Aave is a decentralized lending platform that allows users to borrow, lend and earn interest on crypto assets without the need for middlemen.
Instead of running on the Ethereum Blockchain, Aave is a system that uses smart contracts to allow these assets to be managed via a distributed network computer.
Aave users don't need to believe in a specific institution or person to manage funds. They can only trust that the code will work as it is written.
The core of the Aave software is the ability to create lending pools that allow users to borrow or lend over 30 (and growing) different cryptocurrencies, including Ethereum (ETH) and Chainlink (LINK).
Aave borrower must provide collateral, just like on any other Ethereum decentralized lending protocol. They can only borrow funds equal to the amount of the collateral they have submitted.
Borrowers are given funds in the form of a token (a token that is tied to another asset). The token is then encrypted so that lenders can earn interest on deposits
For example, a borrower could deposit collateral in DAI and then borrow ETH. This allows the borrower to have exposure to a different cryptocurrency without having to own them.
Aave also has the ability to introduce additional features such as instant loans and other forms for issuing credit and debt that take advantage of blockchains’ unique design properties.
As crypto exchanges have become more accessible and the AAVEUSD price has risen, more people have begun to invest in cryptocurrency. AAVE trading is allowing a great transfer of wealth and even new investors can hope to profit from its fast growth and earn higher returns than they would on the stock market.
With so much attention from the media and financial traders, new cryptocurrency investors are always looking for advantageous ways (platforms) to buy AAVE (AAVE) online. Luckily, there are numerous services and guides on how to buy AAVE to help you get started in the cryptocurrency market.
Where to Buy AAVE (AAVE coin)
There are two ways cryptocurrency investors can choose when searching how to buy AAVE (AAVE) online:
- Cryptocurrency exchange
- Online Brokers
Crypto exchanges might be a good option for holding your funds, especially if you plan to withdraw them to a private wallet.
Online brokers are another great option where to buy AAVE (AAVE), which is increasing in popularity lately due to ease of trading, fast transaction, and greater control over the digital assets in your portfolio.
When you use a broker platform, you gain access to a comprehensive feature set that will assist you in more precisely calculating your strategies and risks. As a result, you will be able to add more indicators to the chart and use the built-in technical analysis tools. However, unlike an exchange, the broker platform will not provide you with the same large offer of cryptos to trade.
Additionally, global brokers like CAPEX also provide a few options to indirectly invest in AAVE and other cryptocurrencies: cryptocurrency Exchange-Traded-Funds (ETFs) and companies connected to cryptocurrencies (crypto stocks).
Such multi-asset platforms hand investors many useful financial instruments that can generate a passive income (interest with forex trading or dividend with stock trading).
Buying AAVE cryptocurrency over an exchange
If you want to participate in a crypto project development and own the digital asset, you can buy AAVE (AAVE) online through a cryptocurrency exchange, such as Binance, Kraken, Bittrex, or Coinbase, and store it in a digital wallet.
Having an account on a cryptocurrency exchange allows you to send and receive AAVE (AAVE). Transferring AAVE is like the way traditional bank transfers work, except for the bank account address, which is replaced with an AAVE address. Because digital currency is transmitted directly between individuals without needing third-party entities, such as banks, transaction fees are cheaper than those charged by traditional institutions.
If you want to hold your crypto for a longer time, it is advised to transfer them from the crypto exchange to a secure cryptocurrency wallet. Wallets are much safer, and each private crypto wallet has a private key. It is critical to keep your private key safe because you won't be able to access your crypto without it, and if it's easily available, your funds could be stolen.
Buying AAVE (AAVE) through an exchange is for those who want to use it for day trading or purchasing crypto to transfer to a wallet. When you’re buying AAVE (AAVE) through a cryptocurrency exchange, you own the digital asset, and you can transfer it to a crypto wallet or do whatever you wish with it. If the price of AAVE rises, then the value of your portfolio goes up as well. But if the price of AAVE (AAVE) falls, then the value of your portfolio falls, while the amount of AAVE (AAVE) remains the same.
