Compound coin, otherwise known as COMP, is a rising Ethereum-based token that predominantly aims to facilitate lending pools. The community-governed cryptocurrency was launched in late 2018 and has gained significant traction. As a result, many investors are looking at how and where to buy Compound coin.

This guide will cover the fundamentals of what Compound coin is, its benefits and price prediction, along with a tutorial on how and where to buy Compound coin. Let’s start with the How:

How to Buy Compound coin – Quick Steps

If you’re for a quick guide on how to buy COMP, start here with these four simple steps. eToro will be used within the example for the reasons explained below.

  • Step 1: Open an eToro AccountFirst and foremost, you’re going to need an eToro account in order to make investments. Enter your personal information and choose a username. You will need to upload ID unless you’re using a demo account.
  • 💳 Step 2: Your next step is to deposit some funds into eToro to use for the investment. A deposit as low as $10 can be made in the UK and US with a large selection of payment methods, from e-wallets to debit cards and bank transfers.
  • 🔎 Step 3: Search for Compound – Step 3 is to search for Compound coin. Simply type “compound” into the top search box and click on COMP when it appears. If you click directly on the ‘Trade’ button, you will be taken directly to the trading window.
  • 🛒 Step 4: Buy – Finally, enter the amount you wish to purchase of Compound coin, or the units, and click the ‘Open Trade’ button to complete your first purchase.

Cryptoassets are a highly volatile unregulated investment product.

Where to Buy Compound coin

Compound coin may only be a few years old but it has entered the top 90 coins in terms of market capitalization and is now being traded on many of the top crypto exchanges – you’re in no shortage of choice. But this leaves many investors wondering how to buy Compound crypto in 2022. 

Below you will find reviews on the top platforms on which you can buy Compound coin online.

1. eToro – Best Overall Place to Buy Compound Coin in 2022

eToro-logoeToro is the ultimate place to purchase Compound coin for those looking for an easy, frictionless and low-cost process. Every step (as detailed above) from signing up to trading is fast, clear, and simple. This is also enhanced by the user interface of the website, with easy navigation and slick responsiveness across devices.

Deposits minimums are low with a ton of payment options. In the US, there are no deposit or withdrawal fees. PayPal, Skrill, ACH, bank wires, debit card, and many other options are available. When it comes to the trade itself, eToro charges a 1% variable commission along with a spread.

eToro isn’t typically known as a cryptocurrency exchange, but more as a multi-asset trading platform with 0% commission on stock trading. In reality, eToro has well over 50 digital currencies and a lot of great crypto trading resources, with a stats page on each coin (volatility, market cap etc) along with research, news, and a fantastic charting program.

The charts are highly customizable with over 60 indicators, 13 drawing tools, and the ability to select and save predefined layouts. So, there is both fundamental and technical analytical potential with eToro, on both the crypto app and the web version.

etoro platform screenshot

However, where eToro really excels, and the area that they’re spearheading, is in social trading. Not only will Compound coin have its own feed, but you can read a feed of your favourite experienced traders. Beyond that, you can view their portfolio, trades, and even use the Copy Trading feature to mirror their trades automatically. 

So, with a selection of large-cap, small-cap, and even meme coins, eToro is a well-rounded cryptocurrency trading platform that is perfect for beginners looking to buy crypto, but also convenient for experienced traders as it also provides one of the best crypto wallets on the market.

Cryptoassets are a highly volatile unregulated investment product.

2. Crypto.com – Buy Compound Coin With Free, Easy Deposits

crypto.com logo

Crypto.com is a cryptocurrency exchange that is based in Singapore. Since its launch in 2016 it has grown to become a top 10 exchange in terms of daily trade volume. Whilst it has fewer markets and coins available than its top 10 competitors, it’s a strong contender for a one-stop shop.

The first thing that stands out about Crypto.com is the easy, free deposits – something that can’t be said for all exchanges. Up to $50,000 can be deposited per day for free. However, its biggest advantage is its facilitation of other features and products, like earning interest through staking. Given that Compound coin is centered on earning interest through lending pools, Crypto.com has its strengths in the right places here.

