Compound is a fast-growing cryptocurrency that allows users to earn interest on their crypto or borrow digital currencies. In this guide, we’ll cover everything you need to know about how to buy Compound. [toc] How To Buy Compound – Quick Steps Want to buy Compound without reading our full guide? You can get started right away with these 4 quick steps. 1. Open an account: We recommend using eToro to buy Compound. This crypto broker offers low fees and a wide range of deposit methods. Simply head to eToro and click ‘Join Now.’ 2. Upload ID: Upload a copy of your driver’s license or passport to verify your identity. 3. Deposit Funds: Deposit at least $50 with a debit or credit card, PayPal, Neteller, Skrill, or bank transfer. 4. Buy Compound: Search for Compound, enter the amount you want to buy, and click ‘Open Trade.’ How To Buy Compound Online In 2021 – eToro Tutorial The 4 steps above offer an overview of how to buy Compound using eToro. Here, we’ll take a deeper dive into the process and walk you through the steps for how to buy COMP in less than 10 minutes. Step 1: Open An Account Head to eToro’s website and click ‘Join Now’ to open a new account. Enter a new username and password for your account, or set up your account using your Google or Facebook credentials. Step 2: Upload ID Next, eToro will ask you to verify your identity to comply with government Know Your Customer (KYC) requirements. Upload a copy of your driver’s license or passport along with a copy of a recent bank statement or utility bill that shows your address. The verification process typically takes less than 5 minutes and can be completed online. Step 3: Deposit Funds The next step is to fund your new trading account. eToro requires a minimum deposit of $50 if you’re in the US and $200 in most other countries. You can pay by debit card, credit card, PayPal, Neteller, Skrill, or bank transfer. Step 4: Buy Compound Use the search box at the top of the eToro dashboard to search for ‘Compound.’ Click ‘Trade’ when the coin appears to open a new order form. Enter the amount of Compound you want to purchase (you must invest at least $25). You can set a stop loss or take profit level for your trade if you want. Once your trade is ready, click ‘Open Trade’ to buy Compound. Buy Compound 67% of retail investor accounts lose money when trading CFDs with this provider. Cryptoassets are highly volatile unregulated investment products. No EU investor protection. How To Sell Compound When you want to sell your Compound tokens, you can repeat Step 4. Just choose ‘Sell’ instead of ‘Buy’ in the order form. Enter the amount of Compound you want to sell and click ‘Open Trade’ to sell your coins. You can use the funds to make another trade or withdraw them using any of eToro’s supported payment methods. Where To Buy COMP There are many different brokers and cryptocurrency exchanges that enable you to buy COMP. However, not every crypto exchange offers low fees or is fully trustworthy, so it’s important to choose where you buy Compound carefully. Let’s take a look at 3 of the best brokers you can use to buy COMP. 1. eToro – Best Crypto Exchange To Buy Compound eToro is one of our overall favourite crypto exchanges, so we were excited to learn that the broker is planning to add Compound trading in 2021. The platform already offers trading on 16 other popular cryptocurrencies, including Bitcoin, Ethereum, and top altcoins like Dogecoin. eToro makes it easy to get started to buy cryptocurrency because it requires just a $50 minimum deposit. You can fund your account not only with a bank transfer, but also using a debit card, credit card, PayPal, Neteller, or Skrill. There are no deposit fees, although eToro does charge a small $5 withdrawal fee. One of the best things about eToro is it’s social trading network, which is extremely helpful for trading cryptocurrencies like Compound. You can easily follow other crypto traders and learn about where the digital currency market is headed. eToro also supports copy trading, so you can mimic the moves of more experienced crypto traders. Past performance is not an indication of future results. eToro also offers a high-quality trading platform complete with dozens of technical indicators and drawing tools. You can follow the crypto market with a news feed and economic calendar, and all of the platform’s analysis features are available on iOS and Android through the eToro app. The only downside is that eToro doesn’t offer access to the Compound order book. eToro is regulated by the UK’s Financial Conduct Authority (FCA) and is widely considered safe. The broker offers 24/5 customer support, so you can easily get in touch if you ever need help with your account. Pros Trade 16 popular cryptocurrencies Social trading network helps you follow the crypto market Copy the moves of experienced crypto traders Technical analysis platform available for web and mobile Regulated by the UK FCA 24/5 customer support Accepts credit, debit, and PayPal payments Cons Small $5 withdrawal fee No access to the COMP order book Buy Compound 67% of retail investor accounts lose money when trading CFDs with this provider. Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 2. Capital.com – Trade Compound With CFDs Capital.com is our top-recommended broker if you’re interested in trading Compound through CFDs (contracts for difference). With CFD trading, you don’t actually own Compound tokens outright. Instead, you own a contract that allows you to speculate on whether the price of Compound will rise or fall. The advantage of trading Compound CFDs with Capital.com is that you don’t have to worry about a crypto wallet or the security of your tokens. You can also trade with leverage – Capital.com allows you to buy Compound on margin up to 2:1. Another benefit is that Capital.com charges no commission for CFD trading and spreads on Compound are typically less than 3% of your trade value.Capital.com offers robust technical analysis tools, including a proprietary trading platform for web and mobile. In addition to a range of popular studies, the platform is outfitted with an artificial intelligence algorithm that automatically analyzes your trading activity and suggests ways to improve your win rate. Capital.com also gives you access to an economic calendar, news feed, and professional research reports. Capital.com requires just a $20 minimum deposit to open an account and start trading. The broker accepts a wide range of payments, including debit and credit cards, so it’s easy to buy Compound. This CFD broker is regulated by the UK FCA and the Cyprus Securities and Exchange Commission (CySEC). Capital.com offers exceptional 24/7 customer support by phone, email, and live chat. Pros Compound CFD trading with 0% commission Spreads below 3% for COMP Trade on margin of 2:1 Trading platform leverages AI to help your trading $20 minimum deposit 24/7 customer support Regulated by the FCA and CySEC Cons Cannot buy COMP outright Doesn’t accept PayPal for payment Buy Compound at Capital.com 71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. 3. Binance – Best Crypto Exchange for Advanced Compound Trading Binance is one of the world’s most popular cryptocurrency exchanges, and for good reason. This exchange offers trading on more than 500 digital coins, including many up-and-coming altcoins like Compound that you won’t find at other brokers. Binance stands out in particular for its selection of cryptocurrency derivatives. You’re not limited only to buying tokens like COMP – you can also buy cryptocurrency futures or special leveraged tokens that increase the stakes of your trade. Keep in mind that these cryptocurrency derivatives can be risky, so they should only be used by experienced traders. Another advantage to Binance is its very comprehensive trading platform, which is available for both web and mobile. You get access to a wide range of customizable technical studies as well as the Compound order book and depth chart. That enables you to track changes in price momentum in real-time and evaluate what’s driving price changes. Binance charges a flat commission of just 0.10% for Compound trades, making it one of the cheapest exchanges around. Even better, you can get a discount on your trades by holding BNB, Binance’s own cryptocurrency, in your account. The platform also offers a digital wallet to help you manage your digital tokens. One thing to keep in mind is that Binance is not regulated. The platform is widely considered safe, but it does lack some of the investor protections that regulated brokers are required to offer. Binance is also light on customer support, so you’ll need to be comfortable navigating the platform on your own. Pros Trade more than 500 cryptocurrencies Offers crypto futures and leveraged tokens In-depth trading platform with COMP order book Commission of just 0.10% per trade Built-in digital wallet No minimum deposit required Cons Limited customer support Not regulated in the US or Europe Buy Compound at Binance Your capital is at risk. How Much Does It Cost To Buy Compound? Unfortunately, trading Compound isn’t free. Let’s take a look at how much each of our recommended brokers will charge you to buy Compound. Compound Trading Fees Deposit/Withdrawal Fees Payment Methods eToro 2.9% $5 per withdrawal Debit/credit card, PayPal, Skrill, Neteller, bank transfer, crypto transfer Capital.com 3% None Debit/credit card, Sofort, IDeal, MultiBanko, Trustly, WebMoney, Qiwi, Skrill, Neteller, bank transfer Binance 0.10% None Debit/credit card, bank transfer, crypto transfer What Is Compound? Compound is a cryptocurrency designed to enable users to earn interest on cryptocurrency deposits or to borrow cryptocurrency. This digital currency