How To Buy Compound In Australia

A Beginner’s Guide to Buying Compound Cryptocurrency in Australia

5 Min Read
Last Updated July 23rd 2021

If you’re based in Australia and wish to buy Compound – the process is very simple. All you need to do is find a regulated online exchange that offers competitive fees, deposit some funds and decide how much you wish to buy.

The Compound protocol is an interest rate market where users can earn returns from their deposit of the Compound coin. However, on the back end, it’s a series of liquidity pools.

Since the protocol is built on the Ethereum blockchain, it can be stored in an Ethereum wallet. The Compound coin (COMP) has seen increased interest over the past year, and many investors are looking to enter the market to make profits. If you’re one of those seeking to buy or invest in the token, the following guide is what you need right now.

What's in this guide?

The guide contains detailed information on where to buy Compound, where to buy, and the things you should know before investing in the coin. It also provides information about storing COMP and how it works.

  1. QUICK GUIDE: HOW TO BUY COMPOUND IN AUSTRALIA
  2. Where to buy Compound in Australia
  3. A step-by-step guide to buying Compound in Australia
  4. How to sell Compound
  5. Which wallets can I use to hold Compound?
  6. How Compound works
  7. Key things to consider before buying Compound in Australia
  8. FAQs

QUICK GUIDE: HOW TO BUY COMPOUND IN AUSTRALIA

  1. Open an account with a cryptocurrency exchange.
  2. Verify your account.
  3. Go to the deposit section
  4. Go to the platform and select Compound.
  5. Enter how many Compound tokens you want to buy.
  6. Check the details and confirm your purchase.

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Where to buy Compound in Australia

There are many places to buy the COMP token, but as a newbie in cryptocurrencies, the right place to go is a cryptocurrency exchange (broker). It is more convenient and safer to purchase Compound because there because many of them are regulated.

A step-by-step guide to buying Compound in Australia

If you’re looking to buy a crypto exchange in Australia, there are two major ways you can do that. You can either buy with a fiat currency or fund your account using other cryptocurrencies.

Buying Compound with other cryptocurrencies

This is a more convenient option for those with other cryptocurrencies stored in a wallet. It also offers you the chance to choose from a wide range of exchanges since many of them offer direct funding of accounts using other cryptocurrencies.

Buying Compound with fiat currency

If you are new to the world of cryptocurrencies, a better option for you is to buy Compound using fiat currency (AUD). While you may have limited options here when it comes to exchanges supporting fiat currency payments, the process is straightforward. The following guide will help you successfully buy Compound in a cryptocurrency exchange.

 Step 1. Register for an account with an exchange

Find a cryptocurrency exchange that accepts fiat currency deposits and register with them. Provide your email address and create a new username and strong password to protect your account. In some exchanges, your email address is all you will need to provide to complete registration. However, some other exchanges require additional details like your address and proof of ID before registration is complete. Once the details are provided, your account will be created.

Step 2: Deposit funds into your account

You can fund your account in several ways. How you do so will depend on your preference and your location. Many exchanges that enable fiat deposit will allow users to fund their accounts through credit cards, debit cards, or PayPal. You can also deposit directly through bank transfer if that option is available.

Chose the option with respectable fees because each of the exchanges has specific fees charged for each deposit. Enter the amount of fiat currency you are depositing and review your transaction details. The amount will be deposited into your exchange account once the transaction is approved.

Step 3. Buy Compound

Once you’ve funded your account with fiat, you are ready to buy COMP. Here, you will have access to the trading tools available at the exchange. Head over to the market section of the exchange where you will see a long list of the trading pairs offered on the exchange. Select the COMP/AUD trading pair if you’re buying using fiat currency and enter the amount.

Remember to review your order before submitting it. Once your order is accepted and approved, the amount of COMP you ordered will be deposited into your exchange account. From there, you can decide to trade with the COMP token on the exchange or withdraw to a wallet.

How to sell Compound

Selling Compound coin is not difficult. Just like in step 3 above, you need to select the right trading pair on the market section of the exchange and enter the transaction details. Review the order before clicking the execute button. When the sell order is executed, an email notification confirming the transaction will be sent to you while the equivalent amount of AUD (or other cryptocurrencies) you exchanged will be deposited to your broker’s account.

Which wallets can I use to hold Compound?

After buying COMP, it’s important to choose how you want to store the cryptocurrency. While exchanges offer custody options for users, it’s safer to store your COMP token in a crypto wallet. In this case, you can choose to store Compound in an offline wallet or an online wallet. The former is usually the safer option since it is kept away from the prying eyes of online scammers and hackers.

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How Compound works

Compound is a unique protocol that enables users to earn interest when they deposit their Compound tokens in the protocol. It is based on the Ethereum blockchain and the idea is to allow borrowers access credits without the need for a conventional intermediary.

This reduces both transaction costs and interest rates for the lender and borrower. The Compound token is the assets used for transactions on the protocol. It is also now being traded on several cryptocurrency exchanges.

Key things to consider before buying Compound in Australia

If you’re looking to buy Compound coin in a cryptocurrency exchange, the following are some of the vital things you should consider.

Level of competition

The Compound protocol has other competitors within the crypto space offering similar services through the Ethereum blockchain. These alternatives include UniSwap, Aave, and Year.Finance. These protocols also have their respective tokens within the crypto space, which makes it a bit harder for wider adoption of the COMP token.

Regulatory concerns

The COMP token and other cryptocurrencies have often been criticized for their lack of a more standard regulatory system. This has kept some major investors away from the industry, which is affecting all cryptocurrencies, including the COMP token.

Value of the project

Although Compound has a lot of competitors, it has continued to stand out because of the strong teams backing the project. It also has a strong community that supports the growth of cryptocurrency.

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FAQs

Where can I buy Compound coin in Australia?

If you’re looking to buy the COMP token in Australia, a cryptocurrency exchange would be the ideal place to go

Can I buy Compound coin with fiat currency?

Yes, some exchanges allow users to deposit funds into their exchange account with fiat currency. After deposits, they can be used to purchase COMP on the platform.

Which is the best place to store Compound coin?

You can store Compound safely and securely in a hardware wallet.

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