Why Buy COMP in Australia?

Why Buy COMP in Australia?

When it comes to crypto trading, it seems like everyone is familiar with Bitcoin. The majority of crypto traders in Australia will also be familiar with cryptocurrencies such as Ripple (XRP) or Ethereum (which are becoming increasingly popular with investors). But the crypto space is quickly evolving, as new cryptocurrencies enter the market and more Bitcoin traders in Australia start looking for ways to diversify their portfolio. As a result, a growing number of crypto traders in Australia are beginning to explore the lesser-known crypto coins and are looking for ways to earn interest on their cryptocurrency. COMP is one of these options. 

But before we any further, what is COMP? How is trading in COMP different to buying Bitcoin? If you already know you want to buy Bitcoin in Australia, is it worth investing in COMP as well? And if you do decide to invest in COMP, which cryptocurrency brokers in Australia will allow you to buy in AUD? 

What is COMP?

COMP is an Ethereum-based decentralised finance (DeFi) protocol. In layman’s terms, COMP allows crypto traders to lend and borrow cryptocurrency without having to go through a traditional intermediary, such as a bank. 

Compound, the company which founded COMP, started up in 2017. Their goal was to overcome perceived issues in how the current financial system operated – particularly the impact that intermediaries had in imposing limitations. Compound decided to create a protocol that would allow users who were willing to loan or borrow their cryptocurrencies to earn interest.

Compound has received a lot of interest from crypto traders and willing investors, raising $8.2 million in funding in 2018. Much of this funding came from venture capital firms, including noted investor Polychain Bain Capital Ventures. As a result of this funding, Compound was able to increase development, while also forming partnerships with hedge funds, token projects and other dedicated users. 

Additional fundraising efforts in 2019 were even more successful, with an added $25 billion invested – one of the biggest venture capital investments ever recorded for a decentralised finance start-up. This added investment allowed Compound to further develop their product, with the aim of creating a higher level of accessibility for interested crypto traders.  

How is investing in COMP different from buying Bitcoin in Australia?

Bitcoin is what’s known as a decentralised cryptocurrency. New coins need to be “mined” by an extensive network of users and these coins are traded using blockchain technology. In contrast, COMP tokens don’t need to be mined because they are released by Compound on a daily basis. Compound software allows crypto traders in Australia (and around the world) to deposit their cryptocurrency coins into a lending pool that is open to interested borrowers. As an incentive to deposit in the lending pool, lenders will receive interest payments on the cryptocurrency that they’ve chosen to deposit.   

Once a crypto trader has deposited in the lending pool, they will receive cTokens. These cTokens can then be exchanged with other users or used to buy back the crypto which was placed in the lending pool. Users will earn COMP every time they make a deposit or a withdrawal from the network. The more active users are in trading, the greater the number of COMP tokens they’ll be rewarded with.  

In addition to their value as a trading commodity, COMP tokens also allow users to cast a vote when Compound put forward proposals that will affect the future development of the protocol. Interestingly, crypto traders who hold COMP tokens have the option of delegating their vote, so that someone else can cast a vote on their behalf. 

I want to buy Bitcoin in Australia – should I also invest in COMP?

COMP is currently relatively small in terms of market capitalisation, particularly when compared to the more significant and much more well-known cryptocurrencies (such as Bitcoin, Ripple or Ethereum). But keep in mind the high level of interest and the large amount of investment that Compound has received in recent years – the company has significant funds at their disposal, so COMP will likely see ongoing development and expansion. 

Because of this, cryptocurrency brokers in Australia are predicting that a greater number of crypto traders will start to show interest in COMP tokens. COMP can be a good choice for crypto brokers in Australia who want to develop a more varied cryptocurrency portfolio. 

Where to buy COMP in Australia

If you want to invest in cryptocurrency, then the first thing you need to do is find the best crypto trading platform in Australia. How can you do this? Start by doing thorough research. Next, ensure the crypto brokers you’re considering operate legitimate trading platforms, have verified customer reviews and have an established reputation. 

Coinstash is a verified crypto trading platform in Australia, registered with AUSTRAC and participated in the Australian Government’s Austrade Landing Pad program. Signing up to Coinstash is simple – all you need to do is create an account, confirm your identity and make a deposit in Australian currency using PayID. Once those steps are complete, you’re ready to start trading.

With Coinstash, there is no minimum spend and funds can be converted and withdrawn in Australian dollars whenever you want. If you’re ever unsure how to proceed, Coinstash has a dedicated customer support team who are available from 9 am until 11 pm every single day. The availability of personalised assistance is just one of the reasons why crypto traders in Australia are leaving such sterling reviews for Coinstash on independent website TrustPilot.com:

“No other sites in Australia offer amazing support like that and I’ve tried many many other services and when I’d run into a problem I wouldn’t receive support for days which is really annoying but Coinstash is the fastest and easiest to use.” – Jeffrey Matthews, Trustpilot.com

“100% Best In The Business…Very much recommend Coinstash to anyone and everyone. Whether your Trading/buying/selling each day or brand new and have no idea about t crypto, guarantee you will have such an awesome experience here. Friendly, kind and always fast in responding and willing to help with whatever may be the issue at the time…Absolutely 100/100 ratings!!!” – Dylan, Trustpilot.com

“Trustworthy, reliable and awesome service. I have been using them for 3 years. Thank you for all the help and support.” – Natalia, Trustpilot.com

“Definitely worth it. I ha[v]e been quite lucky to find this exchange - crypto is stressful enough with all the potential challenges you can face, so am grateful the customer service, the immediate assistance, and the genuine ease of the exchange is the reason I have remained and continue to enjoy. Give them a go, it's worth it.” – Bjohns, Trustpilot.com

Get started – invest in COMP cryptocurrency today! 

Australian’s have woken up to the idea of cryptocurrency and its potential to revolutionize the financial system; today everywhere we look consumers demand new financial services that are useful, secure, and reliable. At Coinstash, we aim to develop Australia’s first all-in-one cryptocurrency platform, improving the functionality, flexibility & accessibility of crypto for consumers.

At Coinstash, we help you buy and sell Bitcoin, Ripple, Ethereum, COMP and more with AUD. Signing up to Coinstash is safe, easy and only takes a few minutes. Get started building your cryptocurrency portfolio today!