How to buy Compound online

Compound is a cryptocurrency lending platform that’s a big part of the decentralised finance world. Use this page to learn more about it and the prospects for its native coin.
By: James Knight
James Knight
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed,… read more.
Updated: May 27, 2021
Tip: our preferred broker is, eToro: visit & create account

This is an introductory guide to Compound, where you can find out what it is and how it works. If you’re interested in learning more about the software or just want to find out where to buy it, this is a good place to start.

Compare where to buy Compound, and open an account

If you’re ready to buy straight away, sign up for one of the brokers below. These are some of the top crypto brokers around, that have been vetted and reviewed by our team of experts. If you want to learn more about Compound beforehand, keep reading.

1
Min. Deposit
$50
Promotion
User Score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start Trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
2
Min. Deposit
$1
Promotion
User Score
9.3
The world's largest cryptocurrency exchange with over 2bn daily users
Innovative trading platform offering enormous range of crypto coins
Supports over 60 methods of payment including PayPal
Start Trading
Description:
Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.
Payment Methods
1Pay, 2C2P, 3d Secure Credit Card, ACH, ANELIK, Abaqoos, AdvCash, AlertPay, Alfa-Click
Algocharge, AliPay, American Express, Apple Pay, AstroPay, BPAY, Bank Link, Bank Transfer, Bank Wire, Baofoo, BitGold, BitPay, Bitcoin, Boleto, Bonds, Borneo Exchanger, Bradesco, CEX.io Mobile App, CFDs, CSS System, CUPS, CartaSi, Carte Bleu, Carte Bleue, Cash, CashU, Cashier Order, Check, Check (UK only), China UinonPay, China Union Pay, China UnionPay, ClickandBuy, Commodities, Contact, Contact Z, Credit Card, Cryptocurrencies, Currencies, DCPay, DIXIPAY, Dankort, Debit Card, Dengi Online, DineroMail, DirectPay, Dotpay, E-dinar, ELV, ENets, EPS, ETFs, EXCARD, Easy2Pay, EcoPayz, Ecommpay, Ecurrencyzone, EgoPay, Emerchant Pay, Eprotections, EstroPay, Ethereum, Euro Bank Account, Euteller, Express Dotpay, Express Polish Post Office 24/7, Express Zabka Market, Ezeebill, Ezybonds, FasaPay, Fastapay, Fastbank, Faster Payments, FilsPay, Forex, GTBank, Gate2Shop, Giropay, GlobalCollect, GlobalPAY, GlobePay, Gluepay, Halcash, I-Account, IPS, Ideal, Indices, Individual US State License(s), Indonesia Exchanger, InstaBill, Instadebit, IntellectMoney, Interswitch, Investmate, Itukar, KNET, Klarna, LaoForexBoard, LavaPay, Lion Payment, LiqPay, Litecoin, Lobanet, MOTO, MT4, MT5, Mailing Cash, Market Maker, Masari, Mastercard, MegaTransfer, Mister Cash, Mobile Trading App, Mobile Trading Platform, Moneta, Money Bookers, Money Order, MoneyBookers, MoneyGram, MoneyPolo, Multibanco, NETBANX, Nab, Namecoin, Neosurf, NetPay, OKPAY, OMT, OmahPoin, OnPay.ru, Online Naira, OrangePay, PAYSEC, POLi, POLi & BPay, PYEER, PagoEfectivo, Paxum, Pay Nova, PayCo, PayPal, PayRetailers, PayWeb, Payeer, Payoneer, Payonline, Payvision, Payza, Perfect Money, PocketMoni, Postbank, Powercash 21, Prepaid MasterCard, Prepaid MasterCard (I-Account), Prepaid MasterCard (Intercash), Prepaid MasterCard (Payoneer), Privat 24, Przelewy24, QIWI, RBK Money, Rapid Transfer, RegularPay, SEPA, Safecharge, SafetyPay, SahibExchange, Shilling, SmartPay, Sofort, SolidTrust Pay, SorexPay, Sporopay, Stock Certificate, Stocks, Swish, Teleingreso, Thailand Exchanger, Ticketsurf, Todito Cash, Trade Interceptor, Transact Europe Payment, Trazus, TrustPay, Trustly, UAE Exchange, UPayCard, USD, Ukash, Unet, UnionPay, Unistream, Uphold, Verve, Vietnam Exchanger, Visa, VixiPay, VoguePay, Vouchers, Wallet One, WeChat, Web Based Trading Platform, WebMoney, WebPay, Webtrader, Western Union, Wire Transfer, Wirecard, Yandex, Yandex Money, Yemadai, YuuPay, Z-Payment, Zenith, Array, cTrader, dinpay, eCard, eCheck, eKonto, ePay bg, ePayments Transfer, eToro Mobile Trading Platform, eToro Trading Platform, eTranzact, iPay, mPay, neteller, paysafecard, postepay, skrill, unichange.me
Full regulations list:
3
Min. Deposit
-
Promotion
User Score
8.7
Sign Up Bonuses
App Available
Supports Multiple Altcoins
Start Trading
Description:
KuCoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 5 million registered users from 200+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique visit ranks the top 5 globally.
Payment Methods
Full regulations list:

