Compound has attracted an impressive reputation since its launch. The Defi project started in 2017, and has witnessed an exponential increase in market cap from about $163 million in June 2020 to over $1.55 billion today.
If you’re looking to understand how to buy Compound, a careful analysis of all relevant questions is in order. Buying a coin should be a convenient venture for anyone, so this is the major highlight of this guide. We not only explain to you how to buy compound tokens but also discuss the best brokers you can use.
Capital.com offers you the quickest and most convenient way to buy Compound in less than ten minutes. The platform is commission-free, meaning you don’t have to incur unnecessary costs while purchasing and trading your Compound tokens.
What makes Capital.com the right place is that Compound takes the form of a CFD instrument. All you have to do is to enter your stake and decide on a buy or sell position. This is different from the conventional method of storing or owning tokens – which in itself can be cumbersome and risky.
Get your Compound tokens in less than ten minutes following the steps below:
Once you complete your buy order for Compound, the position will remain open until you close it. Closing the trade would mean you desire to cash out. Simply click on the option to sell, and the funds will revert to your Capital.com account – all on a commission-free basis!
Your capital is at risk – 67.7% of retail investor accounts lose money when trading CFDs with this provider.
The quick guide above might have assumed you have some level of expertise with cryptocurrency. We understand that the process can appear challenging to someone trying it out for the first time. So, we’ll use this step-by-step category to put you through as a beginner.
Before you can participate in most crypto trading activities, you will need an account designated for such. These accounts are designed to help you navigate the market, buy tokens, and stay updated on crypto prices. Therefore, to buy Compound, the process starts with getting an account with a stellar brokerage platform that allows you to buy this digital token.
Capital.com proves the best for this purpose. We say this because the provider follows all relevant regulatory procedures making it transparent and safe for use. The platform allows you to buy Compound tokens without paying a dime in commission. That’s impressive because it’s not a common market practice.
Capital.com is heavily regulated – with licenses issued by CySEC and the FCA. This means there’s adequate protection for you and your funds. Simultaneously, the implication of such heavy regulation is that you have to part with some details.
The importance of getting verified lies in being able to access regulated trading functionalities. While registering might give you access to some features, verification is how you gain full, unhindered access to buying Compound tokens.
Your understanding of how to buy Compound tokens is yet to complete if you haven’t funded your account. As is the case with buying anything, the amount you have in your deposit determines your purchasing capacity.
So, to continue with your journey on buying Compound tokens, you have to fund your account. Interestingly, Capital.com supports numerous options to get this done.
Aside from this versatility, another added advantage with Capital.com is that withdrawals or deposits do not attract any transaction fees. So, nothing stands between you and your money.
After depositing money into your account, you’re now eligible to buy Compound CFDs. You will be trading against the potential value of COMP against the US dollar. As such, your first step here is to search “COMP/USD” and pop open the results you get.
Following that, you will make an order to buy your token. Buying Compound CFDs means you’re projecting an increase in the coin’s value. That is, you buy and wait to sell later at a higher price than your entry point. To buy, all you need to do is stake your desired amount and confirm your order.
Capital.com takes it from there and executes the order for you at the relevant market price. Note that you can schedule when to enter the market. Capital.com has a feature that allows you to set a price at which you intend to execute your COMP position. That’s useful if you have signals and you don’t want to miss a certain entry point.
Selling your Compound tokens is a seamless process on Capital.com. Let’s start with a brief explanation of how crypto CFDs work. When you buy Compound through a CFD instrument, you don’t face any storage challenges. This is because buying via CFDs means the token doesn’t exist in the actual sense.
Instead, what you have is a tracking of the token’s value. Therefore, when you decide to sell, you simply need to click on “sell,” and Capital.com will execute the action for you. By implication, the trade will be closed, and the proceeds will be reverted to your account and available for withdrawal.
This benefit is in addition to the fact that buying COMP as a CFD offers you leverage and improves your short-selling power. But in all of this, where should you buy your COMP tokens and why? This is a recurring question, and below is your answer.
Questions arise on the best place to buy Compound online. This is because the brokerage industry is now filled with numerous companies offering similar services. This is expected, owing to Compound’s exponential growth over the years. However, despite having several brokering platforms, not all of them can serve your needs.
There have been numerous cases of platforms getting hacked and losing investors’ funds. Considering these perks and cons, we bring you the review of the best brokerage platform that allows you to trade COMP tokens seamlessly.
No one wants to be caught up in losing funds to an unsecured crypto platform. Investors have learned from past experiences and now know better. Capital.com is the most preferred for buying COMP tokens online because of its tight security, transparency, and solid regulatory backing.
The platform is adequately regulated by two top financial bodies, CySEC, located in Cyprus, and the FCA, located in the UK. This means there is zero chance of your funds getting lost or founders disappearing into thin air. The CFD approach is one of the major things that ensures Capital.com stands out. As earlier noted, buying Compound tokens on Capital.com doesn’t work in the regular way of obtaining actual crypto coins.
