Aave is a decentralized finance lender protocol that’s built on the Ethereum blockchain. Launched in 2017, Aave was set up to help lenders earn interest by depositing tokens into a liquidity pool. Despite the ups and downs in AAVE’s history, analysts believe the price will continue to rise in the long run.
In this beginner’s guide, we’ll show you how to buy Aave in the UK with a regulated and top-rated online broker.
#1 Broker to Buy Aave – eToro
How To Buy Aave – Choose a Broker
Trading Aave is straightforward given that you choose a top-rated online crypto broker or exchange. Popular trading platforms allow you to buy AAVE in the UK with market-leading fees and low spreads.
So, let’s take a quick look at the five best online brokers and cryptocurrency exchanges that offer AAVE trading in the UK:
- eToro – Overall Best Broker to Buy Aave UK
- Coinbase – Best Crypto Exchange to Buy Aave for Beginners
- OKEx – Best Low-Cost Exchange to Buy Aave UK via a Crypto Deposit
- Binance – Best Cryptocurrency Exchange to Buy Aave with Low Commissions
- Coinjar – Best Crypto Exchange to Buy Aave UK with low crypto deposit fees
If you’re looking for thorough reviews of each crypto broker and exchange, then be sure to keep reading this guide!
How to Buy AAVE in the UK – A Quick Guide For 2021
Let’s have a look at a quick tutorial on how to buy Uniswap in four easy steps:
- Step 1: Open a live brokerage account with eToro, a social trading platform that is home to over 20 million traders worldwide and regulated by the FCA.
- Step 2: Account Verification – In keeping with KYC (Know Your Customer) regulations simply upload your proof of identity and address.
- Step 3: Fund your Trading Account – Depositing funds into your eToro account is easy and simple as you can choose from a range of payment methods such as debit/credit card, bank transfer, or even PayPal.
- Step 4: Buy AAVE – Type ‘Aave’ into the search bar at the top of the screen, tap on ‘Trade’ and enter your preferred investment amount in USD.
Lastly, your AAVE purchase is completed once you tap the ‘Open Trade’ option. You can also hold your Uniswap tokens in the eToro Money crypto wallet. At eToro, you can access a wide range of cryptos for trading. Crypto enthusiasts can build diversified portfolios with 17 of the most popular DeFi coins and tokens with the highest liquidity.
Furthermore, you can buy AAVE crypto on eToro with a minimum investment of just $25 instantly.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Buy AAVE in the UK
By simply typing ‘Buy Aave’ in Google you will find a superfluity of relevant results related to online brokers and crypto exchanges offering the best deals and selection of crypto coins and tokens. But how do you decide which one is the best match for your trading goals and needs?
With this key question in mind, we’ll now cover five of the best online crypto brokers and exchanges on the market to buy Aave in the UK.
1. eToro – Overall Best Broker to Buy AAVE UK
Number one on our list is eToro as this social trading platform is perfectly suited to beginner traders who want to trade cryptos in a secure and regulatedenvironment with competitively low fees and commissions.
This copy trading platform was established in 2006, and since then more than 20 million traders use the eToro trading platform, which offers some of the lowest market-leading spreads in the online trading arena, as well as 0% commission-based investing. With a user-friendly platform available on both desktop and as a mobile trading app, eToro provides a user-friendly and simple trading experience. After all, creating an account, depositing and withdrawing funds, trading heaps of financial instruments such as stocks and cryptos, can be done in a few minutes from your mobile device anywhere at any time.
In terms of fees and commissions, eToro provides access to 0% commission trading on all supported tradable assets. When it comes to buying Aave and other crypto coins you will just have to pay the spread, which is the difference between the bid and ask price. At eToro, the current spread for trading Aave is just 3.9%. Furthermore, eToro facilitates low-cost trading as you can invest in AAVE with as little as $25 and gain ownership of a much more affordable portion of the popular cryptocurrency.
