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.

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 buy the COMP coin, 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 before you buy, keep reading.

eToro
Key Features
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
Min Deposit
$50
United States
Start Trading View key features
Key Features
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
Top Coins
  • BTC
  • BCH
  • XRP
  • ETH
  • ETC
Payment Methods
Wire Transfer, Bank Transfer
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.
Coinbase
Key Features
Trusted provider
Online Wallet
Beginner friendly
Min Deposit
$1
United States
Start Trading View key features
Key Features
Trusted provider
Online Wallet
Beginner friendly
Top Coins
  • BTC
  • LTC
  • XRP
  • ETH
  • BCH
Payment Methods
Credit Card, Debit Card, Euro Bank Account, 3d Secure Credit Card
Coinbase is one of the first places that made it easy to buy bitcoin and has since become a widely trusted exchange in the market.
Paybis
Key Features
Accessible worldwide
47 currencies available
Lowest fees on the market
Min Deposit
$60
United States
Start Trading View key features
Key Features
Accessible worldwide
47 currencies available
Lowest fees on the market
Top Coins
  • BTC
  • BCH
  • ETH
  • TRX
  • LTC
Payment Methods
Credit Card, Debit Card, Skrill, Neteller, Bank Transfer, Bitcoin
UK-based Crypto exchange company with FCA license. Global coverage of 180+ countries and unprecedented 48 US states. Buy & sell cryptocurrencies no matter where you are.
FOREX.com
Key Features
Trade on popular Crypto markets
Go long or short on cryptos from 10p a point
A trading partner you can trust
Min Deposit
$50
United States
Start Trading View key features
Key Features
Trade on popular Crypto markets
Go long or short on cryptos from 10p a point
A trading partner you can trust
Top Coins
  • BTC
  • BCH
  • LTC
  • XRP
  • ETH
Payment Methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Founded in 1999, part of GAIN Capital Holdings. Licensed in highly regulated jurisdictions, FCA, IIROC, NFA, CFTC, CIMA,FSA. Payment methods ACH, debit card, bank wire transfer. $50 minimum deposit.
CedarFX
Key Features
0% Commission Account
Low Spreads
Eco-Account Option
Min Deposit
$10
United States
Start Trading View key features
Key Features
0% Commission Account
Low Spreads
Eco-Account Option
Top Coins
  • BTC
  • ETH
  • QTUM
  • ETP
  • SAN
Payment Methods
Bitcoin, Credit Card, Debit Card
CedarFX is an eco-conscious broker offering 0% commission trading on 170+ assets, including Forex, Cryptocurrency Pairs, Stocks, Indices and Commodities. With up to 1:500 leverage, no-fee transactions and low spreads, traders can make the most of their funds. CedarFX also offers an Eco Account option to support tree planting and sustainability projects.

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 Compound online – a step-by-step guide

Step 1. Find an exchange to buy Compound

If you want to buy coins, an exchange is usually the best bet. 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 buy crypto using fiat currency, and swap one cryptocurrency into 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 buy 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. 

The last step before you buy is 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. Buy Compound

The buy 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’re buying 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 >
Binance
Key Features
Huge range of cryptocurrencies
Highly liquid
2 Factor Authentication
Min Deposit
$1
United States
Start Trading View key features
Key Features
Huge range of cryptocurrencies
Highly liquid
2 Factor Authentication
Top Coins
  • ZRX
  • LEND
  • ACT
  • ADX
  • ELF
Payment Methods
Cryptocurrencies
Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.

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 trades quickly, CFDs might be the best way to go.

Step 4. Start trading 

Before you start trading for real, think about whether you want to start with a demo account. Demo accounts let you trade with 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 trading with leverage. This is best left to more experienced traders but it means putting down a deposit so you can make trades at many times its value. This can lead to big wins, but also big losses if the market moves against you.

eToro
Key Features
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
Min Deposit
$50
United States
Start Trading View key features
Key Features
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
Top Coins
  • BTC
  • BCH
  • XRP
  • ETH
  • ETC
Payment Methods
Wire Transfer, Bank Transfer
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.

Still undecided?

If you’re still not sure whether to buy, 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 Compound’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

  • It has been criticised for not being fully decentralised

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 to buy now as you can vote on governance issues if you own coins.

Otherwise, if you’re looking to buy or trade 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 buy 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 $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:

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…
Compound (COMP) hit a new 2021 high of $377.1 as most of the DeFi sector pushed towards the upside. What’s next for Compound and is it a good buy at the moment? Fundamental analysis: Compound passed $800 million in total locked value as DeFi sector gains traction Compound is a DeFi-based lending…
Compound Labs released a white paper providing details of its plans to launch an application-specific blockchain known as Compound Chain. According to the white paper, Compound Chain provides money market services through a wide range of networks. Robert Leshner, Compound founder, revealed that the firm wants a blockchain that…

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, buy coins through an exchange and 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 trades and a little bit of money quickly and often. To trade this way, you should sign up to a broker with low trading fees, and think about using CFDs and leverage to trade.

Written by: James Knight
James joined us in 2021 and comes with years of experience as a writer and content creator. Alongside a passion for finance, sports, and technology, James is a historian on a desperate quest to shoot under par.