Here are the main drawbacks when buying AAVE (AAVE) through a cryptocurrency exchange:
- Cryptocurrency exchanges may not be regulated in your country and offer little to no protection for investors.
- The matching engines and servers on AAVE (AAVE) exchanges are often unreliable, leading to the inability to access your account and control your funds.
- Cryptocurrency exchanges have many restrictions and limitations for their services, including transaction fees, withdrawal fees, and imposing minimum amounts for funding and withdrawing funds.
The good news is that investors can limit the risks presented by the crypto exchange by trading AAVE (AAVE) with contracts for difference (CFDs). AAVE (AAVE) CFDs allow you to speculate on the price of the cryptocurrency without having to own the digital asset.
Read on if you want to learn to trade AAVE with capex.com in the most convenient way.
Buying AAVE (AAVE) with an Online Broker
Trading AAVE (AAVE) with an online broker like CAPEX means that instead of owning AAVE outright, you’ll be speculating on its price with CFDs.
The main difference between buying AAVE (AAVE) from an exchange and buying AAVE (AAVE) from an online broker is that you don’t own AAVE (AAVE) when you use a broker. Owning crypto requires investors to have a crypto wallet, either within the exchange or a private wallet. But when you purchase AAVE (AAVE) CFDs using an online broker, the CFDs are stored in your account and are far more liquid, which makes trading CFDs more popular. Unlike cryptocurrency exchanges, online CFDs brokers are regulated by financial authorities.
The Alternative Way to Invest in AAVE (AAVE)
Trading CFDs is a process of buying or selling CFDs and can generate a profit if the value of the asset moves in the direction of the investor’s prediction, or a loss if the market goes against him.
You can buy AAVE CFDs (go long) if you believe the value of the digital asset will increase.
At the same time, you can “go short” if you believe that the price of the underlying asset, in this case, AAVE (AAVE), will decrease, by selling CFDs.
Trading CFDs provides leverage, and you can open your position by depositing only a margin.
For example, if a trader wants to buy 100 AAVE CFD at $180 would only require $9000 of trading capital.
It’s important to remember that leverage can increase both your profits and your losses, and they will be based on the full exposure of the trade, not just the margin requirement needed to open it. Potential losses, as well as profits, could exceed your margin.
Concisely, if you choose to trade crypto CFDs, you can profit from the difference between the buying and the selling position.
With CAPEX, you can trade CFDs on futures or spot prices. Trading CFDs on futures gives you exposure to the futures market, but without requiring you to take on any obligations or worry about any of the other nuances that are associated with futures trading.
Buy AAVE AAVE CFDs - Go Long
Instead of taking ownership of AAVE, you can place a ‘long position’ translates to buying AAVE CFDs. Your position, or AAVE CFDs, will increase in value according to the increase in the price of the digital asset AAVE’s price increases. If the price of AAVE falls, then your position will lose value and can lead to loss.
Let’s assume that AAVE is trading at a sell/buy price of 178/180 USD. You want to buy 100 CFD (units) because you think the price of AAVE will go up. AAVE has a 1:2 leverage or a margin rate of 50%, which means that you must deposit only 50% of the position’s value as position margin.
In this example, your CFD position margin will be $9000 (50% x (100 units x $180 buy price)). Losses greater than the margin can occur if the price of AAVE moves against your position.
Outcome A: a profitable trade
If your prediction was correct, and the price of AAVE surges over the next hours or days, then you have made a profitable trade. If the sell/buy price is 198/200 USD when you decide to close your position by selling at 198 (the new sell price), then your profit will be $1800.
The price has moved $18 (198 - 180) in your favor. Multiply this by the size of your position (100 units) to calculate your gross profit which is $1800.
If the position was closed during the day, there will not be any swap charges and the net profit is $1800.
If the position was closed after a few days, there will be swap charges according to the overnight rollover specification, in this case, -0.0563%.
Let us assume the position was closed the next day, the overnight swap calculation formula will be:
- Overnight swap = 100 (units) x $190 (price at rollover) x 0.0563% x 1 (days) = $107
Therefore, your total profit on AAVE CFD is your gross profit minus the rollover cost.