Maintaining its user-friendly and intuitive interface and trading structure, eToro simply offers two account types. You have a choice between a live trading account and a demo account that provides access to $100,000 of virtual currency, otherwise referred to as paper funds. Demo accounts, also known as paper trading accounts, are great educational tools for beginners to learn online trading. With a demo account you can practice your trade strategies in a simulated online trading environment without running the risk of losing your hard-earned capital. After you have familiarized yourself with the entire process you can set up a live brokerage account and buy AAVE tokens with market-leading spreads from the comfort of your own home.
For those interested in more of a passive approach to online trading, you will be pleased to learn that eToro offers two copy trading features including CopyTrader and CopyPortfolio. With eToro’s CopyPortfolio you can invest in either a theme such as cryptocurrencies or commodities, or a portfolio of seasoned eToro traders with just a few clicks. It’s important to note here that the required minimum investment for CopyPortfolio is $5,000. On the other hand, when using the CopyTrader feature you can browse through the public profiles of thousands of experienced investors and copy the trade strategies of up to 100 traders simultaneously, with a minimum investment of just $200.
When it comes to payment methods, eToro supports a variety of options for added convenience. These include credit cards, debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna / Sofort Banking, Bank Transfer, Online Banking – Trustly (EU region). While there are no account fees or deposit fees, eToro charges a $5 withdrawal fee. The only supported account base currency is USD, which means that you will have to pay a conversion fee, typically 50 pips when depositing or trading with non-USD fiat currencies. The deposit times also differ based on the chosen payment method; for instance, deposits made via PayPal are credited to your account instantly, while bank transfers typically take between 4-7 business days.
Is eToro safe? eToro is authorized and regulated by top-tier financial authorities such as the UK’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC). Moreover, according to eToro, it holds 90% of all client funds in segregated bank accounts, in addition to offering negative balance protection.
When UK-based users open a trading account with eToro (UK) Ltd they are protected by the standards and regulations of the Financial Conduct Authority. The Financial Services Compensation Scheme (FSCS) covers UK traders up to $85,000 for cash and asset claims if the broker goes into liquidation. To sum everything up, eToro is the top online trading platform for investing in AAVE and other financial products, such as fractional shares, forex, and ETFs with 0% commission and competitive spreads.
Pros
- Trade 17 of the most popular cryptocurrencies with market-leading spreads
- Access heaps of stocks listed on 17 international markets with 0% commission
- Minimum investment when buying crypto coins is just $25
- Regulated by top-tier financial regulatory bodies including the UK’s FCA, CySEC and ASIC
- eToro supports a variety of payment methods for your convenience
Cons
- USD is the only available account base currency
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
2. Coinbase – Best Crypto Exchange to Buy Aave for Beginners
Coinbase is one of the names amongst the largest cryptocurrency exchanges out there, with a market capitalization of $47.92 billion and an average dailytrading volume of over $1.4 billion, according to coinmarketcap.com. In April 2021, Coinbase (NASDAQ: COIN) went public on the NASDAQ exchange in a blockbuster IPO (initial public offering).
Coinbase raised more than $500 million from venture capital investors, who valued the crypto exchange at the $8 billion mark. Among those global shareholders are Tiger Global, Andreessen Horowitz, and Paradigm, an investment company focussed on the crypto sector.
