You've probably heard of people who were involved from the very beginning in cryptocurrencies and who managed to get rich out of it. Even though it has been many years since cryptocurrency, also called virtual currency, became a fact, few people really understand what it is. Some countries have already made it clear that they will not update banknotes as they are working with the transition to electronic systems that make cash completely unnecessary. Simply put, cryptocurrency is digital money that is created to provide secure and anonymous transactions. The systems that make this kind of money possible use cryptography, which converts information into code that cannot be cracked. With the help of a code, you can track transactions and purchases.
In fact, cryptography has been around for a long time. During World War II, this technology was used to communicate securely. Today it is the same method used to encrypt digital currency.
While many are already using cryptocurrencies for online payments, there is more interest in investing in these currencies.
Cryptocurrencies have laid the foundation for the marketplace for investors. Platforms have been created to trade these currencies, and the volume of daily trading through these platforms sometimes exceeds the volume seen on some of the largest stock exchanges. The volatility of coins is extremely high. They can increase in value by 10% per day, sometimes even 100%! The next day, the coin may lose the same amount in value. If you're lucky, your coin will grow by several hundred percent in a few days. Then you will earn a solid profit by trading cryptocurrency. Today, Aave is in the spotlight of investors. We will talk about it today.
Aave - what is it? A Brief History
Aave is a DeFi lending protocol that allows you to lend and borrow crypto assets using variable and stable interest rates. It uses credit pools to allow users to borrow, invest, return, repurchase, borrow or exchange various cryptocurrencies. Aave is now one of the largest Ethereum lending systems where users can lend and borrow money directly from other people through peer-to-peer connections without the need for an intermediary.
The Swiss company Aave was founded in 2017 by the Finnish programmer and Master of Laws Stani Kulchov. It raised $ 16.2 million in an initial coin offering and was originally called ETHLend when they used LEND tokens. The company eventually changed the name of its control token to AAVE. There are competing cryptocurrency lending platforms like CoinLoan, but Aave stands out from the crowd by providing instant loans and new debit / credit formats available to everyone. Having accumulated 158 million dollars in deposits, it grew rapidly.
How does Aave work?
Initially, Aave used a peer-to-peer (P2P) model where users interact through smart contracts. The disadvantage of the scheme is that counterparties and liquidity are not always found for efficient operations. Therefore, the creators decided to move to the peer-to-contract (P2C) model that most DeFi protocols use.
On the P2C platform, funds are deposited through a special contract that allows you to instantly borrow crypto assets with payment of interest for the use of credit funds.
Participants of two categories interact on the platform: borrowers and lenders.
Users deposit assets with Aave that are used as collateral. In exchange, they can borrow a smaller amount of the asset, determined by the Loan to Value (LTV) ratio. The indicator represents the maximum drawing right for a particular collateral.
Borrowing funds involves “excess collateral” that allows Aave to remain solvent at all times. The value of collateral must exceed the value of the borrowed asset in accordance with the Loan To Value parameter, which depends on the volatility and other risk parameters of the collateralized asset.
What are the benefits of Aave?
The demand for the Aave cryptocurrency, which is actually an encrypted code, is explained by the following advantages:
- Anonymity of financial transactions. Transfers, payments, all transactions - all happen with a specific number. No one will identify the owner.
- Decentralized control. That is, there is no control by the state or other financial structures. On the contrary, a gradual increase in the circulation of cryptocurrency in the future will be able to dictate its terms.
- From the last point, it follows that the cryptocurrency is not affected by inflation of national money - its quantity is strictly limited.
- Security. There is no way to fake the cryptocurrency code or copy it.
Where can you buy Aave?
If you want to start investing in Aave in India, you must first answer the main question: where is the best place to buy Aave?
With the purchase of Aave, you will have absolutely no problems.
First of all, it is important to distinguish between an investment platform and a cryptocurrency exchange. You can invest in Aave in both options, but there is a big difference between them: on the investment platform, you trade through brokers using CFDs (Contracts for Difference) - this is speculation on the rise or fall of prices. A cryptocurrency exchange is a platform for exchanging one cryptocurrency for another. It is on the exchanges that the current price for all cryptocurrencies is formed, based on the supply and demand for assets from traders or investors. On cryptocurrency exchanges, there is a direct exchange of one coin for another, and not a purchase or sale in the usual sense of these terms.
