Coinsquare is the most trusted cryptocurrency trading platform in Canada. We facilitate your participation in the cryptocurrency space with over 50 of the top crypto coins on the market, including the popular Aave (AAVE) coin.
Want to learn more about how to invest in cryptocurrencies like AAVE? This page covers the essentials for beginning crypto investors, with instructions on how to get started quickly.
Add money in the currency of your choice (this can include CAD). These funds are what you’ll use to buy AAVE.
Before you buy, you can check the current price of AAVE, or any other token listed in Coinsquare in CAD or USD.
Congratulations! You are now an owner of the AAVE cryptocurrency, along with thousands of others in the AAVE community!
After making your purchase, your AAVE will be stored in your secure and insured Coinsquare wallet. If you wish, you can withdraw the coin to your own external wallet.
Aave is a decentralized finance (DeFi) lending system that operates on the Ethereum blockchain, functioning as a network of computers running its software to manage assets. The Aave platform allows users to borrow cryptocurrency using other digital assets or cryptocurrencies they hold as collateral without third parties involved. Users can also earn returns by lending out their cryptocurrencies.
Aave was founded by Stani Kulechov and a team of developers. Initially launched as ETHLend in late 2017, the platform focused on peer-to-peer lending and borrowing of crypto assets. In the same year, ETHLend launched an initial coin offering for its LEND tokens and raised over USD 16.2 million. However, challenges in liquidity and market conditions prompted a rebrand and overhaul. Kulechov renamed the platform to Aave in 2018. The relaunched platform, Aave, introduced automated liquidity pools, allowing seamless lending and borrowing across multiple cryptocurrencies. This means that Aave users do not have to rely on a specific institution or individual to handle their funds. Basically, Aave’s software allows users to create lending pools where they can lend or borrow 17 different cryptocurrencies like ETH, BAT, and MANA.
Aave loans require users to deposit collateral worth more than the amount they borrow. If borrowers don’t repay on time, lenders take the collateral. Aave uses a liquidation process if the collateral’s value drops below a set rate due to changes in the cryptocurrency market.
Rather than manually connecting lenders with borrowers, the Aave protocol uses an algorithm to facilitate automated loans from Aave liquidity pools. Lenders can link their cryptocurrency wallets to Aave and choose which asset they want to deposit. There are no restrictions on the minimum or maximum amount they can contribute to the liquidity pools.
Lenders receive interest that is earned by borrowers when they take out loans. The annual percentage yield (APY) provided by Aave fluctuates over time based on the supply and demand of an asset. Lenders can earn higher yields on assets that are more actively used.
Interest rates are determined by borrowers and are based on how many assets are available in a pool. For instance, when all assets are used, interest rates are higher to encourage lenders to deposit more assets for borrowers.
Borrowers can choose between two kinds of interest rates:
However, Aave also allows flash loans, wherein borrowers can borrow without collateral as long as they pay the ‘one-block’ or interest fee.
The Aave crypto coin, AVEE, is primarily used by users for staking, governance, and collateral. It is an ERC-20 token, which means it can be stored in crypto wallets compatible with ETH and ERC-20 tokens.
The AAVE price reached an all-time high of USD 661.69 on May 18, 2021. As of August 20, 2024, AAVE boasts a market capitalization of USD 1.85 billion, making it one of the largest cryptocurrencies by market cap.
Just like other currencies, the Aave price is unpredictable. The value of Aave is always changing and never stays the same. Many things can influence the price of Aave, such as news about the project, how people feel about the market, how much Aave is being traded on exchanges, and the overall state of the economy. Another important factor that affects the value of Aave is the total amount of money that is locked up in the Aave protocol.
Investors with all levels of knowledge are welcome to participate in the exciting world of AAVE investing, trading, mining, and all other activities in this technology space. As an inclusive community, crypto arenas work to be accessible to everyone.
Coinsquare is vigilant about education, maintaining a real-time news feed in its mobile app, and providing 24/7 customer service support for all our account holders.
Before investing in AAVE, do your research and your due diligence. Evaluate the market performance, the AAVE community, and the security aspects of AAVE. As you immerse yourself in the crypto space, you can go further: assess the project’s partnerships with other companies and organizations, figure out what AAVE’s plans are for the future, and evaluate the AAVE community’s engagement, online presence, and enthusiasm.
Anyone who wants to invest in AAVE should understand basic concepts like what a blockchain is, how blockchains work, and the purpose of consensus mechanisms like Proof of Work and Proof of Stake. These concepts are reasonably accessible and essentially the same for all cryptocurrencies. You can find plenty of online guides to explain them. If they don’t make sense to you right away, stick with it and search for resources that are suited to your learning style.
AAVE’s market performance and price data over time isn’t representative of where AAVE is going, but it will give you a sense of the confidence other investors have had in it. As with all investments, past results are not indicative of future performance, so be diligent in your research before buying any type of investment
Also, consider the market capitalization for AAVE. The market cap is a metric used to indicate the total value of AAVE. Each cryptocurrency has a market cap. This figure is important because it can be used to compare different cryptocurrencies and evaluate their relative dominance on the market overall.
Coinsquare makes this data easily accessible. We provide all the information you need to make an informed decision about buying AAVE.
Sufficient liquidity when purchasing AAVE on the trading platform you choose is important so that it’s easy to buy and sell without significantly impacting the price. Trading volume can be used as an indicator for trading interest in AAVE within a specific timeframe.
Look into the partnerships that AAVE has established with other companies and organizations. Partnerships with reputable, well-respected companies indicate trust in AAVE. These partners often conduct extensive due diligence, which will give you confidence in AAVE and its ongoing viability.
Partnerships with tech companies can also give AAVE access to resources like expertise and equipment, while strategic partnerships can provide the financial backing that AAVE needs to shore up its stability and continue to innovate and grow.
Overall, solid partnerships suggest that other companies see value in AAVE and are willing to back it with their own resources.
A large and active community is important to a cryptocurrency’s success. Follow AAVE’s social media channels to see how involved people are with AAVE, keep up with the news about it, and get a sense of the community vibe. Developer support for AAVE can give you additional information about the AAVE community.
Investigate any past security incidents and see how they were addressed. Check on the social media chatter about these incidents to evaluate how the public and the AAVE community responded.
Collecting information about AAVE before you invest will help you make better investment decisions and manage any potential risks. Coinsquare is dedicated to giving you as much information as possible to help you get comfortable in the crypto space.
You have options for trading platforms in Canada. Why choose Coinsquare?
Here are the advantages we offer to individuals or organizations interested in AAVE or other cryptocurrencies:
Since its founding in 2014, Coinsquare has become a leader in the cryptocurrency space in Canada. Over the past decade, we have welcomed over 500,000 Canadian users to the crypto space and facilitated trades in excess of 8 billion Canadian dollars. We have the experience, customer base, and dedication to the community to have earned an outstanding level of trust and success. Open an account today; let’s see where we can go together!