- $1800 - $107 = $1693 net profit
Outcome B: a losing trade
If your prediction for the price of AAVE was wrong, the AAVE CFD trade will result in a loss. Let’s assume that the price of AAVE drops over the next hour to a sell/buy price of $170/172. Because you want to limit the loss in the eventuality that the price continues to drop, you can sell at $170 (the new sell price) to close the position.
The price has moved $10 (180-170) against you. Multiply this by the size of your position (100 units) to calculate your loss, which is $1000.
Sell AAVE AAVE CFDs - Go Short
In this CFD example, AAVE is trading at a sell/buy price of 178/180 USD. Assume you want to sell 200 CFDs (units) because you think the price will go down. AAVE has a 1:2 leverage or a margin rate of 50%, which means that you only must deposit 50% of the position’s value as position margin.
In this example, your CFD position margin will be $17800 (50% x (200 units x 178 sell price)). Remember that if the price moves against you, it is possible to lose more than your initial position margin of $17800.
Outcome A: a profitable trade
Your prediction was correct, and the price falls over the next 2 days to a sell/buy price of 166/168 USD. You decide to close your trade by buying back at $168 (the new buy price).
The price has moved $10 (178-168) in your favor. Multiply this by the size of your position (200 units) to calculate your profit, which is $2000 gross.
Let us assume the position was closed after 2 days, the overnight swap calculation formula will be:
- Overnight swap = 200 (units) x 175 (average price at rollover) x 0.0118% x 2 (days) = $8.26
Therefore, your total profit on AAVE CFD is your gross profit plus the rollover cost.
- $2000 + $8.26 = €2008.26 net profit
Outcome B: a losing trade
Unfortunately, your prediction was wrong, and the price of AAVE coin rises over the next hour to a sell/buy price of $186/188. You feel the price is likely to continue up, so to limit your potential loss you decide to buy at $188 (the new buy price) to close the position.
The price has moved $10 (188-178) against you. Multiply this by the size of your position (200 units) to calculate your loss, which is $2000.
If you are not ready to trade CFDs at spot or futures prices yet, we have also got educational resources like CAPEX Academy with free courses on how to trade. Plus, we offer a demo account – giving you $50,000 in virtual funds to build your confidence in a risk-free environment.
Investing in AAVE without actually buying AAVE
While buying and day trading cryptocurrency is a major trend right now, it is important to remember that cryptocurrencies are a volatile and risky investment choice. If investing in crypto on an exchange or via a broker does not feel like the right choice for you, here are a few options to indirectly invest in AAVE and other cryptocurrencies:
Exchange-Traded Funds - Crypto ETFs
Exchange-traded funds (ETFs) are popular investment tools that allow investors to buy exposure to hundreds of individual investments in bulk. That is why ETFs are a means of diversification for your portfolio and as less risky than investing in individual investments.
A crypto ETF allows investors to trade cryptocurrency on a traditional market and eliminates the need to trade the asset on a crypto exchange. Another advantage of trading crypto ETFs is that investors do not have to worry about the security aspects of trading crypto.
US investors can enter the crypto market by using ProShares Bitcoin Strategy ETF (BITO). The Fund provides capital appreciation through managed exposure to bitcoin futures contracts.
A AAVE ETF could come in 2022. The approval of a Bitcoin ETF means a similar offering for AAVE is imminent.