When it comes to trading costs, the fee structure is somewhat complicated to understand especially for beginner traders. When you invest in crypto coins with an instant purchase via a credit card or other instant deposit you can expect to pay high fees as most of the costs emanate from the instant deposit methods that cost 3.99%. There is an additional Coinbase Fee which is the greater of either a flat fee or a variable percentage fee based on location, product feature, and payment method. The Coinbase flat fees are as follows:
| Buy/Sell Transaction amount | Flat Fee |
| $0 – $10 | $0.99 |
| $10 – $25 | $1.49 |
| $25 – $50 | $1.99 |
| $50 – $200 | $2.99 |
Let’s also take a quick look at Coinbase’s variable fees for UK-based clients and the various payment methods, in the table below:
| Standard Buy/Sell | Instant Buys (debit card only) | Bank Transfers (SEPA) – in/out* | Faster Payments | Instant Card Withdrawal |
| 1.49% | 3.99% | Free/€0.15 | Free | up to 2% of any transaction and a minimum fee of £0.55 |
As for non-instant purchases such as via bank transfers, Coinbase charges a spread of just 0.5% and no deposit fees. When it comes to account types, you can either choose a standard individual account, or a Pro account which is ideal for experienced crypto investors looking to trade large daily volumes.
At Coinbase, clients based in the UK can select from a range of convenient payment options such as debit cards, bank transfers (SEPA), and Faster Payments.
Is Coinbase safe? Coinbase adheres to all existing and applicable regulatory requirements set forth by each financial regulatory body in all the jurisdictions that it operates in. Another positive point to consider when evaluating Coinbase’s security is that it is listed on the NASDAQ exchange, which means that its financial records are publicly accessible. Coinbase is also a Money Services Business registered with FinCEN, and the company has stated its ongoing commitment to getting the appropriate licencing to comply with local laws and standards.
Pros
- User-friendly crypto exchange platform ideal for beginners and advanced traders
- Streamlined account opening process
- Supports debit cards and bank transfers
- No inactivity fees & $0 minimum deposits
- Registered as a Money Services Business with FinCEN
Cons
- 3.99% fee to invest in cryptos via debit card
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
3. OKEx – Best Low-Cost Exchange to Buy Aave UK via a Crypto Deposit
With its headquarters in Belize, OKEx was launched in 2014 by Star XU and since then has become one of the most popular crypto exchanges in the world.Originally based in China, the crypto exchange, along with its subsidiary OKCoin, moved to Hong Kong after China’s government outlawed the trading of initial coin offerings (ICOs). Consequently, OKEx is now focused on its international market reach.
When compared to other top-rated crypto exchanges like Binance, Coinbase, and Bithumb, OKEx has some of the lowest trading costs. Maker orders are limit orders placed in the order book before a trade. The order will not be fulfilled immediately if the BTC market price is 10,000 USDT and you place a maker order for 9,900 USDT. Rather, it is added to the order book.
| Tier | Total OKB holding | 30-day trading volume(USD) | Maker fee | Taker fee | 24h withdrawal limit (BTC) |
| Lv 1 | < 500 | < 5,000,000 | 0.080% | 0.100% | 500 |
| Lv 2 | ≥ 500 | < 5,000,000 | 0.075% | 0.095% | 500 |
| Lv 3 | ≥ 1,000 | < 5,000,000 | 0.070% | 0.090% | 500 |
| Lv 4 | ≥ 1,500 | < 5,000,000 | 0.065% | 0.085% | 500 |
| Lv 5 | ≥ 2,000 | < 5,000,000 | 0.060% | 0.080% | 500 |
At OKEx, you can buy AAVE in the UK within a matter of minutes using a variety of convenient and fast payment methods including debit and credit cards, PayPal, and bank transfers.
Is OKEx safe? At OKEx, the safety of user funds and assets is a top priority. The platform not only provides industry-leading security measures and technologies for its clients but it also supports an advanced security system for its internal crypto wallets. OKEx goes as far as to offer in-depth guides and tutorials regarding account security and how you can keep your digital assets safe on OKEx. Some of these security features include:
- Google Authenticator
- Mandatory 2FA
- Anti-phishing code
- Mobile verification
- Login password
- Email verification
- Funds password
OKEx uses the following service provider, Aux Cayes FinTech Co. Ltd, which is registered with the Seychelles Financial Services Authority (FSA). However, OKEx is not regulated by the UK’s FCA which means that UK-based clients are not protected by investor protection schemes such as the FSCS. OKEx uses the service provider, Aux Cayes FinTech Co. Ltd, which is registered with the Seychelles Financial Services Authority (FSA). Unlike eToro, OKEx is not regulated by the UK’s FCA which means that UK-based clients are not protected by investor protection schemes such as the FSCS.
