The Compound (COMP) decentralized finance (DeFi) protocol aims to enable completely decentralized and autonomous borrowing and lending by the use of decentralized applications. It allows users to deposit funds they own into lending pools to earn interest on their deposits when other users borrow them. Once lenders deposit cryptocurrency, Compound awards them a new cToken, i.e., cETH, cDAI, and cBAT, which can then be traded without restriction. However, they are only redeemable for the cryptocurrency locked in the protocol for which it represents. Compound Coin (COMP) tokens are available on a growing number of cryptocurrency exchanges.

COMP can be traded for another cryptocurrency or a stablecoin; the trading pairs vary between exchanges. So, you must search for COMP on the spot market to select a pair from the list of available trading pairs. After you’ve chosen a cryptocurrency exchange that suits your investment needs, you must register with the exchange using a valid email or mobile number. A link will be sent to your address, and you must click it to verify your account.

What will the Compound price be in 2024?

This exchange currently allows trading for residents of the United States, except Hawaii. Examples of cold wallets are Trezor Model T, Ledger Nano X, CoolWallet Pro, KeepKey, Ellipal Titan, and SafePal S1, amongst others. Some deposit methods are extremely fast, while others, depending on the amount, require a confirmation from https://bitcoin-mining.biz/buying-vapes-with-bitcoin/ authorities. Remember to evaluate the fees of different deposit methods since some have larger fees than others. Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. They’re also optimistic about the end of 2022 when they predict a price of $322 and $640 by the end of 2026.

Ensure that you have sufficient COMP tokens to supply by buying Compound crypto on KuCoin or other supported platforms and withdrawing your tokens to your wallet. In addition to a positive outlook towards DeFi, the COMP price could also strengthen amid a bullish mood in the crypto market. The price moved up to $242.94 on 5 January 2022, but then declined to $94.13 on 24 February as cryptocurrency markets lowered along with the financial markets.

How Does Compound (COMP) Work?

Specifically, you can lend and borrow Dai (DAI), Ether (ETH), USD Coin (USDC), Ox (ZRX), Tether (USDT), Wrapped BTC (WBTC), Basic Attention Token (BAT), Augur (REP), and Sai (SAI). Compound falls in line with the general consensus of DeFi in terms of interoperability. The network is open to the integration of third-party assets and platforms. Compound also supports the use of API protocols to simplify the UX. This interoperability has led other platform s to build upon Compound’s vision in unique ways.

According to an analysis by CoinStats, the COMP token has a market cap of 937 million USD, with $142.88 per token at the time of writing. The price of COMP token reached an all-time high of $855.2 on the 12th of May 2021, and since then, it has come down by more than 60 percent. As with any investment, make sure you carefully assess your financial situation before investing in cryptocurrency, Compound, and the stock market. Compound can be extremely volatile—a single tweet can make its price plummet—as cryptocurrencies are still a highly speculative investment. Follow the already famous crypto investment phrase — “invest only what you can afford to lose”. For instance, the price of COMP plunged after an epic upgrade, when nearly $90.1 million has been dropped to users of the Compound protocol.

More about Compound Coin

It’s important to do research and compare fees, security features, and supported currencies before choosing an exchange, as there are considerable differences between each one. In addition, you have to be mindful of your investment approach, crypto storage, and other aspects of buying and trading . Compound users can earn interest by taking advantage of the opportunity to lend multiple types of cryptocurrency. Lenders have numerous options for liquidity pools on this platform, all of which have varied rates of return, depending on the coin or token.

• Metamask is generally considered the best option for these tasks.
• Within each pool, lenders earn half the distribution and borrowers earn the other half.
• CoinPriceForecast’s Compound coin price prediction for 2022 saw the token trading at $63.25 by year-end.
• Such multi-asset platforms hand investors many useful financial instruments that can generate a passive income (interest with forex trading or dividend with stock trading).
• Earn attractive daily interest over seven days, 14 days, or 28 days, and grow your COMP holdings risk-free and safe.
• EToro USA – Established in 2007,  eToro is a leading cryptocurrency exchange that accepts USA residents.