>> Learn what is an ETF and how does it work
Companies Connected to AAVE and Cryptocurrency - AAVE Stocks
Another option is to invest in cryptocurrency indirectly by investing and buying shares of companies that offer real-life products and services but still use or own cryptocurrencies as part of their business model (known as AAVE stocks). With an all-in-one trading account with CAPEX, you can also trade shares CFD of public companies like:
- Visa (V) is a global payment service and is unlocking crypto opportunities for businesses and consumers and is helping adoption and investment worldwide. Visa's crypto solution is making digital assets interoperable and it creates a bridge between traditional fiat and digital currencies. Learn how to buy Visa shares
- PayPal (PYPL). This is a worldwide payment service that allows their customers to buy and sell crypto using their PayPal and Venmo account. Learn how to buy PayPal shares
- Microsoft (MSFT) is offering Ethereum Blockchain as a Service (EBaaS) on the Microsoft Azure cloud. It is intended to offer Enterprise clients and developers a single click cloud-based blockchain developer environment. Learn how to buy Microsoft shares
- Coinbase (COIN). Coinbase is a cryptocurrency exchange that allows consumers, financial institutions, and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies. Learn how to buy Coinbase shares
- Oracle (ORCL). The company offers Oracle blockchain, which is a collaboration framework that shares reliable data. Oracle provides easy ways to adopt blockchain technology, including an on-premises edition, a cloud service, and a SaaS application that can be used for supply chain management. Learn how to buy Oracle shares
- CME Group (CME). CME is a financial derivatives exchange that offers trades in cryptocurrencies as well. In Q3 2021, the company reported a 14% year-over-year increase in its average daily volume (ADV) at 17.8 million contracts. Learn how to buy CME shares
>> Learn more about stock investing
How to Buy AAVE Coin
Are you wondering how to buy AAVE with CFDs? CAPEX offers AAVE trading via CFDs on AAVE USD spot prices to speculate on the value of AAVE against the most popular currency, as well as the brand-new PRO Shares Bitcoin Strategy ETF. Here are the steps:
Step 1: Create an account and deposit funds
When you trade on cryptocurrencies, instead of purchasing AAVE and other popular digital currencies, you can be ready to open a position much faster. You do not need a digital wallet or an account with an exchange. In fact, all you need to trade via CFDs is an account with a leveraged trading provider.
With CAPEX, you can open an account in minutes, and there is no obligation to add funds until you want to place a trade.
When you create a trading account with CAPEX, you will be able to:
- ‘Buy’ (go long) or ‘sell’ (go short) AAVE and other popular cryptocurrencies to speculate on their price rising or falling
- Take a position on our range of ETFs to get exposure to a basket of shares from an entire country, index, or sector that could be rising or falling in price.
- Trade a host of global indices to go long or short on the performance of an entire economy with a single trade.
- Use QuantX, the smart portfolio builder that helps you cover the popular industries and only invest in the top-performing stocks.
Step 2: Choose your Crypto trading platform
Our trading platforms can provide you with a smarter and faster way to trade AAVE CFDs – with personalized alerts, interactive charts, trading signals, and built-in risk management tools. You can trade via the CAPEX trading platform using:
CAPEX Web Trader
Trade on one of the most complete, fully customizable trading platforms on the market.
Available on desktop (Windows, Mac) and mobile (Android, iOS), it provides intuitive, web-based access to a vast range of tradable instruments, charting tools, analytical tools, and many more features.
To view AAVE's real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Cryptocurrency" and then select the instrument, in this case, AAVE (AAVE).
MetaTrader 5, one of the best crypto trading apps, is providing superior tools for comprehensive price analysis, use of algorithmic trading applications (trading robots, Expert Advisor), and copy trading.
MetaTrader 5 is available on both desktop and mobile.
Step 3: Pick up a AAVE trading strategy
Learning how to buy AAVE is easy but adopting the right AAVE trading strategy is essential to time the market.
The main AAVE trading strategies are:
Buy and hold, also called position trading, is an investment strategy whereby an investor buys AAVE to hold them long term, with the goal of realizing price appreciation, despite volatility.
Traders take a position according to the main trend (months to years). You can “go long” if AAVE is in a bullish trend or “go short” if the AAVE trend is bearish. If the major trend starts to slow or reverse, you will think about closing your position and opening a new one to match the emerging AAVE trend.
All trades are performed during the day. There are no open positions overnight, though no rollover charges. Traders are looking to profit from AAVE’s short-term price movements (including scalping), and it can enable them to make the most of daily volatility in bitcoin’s price.
When you hedge AAVE, it means that you use CFDs to counteract the AAVE price movement you already own. For example, if you owned some AAVE but were concerned about a short-term drop in their value, you could open a short position on AAVE with CFDs. If the AAVE price falls, the gains on your short position would offset some or all the losses on the coins you own.
