Buy Compound COMP: where and how [Guide]
Published: 4 November 2021 by Andrew
Blockchains have been developed trying to address the limits and costs of traditional currencies. One of these limitations relates to loans, which are often difficult to obtain and expensive to manage. Investors who have decided to buy Compound have seen an effective alternative to conventional loans.
But there are still problems to solve, because cryptocurrencies often have high transaction costs, a lack of transparency and limited liquidity. Compound has set itself the goal of solving these problems and offering an ecosystem focused on credit, which would make it simple and economical.
If you want to buy Compound or speculate following the rapid price fluctuations that characterize this cryptocurrency, follow these steps:
- Register on eToro
- Make the deposit or register a Demo account
- Select the CFD of Compound (COMP) and click on “Buy” or “Sell” depending on your strategy
Let’s see the main data of Compound:
|📊 Supply||6 milion tokens|
|💸 Market Cap
||$ 2,17 billions|
|🖥️ Trading Platforms
||eToro / Trade.com|
We have proposed CFD Brokers to buy Compounds because, being regulated, they are a safe and convenient choice.
Below is a list of the best cryptocurrency platforms available on the market:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
What is Compound?
Compound is a protocol for autonomously managing interest rates in a mathematical way and taking advantage of a whole series of decentralized finance (DeFi) applications.
At the heart of the Compound ecosystem is Ethereum’s ERC-20 protocol, which allows governance to maintain control over cryptocurrency and its use.
The protocol underlying Compound allows you to verify all transaction procedures without revealing any data, while maintaining a high level of privacy, which cannot be lacking in the credit sector.
Furthermore, the structure of the framework allows constant updates, taking into account that the result can always be improved and must follow the evolution of this sector.
Behind the birth of Compound is a famous economist: Robert Leshner, who later became the CEO of the project. The system eliminates all intermediaries and allows anyone who can provide sufficient guarantees, based on cryptocurrencies, to obtain a loan quickly and automatically.
How to Buy Compound (COMP)
Credit moves the world economy and the possibility of obtaining loans in cryptocurrencies has attracted the interest of investors.
To buy Compounds, you can use two types of intermediaries, very different from each other, which must be taken into consideration according to the investor’s needs. Let’s see them in detail:
- Cryptocurrency exchanges, which are quite risky and have a commission on every transaction performed.
- CFD brokers that are safer and offer a series of advantages mainly oriented to online trading.
Unfortunately, cryptocurrency exchanges are subject to frequent cyber attacks and do not yet have real regulation, so they must be used very carefully. If you want to buy Compounds through these intermediaries, it is preferable to transfer (immediately after purchase) the COMPs to an external wallet, which is much more secure.
But if you are attracted to trading, or the ability to speculate on Compound price changes, CFD Brokers are much simpler and cheaper. Here are the main advantages offered by these intermediaries:
- They have a regular license
- You can do Short Selling
- There is no risk of cyber attacks
- They offer a Demo account to practice
Remember, however, that with CFD Brokers you are not buying Compound “physically” but you are only speculating on the price of this cryptocurrency through derivatives (CFDs).
Where to Buy Compound
As you saw in the previous paragraph, the choice of where Compound appears depends a lot on the type of investment you want to make.
If you want to accumulate Compounds and keep them in a wallet (preferably offline) you should use one of the most famous exchanges, such as Binance, Coinbase, Kraken, etc.
They are not totally safe but if you only use them to buy and then immediately transfer cryptocurrencies to your offline wallet, you are reducing the risks.
If, on the other hand, you are interested in buying Compound or selling it, following the price changes on the market, CFD Brokers are much more effective, safer and cheaper. The choice in this case depends on your needs, but you must use regulated intermediaries, this is a prerequisite for trading.
In this guide you will find only online brokers with a regular license, issued by prestigious institutions such as CONSOB or CySEC.
To get started, you can take a look at the characteristics of the CFD brokers best suited to buying cryptocurrencies: eToro and Trade.com.
eToro is the most famous online broker in the world and the over 20 million users registered on its platform are further confirmation of its reliability.
The range of assets available for trading is really wide, in addition to cryptocurrencies you can invest in stocks, indices, commodities, forex, etc.
The trading platform developed by the eToro team is considered a benchmark in the sector and below you can see it with the Compound CFD in a screenshot:
How do you buy Compound on eToro? Here are the 3 steps to follow:
- Register on eToro
- Access your real account by paying at least € 50
- Select the Compound CFD and click on “Trade”
If you prefer to delegate your investments to more experienced traders, eToro allows you to do so through Copy Trading, a truly revolutionary patent.
This tool offers you the possibility to choose one or more traders from the eToro platform and with one click, copy all their trades on the market, automatically and without additional costs.
This way you will get the same returns as the copied traders (based on how much you have invested), here are some real examples:
Past performance is no guarantee of future returnsClick here and choose which trader to copy
We have selected this Broker because its characteristics show particular attention to the needs of investors, especially those with small capital available.
Trade.com wants to show that it is not necessary to have large financial capabilities to invest in the markets. In fact, it has decided to allow the opening of an account by paying only € 100 deposit.