Pros
- Interact with other OKEx traders via social media groups like Facebook and Twitter
- Trade cryptos anywhere and anytime via the OKEx mobile app
- The minimum deposit is just 10 USDT
- Access a wide range of 150 cryptos like YFI, SUSHI, AAVE
- SA secure crypto cold wallet
Cons
- Not regulated or authorized by the FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
4. Binance – Best Cryptocurrency Exchange to Buy Aave with Low Commissions
Binance, which was founded in 2017, has grown to become one of the world’s largest crypto exchanges, allowing users to buy, sell, and hold a whole varietyof digital assets. Binance had a 24-hour trading volume of more than $50 billion, according to coinmarketcap.com. With around 13.5 million active users, traders have access to more than 150 cryptocurrencies, such as Bitcoin (BTC), Uniswap(UNI), Dogecoin (DOGE) and Ethereum (ETH).
With this in mind, Binance supports a vast number of cryptos, so whatever your preferred digital assets are you are likely to find them here. Crypto-to-crypto pairs make up the bulk of Binance’s tradable assets. Simply put, you can trade one cryptocurrency against another in the same way that you would trade cryptocurrency pairs in forex trading. Additionally, Binance supports a range of fiat markets thus allowing you to trade crypto-to-fiat pairs with ease.
You will need to deposit funds into your Binance account, if you wish to buy, sell, and trade digital assets at Binance. With that said, Binance accepts both crypto and fiat deposits depending on your region. Furthermore, you can choose from a range of payment methods such as via cryptos, credit and debit cards, and bank transfers. When it comes to trading and non-trading fees, UK-based users will be charged a 1.8% fee when depositing funds with a debit/credit card. On the other hand, when you deposit funds with a cryptocurrency you will only incur the blockchain fee on your side of the transaction.
Trading commissions are charged when selling, buying, and trading digital assets on the Binance platform. As is common practice amongst crypto exchanges, Binance also supports a maker-taker commission structure. But what are market makers and market takers? Traders act as either makers or takers based on whether they provide liquidity and hence increase the depth of the order book or if they take this liquidity on. Maker and taker fees are also called payment for order flow.
Compared to the majority of crypto exchanges across the board, Binance Futures has one of the cheapest taker fee models. Maker fee rates begin at a mere 0.02% and can be as low as 0.0000%. To trade with the lowest fee rates you have to have a 30-day trade volume of more than 750k BTC or 11k BNB tokens.
Is Binance safe? Just recently the UK’s Financial Conduct Authority clamped down on the crypto exchange after it banned Binance from conducting any regulated activity in the UK, amidst growing concerns over investing in cryptocurrencies. Binance responded to this by stating that the FCA ruling would have no direct effect on the services it offers on its website Binance.com.
Pros
- Facilitates high daily trading volume levels
- Offers heaps of crypto-to-crypto pairs
- Market-leading trading commission as low as 0.1% per slide
- Lower your trading fees with BNB tokens
- Debit/Credit card, local bank transfer deposits accepted
Cons
- Does not support deposits or withdrawals via e-wallets
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
5. Coinjar – Best Crypto Exchange to Buy Aave UK with low crypto deposit fees
Launched in 2013, CoinJar is Australia’s top-rated crypto exchange that has since expanded its focus to include UK markets, which means you can buypopular digital assets in the UK with a CoinJar account. This trusted exchange is ideal for beginner traders looking to buy AAVE in the UK with low fee rates and an easy-to-use platform. To demonstrate just how cheap it is to invest in cryptocurrencies on CoinJar, you can invest in AAVE with a minimum deposit of just £5. Therefore, you can cost-effectively build a diversified crypto portfolio.