It should be pointed out that there is a 2.99% charge on debit/credit card purchases, but this is often waivered for 30 days with new account signups. Commission is 0.4% whether you’re buying any coin at Crypto.com. Plus, CRO is a native token to Crpyot.com which can mean paying even less commission in exchanges.

Crypto.com Exchange

Money aside, Crypto.com has strong security and a strong reputation. It can be difficult sometimes to navigate, but it’s not as complicated as Binance. One key disadvantage of using Crypto.com is the reportedly poor customer service, which can be a deal-breaker when significant amounts of money is involved. Furthermore, they fail to provide many educational resources for beginner crypto investors.

Cryptoassets are a highly volatile unregulated investment product.

3. Coinbase – Buy Compound Coin With a Beginner-Friendly Exchange

coinbase logo

Coinbase is second only to Binance when it comes to crypto trading volume, making it one of the first platforms to be recommended online. The unique value proposition put forward by Coinbase is that it is exceedingly easy to use and friendly for beginners.

Coinbase has an easy signup process that requires identification and 2-factor authentication. The account minimum is a shockingly low $2, and there are even some promotional offers for signing up. With only 169 coins, it has a surprisingly low amount of choice for a dedicated crypto exchange that facilitates over $3 billion in transfers per day – but Compound coin among other high-cap coins can easily be found.

The user interface of the app and website is extremely simple and intuitive. Your portfolio is nicely displayed on the home page and finding new coins to invest in is fast. Fees are higher than most other top crypto exchanges, ranging between 0.5% and 4.5% depending on the size and type of transaction. Generally, this is considered to be the priciest option within this guide, but many beginner investors pay it due to its supreme accessibility.

coinbase platform screenshot

There is another downside to Coinbase beyond the price, however. Whilst eToro is friendly towards beginners, it doesn’t come at the cost of being overly simplistic – the same cannot be said for Coinbase. There is a very small amount of fundamental data available, and there are a pitiful 4 technical indicators for charting analysis. Very quickly, traders often find themselves outgrowing the platform, but it can still be a solid choice for buy-and-forget investing.

Cryptoassets are a highly volatile unregulated investment product.

4. Binance – The Best Place to Buy Compound Coin for Experienced Traders 

binance logo

Binance is possibly the most sophisticated cryptocurrency exchange on the market – offering the complete opposite USP as Coinbase. Binance facilitates tens of billions of dollars worth of trades per day, multiple times more than any other exchange, and it’s because of how advanced the products and features are.

Binance offers an incredible range of markets and coins, as well as a wide range of supported fiat. Whilst Compound coin isn’t too hard to find on other exchanges, Binance is the best place to find new, low-cap coins.

Ultimately, Binance’s popularity comes from offering leverage trading and highly liquid markets. Binance Futures can be used for accounts with even a low balance amount and has powerful charting customization. This is the perfect exchange for advanced trading techniques.

Commission is 0.10% per side for all coins including Compound coin, with even lower fees when using the native BNB token.  Purchasing Compound coin directly with a debit/credit card will incur more fees, such as a 4.5% processing charge and a 0.5% instant buy commission, making it a more expensive option than eToro for Visa and MasterCard investors.

Binance Exchange Crypto

Finally, Binance suffers from the same issue as Coinbase but in reverse. It’s so advanced that it renders it inaccessible for beginners looking to buy crypto who can quickly become confused by the cluttered and dense interface. There is a simple version of the app that can be toggled, but it’s still more complicated than eToro and Coinbase.

Cryptoassets are a highly volatile unregulated investment product.

What is Compound Coin?

Compound is a decentralized blockchain protocol that facilitates the lending and borrowing of crypto. Ethereum is the spine of the Decentralized Finance movement, so it’s no surprise that Compound is Ethereum-based. 

Compound Coin Logo

Sending money to one another through a decentralized network is simple and one of the main reasons Bitcoin rose to fame. However, conducting decentralized financial services is a little more tricky. Compound is a way for someone to borrow cryptocurrency using blockchain technology, in which holders (lenders) of Compound will reap the rewards through interest. Traditional centralized intermediaries take a large cut and require a lot of time when matching borrowers to lenders.

