Over the past decade, cryptocurrencies have evolved from relatively unknown currencies to popular digital assets with the potential to shake up the financial industry. Cryptocurrencies have recently become one of the most valuable assets in the world, and experts predict that their use may gain momentum in the coming years - and this is great news for investors!
The term cryptocurrency was relatively unheard of 10 years ago, but has since gained widespread acceptance. They are a form of digital currencies that are based on the art of cryptography and use very sophisticated encryption algorithms. They are designed to ensure safety and virtually eliminate the possibility of counterfeiting.
If you look at the process of mining coins on a global scale, you may be very surprised, because it is especially energy intensive due to the complex mathematical calculations that must be performed to create each new cryptocurrency. The amount of energy required to work with cryptocurrencies is equivalent to the energy budget of a small European country. With growing concerns about the environmental impact of cryptocurrencies, an increasing number of investors are looking for new ways to take advantage of digital currencies in a more sustainable way.
The best way to get cryptocurrencies is to buy them on an online trading platform or cryptocurrency exchange. However, the platform for conducting transactions must be chosen responsibly, taking into account the authority and stability. It is worth deciding in advance with the purpose of buying digital coins. If your goal is to trade cryptocurrency and use it for various transactions, then it is better to store the purchased coins on the trading platform, this will greatly facilitate access to them.
The advantages of this type of investment are the ability to use purchased coins for trading and the protection of investors.
Today we will look at the topic of investing in New Zealand in one interesting and popular cryptocurrency - Aave (AAVE), and also why many investors choose it.
What is Aave? A Brief History of Aave
Aave was founded in 2017. The founder and current CEO of Aave is Stani Kulchov. Aave is currently headquartered in London and employs some of the world's most experienced cryptocurrency experts.
Aave was originally called ETHLend (Ethereum Lending). In 2017, ETHLend held an ICO (Initial Coin Offering) and raised $ 16.2 million in funding. In 2018, ETHLend changed its name to Aave. Due to the name change, the business model of the service has also changed. The new model makes it easier to provide liquidity to the protocol.
The Aave protocol started working on the Ethereum network in January 2020. In 2020, Aave was also licensed for UK financial activities, making Aave an official electronic money institution. Aave has been one of the most prominent DeFi protocols since its inception and has influenced the direction of the entire DeFi sector through its activities.
Aave is one of the largest and most popular DeFi (decentralized finance) protocols around the world.
When looking at Aave, it is important to examine what the term “decentralized finance” is. Decentralized finance is a blockchain-based form of finance and economics that does not depend on financial intermediaries.
Aave is the world's most popular decentralized peer-to-peer lending service today. Users can earn interest by investing or borrowing money contributed by other users. All this is possible without third parties such as banks. Aave's functions are constantly expanding and may at some point offer more services than traditional banks.
How does Aave work?
DeFi protocols open up a perfect marketplace for everyone that works much more efficiently than the traditional banking system. DeFi offers services known from traditional banks, from existing centralized systems to completely new decentralized systems.
Let's find out how Aave works. Aave functions as a money market where users are allowed to receive interest on cryptocurrency and borrow in exchange for cryptocurrency (borrower). This service allows a person to securely, but who does not want to borrow, delegate their credit limit to a third party that they trust. In turn, the so-called delegate receives an interest rate and a refund of his deposit.
This process represents a significant "scene change" for DeFi lending, which until now has only relied on traditional lending. This is what you would expect when lending money to strangers on the Internet, but delegating credit is a step towards making loan decisions based on other factors, such as the borrower's income, savings - and therefore groundbreaking for DeFi lending.
How is Aave priced?
A number of different factors with varying degrees of significance can affect the price of a cryptocurrency. Some factors are unique to a particular coin, while others affect the entire crypto sector.
Events in the global economy can significantly affect the cryptocurrency market as a whole. For example, the price of almost all cryptocurrencies fell in March 2020. This was when economies and borders around the world closed due to the pandemic and uncertainty led to the largest collapse.
On the other hand, cryptocurrencies tend to do well at a time when regulated currencies are struggling. Aave's real-time value is determined by the balance between buyers and sellers in the stock market. When more people buy the coin than they sell, the price goes up, and when more people sell than buy, the price goes down.
Should traders invest in Aave and what are its benefits?
It is not easy to answer this question, because the criterion for a good investment is precisely the achievement of a positive profit. If we want to determine whether the Aave cryptocurrency is a good investment in the future, for this we need to be able to predict the future - and we, unfortunately, cannot. But we have ample opportunity to look at the market and its potential to assess if Aave has the potential to grow in the future. Aave is one of the most popular DeFi protocols in the world. On the other hand, DeFi is one of the most important things that cryptocurrencies and blockchains have made possible. Some experts believe DeFi will change the way we use banking in the future. DeFi is a unique organization with significant advantages over traditional systems.