Following the chart patterns and general trends can give you a hint to where AAVE is going.
Step 4: Set your AAVE orders
A trade order is an agreement to buy or sell a specific asset like AAVE at a specific price or price range.
To buy AAVE CFD with CAPEX, click on the "Buy" button and a window is displayed to configure the purchase order. You can choose among Market, Limit, and Stop orders.
Additionally, you can pre-define Stop Loss and Take profit orders, which are crucial risk management tools – that help you minimize the potential loss and maximize the potential gains.
How to buy AAVE with Market Orders
The simplest type of trade order is a market order. Market orders are usually placed by traders if they want to be certain trade is executed. A market order is instant. Therefore, it is simply an order placed by a trader to buy or sell AAVE immediately at whatever its current price is.
I want to buy 200 AAVE (AAVE) right now or as quickly as possible.
How to buy AAVE with Limit Orders
While a market order is simply an order placed by traders to buy or sell an asset immediately at whatever the current price, a limit order in its most basic sense, is an order to buy or sell an asset at a specific price. Buy limit orders are placed above key support levels with the purpose of limiting price risks anticipating the uptrend will resume after a correction (buy the dip).
The price for AAVE/USD is currently at USD 176.00 and you place a buy limit order at USD 160.00, then your order is meant to execute at the price of USD 160.00 as soon as there is a matching sell order at this price or better.
How to buy AAVE with Stop Orders
A stop order is an order that becomes a market order only once a specified price is reached. It can be used to enter a new position or to exit an existing one. Limit orders are placed above key resistance levels anticipating a breakout after a consolidation.
The price for AAVE/USD is currently at USD 176.00 and you place a buy stop order at USD 180.00, then your order is meant to become market at the price of USD 180.00 as soon as the price is reached.
Step 5: Monitor and close your AAVE position
To open a AAVE trade, you’d buy if you thought that the price was going to rise or sell if you thought the price was going to fall. Once your trade is open, you’ll need to monitor the market to make sure that it’s moving in the way you anticipated.
The technical indicators available on our trading platform can help you to determine what AAVE’s price might do next. Indicators can also help you monitor current market conditions like volatility levels or market sentiment.
CAPEX WebTrader can deliver an in-depth analysis of the charts and offers over 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The WebTrader platform also supports an interactive trading activity with high-end research tools helping you interpret market data.
Take Profit & Stop Loss
Traders can close a position immediately to take a profit or to cut a loss. You can use market order or set Stop Loss and Take Profit levels when you set the order to buy AAVE.
The platform offers the stop-loss option, which lets you clearly state how much you're willing to risk with your trade. Similarly, the take profit is the exact opposite. It tells your broker how much you expect to make as a profit and when you want to close your position.
Any profits you make will be paid directly into your trading account. Losses are deducted from your account balance.
When to buy AAVE (AAVEUSD)
Investors should be aware of the fundamental and technical analysis when deciding when to buy AAVE. The fundamental analysis considers the news and events about the coins, exchanges, and other crypto businesses. The technical analysis uses the price value history to map the evolution of the supply and demand for AAVE.
AAVE Price Prediction using Fundamentals
When using the fundamental analysis approach, investors should be aware of the government regulation, latest cryptocurrency updates, and technical issues, as well as cryptocurrency exchanges that affect the supply and demand for cryptocurrencies.
For instance, when Bitcoin CME was introduced into the government regulations, and it drove the price of Bitcoin to almost $20,000 in December 2017.
An accurate AAVE price forecast using fundamental analysis considers the three main aspects:
- Blockchain metrics (hash rate, active addresses, transactions fees, and values)
- Financial (market capitalization, liquidity, trading volume, circulating supply)
- Project overview (team’s background, whitepaper, competitors, roadmap, tokenomics)
>> Learn how to forecast AAVE price with fundamental analysis
What is the future of AAVE?
There is huge potential in the decentralized lending market. Aave is currently one of the market leaders. It is being actively developed by developers, and its popularity is increasing.