Aave is available on major cryptocurrency exchanges - Binance, Uniswap, Huobi, Bilaxy and others.
How to invest in Aave in India?
Interest in investing in Aave in India has grown significantly in recent years. One way to invest in digital currency without having to own it is to trade CFDs that follow the evolution of cryptocurrency prices. This can be done through a broker on the trading platform. Trading cryptocurrencies with CFDs - what are its advantages?
- Lightness and simplicity. The fastest and easiest way to trade is through CFDs. You don't need to create a wallet and then go to a cryptocurrency exchange. All you need is to open an account.
- Leverage. Most brokers offer leverage for those who buy CFDs. This means that you have the ability to access virtual currency more easily than if you bought it directly.
- Make money on price differences: Because CFDs (Contracts for Difference) are speculation on changes in cryptocurrency prices. If you believe in Aave going up, you go long. If you think Aave will drop in value, go short.
- Hedging: If you bought a virtual currency and now see your cost of ownership is dropping due to falling exchange rates, you have the opportunity to position yourself in short CFD positions on the same virtual currency. In the event of a continuing decline, CFDs will rise in value, thereby offsetting the decline in the value of previously acquired ownership of the cryptocurrency. In the optimal position, you close your short position when the cryptocurrency is at its lowest level and profit from the CFD at the same time the original cryptocurrency ownership starts to rise in value again.
How to buy Aave right now?
To buy Aave in India, decide on the choice of buying method - it can be either a crypto exchange or an investment trading platform. We can help you in this matter and tell you how to easily and quickly organize trading on the in India trading platform. You will not spend a lot of time on this. You will need to register on the platform, use a demo account if you wish, and then open a real account and make your first deposit.
How to register?
Your account is created by registering: specifying a name, email address, and sometimes a phone number. At a later stage, you will usually need to fill out the information as well, leaving home address and other information. This is just a security measure to ensure that those who become users of the platform are truly who they are. When you complete your registration, you will receive an email with a link. This link is for verifying your email address. It is wise to do this right away. Once you've verified your email address, you're ready for the next step.
How do I open a demo account?
A demo account is a simulated market environment that is offered to investors in order to replicate the "real" trading experience as best as possible. This will give you an idea of how the financial market works. The main difference is that you do not run the risk of losing your money and therefore you can confidently try out different trading strategies without risk!
The test account is not just for beginners. As an experienced trader, you can use a demo account to try out new strategies, tools or ideas, knowing that your experiments in practice will not lead to losses.
How do I open a real account?
After examining all the possibilities and functionality of the in India trading platform, you can go to a real account. To do this, log into your account and select the asset you want to trade.
The procedure for opening a real account is very simple. While on the trading platform, send a request to open a real account for trading real money.
When you buy Aave, you deposit money into your open account first. There are usually several different payment methods available. Choose the one that is most comfortable for you. Many people choose to pay by credit card or simple bank transfer, which may be due to the fact that these are methods that most people are familiar with and feel comfortable with. All deposits go directly to the account, and this money is then used to buy tokens.
The money you deposit is protected by encryption and a number of security measures.
How to withdraw money?
You can see your current account status in your personal account. Select the required amount and withdrawal method. These can be credit and debit card payments, bank transfers, e-wallet transfers. Withdrawal to a bank card is one of the most convenient and prompt ways. When the application is formed, the money will be transferred instantly. The main condition for a successful transaction is that the card must be verified by the brokerage company.
Today anyone can invest in Aave in India for free. The opportunity to make money on cryptocurrency is what attracts many. Getting started is easy, even if you've never traded crypto before. One of the currencies that has received a lot of attention lately is Aave! Those looking to buy Aave should know that it is a cryptocurrency, has good value and, according to experts, may grow further in the future.
Try the trading platform now - open a free demo account. It only takes a couple of minutes, and you can practice trading virtual funds. We hope that our tips will help you make more profit! We wish you profitable deals!