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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
What Is Crypto?
Crypto or a cryptocurrency is a digital currency protected by cryptography, making counterfeiting and double-spending nearly impossible. Blockchain technology is used to produce cryptocurrencies (a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a government does not issue them. The word "cryptocurrency" refers to the encryption methods employed to keep digital currencies and the network secure.
Are Cryptocurrencies A Good Investment?
Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.
What Is The Meaning Of Crypto?
A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.
How Cryptocurrency Works?
Cryptocurrencies use cryptography technology to keep transactions and their units (tokens) secure. Cryptocurrency works via a technology called the blockchain. A blockchain is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its value.
Is Mining Cryptocurrency Legal?
Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.
How To Invest In Cryptocurrency Stocks?
Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.
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 Pi Cryptocurrency Safe?
Pi Network captured the crypto community’s interest even before it officially debuted. Its innovative mobile mining approach and user-friendly design simplify crypto adoption for a broader audience. Some users see this as a chance to get engaged in the crypto from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.
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.
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
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.