Compound is a lending platform built on the Ethereum network that provides peer-to-peer cryptocurrency loan services. Compound users can lock in collateral and provide loans to other users in exchange for a predetermined interest rate based on market demand. The Compound token (COMP) acts as a governance token that provides owners with voting rights. COMP is an ERC-20 token, and is currently the 94th largest cryptocurrency project when measured by total market capitalization. When it comes to earning interest or making money on your tokens, Compound offers a few different routes. For starters, the platform allows users to deposit cryptocurrency into liquidity pools that borrowers can access.

How to buy Compound in 4 steps

Please don’t interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder.com compares a wide range of products, providers and services but we don’t provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service. An increasing number of cryptocurrency exchanges will ask to verify your identity before you can deposit funds and start trading Compound.

If you invest in Compound today, as with any investment, a long term increase is expected. The price of COMP could possibly rise to $991.37 within the next 10 years. Compound proved to be one of the most talked about coins in the crypto space this past year. With this in mind, it is wise to say that COMP is a good choice of investment.

Best Cryptocurrency Exchanges

Compound has become the ninth-largest DeFi protocol based on total value locked (TVL), with a value of more than $2.11bn, according to data compiled by DeFi Llama. That puts it ahead of popular apps like SushiSwap (SUSHI) and Yearn Finance (YFI). Compound is one of numerous interest-rate protocols that have emerged with the growth of decentralised finance (DeFi) applications on blockchains. Get direct access to the Bitcoin, Bitcoin Cash and Ethereum public blockchains. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry’s research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.

This makes it important to take some time and compare brokers before you open your account. Browse a few of our top-rated cryptocurrency brokers for beginners below. An emerging project in the decentralized finance sphere, investing in Compound’s token COMP can grant investors early access to governance rights on the network. Learn more about Compound and how it’s used with our guide for beginners. The direction of the COMP coin price will depend on price trends in the broader cryptocurrency markets, as well as the development and adoption of the Compound protocol.

Today, Compound (COMP) is trading at $78.06 with a total market capitalization of $605,866,493. While COMP is striving towards interoperability between networks to hasten interaction, the bullish trend from the previous year is expected to continue. So the minimum trade price has been placed at $546.42 and a yearly price close above $585.45 in 2029. With the use of these cTokens, lenders and borrowers may agree on the conditions of a transaction just as they would at a bank. But several of the procedures involved in applying for a conventional loan are shortened by the Compound methodology. Prices and percentage changes are for information purposes only and in no way reflect Coinsquare Ltd.’s speculation of market direction.

Live Price

At the same time, you can “go short” if you believe that the price of the underlying asset, in this case, Compound (COMP), will decrease, by selling CFDs. Although complex, the model has been successful in attracting users and encouraging others to adopt it. As of December https://cryptominer.services/advanced-white-label-exchange-solution-from/ 2021, according to the DappRadar, almost $10 billion is locked up (TVL)  in the Compound protocol. The Compound protocol was founded in 2017 by Robert Leshner (CEO) and Geoffrey Hayes (CTO), two hight profile employees at Postmates, an online food delivery company.

The Ledger Nano S or the more advanced Ledger Nano X both support Compound (COMP). Compound can make an excellent addition to any cryptocurrency portfolio, especially if you intend to hold the governance token for a long period and use your voting rights. Before you invest in Compound, you might want to stake another cryptocurrency https://topbitcoinnews.org/btc-brokers/ using the application to get a feel for current interest rates and compatible tokens. This will allow you to learn more about Compound while also earning interest on your cryptocurrency investment. The SecuX W20 hardware wallet is an all-inclusive, secure option that you can use to store a wide range of cryptocurrencies.

Other users can then take out short term loans from the lending pool. These loans are issued with interest that is then split between the lender and the lending pool. A positive outlook towards decentralized finance services fosters lending and borrowing activity on Compound, supporting the COMP price. On the other hand, adverse developments in the market could keep DeFi users away, reducing the liquidity on Compound, and driving down the demand for the COMP token. This, in turn, could weaken the value of Compound cryptocurrency.