Aave was founded by Stani Kulechov in 2017 under the name ETHLend. In September 2018, the project rebranded to Aave. It is now a decentralized finance protocol that allows users to lend and borrow cryptocurrencies. AAVE is the platform’s native cryptocurrency and governance token, providing holders with several benefits in the form of decreased fees and a chance to vote on key changes made to the project itself. If you are wondering how to buy AAVE tokens in Canada, Netcoins is a publicly-traded, fully regulated crypto trading platform. With 0% funding fees, free cash withdrawals, and live customer support service seven days a week, we make it simple for Canadians to buy AAVE and other cryptocurrencies.
1. Create an Account
Visit the Netcoins website and click on the sign-up button. Or download the Netcoins app from the app store for mobile. Enter your email address, create a strong password, and agree to the terms and conditions. You will receive a confirmation email, click on the link to verify your email address.
2. Fund It
Choose your preferred funding method: bank wire transfer, interac e transfer, crypto deposit, or cash deposit. Follow the prompts to transfer funds into your Netcoins account. The process is quick and incurs no fees.
3. Start Trading
Why Buy AAVE?
Aave can be considered a decentralized marketplace that matches crypto borrowers and lenders together. As the native cryptocurrency and governance token of the Aave platform, AAVE acts as an investment in the platform’s future growth and success. The platform offers AAVE holders several perks that holders can leverage to their benefit. These perks exist within the Aave ecosystem and involve the platform’s two central counterparties: borrowers and lenders. Additionally, as the platform’s governance token, AAVE holders can vote on key decision-making to further improve and develop the platform. The perks and power gained through holding AAVE tokens are some of the paramount value propositions offered by the token. Given the platform’s correlation to the token, the biggest reason to buy AAVE is if you have an inherent belief in the future growth of the Aave platform. There is also a supply cap of 16 million AAVE tokens that can exist at any point in time. This makes AAVE a deflationary asset and a hedge against things such as inflation.
How Is AAVE Unique?
Aave was one of the first chains to allow for the borrowing and lending of cryptocurrencies. With this in mind, the platform differentiates itself with its deep product offering, reputation, and perks facilitated by the project’s native cryptocurrency. Since its launch, Aave has expanded to enable borrowing and lending markets for a wide range of assets on over half a dozen networks. With total value locked on the platform reaching over $20 billion USD, it is clear that users believe in Aave’s unique value proposition. The potential perks earned by holding AAVE tokens further differentiate the platform from its competitors. To begin, holding AAVE gives users access to decreased trading fees. Users who wish to borrow AAVE do not get charged a fee. Those who offer AAVE as collateral when taking out a loan can get discounts and take out larger loans.
What Can You Do With AAVE?
There are several things that can be done with your AAVE holdings to reduce fees, earn income, and excerpt influence on the project. After connecting your web-based wallet to the Aave platform, your AAVE token holdings can be used within the platform to reduce fees when borrowing and lending. Additionally, the platform offers the opportunity to stake your AAVE tokens within the Safety Module in return for yield. However, this does come with risk as the platform has the right to slash 30% of the stake in the event of a shortfall event. Finally, connecting your tokens to the Aave platform allows you to participate in the voting process behind changes made to the project.
What Are Flash Loans?
One of Aave’s features is “flash loans,” which allows loans to be issued and settled simultaneously. It takes advantage of the time delay in processing transactions on certain blockchains (for Ethereum, that is 13 seconds). Traders can use this to take advantage of trading opportunities and maximize profits.
How Much AAVE Can I Buy?
You don’t need to buy a lot of AAVE to get started! Our minimum purchase amount is 0.2 AAVE. Enabling anyone to gain exposure no matter how many dollars they have to invest.
Is AAVE A Good Investment?
AAVE presents an interesting opportunity for investors, acting as both an investment that has the potential to appreciate over the long run and a utility token with benefits.
Connected to a project with a strong reputation, track record, and product offering, AAVE may be a solid bet on the decentralized cryptocurrency lending space. The token’s future price performance will be dependent on several factors, including the general direction of the crypto market.
However, as long as the project continues to differentiate itself through innovation and development, Aave may continue to command a dominant lead ahead of its competitors. If you believe in decentralized finance, Aave could be a project to consider with both a solid foundation and potentially a bright future.
This post is for informational purposes only. For proper financial advice, we recommend you speak to a financial advisor.
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FAQs
Why is KYC (Verification) required?
Netcoins Inc. is a licensed money service business under FINTRAC, and a registrant under the Provincial Securities Commissions, and adheres to the strict guidelines set by them for Money Transmitter Businesses and Securities Registrants. We are required to have a Know-Your-Client (KYC) process and compliance program in place. KYC is a process that allows us to verify the identity of our customers.
What do I need to provide for your verification process?
You will have to provide your email address, phone number and personal information including your first name, last name, address, date of birth and a piece of identification (like a driver’s license). Most users are verified at this point through our automated process. If you don’t pass the automated KYC process, you will have to go through an additional document verification stage. This is important and required as we are a regulated money service business.
How can I fund my account?
Your Netcoins account can be funded with a crypto deposit, Interac e-Transfer, or a bank wire transfer. Once you have funds in your Netcoins account, you’ll find that it’s super easy to buy AAVE in Canada.