Essentially, you can deposit, lock (save), send, and lend your cryptocurrency through the Compound decentralized, blockchain protocol.

Is Compound a Good Investment?

Cryptocurrency in and of itself is a very unique, infant investment asset that is yet to settle into maturity. For a technical analysis trader, it would be important to conduct one’s own research before buying and selling.

However, many invest in Compound due to other benefits and its use cases. Whilst trading your fiat for COMP will have its potential risks and rewards, there are many benefits to consider before making your decision over its long-term success.

Earnings

Unlike many other coins, you can Compound allows users to lend their cryptocurrency and earn passive income. So, not only may your cryptocurrency coin rise in value, you needn’t rely on that solely, as you can earn actual income even during times of price stability. 

Furthermore, it’s not just that Compound is working to facilitate financial services through its tech, but it’s actively involved in pushing for legislation that challenges the current commercial standards inside our ecosystem. This isn’t just a big PR win, but a clear intent behind its ethos.

Autonomous

Whilst this is self-evident due to being a DeFi protocol, Compound uses audited smart contracts to facilitate lending, borrowing, and payment in an autonomous way. From top to bottom, whether it’s storage or facilitating pooled capital, it’s all handled by these protocols.

Tokenization

Compound isn’t the only lending DeFi protocol out there, but it stands out through its tokenization of assets locked into the system. These Compound tokens are known as cTokens, which represent a user’s deposited funds in Compound. So, if you lock up some USDC or ETH for lending, you will be issued with cUSD, which can t any time be redeemed for USDC (plus the interest).

Bitcoin

If it wasn’t clear already, various cryptocurrencies are supported by Compound. Bitcoin is one of them, which means that Compound is a way to use Bitcoin in DeFi environments through the tokenization talked about above (in this instance, it’s known as Wrapped Bitcoin – WBTC). This ERC20 representation can be profoundly useful for long-time Bitcoin HODLers.

dApps And Using Your Tokens

The ERC20 tokens are freely tradeable, meaning they can be used within other decentralized apps. Various c tokens have been integrated into various DeFi apps, such as TokenSet now incorporating cUSDC. So, when considering that your c token could be used by an asset management/trading dApp whilst you’re receiving interest on the coin.

Compound Coin Price

The current Compound price is $156.42 on the 30th of March 2022. This comes a slow decline since the summer of 2021, in which it had hit its peak of over $854. The current price has slumped to what it was before the hype it received in 2021, meaning that it’s far from overpriced currently.

Compound Coin Price Prediction

The downward trend appeared to hit some support in mid-March, in which there has been some price rebound growth. Unfortunately, Compound relies on the volume and activity of other cryptocurrencies, meaning its own price is heavily impacted by market factors – and even the economy. Currently, most DeFi tokens are affected by overal DeFi sentiment. A surge in Bitcoin can often be an indicator of a lagged following of other coins. 

Compound historical price

Due to the governance system and investing versatility, we would expect loyalty and continued support among its investors. Price predictions are often inaccurate, but some analysts are expecting prices to hit the $400 mark by 2025. However, Wallet Investor is suggesting the price could drop to $10, thus continuing its downward trend. It’s important to conduct your own research when assessing the future price of a coin (particularly its technological potential), especially with COMP which is receiving conflicting forecasts from different analysts.

Ways of Buying Compound Coin 

As discussed in the earlier cryptocurrency exchange review, there are many ways in which you can buy Compound coin. Here are a couple of payment methods to choose from:

Buy Compound Coin With PayPal

PayPal isn’t always the best way to handle your money, but many people enjoy its ease of use, particularly for making purchases. Fees for PayPal in regards to currency exchange vary, as do the platform charges when using PayPal. For example, Crypto.com charges 2.1% in fees for PayPal deposits.

It can be tricky to find a platform that accepts PayPal, let alone one that is free. However, eToro is the right platform in this instance, in which PayPal deposits are totally free for USD accounts.

