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The Compound DeFi protocol, based upon Ethereum, is one that facilitates financial services involving borrowing and lending of a range of crypto coins. The native Compound coin – or the COMP token- is the governance token of Compound DeFi; it brings all the benefits of blockchain to traditional lending and borrowing, thus contributing to the growing DeFi ecosystem.
Want to know more about the Compound crypto? We have got you covered! Read on to find out more about the Compound coin, and how to buy COMP in India.
What is the Compound Crypto (COMP)?
As mentioned, COMP is the governance token of the Compound DeFi protocol. A fixed amount of COMP is distributed to the lenders and borrowers on the Compound DeFi platform every day. These distributions happen every time an Ethereum block is mined (that is, every 15 seconds), in proportion to the interest collected by every crypto asset on the platform.
Compound crypto holders get to propose changes to the Compound DeFi protocol, and also vote on existing proposals. Every Compound coin would stand for one vote, and you can even delegate your Compound coins to another user on your behalf.
How does the Compound DeFi protocol work?
Through the Compound DeFi platform, anyone can lend and borrow crypto instantaneously, without wasting any time, effort, or cost that is usually involved in traditional borrowing. If you wish to lend out your crypto, you can send any amount of any of the supported cryptos to the Compound DeFi platform. By providing crypto to the Compound liquidity pools, you can become a liquidity provider, and earn interest on the funds you have lent out.
As a lender on the Compound DeFi protocol, you receive cTokens equivalent in amount to the crypto you deposit. The cTokens represent the crypto you have deposited, and they can be transferred or traded out to other users. Lenders can also take out loans in other crypto up to the value of their deposit.
Keep in mind that if you are adding to one of the larger Compound crypto pools, the interest rates are naturally low due to the abundant supply. However, if you lend out to a smaller pool, the higher interest rates help you earn more passive income.
On the other hand, if you want to borrow from the Compound DeFi protocol, you have to lock up some of your crypto to borrow against it. Every time you borrow from Compound, you lock up crypto worth more than what you’d be borrowing, so that the loan stays over-collateralized.
On Compound, you can withdraw your deposits whenever you wish. However, if the value of the crypto you borrow goes up and amounts to more than the crypto you had deposited, the Compound smart contracts would immediately liquidate your position.
How to Buy Compound Coins (COMP) in India?
If you are wondering how to buy the Compound crypto in India, WazirX is your best choice! You can buy Compound coin (COMP) in India through WazirX, India’s most trusted cryptocurrency exchange, by following the few simple steps listed below:
#1 Sign Up on WazirX
To begin with, create an account on WazirX by clicking here.
#2 Fill in the Required Details
Put in your email address and choose a secure password.
#3 Email Verification and Account Security Setup
Next, verify the email address by clicking on the verification link you received in your inbox. Following that, you have two options to ensure the security of your account – the authenticator app and mobile SMS.
Remember that the authenticator app is more secure than mobile SMS because there is a risk of delayed reception or SIM card hacking.
#4 Choose Your Country and Complete KYC
After selecting your country, complete the KYC process. Without completing your KYC, you can not trade peer-to-peer or withdraw funds on the WazirX app.
To complete your KYC, you need to submit the following details:
- Your full name as it appears on your Aadhaar or any other ID proof
- Your birth date as stated on your Aadhaar or any other ID proof
- Your address as it appears on your Aadhaar or any other ID proof
- A scanned copy of the document
- A selfie of yours to finish the procedure
And you are done creating your account! Within 24 to 48 hours, the account is usually validated.
Buy COMP on WazirX via P2P
WazirX allows you to check the COMP coin price in India before you proceed to buy COMP crypto via WazirX here. You can also choose to buy COMP using USDT.
To buy USDT, you can use the WazirX P2P route. This is fast, secure and free. Follow these simple steps to buy USDT and then your COMP crypto:
- Log in to your WazirX account on the web/mobile app and select “P2P” from the “exchange” option.
- Next, click on the ‘Convert INR into USDT’ option.
- Add the INR price at which you want to purchase USDT. Next, add the number of USDT tokens you want to purchase and click on “BUY”. Here, the minimum purchase should be 14.5 USDT.
Once you click on the buy button, WazirX will match you with sellers. However, if you wish to purchase the USDT from a specific seller, you can add the XID of that person and complete the transaction.
- You need to select a preferred mode of payment next. UPI and IMPS mode are the two options available. Please note that IMPS linking is mandatory on the WazirX platform; however, UPI linking is optional.
- Once you confirm and click on the message “YES, I WILL PAY’, you will get 60 additional minutes to complete your payment. In case of non-payment, once confirmed, a minimum penalty of 10 USDT or 1.2% of trade will be levied. False confirmations can also cause your account to get locked.
- Complete the payment as per the payment details on the screen (seller’s bank/UPI details). Once the payment is complete, upload the payment proof and click on the checkbox “I HAVE PAID”.
Once the seller confirms the receipt of payment, your order will be marked complete, and the USDT purchase will be reflected in your “funds”.
- Now you can use this newly acquired USDT balance to purchase COMP crypto on WazirX exchange. Go to the “exchange” option on the web/mobile app and select COMP crypto from the list of the tokens available in the USDT market. All price charts, order book data, and an order input form are visible on the right side of the screen.
Fill out the buy order form and click on “Buy COMP”. It should only be a short while before your order is executed. Once it’s done, you will receive the COMP coins you purchased in your WazirX wallet.
You can also follow this YouTube tutorial on how to buy crypto safely and securely via WazirX P2P.
Future of the Compound Coin (COMP):
As per Compound charts, the Compound crypto gained 33.3% in 2021 while it went from $149 to the high of $531.98 in May, but then it dropped to $200 at the end of the year. Compound saw a decent high of $173.91 at the beginning of April 2022, but since then, the market has remained fairly bearish.
According to the website CoinPriceForecast, it is estimated through technical analysis that the Compound crypto can average $173 in 2022 and $176 in 2023. They further predict that by 2025 the COMP price could be around $210, and by 2030 it could be $294.
As always, make sure to do your own research before entering the crypto markets. Give our website a visit today to start trading in crypto!
Frequently Asked Questions
How Safe Are Cryptocurrencies?
Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed. There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.
What Is Virtual Currency?
Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.
Is Cryptocurrency Banned In India?
No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.
Is Cryptocurrency Legal In India?
In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India
How To Invest In Cryptocurrency In India?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.
Can I Invest In Cryptocurrency?
Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.
Is Bitcoin And Cryptocurrency The Same Thing?
Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.
What Is Cryptocurrency?
A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.
Are Cryptocurrencies Legal In India?
In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.
Is Cryptocurrency Safe To Invest In?
Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