When it comes to withdrawing and depositing money into your CoinJar account this is simple and easy as the exchange supports several convenient payment options. These include credit cards and debit cards which allow you to buy AAVE in the UK instantly. The instant purchase fee rate is 2% of the total transaction amount.
On the flip side, you can deposit funds into your CoinJar account via bank transfer which comes with the added benefit of $0 deposit fees. Then, once the funds are credited to your account, you can buy AAVE in the UK with 1% commission.
Is CoinJar safe? CoinJar has acquired licensing from the Australian Transaction Reports and Analysis Centre. At least 90% of all customers’ funds are held offline in geographically redundant secure locations, according to CoinJar. CoinJar also makes use of multi-signature technology to hold crypto assets in secure hot wallets.
Pros
- User-friendly platform ideal for beginners with little trading experience
- Access to 30+ cryptocurrencies
- Convenient mobile trading app
- £5 minimum deposit
- Vast majority of client crypto-funds are held in cold wallets.
Cons
- Experienced traders may find CoinJar too basic for their needs and trading goals
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
How to Buy AAVE in the UK – Detailed & Explained in Full
We’ll teach you how to buy AAVE in the UK in less than 5 minutes with the top-rated copy trading platform eToro in this segment of our beginner’s guide.
Step 1: Open a Crypto Broker Account
Choosing the right online crypto broker for your trading needs and goals is no easy task, especially with the large number of available options. So, how do you make the right decision? We’ve spent many hours researching and testing the most popular brokers across the board so that you don’t have to. To summarise, we’ve identified eToro as the best crypto trading platform to buy AAVE in the UK with 0% commission and market-leading spreads from just 0.75% on crypto trading.
With this in mind, to buy AAVE you will first need to head over to the eToro.com website and click on ‘Join Now’. This will take you to an online form where you will need to populate the empty fields with your personal information such as your name, email address, and phone number.
After that, you’ll be asked for some extra information, such as your social security number and address. Finally, verify your cellphone number with the eToro code that will be sent to your email to complete the account registration process.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Verify your account
You must upload proof of identity and address as part of KYC regulations, which can be in the form of a passport, driver’s licence, utility bill, or bank statement issued within the last six months.
The verification process can take up to two business days, and you will be contacted when your eToro trading account has been verified.
Step 3: Deposit funds into your account
When it comes to funding your account, the initial deposit is only $200, and subsequent deposits are set at a minimum of just $50. Using a debit/credit card or an e-wallet like Skrill, PayPal, or Neteller to buy AAVE in the UK is the fastest option in terms of processing times.
These payment methods are instantaneous, so you won’t have to wait for funds to be deposited to your account like you would with a bank transfer, which normally takes 4-7 days. Depositing funds into your eToro account is safe, secure, and simple. SSL (Secure Socket Layer) technology is used for all transactions, which helps to keep your personal information safe.
At eToro, there are no deposit fees or account fees, and withdrawals are set at a rate of $5 per transaction.
Step 4: Search for AAVE
You can buy AAVE in the UK once you’ve successfully opened, verified, and deposited funds into your eToro trading account. Simply type ‘Aave’ into the top-of-the-screen search bar and select the relevant result from the drop-down list.
Step 5: Buy Aave UK
By clicking on the button marked ‘Trade’ which can be found in the top right-hand corner of the screen you will have access to an AAVE buy order terminal, similar to the one shown below. From here you can enter your preferred investment amount, bearing in mind that the minimum investment for cryptocurrencies on eToro is $25.
A $25 investment in AAVE on eToro will currently get you 0.1 AAVE tokens. Lastly, click on the ‘Open Trade’ button on the order box. By doing so, the copy trading platform will execute your AAVE investment immediately and the tokens will appear in your portfolio in no time.
