In 2020, the global cryptocurrency market value was $1.49Billion. By 2030 it is predicted to rise to $4.94Billion. The latest estimations show that there are over 17000 crypto tokens in existence. The main factors driving the rise of cryptocurrency markets worldwide are increased operational efficiency, transparency and security in financial payments systems and data security. There are many altcoins available on the cryptocurrency market. With Ethereum at its record highs for 2021, there is a bright future as the adoption of blockchain technology grows.
Compound (COMP) is an altcoin and DeFi protocol with huge potential. Open-source platform Compound for decentralized lending that runs on Ethereum is available. Compound uses crypto assets as collateral to offer financial services. It is powered by COMP (the native ERC-20 token).
You can check the current Compound price, market rank, supply, trading volume and historical prices. You can also find detailed information about some of the most popular and rapidly-growing cryptocurrency on CoinStats, which is one of the top crypto platforms.
We have the ultimate guide to Compound and a simple way for you to purchase Compound.
Let’s jump right in!
Compound History
Compound is an Ethereum protocol that is built upon the network. It is powered by COMP (its native token). COMP, an ERC-20 token, is designed to reward participants and enable its holders to participate in the decision-making process for the future of the software.
With the help of decentralized applications, The Compound (COMP), decentralized finance protocol (DeFi) aims to allow completely decentralized lending and borrowing. Users can deposit money they have into the lending pool to receive interest when others borrow it. Compound issues a new token to lenders once they deposit cryptocurrency. This token can be used for trading without restrictions. They can only be redeemed for the crypto that it is associated with.
Compound protocols run this whole process using smart contracts. This allows users to withdraw any amount they wish.
This protocol is designed to transform the financial and lending sector by eliminating the need for intermediaries or middlemen. Compound was the initial platform to bring yield farming on the market by 2020.
Robert Leshner, a veteran entrepreneur, and Geoffrey Hayes are the co-founders at Compound (COMP).
What is a compound?
Compound acts as a lending pool/platform that links lenders and borrowers through a mixture of smart contracts built on Ethereum.
The ERC-20 COMP tokens of Compound reward lenders based on how many cTokens they have in their wallets. Higher liquidity means lower interest rates. A loan can be taken out by lenders in any cryptocurrency that is supported by the Compound protocol.
Users are rewarded with Compound tokens for lending, borrowing, and repaying debts. The Compound token (COMP) is also considered a governance token. All holders of COMP have voting rights according to the amount they hold. The platform’s decision-making process is made easier by this.
You can also purchase Compound tokens via various cryptocurrency exchanges. Over the last few years, Compound tokens have seen a huge increase in demand and users.
Comp tokens have an aggregate supply of 10,000,000 and can be traded on many decentralized and central cryptocurrency exchanges including Binance Futures. Binance Futures. Binance. Coinbase Pro.
CoinStats’ analysis shows that the market capital of the COMP token is 937,000,000 USD. The token currently trades at $142.88. The trading volume is approximately $79 million. On the 12th May 2021, COMP token’s price reached an all time high of $855.2. Since then it has fallen by over 60 percent.
Now, let’s look into ways of buying Compound.
Purchase a Comp on Binance
Binance is a great place to buy Comp. Binance has the best exchange fees and liquidity in the market. This allows you to quickly sell or buy digital assets to make the most of the opportunities on the markets.
You will need to open a Binance retail investor account and upload identity proof documents in order to buy Compound (COMP). Binance will allow you to buy Compound or other cryptocurrency of your choosing once the accounts have been verified and created. You can do this either digitally or via fiat deposits with a bank transfer or credit card.
On Binance, Compound (COMP), is offered in three trading pairs: COMP/USDT/BUSD/BTC, COMP/BTC/USDT and COMP/BTC/BTC. Therefore, you will need to first buy Bitcoin, USDT, or BUSD through peer-to-peer trading, a bank transfer, or a credit/debit card to purchase COMP. To choose the asset that you wish to trade against, you can also use CoinStats’ app comparison service.
After you’ve selected an asset to trade COMP against (e.g. USDT(TETHER),) the next step will be to buy the USDT required to purchase COMP. After you’ve added USDT(TETHER) to your wallet, go to COMP/USDT trade and buy as many coins as you wish. The new coins will be added to your wallet once the order is complete.
Coinbase: Buy COMP
Coinbase supports around 100 currencies and is the most popular cryptocurrency exchange in America. However, Coinbase’s fees are more complicated than those of some other competitors and may be higher. While Coinbase’s security features are appealing, cryptocurrency trading is highly volatile, so always evaluate the risk.
This exchange allows residents of the United States to trade, with the exception of Hawaii.
How to Buy Comp on Coinbase
Coinbase Account
If you don’t have a Coinbase account already, you need first to set up an account and verify your identity. You can then buy COMP or other cryptos once your account is verified.
Register a Payment Method
After you create your Coinbase account, it is time to add a payment method. Your preferred currency and payment method can be chosen depending on where you are located. These options include bank wire transfers or credit debit cards. There are no transaction fees on bank transfers; however, you won’t be able to withdraw your funds for 5 days.
Purchase Compound (COMP).
After adding funds to your account, click on “Withdraw” and input the amount you want to buy Compound for, then go to “Trade” to choose your market, e.g., if you are buying from the US, select “COMP-USD.” Then input the amount of COMP you want to buy and click on purchase. After that, your Coinbase wallet should reflect the COMP tokens.
Alternative Exchanges
There are many cryptocurrency exchanges that allow you to trade, buy and sell Compound. Similar to Binance or Coinbase, the steps required for purchasing COMP and other cryptocurrency on different platforms is very similar. Many of these exchanges permit you to buy crypto assets using a credit/debit card and a bank transfer. Trading fees for exchanges can vary so compare them before purchasing Compound(COMP).
Stockpiling of Compound Tokens
Once you’ve successfully managed to buy COMP, the next question is where you should hold COMP. Most users leave their crypto on the exchanges’ wallets, i.e., Binance’s and Coinbase’s hot wallets. Major exchanges such as Coinbase and Binance keep most of their users’ tokens offline to avoid hacks. A hardware wallet may be the best choice if you wish to keep your cryptos safe and secure.
There are many types of cryptocurrency wallets
There are two types of wallets available: software wallets and hot storage wallets (digital), or cold storage wallets. These wallets are also known as hardware wallets (physical). Each type has their pros and cons.
Software wallet: An internet-connected software wallet is also called a Hot Wallet. There are many software wallets that you can download free from Google Play or the App Store. The CoinStats Wallet is a great option that allows you to track and buy crypto currency from one place.
Although software wallets offer substantial protection, they’re still vulnerable because they offer online storage.
Hardware wallets The safer choice is a Hardware wallet. The Hardware wallet allows you to store your private keys offline and reduces the chance of hackers. It is possible to lose your private key and not be able to retrieve your money.
The most popular hardware wallets are Ledger Nano X, Ledger Nano S, Trezor Model T, etc.
When it comes down to choosing the right crypto wallet for you, there is no one answer. Your trading habits and security requirements will determine the best option for you.
Disclaimer: Information on this site is intended only for informational purposes. It does not represent a recommendation to purchase, sell or hold any security or financial product or instrument.
It is highly volatile, so do your own research. Only invest in what you can afford. The past performance of COMP does not guarantee future results.
CFD trading, stock trading, and cryptocurrency trading can be very risky. Before making an investment, you should carefully consider your personal circumstances.