eToro Cryptocurrency Trading
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eToro Cryptocurrency Trading
COMP is the native token of Compound, a DeFi lending platform.
On the front end, Compound is an interest rate market where users can deposit cryptocurrency and immediately start earning returns on it. On the back end, it’s a series of liquidity pools.
Follow these steps to purchase your first Compound.
Find an exchange to buy, sell and trade Compound by comparing deposit methods, supported fiat currencies and fees. Select Go to site when you’ve found a fit.
Want to buy Compound? Follow these simple steps:
Compare exchanges that support COMP, then determine if the exchange you choose supports buying COMP with Pound sterling (GBP), Bitcoin (BTC) or Ethereum (ETH). You’ll need to provide your email address and create a password to register for an account.
Many cryptocurrency exchanges only allow trading between cryptocurrencies and don’t allow the direct deposit of fiat currency, such as GBP, so you’ll usually need to own or buy BTC or ETH first.
The final step is to trade your chosen currency for COMP on the exchange. Once again, the exact process you need to follow may vary slightly depending on the exchange you choose.
Unless you’re looking to place a trade, storing cryptocurrency in an account on an exchange is not recommended. Instead, it’s generally much safer to store your COMP in a secure wallet.
When someone deposits funds in Compound, those funds are locked up and they receive cTokens in return. The interest earned from the deposited funds accrues directly to the cToken.
Individuals can turn to Compound to earn interest on their cryptocurrency, while supplying liquidity, and developers can tap into Compound for a source of liquidity, while further bolstering the Compound platform.
The idea is that many people will be accessing the underlying Compound platform through many different applications, and that it will become an important tool underlying many other parts of the DeFi ecosystem.
To this end, Compound aims to become more resilient and open by decentralising its governance across a community of token holders.
|Circulating supply (approx. as of August 2020)||~3,210,000 COMP|
The COMP token is the governance token of the Compound platform. It is used to practice a type of on-chain governance.
Users who hold at least 100,000 COMP are able to make proposals for the network to consider. If enough other COMP holders vote in favour of the proposal, and the requisite minimum number of votes and majority of voters is met, a proposal is passed.
It also serves as a mild incentive, as Compound users are rewarded with COMP tokens simply for using the network.
In addition to its governance powers, the COMP token can also be bought and sold.
At the time of writing, Compound is the third-largest DeFi protocol in terms of total value locked and is trusted by thousands of market participants.
With COMP rewarded to users of the platform, as the platform use increases the value of COMP will linearly increase.
COMP powers the Compound governance system meaning users are incentivised to hold COMP in order to influence protocol development.
To sell the native COMP token find a cryptocurrency exchange that it is listed on. This could be a centralised or decentralised exchange. You will then need to follow a similar process to that depicted in Step 3 above. Select the cryptocurrency, stablecoin or fiat currency you would like to exchange your COMP tokens for. Once you have found an exchange pairing you are happy with, look for the ‘Sell COMP’ button and enter the amount you wish to sell.
COMP can be purchased directly from an exchange or it can be earned through the use of the Compound borrowing and lending platform.
A user must either supply or borrow digital assets to accrue a percentage of the daily COMP distribution.
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