Frequently asked questions
Aave is a decentralized finance (DeFi) crypto lending protocol. In a sense, it is similar to a savings account: investors can deposit crypto in an Aave pool and earn interest, and borrowers can make use of the provided liquidity and take out a loan.
Users don’t have to deposit the Aave token itself, but can deposit any preferred asset and earn an income based on the demand from borrowers. Owning the Aave token will allow you to have a say in the governance of the cryptocurrency and Aave Improvement Proposals (or AIPs), however.
AAVE is the ticker name for Aave. It is just the same word, but capitalised. As such, it’s easy to remember. The original ticker name was LEND, but this was changed for the sake of simplicity.
The AAVE price is a market price. This means that it always reflects the price where there are an equal amount of people who want to buy and sell. In broader terms, Aave' price is of course als tied to the crypto market in general, and Bitcoin in particular. If cryptocurrencies enjoy an euphoric period, then that optimism will tend to lift AAVE up, too.
A crypto exchange (or cryptocurrency exchange) is a marketplace where buyers and sellers trade cryptocurrencies. Just like regular stock exchanges, a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.
Is now a good time to buy Aave? Frankly, we don’t know.
But there are several strategies when it comes to crypto investing. One approach is to buy in when price slips. In the crypto community this strategy is known as "buying the dip" (BTD).
Another strategy is dollar-cost averaging: investing a certain amount of money on a set schedule, say $100 every Monday morning. Dollar-cost averaging seeks to average out the lows and highs over time.
No matter which strategy you choose, Cryptoradar’s price alerts help you to not miss a dip, and adhere to your investment schedule.
There are risks associated with any investment. Crypto markets are particularly volatile, with large upswings and downswings. Only invest as much as you can afford to lose.
When it comes to choosing a crypto exchange, there are also a couple of thinks to be wary of.
Before you can start trading, a crypto exchange will ask you to verify your identity. This is necessary because of anti-money-laundering laws. The verification process and time can differ significantly and take anywhere from minutes to weeks.
All crypto exchanges charge a fee or a spread to finance their operations. Fees can differ significantly among exchanges, so make sure to get a good deal.
Additionally, make sure that your preferred crypto exchange supports the payment methods of your choice, but be aware of any additional payment fees that may apply.
Last but not least, if you’re new to crypto, make sure that your chosen platform is easy to use and has good customer support. This helps you avoid making costly mistakes.
The method you choose when you come to buy Aave will depend on the exchange you’re using. Some exchanges will only offer bank transfer, while others allow payments through credit cards, PayPal and other services. You can filter exchanges by payment methods on Cryptoradar.
Getting started with crypto can be hard. Our detailed price comparisons and cryptocurrency guides have you covered.