Aave, its cryptocurrency, has a bright future as it might lead the crypto kingdom and be used as a payment method. Aave is also a leader in the field of flash loans. If the project can maintain this position in the niche of loans, it will be a strong feature and potentially the decisive one with which Aave can assert itself as the best lending platform.
However, Aave suffers from the problem almost any other DeFi lending protocol has: the need for over-collateralization. Loans are attractive because they give you access to more liquid funds than what you have. But if you don't know what you are doing, borrowing less than you have is a waste of money.
AAVE tokens can be bought and sold through platform-generated fees. This serves as a positive price driver. The lower the supply, the more AAVE tokens are used.
The hype surrounding the project will not decrease and that online crypto lending protocols will continue to grow.
In July 2021, during the “Next Steps in Institutional DeFi”, Aave’s CEO and founder Stani Kulechov, announce the launch of Aave Pro, an investment platform for institutional investors. Following the announcement, the price of Aave rallied up to 30%, hitting a month high of $345.
Because is difficult to analyze the intrinsic value of a cryptocurrency, it is recommended you perform a technical analysis before investing in AAVE CFDs. It might offer some insight into the past movements of AAVE, helping you predict where it will head in the future.
AAVE price prediction using technical analysis
Some believe the high concentration of retail traders makes cryptos truer to traditional chart patterns and indications of oversold, overbought conditions, etc.
Technical analysis techniques can be applied to any market where the price can freely fluctuate, and data is available to see those fluctuations. The CAPEX Web Trader has a full suite of all the best-known technical indicators and chart drawing tools.
>> Learn how to forecast AAVE price with technical analysis
AAVE Forecast 2022
The price of the token is currently showing conflicting signals. The price is showing a bearish global trend, but most predictions are optimistic for the medium and long term. AAVE's price is testing the all-time low with a steady decline in a tight descending channel. For a positive 2022 AAVE outlook price has to rise above the $220 level after closing the gap down.
Aave's price has risen due to the rapid adoption of decentralized applications (DApps) in the past year. Aave has experienced tremendous growth since the beginning of 2021. It reached $500 in February but then experienced a correction and traded at $450. Given the current state of the cryptocurrency market AAVE, along with many altcoins, stands a good chance for a significant price increase towards the end of 2021.
AAVE hit its record high of $498 in February, but then it dropped to USD $312. Since then, it has continued to grow steadily. Aave's price as of December 2021, is around $177, and there are about 13.4 million Aave in circulation, out of the total supply of 16 million. The AAVE cryptocurrency is currently running on the Ethereum network. This could explain Aave's rapid growth, as the market cap transaction currently has an average value of $2.3 million.
TradingBeasts expects a slight drop in price for the token over the next few months. They predict that the price of the AAVE token will increase starting in April 2022 and could reach $518 by 2024.
WalletInvestor believes AAVE to be a long-term good investment. Their calculations show that the price of the token will rise to $350 at the end of 2021, $575 at the end of 2022, and $1252 at the end of 2025.
Long Forecast predicts that the token price will drop in the next months to $307 by 2022. The price will rise significantly and reach $628 by the end of 2022 and reach $1489 by 2023. The price will begin to decline again in mid-2024. It will fall to $1219 in 2024 and $511 by November 2025.
What Moves AAVE Price
The most important aspects that can influence the AAVE price are:
- Total supply
- Rules and regulations
AAVE’s price corresponds to the current supply and demand in the crypto space. Considering AAVE has a fixed maximum supply of around 16 million AAVE, it is a digital asset that will experience scarcity as more investors join the AAVE trading market.
An important aspect of what moves the price of AAVE is the news.
In July 2021, when Aave’s CEO announced the launch of the Aave Pro platform for institutional investors, the price surged by 30% in only a couple of weeks.
In conclusion, should you Buy AAVE or not?
As with any investment, make sure you carefully assess your financial situation before investing in cryptocurrency, AAVE, and the stock market. AAVE can be extremely volatile—a single tweet can make its price plummet—as cryptocurrencies are still a highly speculative investment. Follow the already famous crypto investment phrase — "invest only what you can afford to lose".