How to Buy Compound (COMP) in Australia

1. Choose a crypto exchange

First things first, you need an exchange that both has Compound, and is trustworthy!

You can find our top 3 exchanges for buying Compound here, alternatively you can also check our comparison of the best Australian crypto exchanges if you’re generally interested in seeing which exchanges work for Australians.

2. Sign up with the crypto exchange

Once you’ve chosen your crypto exchange, it’s just a matter of signing up and getting your account verified. Most exchanges have streamlined this process very well so it shouldn’t take long.

3. Fund your account

The next step is to transfer AUD or another cryptocurrency into your account. Most top crypto exchanges offer various payment methods. From bank transfer to PayID, POLi pay and credit cards, it’s very straightforward.

4. Buy Compound

And of course, the final step is to find Compound on the exchange and buy it. A lot of exchanges offer different ways of buying cryptocurrencies, like market orders and limit orders.

Where to Buy Compound (COMP)

ExchangeRatingAvailable CryptocurrenciesFeesVisit Site
Swyftx Logo5/5350+0.6%VISIT SITE
Binance Logo4.5/5300+0.1%VISIT SITE
Digital Surge Logo4/5200+VariesVISIT SITE

How to Sell Compound

  1. Sign into the exchange
  2. Find where you stored your Compound, either on a hardware wallet or on the exchange.
  3. Transfer your Compound to the right place on the exchange, it could just be the same wallet or a dedicated trading account.
  4. Sell Compound.
Businessman looking at crypto trend

Considerations when looking to buy Compound.

Compound is a DeFi lending protocol which allows users to earn interest by depositing their cryptocurrencies into any of the many pools that are supported by the platform.

When a user deposits tokens into a Compound pool they will receive cTokens back. These cTokens are the stake of the user in the pool. They can be used to redeem any underlying cryptocurrency that was initially deposited into it at any time. You will get cETH if you deposit ETH into a pool. The exchange rate between these cTokens and the underlying assets increases over time. This means that you can redeem them for more underlying asset than what you originally put in. This is how the interest is distributed.

Borrowers can also take out a secured loan from any compound pool by putting down collateral. The maximum loan to value (LTV), varies depending on the collateral asset. Currently, it ranges between 50 and 75%. If the collateral falls below a maintenance threshold, the interest rate charged varies. Borrowers can be subject to automatic liquidation.

The popularity of Compound has skyrocketed since its September 2018 launch and it recently surpassed $800 million in total lock value.

Compound claims that the vast majority of cryptocurrency sit on exchange platforms doing nothing for their owners. Compound hopes to change that with its open lending platform. Anyone who deposits supported Ethereum tokens can easily earn interest or get a secured loan. It is completely trustless.

Compound's community governance is unique among similar protocols. The native governance token of Compound -- COMP -- allows holders to propose changes to the protocol and to debate and vote on whether or not to implement them. This is done without the involvement of the Compound team. You can make changes to the distribution of COMP tokens, adjust collateralization factors and choose which cryptocurrencies you want to support.

These COMP tokens are available for purchase on third-party exchanges, or they can be earned through interaction with the Compound protocol such as depositing assets or taking out loans.