How to Buy Compound (COMP)
Seeking to earn money by lending out your crypto assets? Or maybe you’re looking to borrow money without having to sell the best selections from your portfolio?
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.
Ready to dive in?
Why buy COMP?
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.
But there are other ways to get COMP besides earning it. You may want to consider buying COMP if you want to:
- Diversify your long-term investment strategy
- Invest in decentralized lending and borrowing platforms
- Lend cryptocurrencies and earn COMP
- Support the development of applications on the Ethereum blockchain.
Where can I buy COMP?
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.
How much COMP can I buy?
Looking to buy COMP on a budget? Don’t worry, Kraken offers a minimum order size of 0.05 COMP to help you gain exposure to a variety of assets.
Of course, you can also execute larger COMP buy orders as well. It wouldn’t be out of the ordinary for larger traders to purchase or trade 500 COMP or more on Kraken.
How to buy COMP on Kraken
Follow the steps below to start buying COMP on Kraken:
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.
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 cash (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.
You can fund your account in a number of ways. How you do so will depend upon your location and preferences.
Once your account is funded with cash, 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 spot trading on margin*, features that help make the Kraken experience beloved by millions of global traders.
*Availability of margin trading services is subject to certain limitations and eligibility criteria.
24/7/365 Customer Support
Trading is really pretty simple! If you have any questions about buying COMP, let us know. Our support staff is online all day, every day, ready to help.
You can reach us anytime on LiveChat or by email.
Where to keep your COMP
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.
Kraken is not a wallet service
It is important to note that Kraken is an exchange service and not a wallet service. So while we allow our clients to hold COMP in their accounts, we highly encourage you to separate your COMP holdings into multiple wallets.
Start buying COMP
Ready to take the next step toward decentralized lending and borrowing? Click the button below to buy COMP on Kraken today!