Quick summary: Our recommendation is to use the crypto exchange Swyftx to buy Compound. They have over 300 cryptocurrencies available, have a fantastic app and great customer support. You also get $20 free BTC once you start trading!
Australia has a good amount of reliable and regulated crypto trading platforms, so it’s quite easy finding an exchange that has Compound. While each one comes with its own feature-set and fee structure, most crypto exchanges function very similarly when it comes to buying crypto.
Let’s get into it!
How to Buy Compound in Australia
There are only 4 main steps involved and it’s pretty straightforward:
1. Choose a crypto exchange
As mentioned above, we have plenty of options when it comes to Australian crypto exchanges. While that’s great, you ideally want to do a bit of research so you can use one that has a decent fee structure and more importantly, has Compound in its list of cryptocurrencies.
Personally, we really like Swyftx, they have over 300 cryptocurrencies, a very smooth process for buying crypto, and their support team has been fantastic.
And if you sign up through our site, you’ll get 20$ worth of free BTC once you start trading, which is always nice.
So for this guide on buying Compound, we’ll be using Swyftx as the exchange to go through. Any exchange would work of course, as long as they offer Compound.
It’s also possible to check out our comparison of the cryptocurrency brokers for those curious to know more about which exchanges we would recommend.
2. Sign up with the crypto exchange
Once you’ve decided on which exchange to use, it’s time to sign up.
Swyftx has a very streamlined sign-up process in place. The first step is to fill in the sign-up form.
Next up is to go through their basic verification process, called a KYC, which is required by law here in Australia. This should be very quick and easy.
Once done, it’s time for the next step.
3. Funding your account with AUD
To buy Compound, you first need to transfer AUD to your Swyftx account using one of the many deposit methods available. From bank transfer to PayID, POLi pay and credit cards, plenty of options to choose from.
4. Buy Compound
The final step is to go to their asset list, find Compound, navigate to the buy section, and then trade your AUD for some COMP. Once you’ve bought Compound, you can track how much you’ve gained or lost either in the app (they have a great app), or on desktop on the left-hand side under your cryptocurrency list.
Where to Buy Compound (COMP)
|5/5||300+ cryptocurrencies||Visit Swyftx|
|4/5||200+ cryptocurrencies||Visit Coinspot|
|3/5||400+ cryptocurrencies||Visit Binance|
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How to Sell Compound
If you’re thinking about selling Compound, just follow the steps below.
- Sign in to the cryptocurrency trading platform (like Swyftx).
- Click on Compound in your list of cryptocurrencies, or find your trading account if you’re using an exchange with different accounts.
- FInd the sell section and sell Compound for AUD, or trade it for another cryptocurrency.
Frequently Asked Questions
Is buying Compound in Australia legal?
Yes, you can legally buy and trade cryptocurrencies in Australia. We do of course recommend only using crypto exchanges regulated by AUSTRAC.
How to buy Compound with PayPal?
Unfortunately, most crypto exchanges in Australia don’t support PayPal. The only exchange that you could use is eToro, but their cryptocurrency list is quite limited so you might not find Compound. Have a look on their site first, you might be lucky.
How to buy Compound with a credit card or debit card?
Most top exchanges support buying crypto with a credit or debit card. We would recommend Swyftx to buy Compound with your credit/debit card.
Compound is a DeFi lending protocol that allows users to earn interest through depositing cryptocurrencies in any of the supported pools.
A user will get cTokens back if they deposit tokens in a Compound pool. These cTokens represent the stake of the user within the pool. These tokens can be used to redeem any cryptocurrency that was originally deposited into the pool at any time. If you deposit Ethereum into a pool, you will receive cETH. Over time, the exchange rate between these tokens and the underlying asset increases. You can use them to redeem more underlying assets than you initially put in. This is how interest is distributed.
By pledging collateral, borrowers can also get a secured loan from any compound fund. The collateral asset will determine the maximum loan-to-value (LTV). It currently ranges between 50 to 75%. The interest rate charged will vary if the collateral falls below the maintenance threshold. Automatic liquidation can be used to dispose of borrowers.
Compound's popularity has exploded since its September 2018 launch. It recently exceeded $800 million in total locked value.
Compound claims that most cryptocurrency are sitting on exchange platforms and doing nothing for their owners. Compound wants to change this with its open lending platform. Anyone who has supported Ethereum tokens can earn interest and get a secured loan. It is totally trustless.
Compound's community governance makes it stand out among other similar protocols. Compound's native governance token -- COMP -- allows its holders to make changes to the protocol, and then to vote on whether to implement them. This can be done without the involvement or approval of the Compound team. You have the ability to make changes to the distribution and collateralization of COMP tokens.
These COMP tokens can be purchased on third-party exchanges or earned through interaction with Compound protocol, such as depositing assets and taking out loans.