What is Compound?

Compound is software that lets you borrow and lend cryptocurrency. Anyone can take out a loan or deposit coins and start earning interest instantly, without needing the approval of a financial institution. It uses the COMP token as an incentive, to reward those who provide liquidity or pay off their loans on time.

Compound is a key player in the growing world of decentralised finance. Offering loans without things like credit checks and a place to earn interest on crypto assets is already quite big business. Since 2018 it has raised over $30m in a series of funding rounds and the Coinbase exchange is a notable early backer. 

How does Compound work?

Compound works by calculating interest rates based on supply and demand. These interest rates are an incentive: the less of a particular coin there is staked on the platform, the higher the interest rate on offer for depositing yours. The principle works in reverse, as it’s cheaper to borrow a coin with plenty of supply.

This creates liquidity, as does the fact that you have to post collateral (in the form of another cryptocurrency) to be able to borrow. The other main feature is that when you deposit coins to earn interest, you are returned tokens that correspond to its value, which you can then loan, deposit, or stake elsewhere while still earning interest.

How to buy COMP online – a step-by-step guide

Step 1. Find an exchange

An exchange is usually the best place to find altcoins. This is especially true for anything beyond the top five or ten coins, when an exchange might be your only option. Exchanges boast a range of features but look for one you can trust with the widest variety of coins available. Two of our favourites are:

  • Binance: Binance manages the most trading volume, with millions of trades every day. It’s also usually the first port of call if you can’t find a coin elsewhere, with hundreds of different pairs available. Sign up for Binance now >
  • ChangeNow: ChangeNOW lets you deposit fiat currency, and swap one cryptocurrency for another across nearly 200 individual crypto tokens. It also integrates with other leading exchanges to offer you the best price. Join ChangeNow today >

Step 2. Sign up and fund your account

When you’ve chosen an exchange, the next thing to do is create an account. You won’t be able to do anything until you’ve done so, but all you need to provide is a few contact details and a form of photo ID for verification. 

Then you need to deposit some money into the account. Most exchanges let you do this with fiat currency (like GBP or USD), while others may only accept cryptocurrency deposits.

Step 3. Purchase

This step is simple: search for the relevant pair on your chosen exchange and hit buy to execute the trade. To find the pair you need the ticker for the coin you want and the currency you’re swapping it for, so it could be COMP/BTC in this case.

Step 4. (Optional) Get a suitable wallet

Once you’ve successfully bought some coins, you need to decide where to store them. You can leave them in your exchange account, and this is fine if you only have a small holding. For some extra security, think about getting a wallet. Wallets store your coins so they can only be accessed with a private key that’s unique to you.

Here are two of the top wallets around:

  • FreeWallet: FreeWallet is an online wallet that lets you access your coins through your web browser or a mobile app. It also integrates with an exchange so that you can trade coins straight from your wallet. Sign up for FreeWallet >
  • StrongCoin: StrongCoin is a ‘hybrid’ wallet, a combination of an online wallet with an offline one that stores your coins on its central servers. Join StrongCoin today >
1
Min. Deposit
$1
Promotion
User Score
10
The world's largest cryptocurrency exchange with over 2bn daily users
Innovative trading platform offering enormous range of crypto coins
Supports over 60 methods of payment including PayPal
Start Trading
Payment Methods:
1Pay, 2C2P, 3d Secure Credit Card, ACH, ANELIK, Abaqoos, AdvCash, AlertPay, Alfa-Click
Algocharge, AliPay, American Express, Apple Pay, AstroPay, BPAY, Bank Link, Bank Transfer, Bank Wire, Baofoo, BitGold, BitPay, Bitcoin, Boleto, Bonds, Borneo Exchanger, Bradesco, CEX.io Mobile App, CFDs, CSS System, CUPS, CartaSi, Carte Bleu, Carte Bleue, Cash, CashU, Cashier Order, Check, Check (UK only), China UinonPay, China Union Pay, China UnionPay, ClickandBuy, Commodities, Contact, Contact Z, Credit Card, Cryptocurrencies, Currencies, DCPay, DIXIPAY, Dankort, Debit Card, Dengi Online, DineroMail, DirectPay, Dotpay, E-dinar, ELV, ENets, EPS, ETFs, EXCARD, Easy2Pay, EcoPayz, Ecommpay, Ecurrencyzone, EgoPay, Emerchant Pay, Eprotections, EstroPay, Ethereum, Euro Bank Account, Euteller, Express Dotpay, Express Polish Post Office 24/7, Express Zabka Market, Ezeebill, Ezybonds, FasaPay, Fastapay, Fastbank, Faster Payments, FilsPay, Forex, GTBank, Gate2Shop, Giropay, GlobalCollect, GlobalPAY, GlobePay, Gluepay, Halcash, I-Account, IPS, Ideal, Indices, Individual US State License(s), Indonesia Exchanger, InstaBill, Instadebit, IntellectMoney, Interswitch, Investmate, Itukar, KNET, Klarna, LaoForexBoard, LavaPay, Lion Payment, LiqPay, Litecoin, Lobanet, MOTO, MT4, MT5, Mailing Cash, Market Maker, Masari, Mastercard, MegaTransfer, Mister Cash, Mobile Trading App, Mobile Trading Platform, Moneta, Money Bookers, Money Order, MoneyBookers, MoneyGram, MoneyPolo, Multibanco, NETBANX, Nab, Namecoin, Neosurf, NetPay, OKPAY, OMT, OmahPoin, OnPay.ru, Online Naira, OrangePay, PAYSEC, POLi, POLi & BPay, PYEER, PagoEfectivo, Paxum, Pay Nova, PayCo, PayPal, PayRetailers, PayWeb, Payeer, Payoneer, Payonline, Payvision, Payza, Perfect Money, PocketMoni, Postbank, Powercash 21, Prepaid MasterCard, Prepaid MasterCard (I-Account), Prepaid MasterCard (Intercash), Prepaid MasterCard (Payoneer), Privat 24, Przelewy24, QIWI, RBK Money, Rapid Transfer, RegularPay, SEPA, Safecharge, SafetyPay, SahibExchange, Shilling, SmartPay, Sofort, SolidTrust Pay, SorexPay, Sporopay, Stock Certificate, Stocks, Swish, Teleingreso, Thailand Exchanger, Ticketsurf, Todito Cash, Trade Interceptor, Transact Europe Payment, Trazus, TrustPay, Trustly, UAE Exchange, UPayCard, USD, Ukash, Unet, UnionPay, Unistream, Uphold, Verve, Vietnam Exchanger, Visa, VixiPay, VoguePay, Vouchers, Wallet One, WeChat, Web Based Trading Platform, WebMoney, WebPay, Webtrader, Western Union, Wire Transfer, Wirecard, Yandex, Yandex Money, Yemadai, YuuPay, Z-Payment, Zenith, Array, cTrader, dinpay, eCard, eCheck, eKonto, ePay bg, ePayments Transfer, eToro Mobile Trading Platform, eToro Trading Platform, eTranzact, iPay, mPay, neteller, paysafecard, postepay, skrill, unichange.me
Full Regulations:

How to trade Compound – a step-by-step guide

Step 1. Find a broker

If you want to trade cryptocurrency, you need a broker. You should choose one with low trading fees, as short term trading means opening and closing lots of positions regularly and high fees can be a big drain on your finances.

It might be difficult to find a broker that offers Compound trading at the moment. If that’s the case, when it does become available eToro or Plus500 are most likely to introduce it first.

Step 2. Deposit money

Brokers only accept deposits in fiat currency but they often charge for them as well. Similarly, they can charge for withdrawals too, along with trading fees. Before you sign up to anything, check the fee structure so you aren’t caught out by any surprises.

Step 3. Decide how you’d like to trade

Most people trade coins using contracts for difference, also known as CFDs. This is a way of predicting the price movement of a coin without owning it outright, and if you’re just going to be getting in and out of positions quickly, CFDs might be the best way to go.

Step 4. Start trading 

Before you get going for real, think about whether you want to start with a demo account. Demo accounts let you use pretend money rather than putting your own capital at risk and almost every broker worth using will offer one. Often, it’s a case of clicking a button in your settings, so have a look.

