUICK GUIDE: HOW TO BUY AAVE IN THE UK
- A step-by-step guide to buying Aave in the UK
- Which wallets can I use to hold Aave?
- How to sell Aave
- How Aave works
- Things to consider when buying Aave in the UK
QUICK GUIDE: HOW TO BUY AAVE IN THE UK
- Open an account with a cryptocurrency exchange.
- Verify your account.
- Go to the deposit section
- Go to the platform and select Aave.
- Enter how many Aave tokens you want to buy.
- Check the details and confirm your purchase.
A step-by-step guide to buying Aave in the UK
Step 1: Open an Online Account
The first step to take when buying Aave in the UK is to open an account with a cryptocurrency exchange. This is because it is more convenient and safer to buy the Aave tokens from a crypto exchange. Aave is not very popular compared to some other cryptocurrencies, so you may not find many exchanges offering trades on the token. However, few exchanges in the UK offer their trading pairs for users. Search and select the exchange that offers the cryptocurrency in its portal. It will be even better if you can find one that allows you to deposit fiat currency (GBP) when to buy the token.
When you find the right exchange, register on their portal by providing your email address and your proof of ID, as well as your employment details. These are necessary to fulfill the Know Your Customer (KYC) requirements set by financial authorities. When these details are provided, your account will be created.
Also, remember to enable two-factor authentication (2FA) during registration to keep your account more secured.
Step 2: Fund your account
The next step is to deposit funds into your account. There are two methods of depositing funds to your exchange account. You can deposit fiat currency or other cryptocurrencies. Not all exchanges offer the fiat currency deposit option. So, if you have another crypto asset in a wallet, you should fund your exchange account using the crypto asset in that wallet. However, if you don’t have any other stored cryptocurrency, the obvious option would be to deposit using fiat currency.
If the exchange allows such a deposit, you may have the option of depositing using PayPal, credit card, debit card, or through direct bank transfer.
Also, remember that each deposit attracts certain fees, so it's important to select the right deposit method. On the deposit page of the platform, enter the number of funds you want to deposit and review before submitting. Once the transaction goes through, an email confirmation will be sent to you.
Step 3: Buy Aave
After depositing funds to your exchange account, navigate to the market section of the portal to buy Aave. It’s very simple. Just select the right Aave pairing, for example, choose the AAVE/GBP pairing if you’re buying with euros. But if you’re buying with Bitcoin (BTC), you should choose the AAVE/BTC pairing.
Enter the details of the transaction, such as the amount of order you want and the type of order (it could be a market order or limit order).
After filling the order, review and click the “execute” link. When the order is executed, you will receive an email notification confirming the transaction. It’s that simple!
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Which wallets can I use to hold Aave?
Although many exchanges are ready to provide custody services for your Aave cryptocurrency, it’s safer to have a crypto wallet to store the crypto assets. That’s because crypto exchanges can be vulnerable to hackers, which may affect your funds if they target the exchange. But a wallet gives you complete control of your funds.
If you’re looking for the best option to store your Aave cryptocurrency, a cold wallet (hardware wallet) is the preferred option. You will not have to worry about scammers stealing your wallet key since it is stored offline and inaccessible to anyone but you. But if you want to have regular access to the cryptocurrency, you can go for the online or hot wallet, which is still safer than keeping your Aave tokens in exchange.
How to sell Aave
Selling your Aave cryptocurrencies does not require any additional method or skills. Just like you did in step 3 above, go over to the market section of the exchange. Select the pairing option you want to exchange your Aave tokens with. Enter the order details including the amount of Aave you are selling. Review the details before hitting the order button. When the order is executed, an email notification will be sent to you.
How Aave works
Aave is a decentralized protocol that enables users to borrow and lend crypto assets using a largely anonymous platform. The protocol was launched in November 2017 when it was previously known as ETHLend.
Lenders can earn interest on the number of crypto assets they made available to the borrower, who deposits cryptocurrency down as collateral.
The Aave token also allows the lenders to have a vote on future company matters based on the amount of Aave tokens they have.
Things to consider when buying Aave in the UK
If you’re looking to buy the Aave cryptocurrency in the UK, the following are the things you should know.
The crypto market is notorious for its volatility. You might have noticed that the price of AAVE does not remain stable for a long time as it keeps changing daily. Several factors can cause this volatility, and each trader and investor need to be aware of these factors to protect their investments.
Level of competition
Aave is not the only DeFi protocol that uses the Ethereum platform. Others include Compound, Uniswap, and Curve Finance. Like Aave, they also have their tokens that compete for the same type of DeFi users. This makes it even more difficult for Aave to dominate the market and gain a wider level of adoption.
Future of the project
The developers behind Aave have put serious projects in place to make sure there is continuous sustenance in both the Aave protocol and its crypto assets. But it’s still necessary to keep an eye on the protocol to find out whenever a major decision is taken regarding its future. Such decisions are the movers and shakers of crypto prices.
With the increased popularity users have placed on decentralized finance, it’s no surprise that the price of Aave and other DeFi tokens have kept increasing in the market. There is now an increased demand for the token. If you’re looking to buy Aave in the U.K., the guide above will help you register with an exchange, buy, and even sell the Aave token.
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