is a leading decentralized finance, or DeFi, application that seeks to replicate some of the functionality of traditional banks for cryptocurrency. Compound was first launched in 2017 by Robert Leshner and Geoff Hayes, former economists. The coin has its own blockchain, but it’s built using the same technology as Ethereum: smart contracts. These digital contracts control interest rates for deposited crypto and borrowing, as well as regulate how users can redeem their tokens. Importantly, there are several different aspects to Compound. The Compound cryptocurrency, COMP, is a digital token that gives holders voting power about the direction the Compound blockchain should take. COMP is what you would buy or sell to speculate on the price of Compound. In addition, Compound offers ‘cTokens,’ which are virtual tokens that users receive in exchange for depositing cryptocurrency in a Compound-based digital savings account. So, if you were to deposit Ethereum (ETH) to Compound, you would receive ‘cETH’ in return. You can later redeem your cETH to get back the original amount of Ethereum you deposited, plus any interest your deposit earned. Compound Analysis – Is It A Good Investment? Compound is one of the most popular decentralized finance (DeFi) applications at the moment. This is an exciting new frontier for digital currency that has only begun to take off – and the potential market is already estimated at over $100 billion. Compound’s price should increase the more people that use the Compound blockchain to earn interest or borrow cryptocurrency. Given that traditional financial institutions are unlikely to offer crypto interest anytime soon, this is an important service that’s only likely to become more in-demand. Of course, there’s no guarantee that Compound will be the dominant cryptocurrency for DeFi. However, it’s popularity so far is a good sign. In a world where there are hundreds of cryptocurrency projects vying for attention, the one that has the most name recognition has a major advantage. With that in mind, Compound could be a worthwhile investment right now. Investors should keep a close eye on the DeFi space to see whether interest in Compound’s lending and savings offerings continue to pick up steam or whether competing crypto projects are able to steal investors’ attention. Compound Price At the time of writing in May 2021, a single Compound token is valued at $759. The entire Compound project has a market cap of almost $4 billion. Compound’s value has increased dramatically since the start of the year. For most of 2020, the COMP price hovered at or below $100 per coin. Then, in January, the coin exploded higher to more than $500 per coin. The catalyst behind this move was a huge rise in the price of Bitcoin, which led to broad interest in cryptocurrency generally and DeFi in particular. The price of COMP dipped below $350 in March, but more than doubled in April. At the beginning of May, it hit an all-time high of $911 per COMP. Compound Price Prediction Where is the price of Compound heading from here? We don’t have a crystal ball, but we’re bullish about COMP. That’s because adoption of cryptocurrency is rapidly increasing, and the trend of wider digital currency usage shows no trend of slowing down. Once people own cryptocurrency, they’ll need access to the same type of banking services that they’ve always needed for fiat currency: savings and lending. Compound provides exactly those services in a way that’s easy for cryptocurrency investors to access. The more people that use Compound, the higher the price of COMP tokens will rise. The bearish case for Compound is that investors turn to another DeFi application for services like savings and lending. However, Compound has enough of a head start in this space that it should be able to get out ahead of competitors. In the short-term, we’d like to see COMP break about the $1,000 level. If it can hold that price, look for a big move higher on the next wave of good news for this cryptocurrency. Investing In Compound Vs. Trading Compound In addition to deciding whether Compound is going up or down, you need to decide whether to invest in Compound for the long-term or trade its price fluctuations in the short-term. Given that we think Compound has a bright long-term outlook, investing in this cryptocurrency for a period of at least several years makes sense. Compound should hold its value fairly well, especially since existing users are likely to stick with the cryptocurrency and its DeFi platform. That said, you could trade Compound’s price movements. The coin has been highly volatile – in the 24 hours prior to writing, the coin’s price dropped by more than 10%. These ups and downs are likely to continue no matter how successful Compound is, and they offer opportunities to profit. Ways Of Buying COMP There are several different ways you can