Security is guaranteed by the CONSOB license and the trading platform is one of the most complete on the market.
To buy Compound (COMP) with Trade.com just click on Buy or Sell (to sell short) and decide how much to invest.Click here and register for free on Trade.com
If you have chosen this Broker also for the lower than average deposit threshold, you will probably appreciate an additional advantage offered to novice traders: the Trading Course.
Trade.com has created a course in pdf format, to try to explain technical analysis in simple words and disseminate the information necessary to invest, in a clear and free way.
The course can be downloaded for free, just use the link below:Download the Trading Course for free by clicking here
Compound: how does it work?
Compound is a lending platform open to anyone with sufficient cryptocurrency investments to guarantee the loan they are applying for.
Anyone in possession of Compound can lend them and obtain in exchange for interest, all managed automatically and without intermediaries, by the protocol of this cryptocurrency.
Just deposit cryptocurrencies in one of the Compound Pools and you will immediately start earning interest, without putting your deposit at risk.
Interest fluctuates and is managed by an algorithm that follows supply and demand, similar to the method used by traditional banks, but in a totally decentralized manner.
If even some debtors do not repay the loan, the capital as collateral is higher than the money lent, precisely to avoid imbalances in the ecosystem.
Buy Compound: the COMP token
As with all existing cryptocurrency networks, even in the case of Compound, there is a token which is the real currency necessary for the functioning of the blockchain.
The Compound token is called COMP and whoever is in possession of this crypto can participate in the governance of the protocol and of the entire project.
The token is also used to support the Compound ecosystem, investing in the idea behind this innovative cryptocurrency: cryptocurrency loans.
In total, the protocol provides for the distribution of 10 million COMP, but the system also provides for the regular burning of tokens, to counter inflation, which is often a problem for all cryptocurrencies.
COMP tokens are used both to offer and to borrow cryptocurrencies and are essential for the proper functioning of the system.
In addition to COMP, the Compound blockchain also provides for the use of cTokens, which are used to monitor loans and keep interest accrued under control.
If an investor enters capital into the Compound system, a corresponding balance is issued in cToken, in proportion to the investment made.
Is it worth to buy Compound?
Compound has shown enormous potential thanks to the idea behind the protocol and the functioning of the blockchain. Below we can see the historical trend of the COMP token since its launch on the market:
After an initial period of adjustment, 2021 saw the price level of COMP grow rapidly, which showed extreme volatility, perfect for those who want to speculate on cryptocurrency.
COMP’s range today shows a major recovery and bullish pattern fueled by strong interest growth in the DeFi segment of cryptocurrency lending and credit.
The last 3 months have seen a predominantly sideways trend for Compound, but volatility remains very high as we can see in the 3-month chart below:
Now let’s see the Compound forecasts of some of the leading cryptocurrency experts on the market:
- Wallet Investor Prediction predicts a long-term increase in the Compound price. The forecast for 2026 is 3493 US dollars. This is a rather optimistic forecast, but it is not the only one.
- Long Forecast believes that the Compound (COMP) price could surprise investors by hitting a low of $ 500 by the end of 2023. This forecast is significantly more “affordable” than the previous one and estimates that Compound could trade as high as $ 650 by the end of 2023 in the next 5 years.
- Trading Beasts predicts that the Compound price will reach $ 441,124 by 2022. These analysts do not expose themselves too much about COMP and remain quite close to current prices.
- Digital Coin Price predicts a bright future for Compound (COMP). These analysts believe that the price of the cryptocurrency may continue to rise to touch and exceed $ 1049 by the end of 2025.
- CryptoGround has made predictions based on an algorithm based on artificial intelligence, which follows the historical trend of Compound. Based on these forecasts, COMP could hit $ 613 by the end of 2022 and continue its growth in subsequent years.
- GOV Capital sees Compound’s future bullish. These forecasts take into account several variables such as volume, price action, market capitalization, etc. COMP’s future price is expected to reach $ 1025 by 2022, according to their estimates.
- Coin Price Forecast is closely following the price movements of this cryptocurrency and given the current levels, it believes it is preparing for an impending upward trend. COMP’s price is expected to reach $ 689 at the end of 2022.
Buying Compound is certainly one of the most interesting cryptocurrency investments we can see on the market. It is not just a speculative fact, behind it there is an extremely useful and very efficient project, that of crypto loans.
The forecasts of the major sector analysts are mainly on the upside, the volatility is very good and the possibility of speculating is made even easier and cheaper by the CFD brokers that we have presented in this guide.
If you are considering trading this cryptocurrency, taking advantage of the volatility that Compound has shown throughout its history, we recommend that you start by doing a series of tests in Demo.
This way you will have the opportunity to practice and optimize your strategy without taking risks. Here are the links to access the Demo accounts of the best online brokers for free to buy Compound:
There are currently over 6 million COMPs in circulation.
It is a protocol that is used to take and offer loans in cryptocurrencies
Forecasts are bullish and some crypto analysts estimate a target price of $ 689 by 2022
With eToro, an extremely reliable CFD Broker and with one of the best trading platforms ever.