Buy Compound Coin with Credit card or Debit Card

Credit and debit card is often the preferred choice when looking to invest in Compound because it’s fast. Finding platforms that accept debit and credit card payments is easier than finding PayPal support.

From the examples above, eToro offers the cheapest debit/credit card deposits, in which they’re completely free. Crypto.com charges 2.99%, whilst Binance charges US clients 4.5% plus a 0.5% instant fee. 

Please check for yourself when assessing payment fees at different crypto exchanges as they can often catch users out and eat into our portfolio.

Best Compound Coin Wallet

Explain how wallets work, different types & promote etoro

When looking at how to invest in Compound coin, you’re also looking for a place to store it. When storing cryptocurrency we use wallets, and given that Compound uses the Ethereum blockchain, it can be stored in an Ethereum-supported wallet.

There are various types of wallets, such as hot and cold wallets, but ultimately it comes down to where the data is stored and secured. Your main decision will be between having desktop software, a hardware device, a mobile app, or a web wallet.

Essentially, the more secure the option, the least accessible it is (and possibly more expensive). For example, an Ethereum hardware wallet may set you back $100. These are highly secure because they’re not stored online, but they’re a long-winded way to send money and view your holdings.

Web wallets on the other hand are often considered to be less secure – but they’re still secure. Given that you can simply log into them online and they operate under strict regulation, you have to question if you’re willing to sacrifice your time and effort in a strive for security perfection.

eToro Money crypto wallet

We have found that eToro is the best crypto wallet for both beginners and pros, because it can hold multiple cryptos in one place that can be accessed on multiple devices. Given that safety is assured with SEC, FCA, ASIC, and CySEC regulations, there’s no reason to worry about your holdings in the same way you do not worry about your stock or fiat holdings on there. 

How to Buy Compound coin – Tutorial

Below is a more detailed tutorial on how to invest in Compound coin using eToro.

Step 1: Open Your eToro Account

You first step is to head to the eToro homepage and create an account. After entering some basic details, such as your name, nationality, D.O.B, email, and phone number, you will be sent a code to verify your cell phone via SMS. 

etoro open account

When creating an account, you will be asked to upload a copy of ID (government-issued) and proof of address. 

Step 2: Deposit Funds

Next up is to deposit at least $10 through your preferred method. Take a look at the options presented and weigh up which is easiest. Generally, credit/debit card is a fast, free method for USD deposits.

Step 3: Find Compound (COMP)

Finding your desired investment asset at eToro is incredibly easy. Make sure your browser is full screen as then you will see the search bar at the top of the page. Type in “Compound” and select the one that says “COMP”.

Press the anywhere except “Trade” if you want to access the dedicated page (i.e. COMP price, stats, news etc). Otherwise, hit “Trade” if you want to get right to the transaction.

Step 4: Buy Compound (COMP)

Below is the window you will see presented after clicking “Trade”. Now is your chance to type in the amount you wish to buy, either in USD or in units.

To execute the trade, hit “Open Trade” at the bottom of the page and your trade will execute instantaneously. 

Cryptoassets are a highly volatile unregulated investment product.

How to Sell Compound Coin 

Selling Compound is even easier than purchasing it. If you had used eToro to purchase COMP like in the example above, then selling is a matter of heading to your eToro portfolio and choosing to create a sell order under Compound. Simply confirm this and the tokens will be sold at market rate with the cash appearing in your withdrawable balance.

Conclusion

Compound is currently offering some very promising technology within the DeFi space, being a space in which holders of various coins can lend and earn interest in an attempt to avoid inflation eating into their portfolio.

COMP isn’t currently a speculative currency that is dubbed to have easy imminent price gains. Instead, this is a technology that many are optimistic about, and as a result, many are looking to get involved. 

When looking at how to buy Compound coin safely and affordablly manner with very little complexity, eToro is our preferred choice. Deposits can be small, free, and with a range of payment types.

eToro-logo

Cryptoassets are a highly volatile unregulated investment product.

Frequently Asked Questions When Buying Compound Coin

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How do you buy compound coins on Coinbase?

Is Compound coin a good investment?

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Is Compound coin on Coinbase?

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