The trading itself is quite simple, as you have to decide whether a coin is going to go up or down. If you think it’s going to go up, then you should buy it, which is also known as ‘going long’. The opposite is ‘going short’, if you think a coin is going to fall in price.

One other strategy worth knowing about is leverage. Leverage means putting down a small deposit as collateral to loan more money from your broker so that you can make trades at many times the value of that deposit. This can lead to big wins, but also big losses if the market moves against you.

1
Min. Deposit
$50
Promotion
User Score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start Trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA

Still undecided?

If you’re still not sure about Compound, don’t worry. You should always take some time to think about an investment, particularly when it comes to cryptocurrency. Below is a summary of the platform’s pros and cons, followed by a few more questions to help you.

Pros

  • Earn interest on your coins or take out a loan
  • You earn extra COMP tokens for participating in the platform
  • Its use of ‘ctokens’ means you can still use your coins while they’re deposited

Cons

Finally, use the answers to these final three questions to help you decide whether to invest in Compound.

1. Is it a good time to buy Compound?

It depends on what sort of investor you are or whether you’re looking to actually use its services. If you’re the latter, it might be a good idea as you can vote on governance issues if you own coins.

Otherwise, if you’re looking to try to speculate on Compound to try to make a profit, it all starts with the coin’s price right now. If you’re a bullish long term investor, you might decide that it’s unlikely to go any lower, in which case you should get it now. Traders with a more short term view can use charts and tools to try to time their entry into the market. Either way, you can use our latest market analysis to help you:

Compound (COMP) price has advanced from $400.80 above $600 since the beginning of April, and the current price stands around $578. This cryptocurrency continues to trade in a buy zone, but if the price falls below $500, it would be a firm “sell” signal, and the next target could be…
Compound (COMP) price has advanced from $331 above $570 since the beginning of February, and the current price stands around $404. This cryptocurrency’s trend still remains bullish, but if the price falls below $300, it would be a firm “sell” signal and a trend reversal sign. Fundamental analysis: Grayscale has…
In less than two months, Compound (COMP) price has advanced from $80 above $200 and for now, there is no fear of the bear market. Rising above $220 supports the continuation of the bullish trend, but if the price falls below $180, it would be a strong “sell” signal. Fundamental…

2. What problem does Compound solve, and what are the coin’s investment prospects?

Compound solves the problem of borrowing and lending without the need for a bank. It incentivises people to stake their coins on its software to earn interest or to borrow other cryptocurrency and sets interest rates based on supply and demand.

Decentralised finance is growing fast and Compound is a well-established part of the industry. If that growth keeps up, its investment prospects look good. There are other lenders out there, like AAVE, who are worth comparing it against in terms of price and the services they offer, but the fact Compound is already backed by serious investors is a positive sign.

It’s worth noting that things change fast in cryptocurrency and there are no guarantees. It’s important to do your research before investing and to stay on top of the news as long as you hold a coin. We’ve covered the latest news you need to know about right here:

COMP/USD is the native token of Compound that allows you to debate, propose, and vote on changes to the Compound protocol. COMP has weakened from $913 to $197 since May 12, and the current price stands at $235. Lend and borrow cryptocurrencies Compound is a decentralized, blockchain-based protocol that…
The price of Compound (COMP/USD) is 10.6% higher over the last 24 hours, which has led to the token’s current value at $205.00. The change in prices coincides with the rising trading volumes, which are currently above $210 million. The token’s market capitalization has also increased to around $1.29…
DeFi protocol Compound (COMP) will be adding support for new access through the launch of the “Gateway” blockchain on the Parity Substrate platform. According to the announcement, the blockchain development platform Parity Substrate will host Gateway, which is developed to enable the movement of crypto assets across different…

3. Do you want to hold Compound for the long term?

There are positives to holding long term just as there are for short term trading. It depends on what sort of investor you are, how active, and your appetite for risk. We’ve summarised the key things you need to know, however you like to invest.

Considerations for a long term investment strategy

If you’re bullish on the future of decentralised finance, investing in Compound can be a great way of getting in on the ground floor. In that case, the best place to buy COMP coins is on an exchange, and you should think about using a wallet to store them.

Considerations for a short term trading strategy

Short term investing is about using volatility in the market to your advantage. The aim is to make lots of moves that generate a little bit of money quickly and often. To trade this way, you should sign up to a broker with low fees, and think about using CFDs and leverage.


Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Lead content editor
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed, rode, and ate an ostrich all on… read more.