Compound is a DeFi protocol built on Ethereum that enables users to lend and borrow money, much like a traditional money market. Users can deposit cryptocurrency in a lending pool, for which they receive cTokens representing their stake, and earn interest on the money invested. Users can also use cryptocurrency as collateral to borrow other cryptocurrencies. Owning COMP tokens allows users to participate in the governance of the Compound protocol.
Bitvavo makes it as easy as possible to buy digital assets and cryptocurrencies.
1. Sign Up
Create a free account with which you can buy, sell, send, receive and store Compound. Access your Bitvavo account from every location, on mobile and desktop.
2. Transfer Funds
Verify your account and transfer Euros to your Bitvavo wallet using one of the 8 supported payment methods.
3. Buy and Trade
Buy or sell over 150 digital assets and pay a maximum trading fee of 0.25%. Store your assets in your Bitvavo wallet or send them to your external wallet.
Storing Compound and other digital assets requires a wallet, but don’t worry: Bitvavo’s hosted wallet allows you to store Compound without any technical knowledge. Here is a brief overview of the existing wallet options to store your Compound:
Hosted wallets are wallets where the private keys to your Compound are managed by a third party such as Bitvavo. Access to your account is protected by a password and other advanced security features. Once you are logged in, you can easily and conveniently manage your Compound online. Bitvavo offers standard hosted wallets for all digital assets that are offered on the platform.
A software wallet is a program installed on your computer or other device in order to use and manage your Compound. Using a software wallet gives you full control over your private keys, so you are not dependent on third parties. The risk is that you alone are in charge of the security of your Compound, and if malicious parties have access to your device, your private keys (and therefore your Compound) can be stolen.
A hardware wallet is a physical device on which you can store your Compound offline. It is one of the safest ways to store your Compound, because the private keys are stored on a separate and offline device. Access to this device is often protected by a password. In many ways, a hardware wallet can be compared to a safe in which your Compound is stored.
You can use Bitvavo's hosted wallet to easily store, send and receive Compound. Once you have purchased Compound on Bitvavo, you can choose to send your Compound from your Bitvavo wallet to your own software or hardware wallet.