buy COMP. Let’s take a look at what your options are and how they compare. Buy Compound Through A Regulated Trading Platform One of the best ways to buy Compound is through a regulated trading platform like eToro. Regulated platforms and Bitcoin brokers are overseen by government watchdogs and are required to follow specific rules that protect investors. So, you can be sure that your funds are safe and that your trades are being executed fairly when you trade through a regulated platform. Another benefit to using regulated trading platforms is that they’re very easy to use. Brokers like eToro accept a wide variety of payment methods, including debit and credit cards, bank transfers, or PayPal. They also offer desktop and mobile apps so you can trade Compound on the go. Invest In Compound Via A Cryptocurrency Exchange Another way to invest in Compound is through a crypto exchange like Binance. The benefit of using a cryptocurrency exchange is that they have a wide range of coins available. So if you want to use Compound to earn interest on another altcoin, you can find those coins at an exchange. However, beware that many cryptocurrency exchanges are unregulated. Unregulated exchanges have frequently been targeted by hackers in the past and they don’t necessarily have safeguards in place to protect your funds. Trade COMP On A CFD Trading Site Finally, you can trade COMP through CFDs using a platform like Capital.com. When you’re trading CFDs, you can speculate on the future price of Compound without actually owning the coin. The benefit to this type of trading is that you don’t need to set up a crypto wallet. You can also trade on leverage and short-sell COMP if you think the price of this coin will drop. However, keep in mind that CFD trading can carry extra fees if you hold positions for longer than one day. So it may not be the best option if you want to invest in COMP for the long term. The Best Compound Wallet Looking for a Bitcoin wallet to store your Compound tokens? This is an important decision since your wallet will impact how safe your assets are and how easy they are to access for trading. Our favorite crypto wallet is eToro’s mobile wallet for iOS and Android. It supports more than 150 cryptocurrencies, including Compound. Better yet, eToro manages your private encryption key so your funds stay safe and you simply need your eToro username and password to access them. Another good option for holding Compound is the Binance Trust wallet. This wallet supports over 500 cryptocurrencies and allows you to exchange between them instantly using BinanceDEX, a decentralized exchange. In addition, the Trust wallet has a marketplace of DeFi apps like Compound, so you can borrow crypto or earn interest on your tokens. Other secure wallet options for storing cryptocurrency include Mycelium and Exodus. Both are very safe and extremely easy to use. You can also connect them to a hardware wallet like Trezor or Ledger for even stronger security. Compound Reddit – Keep Up To Date With COMP The Reddit Compound messageboard is one of the best places to stay up to date with the latest COMP news. This is a popular spot for Compound traders and investors, and the discussion that takes place on Reddit can have a big impact on Compound’s price. eToro – Best Crypto Broker to Buy Compound Compound is one of the most popular DeFi cryptocurrencies. Since the start of 2021, the price has jumped over 520%, and COMP has room to run as more people turn to cryptocurrency investing. Ready to buy Compound? You can invest today with eToro – just click the link below to get started! Buy Compound Now 67% of retail investor accounts lose money when trading CFDs with this provider. Cryptoassets are highly volatile unregulated investment products. No EU investor protection. FAQs How is Compound different from Ethereum? Compound is built using the same technology as Ethereum, but it has its own blockchain. Compound is designed to enable saving and borrowing cryptocurrency, whereas Ethereum is primarily for enabling transactions. What payment methods can I use to buy Compound? With a broker like eToro, you can buy Compound using a debit card, credit card, PayPal, Neteller, Skrill, or bank transfer. Can I buy Compound anonymously? Some unregulated crypto exchanges allow you to buy Compound without providing information about your identity. However, beware that unregulated crypto exchanges do not have any investor protections. What is a cToken? A cToken is a token issued by the Compound blockchain when you lock a token like Ethereum to Compound. You can redeem your cToken to get your original cryptocurrency back, plus any interest you earned. Do I need a crypto wallet to store Compound? If you own Compound tokens outright, you will need a crypto wallet to store your tokens. If you trade Compound via CFDs, you do not need a digital wallet.