The Cryptocurrency Trade of the Week is Aave which has a market cap of $1.6 billion and is ranked number 56 on Coinmarketcap.
For our Crypto X10 Challenge and other crypto portfolios, we have this coin already in portfolio. Aave is a borrowing and lending protocol built on the Ethereum network, its board token is the ERC-20 token AAVE. An ERC20 token is used to create and issue smart contracts on the Ethereum blockchain.
Users who want to lend out their coins and thus make (additional) returns on their cryptos, place them in a pool from which others can borrow. Through these borrowing pools, users can borrow or lend 17 different cryptocurrencies, including MANA and ETH.
Borrowing on Aave is always against collateral and not credit. In the crypto world, collateral is cryptocurrencies that are pledged as a guarantee that the loan will be repaid.
Technical speaking: AAVE is consolidating, just above a support zone around $110. Resistance can be found at $190. Target 1 is $150 in the short term and my 2nd target is $190, i.e. the February high. Bottom line: these are sufficient Reasons for us to add this coin to our crypto portfolio.