Trading CFD instruments works based on the asset’s underlying value, saving you the stress of getting a wallet and safeguarding it. We find this beneficial because you don’t have to be on guard at all times. Once you complete your purchase, there is nothing else to do until you sell. This reduces the risk of losing access to your account because you forgot your private keys or any such challenge with most cryptocurrency wallets.
Additionally, there’s a shorting option for you when you trade on Capital.com – meaning you can profit if the digital token goes down in value. Leverage is another reason to trade with Capital.com. You’re in the crypto business to make money, and having leverage is definitely a plus. This is because leverage means you can make more profits – as it boosts the value of your position. There are differences in the leverage cap available based on location.
We should also mention that Capital.com gives you access to dozens of other cryptocurrencies – many of which fall within the remit of Defi coins. You can also speculate on assets like stocks, ETFs, forex, commodities, and more. This makes trading on the platform more comprehensive and allows traders to have unmatched versatility.
Your capital is at risk - 67.7% of retail investor accounts lose money when trading CFDs with this provider.
Do Your Own Research (DYOR) is a household term in the crypto world. Regardless of the social currency a coin may have garnered, always ensure you do your homework. This will inform your decisions and guide your project choice. Suppose you intend to buy Compound, we have highlighted key things you should consider below.
Robert Leshner and Geoffrey Hayes created this DeFi coin to bridge the lending gap in the crypto market. Since then, the coin has had an impressive run. In its launch year, the company raised $8.2 million from VC companies and would raise $25 million more in the following year.
Today, the coin has a market price of $325 (as at the time of writing), making it a highly valuable investment for those who bought it back when it launched. Some market commentators argue that 2022 could see COMP tokens close at a price of $1,374.25.
Notably, price predictions are simply what they are — predictions. Irrespective, deciding to trade COMP tokens should be more about the long-term possibilities than the immediate returns.
Considering Compound’s price today, one might be curious whether it’s off-limits already. However, this is subjective. Depending on how much you’re looking to invest, Compound could still be worth considering, especially when you look at its historical price trajectory.
Another valuable perk of owing or trading COMP tokens is that you get to have a stake in the decision process. Software decisions and some governance aspects are part of the areas the Compound community can vote on. Additionally, the community is also highly rewarding and regularly gives out COMP tokens.
Anyone who has kept an eye on the cryptocurrency industry knows DeFi is revolutionizing the financial system. This positions the DeFi industry as the future of money markets. In close relation to DeFi are decentralized exchanges (DEX) such as Compound.
These exchanges make possible the trading of digital assets without an intermediary. But the main point here is that DEX is growing at the speed of light. Compound, being a DEX, is performing well in the market. This way, it has been able to drive credibility and traffic to its token. So, it’s good news for anyone looking to invest in the asset.
It’s one thing to learn how to buy Compound, it’s another to know the right place to store your digital tokens. As such, this How to Buy Compound Guide will not point you in the right direction. Although there are numerous wallets, not all of them support Compound.
Here are the best ones that can serve your needs.
MetaMask is a leading crypto wallet devised as a browser extension, making it swift and seamless. With one click, you can gain access to your COMP tokens. It’s also available as an app, making it easy to access your wallet on the go.
Coinbase seeks to offer users complete convenience by storing your private keys safely on your device. This way, you can access, use, and interact with your Compound tokens without compromising your underlying assets. Transferring in and out of Coinbase also comes with ease.
This is your best bet if you’re looking for a wallet with high security. Although this may affect your convenience somewhat, it is arguably the most secure Compound wallet in the market. It’s also a good catch if you like to HODl coins in the long run.
Notable Tip: Remember you don’t need to have or use a wallet if you buy Compound via a CFD platform like Capital.com. You can sideline all these steps and processes by simply placing a buy or sell order!
When considering how to buy Compound, various options are available to you. You may consider buying from regular crypto exchanges. However, the problem with this approach is that it comes with challenges, stress, and tardiness. You have to worry about using a crypto wallet, protecting private keys, and numerous processes.
This is why we argue that using a CFD brokerage platform is the smart choice. In this industry, Capital.com stands out with the platform’s complete dedication to convenience, security, and customer care. Plus, Capital.com allows you to buy Compound CFDs on a 0% commission basis!
As with any digital asset, prices will always fluctuate. As of this piece’s writing date on July 1, 2021, Compound’s price is at $325 per token.
Deciding to invest or otherwise in this project should be driven by your own research. That will ensure you make an informed decision based on your purchasing capacity. Regardless, although Compound has generated impressive returns since its launch, it still remains a speculative digital asset.
Since Compound is a digital asset with increasing supply, you can buy as much or as low as you desire.
Compound last hit an all-time high of $911.20 on May 12, 2021.
You can do this through numerous brokers available online, albeit, Capital.com is your best bet. It supports debit cards and tens of other payment methods. Plus, you can buy Compound CFDs commission-free!
Compound, like many other digital assets, has a fixed number of coins in supply. The coin is currently capped at a maximum supply of 10 million - with over 5 million already in circulation.
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