Buy AAVE – Best Place to Buy AAVE in the UK
What makes a cryptocurrency exchange different from a cryptocurrency broker? In this section of our beginner’s guide, we’ll look at the differences between the two in greater depth.
Online Cryptocurrency Broker
A regulated online broker, such as eToro, is the best place to buy AAVE in the UK. The Financial Conduct Authority regulates this social trading platform, which provides investor protection up to £85,000.
- You’ll have access to convenient payment methods including debit/credit cards, bank transfers, and e-payments like PayPal, Neteller, and Skrill if you use an FCA-regulated online broker like eToro.
- By investing in AAVE through a regulated crypto trading platform, the provider adheres to strong KYC standards and important regulations aimed at preventing money laundering and online fraud.
Another significant benefit of trading cryptos through an FCA-authorised online broker is that you have access to cutting-edge trading tools such as copy trading. CopyTrader and CopyPortfolio are tools that allow you to trade passively with the click of a button. Simply put, you can either copy the trade strategies of other experienced investors or invest in a specific theme or portfolio of securities.
Furthermore, eToro also supports CFD trading, forex trading, and commission-free stock and ETF trading. So, as well as crypto trading you can participate in other financial markets with different financial instruments from the same eToro live trading account and platform. In short, eToro has everything you need all in one place.
Cryptocurrency Exchange
A digital currency exchange is an online marketplace for trading cryptocurrencies. Cryptocurrencies can be purchased with electronic money, fiat currencies, or other digital assets. A common feature of a crypto exchange is that it is open 24 hours a day, seven days a week.
The anonymity factor is another reason why many crypto enthusiasts are drawn to crypto exchanges. Decentralized cryptocurrency exchanges do not follow KYC regulations, so buyers and sellers remain anonymous.
Nevertheless, it is because of this level of anonymity that many financial authorities and governments around the world have recently cracked down hard on crypto exchanges. Financial regulators are concerned about consumer protection as well as the underlying risks that cryptocurrencies pose in terms of money laundering and terrorist funding.
Peer-to-peer exchanges are not affected by centralized market manipulation. Many decentralised exchanges do not allow for the exchange of fiat currencies for digital assets, making them inconvenient for traders who do not already hold cryptos. Because centralised exchanges facilitate the majority of crypto trades, they account for the majority of trading volume.
Ways to Buy AAVE UK
In terms of payment methods, there are various options for purchasing AAVE in the United Kingdom. The most popular deposit methods are discussed below.
Buy AAVE with a Debit Card
Assuming you have access to a Visa or MasterCard debit card, this payment method is by far the best way to buy AAVE in the UK as your purchase will be processed instantly by the respective trading platform.
All five of the reviewed brokers in this guide accept debit cards as a valid payment method when buying AAVE. The cheapest of these is eToro which charges $0 deposit fees and a conversion fee of just 50 pips or 0.5%.
Buy AAVE with a Credit Card
If you’re looking to buy AAVE with a credit card, you can do this instantly at eToro. Check with your credit card provider to see if they allow crypto purchases, as several UK issuers have now barred clients from accessing this marketplace after the FCA issued warnings related to the imminent risks of cryptocurrency trading.
Buy AAVE With a Bank Transfer
You can also invest in AAVE in the UK via bank transfer if you are willing to wait an extra 1-2 days for the funds to arrive. This is a great alternative for those of you who are concerned about costs, as brokers frequently allow you to deposit funds in this method without incurring any fees.
Buy AAVE With PayPal
If you already use Paypal and want to buy AAVE in the UK, you’re in luck. This is because eToro, which is regulated by the FCA, accepts e-wallets to deposit and withdraw funds. Paypal, as well as Neteller and Skrill, are examples of such services supported by eToro. If you want to buy AAVE with Paypal at eToro, the fees are only 0.5 percent, and the transaction is completed instantly.
