The world of decentralized finance is an exciting sector of the cryptocurrency sphere. Aave (AAVE) is a decentralized financial protocol that aims to harness the power of blockchain technology to help users borrow and lend cryptocurrencies using the framework established by Ethereum.If you’re thinking about expanding your investment in the cryptocurrency space, Aave may be an excellent token to start with. Our guide will help you learn how to buy a token, how the token works, and where to store your tokens for maximum protection.Aave is a decentralized financial protocol that allows users to lend and borrow cryptocurrencies through a largely anonymous platform. Formerly known as ETHLend, Aave was launched in November 2017.Using the Aave network and token as governance, lenders can earn interest on the amount of cryptocurrencies available to borrowers by depositing tokens into a liquidity pool. Borrowers are assured of repaying what is lent to them by depositing cryptocurrencies as collateral.In addition to collateralizing the system, Aave tokens also provide owners with a vote on future company matters in the same way that shareholders can vote on company matters based on how many shares they own.How to Buy Aave ($AAVE)Step 1: Open an online account.The first step to buying an account begins with opening an account with a broker that supports Aave. A cryptocurrency broker provides you with a trading platform that allows you to buy and sell cryptocurrencies for a commission or fee that goes to the broker.
There are a wide range of cryptocurrency brokers that support Aave, and the best broker for you depends on where you live and what types of cryptocurrencies you want to invest in.Not sure where you want to open an account? Consider Coinbase or BinanceStep 2: Buy a walletAfter deciding where you want to buy a token and open your account, you can open a wallet where you can safely store your tokens. A cryptocurrency wallet provides you with a private set of keys to store your tokens on your exchange, which limits your liability if your account is hacked. There are 2 types of cryptocurrency wallets (hardware and software), each of which has its own advantages and disadvantages.As an ERC-20 token, you have several options for storing your Aave. Consider our favorite hardware and software wallets below.SecuX V20 (Best Hardware Wallet)If you’re looking for the perfect combination of security and portability, the SecX V20 may be the cryptocurrency wallet for you. The SecuX V20’s durability starts with its tamper-proof casing, which gives you peace of mind when you take your device on the road.The wallet features Bluetooth connectivity and a full-color touchscreen to view and manage your tokens without connecting to an unsecured local Wi-Fi connection. Best of all, the device supports more than 1,000 individual cryptocurrencies, giving you a single place to store all your blockchain investments.MyEtherWallet (Best Software Wallet)MyEtherWallet is the original cryptocurrency wallet used to store Ethereum, but the software has also been expanded to include all ERC – 20 token types. MyEtherWallet has a simple setup and mobile app that allows most users to create their account and start transferring their tokens in minutes.You can connect your mobile app to your desktop via a QR code. If your phone gets too far away from your computer, the wallet will automatically disconnect, meaning you don’t have to worry about your wallet staying connected when you’re on a public internet connection or device.Step 3: Make your purchaseOnce your wallet is set up and you have opened and fully funded your brokerage account, you can place an order to buy AAVE. Ordering to buy crypto involves a few steps.Step 1: Choose your order type. The order type you choose will determine when your order is filled and how much you pay for each coin. You can browse some of the most common order types here.Step 2: Decide how much AAVE you want to buy. Cryptocurrency prices are constantly changing. Take a look at the current market rate of Aave before deciding how many tokens you want to buy.Step 3: Place your order. Depending on the type of order you use, you may need to specify a maximum price you want to pay per token and the number of tokens you want to buy.Step 4: Wait for your broker to complete your order. After you submit your order, your broker will fill it according to your instructions. When the order is completed, you will see your tokens in your brokerage wallet. If your broker is unable to complete your order, you can cancel it at the end of the trading day or leave it open indefinitely depending on the broker.Aave is an ERC-20 token, which means it runs on the Ethereum-configured network. If you are looking for a way to diversify your investment while buying an emerging decentralized financial technology, investing in Ethereum may be right for you.Trade / Sell Your CryptocurrencyIf your broker is able to fill your order, you will need to decide whether you want to hold your Aave for the long term or take advantage of short-term price movements. If you believe the price of Aave will increase in the future, you may want to keep your tokens in your private wallet.And if you think the price of Aave will fluctuate in the coming days or weeks, you may want to short or bid up your tokens to accumulate more Aave.If you decide to make a profit, you can convert your excess Aave into a stable currency such as Tether OR USD Coin. Some brokers may also allow you to convert Aave directly into fiat currency.If you want to execute multiple trades throughout the day, you should choose a cryptocurrency broker with lower fees and a responsive platform. Consider some of our favorite options below.