It is easy to invest in Aave in New Zealand knowing the benefits of the coin.
- Aave is available to absolutely any user!
- Aave reduces the risk of fraud: Aave cannot be tampered with and transactions that have already been completed cannot be reversed. This should reduce the risk of fraud.
- Aave's value is stable over time: traditional currencies can be manipulated by central banks and governments. There is no such flaw on the Aave side.
- Full control. All transactions are saved on the blockchain. In turn, all transactions are encrypted to ensure that buyers and sellers are legitimate. Thus, this means that the currency can remain decentralized, meaning you own the currency yourself.
- High level of transparency and flexibility for the user.
How to invest in Aave in New Zealand?
Today there are many opportunities to learn how to invest wisely in Aave. Almost all trading platforms offer various useful resources, capacious educational materials. A trader strives to find a platform that has good functionality, quality support 24/7 and ensures the safety of your finances. You can now buy Aave in New Zealand through online shopping platforms from your home. Such an online platform introduces you to CFD trading. CFD stands for “Contract for Difference”. A contract for difference (CFD) will allow investors to protect themselves from fluctuations in the price of the assets they are selling. In our economy, asset prices are quite volatile. To protect sellers from losing money while documenting the sale, buyers and sellers usually sign a CFD.
A CFD essentially guarantees that the seller will receive payment for the value of the asset at the time of the agreement, even if the actual sale occurs several months after that. Upon signing the CFD, the buyer agrees to pay the set price for Aave regardless of any future fluctuations. Basically, the buyer agrees that he will cover any price difference between the amount agreed in the CFD and the actual price of the asset at the time of the sale.
As our financial world evolves rapidly, CFDs have become firmly established in the cryptocurrency space, and this is not surprising. Cryptocurrencies can experience high volatility almost daily.
How to buy Aave?
If you have chosen Aave and are ready to buy it, you might get the impression that it is difficult. Fortunately, this is not the case. It actually only takes a few minutes and the process is very simple and straightforward. If you've bought stocks or other investment assets before, you can compare these processes, which are almost identical.
The first thing you need to do is register on the online platform. When choosing an online platform, you should pay attention to convenience and ease of use, low fees, as well as security and reliability. In the end, it will make your job easier and save you a lot of time.
You can also buy cryptocurrency by opening a crypto wallet.
How to register?
Today trading platforms offer simple registration. To register on the platform:
- visit the website of the brokerage company;
- go to the registration section;
- fill out the registration form - enter your details (name, email, phone, etc.);
- go through the registration confirmation. To do this, follow the link you received to the specified email (or it can be a code sent to the specified mobile phone number).
You can register in the mobile application or in the desktop version. All your data and deals will be automatically synced.
How do I open a demo account?
Now that you've signed up, you have a complete overview of the platform's start page. You can use the demo version before making a deposit on the platform to feel comfortable before trading with real money.
The Demo Account is your personal training assistant. The functionality of the demo account is identical to the real account. But trading is not done with real money, but with virtual money. By using a demo account, you will gain hands-on trading experience and explore all the possibilities for trading.
Equally important is the fact that the demo account reflects all changes in the real market. This means that on the demo screen you will see everything that observers see when a real account is opened.
How do I open a real-account and fund it?
So, you figured out how the New Zealand trading platform works and made a deal from a demo account? You can go to a real trading account. The procedure for opening a real account used on the platform will delight you with its ease.
- send a request to open a real account;
- enter the required information about yourself;
- confirm your account by sending an identity document - passport or driver's license;
- top up your account using one of the offered payment methods.
The trading platform allows you to quickly deposit and withdraw funds from the trading account on the site. After opening a live account, you can deposit money into your account to make purchases. You will see many different ways to fund your account: debit card, bank transfer, Skrill, Neteller, UnionPay, Apple Pay, etc. Today, technologies allow you to quickly process and confirm your transactions, funds will be credited to the deposit within a couple of minutes.
That's all - you can start real trading!
How to withdraw money?
The trader's money is withdrawn from the brokerage account.
- Using a bank card is the most common and convenient way to withdraw money. The main criterion for the successful completion of a financial transaction is verification by the security service of the brokerage company.
- You can also withdraw money from your brokerage account to your e-wallet. The funds are credited to your e-wallet instantly.
- Withdrawing money to a bank account is also possible, and for this it is necessary to open a foreign currency account in advance in any banking institution. Verification of a bank account is instant, unlike a bank card.
In conclusion, I would like to note that Aave has managed to provide its users with an easy-to-use and reliable DeFi protocol, which is constantly striving for development and innovation. Aave has gained immense popularity among those who have invested in cryptocurrencies, and its story is just beginning.
Today, every novice trader has the opportunity to choose a reliable broker who will provide you with a high-quality platform and favorable terms of cooperation.
If you want to get started with the most convenient and affordable trading platform, sign up for a free account today to start your journey into the exciting world of cryptocurrencies!