How to Buy Compound (COMP)

You may want to consider using Compound, a protocol that programmatically accepts crypto deposits from its users and lends them out to borrowers, all without the need for a traditional financial intermediary. 

Rather, built on top of the Ethereum blockchain, Compound is an amalgam of interest rate markets where users can earn income by supplying crypto assets to the protocol.

Not sure yet why you’d want to buy COMP? Feel free to read our ‘What is Compound?’ guide, which offers a more extensive breakdown of the project’s technology and vision. 

By lending cryptocurrencies to Compound, you receive interest in COMP, Compound’s native cryptocurrency. Your interest then compounds every Ethereum block (hence the name) and the protocol enables you to withdraw your funds at any point in time.

There are a number of ways to buy COMP. However, many find that it is easiest to purchase it through a trusted global exchange like Kraken. 

Aside from offering the lowest fees in the industry, Kraken is constantly rated one of the most secure and trusted crypto exchanges in the world. This matters because if you lose the private key to your COMP, it can be challenging if not impossible to recover your funds. 
 

At Kraken, we take security seriously, with tested technology and rigorous procedures designed to safeguard funds. We don’t cut corners when it comes to security, and neither should you.

Follow the steps below to start buying COMP on Kraken: 

1. Sign up for a Kraken account.
   First, enter a valid email address, create a new username and set a strong password to protect your account.

2. Verify your account. 
   After providing your name, date of birth, country of residence and phone number, you can buy COMP with cryptocurrencies like BTC and ETH. In order to use fiat currency (i.e. USD or EUR), you’ll need to provide our experts with additional supporting documents verifying your identity. Read about our verification processes here.

3. Deposit fiat currency.
   You can fund your account in a number of ways. How you do so will depend upon your location and preferences.

4. Purchase COMP!
   Once your account is funded with fiat, you’re ready to purchase COMP. At this point, you’ll also gain access to our advanced charting tools, 24-hour global client support and the ability to utilize margin trading, features that help make the Kraken experience beloved by millions of global traders.

Once you buy COMP, you’ll need somewhere to safely store your cryptocurrency. 

Kraken is secure, but it’s always safest to keep your COMP in a wallet, a software or hardware device that stores the public and private keys required to make crypto transactions.

Compound is a platform built on top of Ethereum, meaning COMP can be stored in an Ethereum wallet, of which there are many. Mobile and web wallets can make transactions easy, while hardware wallets are perhaps best suited for secure, long-term storage. 

When choosing a crypto wallet for your COMP, first spend some time thinking about what you plan to do with your tokens to find a wallet that fits your needs.

Ready to take the next step toward decentralized lending and borrowing? Click the button below to buy COMP on Kraken today!