Buy AAVE with Bitcoin
AAVE — as well as a range of other digital assets – can be purchased with Bitcoin. Transferring the assets to a third-party cryptocurrency exchange like Binance or OKEx is the ideal way to do this.
Both Binance and OKEx allow you to trade AAVE with Bitcoin without having to comply with KYC standards, which therefore withholds the anonymity of both the buyer and the seller. Additionally, both exchanges have an entry commission rate of 0.1%, making this the most cost-effective means of buying AAVE with Bitcoin.
Why Buy AAVE UK?
Aave (AAVE/USD) has steadily grown in popularity as one of the most popular decentralised finance (DeFi) protocols for lending and borrowing cryptocurrencies via liquidity pools. At the time of writing, Aave has a market cap of over $3 billion and a 24-hour trading volume of just under $250 million.
On November 5th, 2020, the price of Aave experienced an all-time low of $25.97, but then on May 18th, 2021 Aave recorded an all-time high of $666.86 which represents an increase of 848.10% in the space of just six months.
According to CoinMarketCap.com, the approximate return on investment (ROI) if purchased at the time of its launch is 47,364.32%. The maximum supply of AAVE tokens is set at 16 million.
On March 31st, we got a taste of what Aave’s future holds as the protocol partnered with Polygon to explore new scalability horizons. Many traders and investment analysts began speculating on the token’s price movements at this point.
Aave Pro and the influence it could have on the DeFi sector
Early last month, Aave announced ‘Aave pro’. The protocol will use private pools to give institutional investors direct access to the DeFi markets. These private pools will be separate from the current ones.
Aave Pro has also drawn attention from investors due to its commitment to operate segregated permissioned pools of whitelisted users who have already undergone KYC verification. This eliminates one of the biggest disincentives faced by regulated institutions interested in engaging in DeFi.
Why are institutions interested in participating in decentralized finance? Aave Pro is drawing interest because regulated institutions could earn up to 3.2% on USD with considerably low levels of risk. The returns are feasible as crypto traders typically do not want to part with their BTC coins. With a smart contract crypto investors can borrow up to 85% of their holding’s value and pay 3.1% for the secured loan.
Reports that Aave was testing private permissioned liquidity pools first emerged two months ago when a user flagged a pool as being inaccessible. The suspicions were later confirmed by Aave in a recent Blockworks webinar.
Why should you invest in Aave?
On July 19th, AAVE’s market price was $235.95 which represents a price change in the last 24-hour period of 10.05% or $-26.37.
By looking at Aave’s price movements within the space of a month, we can see that it reached its highest peak on July 6th 2021, when it reached $346.05. We can also see that it dropped to $176.27 on Tuesday June 22nd. As July is progressing AAVE’s price has not fallen below the $240 mark, which is promising.
Furthermore, with all the added hype regarding the Aave Pro launch and the potential impact that it could have on regulated institutions and investors who will have the chance to strike while AAVE is hot, investment analysts and many crypto enthusiasts are expecting the price to rise dramatically as demand for the AAVE token increases.
Aave Pro is set to be launched by the end of July 2021 in response to growing demand from several institutions. It has also been suggested that only BTC, AAVE, ETH, and USDC will be supported by Aave Pro.
Aave Pro could be the missing link between DeFi and major institutional investments. With the potential to offer complete KYC whitelisted users, private pools, and anti-money laundering and anti-fraud measures through Fireblocks, many analysts are forecasting that AAVE’s price will undoubtedly increase in the foreseeable future.
The Cost of Buying AAVE
Buying AAVE in the UK involves paying trading and non-trading fees, in the same way that trading stocks and ETFs does. The fee rates will vary depending on the broker or exchange you choose.
The two key fees that you need to keep in mind when opening a trading account are as follows:
Deposit Fees
Deposit fees vary depending on the chosen payment method and the platform’s fee structure. During our research we found that eToro operates in USD and thus does not charge fees for USD deposits. The social trading platform supports deposits in 14 international fiat currencies including EUR, GBP, AUD, RMB, THB, IDR, MYR, VND, PHP, SEK, DKK, NOK, PLN, CZK. The conversion fee starts from just 50 pips when depositing funds in non-USD fiat currencies.
