How To Buy Compound In The USA
A Beginner’s Guide to Buying Compound Cryptocurrency in the USA
In this guide, we are going to cover the ins and outs of buying and selling Compound in the USA.
This includes what Compound is, how to buy it from the comfort of your own home. Plus, we’ll review the best USA exchange you can buy from today
Compound is a protocol that accepts cryptocurrency deposits from users and lends them to borrowers. The protocol engages both lenders and borrowers without any need for a traditional intermediary. It is built on an Ethereum blockchain, just like other similar projects, allowing users to earn income when they supply assets to the protocol.
Its token is the COMP coin, which has become increasingly popular within the crypto space. If you’re looking to invest in the token and you don’t know where to begin, the guide below will help you a great deal.
What's in this guide?
- QUICK GUIDE: HOW TO BUY COMPOUND IN THE USA
- A step-by-step guide to buying and selling Compound in the USA
- Which wallets hold Compound?
- How to sell your Compound tokens
- Things to consider before buying Compound in the USA
QUICK GUIDE: HOW TO BUY COMPOUND IN THE USA
- Open an account with a cryptocurrency exchange
- Verify your account
- Go to the deposit section
- Go to the platform and select Compound
- Enter how many Compound tokens you want to buy
- Check the details and confirm your purchase
A step-by-step guide to buying and selling Compound in the USA
Step 1: Open an online account with an exchange
Set up an account with a cryptocurrency exchange that supports COMPOUND in three steps
Although there are other ways to buy the Compound coin, the easiest and most effective way is through a cryptocurrency exchange. But you will have to decide whether to buy COMP with fiat currency or another cryptocurrency. If you don’t have any other crypto assets in a wallet, the obvious option is to choose an exchange that supports fiat currency deposits.
Find an exchange that offers such support in the USA and proceed to registration on their portal.
Some exchanges will require you to provide certain details, such as your email address, proof of ID, and employment details. The registration requirement is different from one exchange to the other, so you need to choose a broker you’re comfortable with. Also, you have to select an exchange that allows you to set a two-facture authentication (2FA) for your account. This makes sure your account has an extra level of protection against hackers.
Step 2: Deposit Funds
After creating an account with the selected exchange, the next stage is to fund your account with your fiat currency. There should be lots of deposit options, including through debit card, credit card, PayPal, and direct bank deposit.
After selecting the payment option you want, enter the number of funds you want to deposit and complete the funding details. Your broker will take care of the remaining registration details to allow you to start buying Compound coin and other cryptocurrencies you want to buy.
Step 3: Buy Compound
After setting up your account and funding your account, you can navigate to the portal where you will be allowed to purchase COMP. Depending on the crypto exchange you registered with, you may have different order options on the crypto pair you want to trade. Major exchanges in the USA have different crypto trading pairs such as COMP/USD, COMP.BTC, or COMP/ETH.
Since you are buying the Compound token with fiat currency, you should select the COMP/IUSD trading pair. Select the type of order you want. The two major order types are market order and limit order. If you expect COMP to fall in price, a limit order will be a nice strategy.
This will enable you to enter the market when the price is low to cash out when it starts rising. Once you’ve selected the order type, enter the amount of COMP you want to buy and review your order before it is executed. When the transaction is executed, an email notification will be sent to you while your exchange account is credited with the amount you ordered. Thereafter, you can decide to get a crypto wallet and withdraw the Compound token to the wallet. Alternatively, you can start trading with the crypto fund on the exchange.
Which wallets hold Compound?
After buying the Compound coin, you may want to store them in a safer place where hackers and scammers may not have access to them. In truth, leaving your crypto tokens in an exchange is not the safest thing to do. This is because the exchange may be attacked by hackers, which may affect your funds as well.
When choosing a crypto wallet for your Compound coins, you have two options: an offline wallet (hardware wallet) or an online wallet (software wallet). The former is ideal and safer if you won’t be accessing the coin regularly. You will store them in separate hardware where you can keep them safe physically until you want to use them. On the other hand, the online wallet is ideal if you will be accessing the tokens regularly. Whatever option you choose, remember to keep the wallet keys safe, because if it’s compromised, your account can be wiped clean.
How to sell your Compound tokens
If your Compound coins have surged in price, you may want to sell them in the exchange for profit. In this case, you can do that easily. Log into the exchange you bought the token and navigate to the market section. Select the right crypto pair you want to exchange with your Compound token. If you’re buying Bitcoin/BTC with it, select the COMP/BTC token. However, if you want to sell it directly in exchange for fiat currency, you should select the COMP/USD pair.
Enter the amount of COMP you want to sell and review the order. Once the transaction is complete and executed, an email notification will be sent to you.
Things to consider before buying Compound in the USA
Before you consider buying Compound coin, there are certain things you need to consider first.
Consider the market volatility
Generally, the crypto market is one of the most volatile markets in the world. Just as there is potential for unimaginable profits, there is also potential for great losses. This is what you should have at the back of your mind before investing in COMP or other cryptocurrencies.
Consider the strength of the project
The Compound protocol offers unique lending and borrowing service that takes the traditional intermediaries out of the picture. This reduces the level of interest and enables the lender to gain more from their service. It is increasingly becoming popular within the crypto sphere and the project may see more usability in the future
Compound is not the only protocol that offers a lending and borrowing platform on the Ethereum blockchain. Aave and Tradesoft are other alternatives. With such a level of competition, it is affecting the growth of the Compound protocol. This has also slowed down the rate of COMP token adoption.
The Compound protocol is a unique decentralized project that brings both the lender and borrower together without the need for an intermediary. This makes the COMP token interesting for users and the entire crypto community. There is more demand for the coin in the market in the USA right now.
The guide above provides all the details required to successfully purchase, store, and sell the Compound coin.
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