How to buy Aave (AAVE) in Australia

Aave (AAVE) is in the top 1,000 cryptocurrencies by market cap, valued at US$1,908,047,481.

Aave is a highly volatile asset capable of major price swings in a single day. Today AAVE is trading for $126.29 USD, which is higher than yesterday's trading price of $120.01 USD. Over the past year, Aave's price has seen a decrease of -2%.

So before you buy Aave, make sure you understand these unique risks as well as its legal and tax status here in Australia.

If you're ready to get started, read on for step-by-step instructions on how you can use to buy Aave.

Where to buy Aave in Australia

Find an exchange to buy, sell and trade AAVE by comparing deposit methods, supported fiat currencies and fees. Select Go to site to sign up directly with the exchange.

What is Aave?

Aave, which comes from the Finnish word for ghost, is a lending and borrowing decentralised finance (DeFi) protocol built on the Ethereum blockchain. Founded in 2017, the protocol was originally called ETHLend and focused entirely on lending Ether. Since a rebranding in 2018, Aave has grown to be one of the largest money markets in the DeFi lending space.

The service is completely decentralised in comparison to other lending platforms such as BlockFi and Nexo, requiring no KYC checks or limitations for users. Lending and borrowing are controlled by smart contracts that utilise liquidity pools to remove the need to match the borrower to the lender.

Aave is a non-custodial service meaning cryptos are never stored directly with Aave. Deposits are always controlled by the user.

The Aave lending protocol utilises a native token called AAVE. The AAVE token is used for governance and can be staked in return for fees and other rewards.

Best Aave wallets to store your AAVE

You can keep your AAVE on the exchange you purchased it on, or move it to a personal wallet:

• Some people like to use their own wallets to guarantee total ownership over their assets, or to use them with other applications like DeFi services.
• Hardware wallets are typically considered to be the safest type of cryptocurrency wallet, as they use a physical device to enhance security in a number of ways. You can take a look at some of our top hardware wallet picks for self-custody of your AAVE below.

Disclaimer: This is not an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Is Aave a good investment?

Before acquiring any cryptocurrency, it's essential to thoroughly research your purchase and be fully aware of any risks involved. Cryptocurrencies are complex and speculative, so make sure you consider a wide range of factors before you buy.

If you're thinking of buying AAVE, take the following into account:

• Tokenomics: The maximum supply of AAVE tokens is 16 million and is deflationary in nature. Staking AAVE in the safety module and burning AAVE tokens could increase the price if the demand remains stable.
• Risks of using Aave: Those that wish to get the most out of their investments may want to make use of the Aave platform, however it should be known that there are a number of risks involved. The risk of a hack should always be anticipated like any other protocol that exists online. Although no successful attempts have been made, the risk still remains. As with other Ethereum-based DeFi protocols, the platform has been built on smart contracts. Smart contracts, although efficient, can malfunction occasionally which for a system like Aave would be catastrophic. To mitigate these risks, Aave offers users entry to the safety module to insure some digital assets against potential losses.
• Token use0case: The AAVE token has two primary use-cases - governance and staking. Holders of the cryptocurrency are given the opportunity to vote on items such as the management of the platform, improvement proposals and the allocation of funds. Additionally, users can stake their AAVE tokens in a 'safety module', which is used to cover lenders in case of a capital shortage. In exchange, stakers receive interest on their locked-up tokens.
• Competition: As a decentralised lending protocol, Aave has an advantage over CeFi competitors like Nexo. However, they are not the only platform to offer DeFi lending services - Compound, Venus and CREAM finance are all major players in this sector of blockchain tech. It may be worth comparing these platforms to Aave's to determine which has the best chance of cornering a share of the DeFi lending market.

Today's Aave price versus ATH

Compare today's price of Aave ($126.29 USD) against its all-time-high price of $661.69 USD on 18 May 2021. The closer the bar is to 100%, the closer AAVE is to reaching its ATH again.