Trading Fees & Commissions
Trading cryptos and trading fees and commissions go hand in hand. For example, eToro allows you to trade cryptocurrencies with 0% commission and market-leading spreads. But what are spreads? Simply put, the spread is the difference between the bid and ask prices.
The only trading fees charged by eToro are the competitive spreads. For example, when you buy AAVE on the eToro platform you will pay a spread of 3.9%. Furthermore, when you invest in cryptos on eToro you take ownership of the assets, and can hold them in the convenient and secure eToro Money crypto wallet.
Risks of Buying AAVE in the UK
There are risks involved with cryptocurrency trading due to its decentralized nature and susceptibility to fluctuating investor sentiments. With this in mind, here are a few risks you need to consider before investing in DeFi assets.
Regulations
Although the FCA does not regulate cryptocurrencies, crypto exchanges and online brokers are required to register with the Financial Conduct Authority which has recently outlawed the use of crypto derivatives by retail investors in the United Kingdom.
Volatility
Volatility within financial markets represents the fluctuations in the prices of assets. Volatility can be healthy with gradual increments and drops in market prices, whereas extreme volatility happens when market prices fluctuate very quickly within short periods.
Many analysts that monitor cryptocurrency markets agree that crypto volatility is very sporadic and desultory. While there are no indices that measure the volatility of crypto markets, just taking a glimpse at the historical price charts of the crypto markets one can see the high peaks and bearish lows that occur at a greater pace when compared to other centralized tradable assets. For example, from 2016 to 2017 Bitcoin’s price skyrocketed by over 2,000%.
Most cryptocurrencies, except for Bitcoin, lack developed and widely used derivatives markets. Cryptocurrency prices occasionally exhibit healthy volatility similar to that seen in mainstream markets due to the influence of day traders and speculators.
However, there are promising signs that crypto market volatility is improving. Regulated institutional investors and trading companies are starting to participate in the asset class with greater confidence, and a DeFi market for cryptos is also starting to materialize as part of the integration and enhancement of the wider crypto market ecosystem.
AAVE has Competition
Aave isn’t the only protocol in the DeFi sector trying to revolutionise the financial ecosystem as we know it. Other altcoins and stablecoins such as Tether (USDT), Chainlink (LINK), Uniswap (UNI), Compound (COMP), DAI (DAI), and Yearn.finance (YFI) are all growing in popularity.
Selling AAVE: A Quick Overview
When you buy AAVE in the UK the long-term investment strategy is to sell those DeFi tokens at a later date for a higher price than the purchase price.
For example:
- You decide to buy 100 AAVE tokens priced at $217.76 each.
- The total investment is therefore equal to $21,776.
- Within 12 months the market price for AAVE rises by 50% and you decide to sell your DeFi tokes.
- With 100 AAVE tokens priced at $435.52 each you would make a return of $21,776.
Selling your DeFi tokens on eToro is simple and fully digital, particularly when you store them in the secure eToro Money crypto wallet.
How to Buy AAVE UK – Conclusion
This in-depth beginner’s guide has covered everything you need to know when looking to buy AAVE in the UK cost-effectively and safely. We’ve explored all the key metrics from trading fees and commissions to the best place to buy AAVE in the UK right now.
In summary, we highly recommend eToro as the best crypto trading broker to buy AAVE with 0% commission and tight spreads. Furthermore, eToro is regulated by several financial regulators including the UK’s FCA. At eToro, you can open an account, deposit funds, and invest in various financial instruments with the click of a button. You can also invest in AAVE with as little as $25 and pay a spread of just 3.9%.
So, to start trading AAVE on eToro simply follow the link below and open a brokerage account today!
