If you move too far away from the desktop, MyEtherWallet will automatically disconnect from your wallet to ensure that no one else can access or view your tokens when you aren’t nearby. With a quick setup and a wealth of unique tech features, MyEtherWallet is the ideal software wallet for new investors and professionals alike. Compound is an Ethereum-based project that attempts to provide peer-to-peer lending solutions through decentralized finance applications.
Compound is a lending platform built on the Ethereum network that provides peer-to-peer cryptocurrency loan services. Compound users can lock in collateral and provide loans to other users in exchange for a predetermined interest rate based on market demand. The Compound token (COMP) acts as a governance token that provides owners with voting rights.
COMP is an ERC-20 token, and is currently the 94th largest cryptocurrency project when measured by total market capitalization. Being a crypto investor requires taking security seriously and owning your private keys gives you much more power and control. The main principle behind hardware wallets is to provide full isolation between the private keys and your easy-to-hack computer or smartphone. Buying and selling Compound isn’t the only way to use the Compound network to earn a return on your investment.
The protocol currently offers lending and interest services across 9 cryptocurrency projects. There are currently more than $14 billion worth of crypto assets on the Compound network earning interest, with development plans in place to roll out additional options. These developments could cause the value of the Compound token to increase in the coming years. The original wallet created for Ethereum, MyEtherWallet has expanded to support all ERC-20 tokens. MyEtherWallet is a desktop and mobile application that’s compatible with almost any device. This creates a local connection that allows you to access your tokens securely.
Buy a Ledger hardware wallet to securely store your Compound
For example, you can send Bitcoin to your friend using the Bitcoin network instead of a centralized payment system. However, financial institutions do much more than only facilitate payments between 2 parties — they also provide checking and savings account services, loans and more. This makes it important to take some time and compare brokers before you open your account.
An emerging project in the decentralized finance sphere, investing in Compound’s token COMP can grant investors early access to governance rights on the network. You will need to create a Compound account on Ledger Live, to connect your Ledger hardware wallet and to verify your identity. Once you buy your Compound using your payment card or a bank transfer, it will be automatically sent to your hardware wallet, and thus secured. Our hardware wallets are compatible with more than 1800 different assets, including Compound. When you own cryptocurrencies, what you really own is a private key, a critical piece of information used to authorize outgoing transactions on the blockchain network.
Software Wallets
Holding the private keys gives you access to your crypto, like holding a pin code to your debit card; in short it gives you access to your funds. You can also earn a return on your investment by capitalizing on short-term price movements within the crypto market. Cryptocurrencies like Compound show a higher level of volatility when compared to assets like blue cap stocks and bonds, which means that you can buy and sell your investment when it’s advantageous to you.
- If you’ve ever used a USB drive to transfer files from your computer or an online file storage system to a portable device, you’re likely already familiar with how hardware wallets operate.
- If you decide to actively trade your Compound tokens, consider creating a brokerage account with a few of our favorite low-cost selections below.
- You can also buy Compound on other plateforms and then secure it with your hardware wallet.
- A hardware wallet is a device that connects directly to your phone or desktop computer and allows you to transfer your investments to offline storage.
- Put simply, Compound users can deposit cryptocurrency into lending pools for access by borrowers.
Compound is a decentralized protocol on Ethereum, and its governance token COMP is used to vote on future upgrades to the protocol. The cryptocurrency market is fast-paced, and the value of your Compound tokens can change on a minute-to-minute basis. Understanding how the cryptocurrency market is changing today can help you plan your trading strategy.
Adding COMP to Your Crypto Portfolio
If you’ve ever used a USB drive to transfer files from your computer or an online file storage system to a portable device, you’re likely already familiar with how hardware wallets operate. Compound can make an excellent addition to any cryptocurrency portfolio, especially if you intend to hold the governance token for a long period and use your voting rights. Before you invest in Compound, you might want to stake another cryptocurrency using the application to get a feel for current interest rates and compatible tokens. This will allow you to learn more about Compound while also earning interest on your cryptocurrency investment.
If you decide to actively trade your Compound tokens, consider creating a brokerage account with a few of our favorite low-cost selections below. Our solution lets you securely manage your Compound and more than 1800 different assets in one single app. When most people think of cryptocurrencies like Bitcoin, their minds immediately go to anonymous payment methods.
Put simply, Compound users can deposit cryptocurrency into lending pools for access by borrowers. The SecuX W20 hardware wallet is an all-inclusive, secure option that you can use to store a wide range of cryptocurrencies. From Bitcoin to Litecoin and from Ethereum to any ERC-20 token, the wallet supports all major investments with military grade security elements. A hardware wallet is a device that connects directly to your phone or desktop computer and allows you to transfer your investments to offline storage.
Enjoy peace of mind knowing that your Compound are safe
You can also buy Compound on other plateforms and then secure it with your hardware wallet. Recently purchased the Nano Ledger X, and the simple, easy-to-use interface helped me to easily transfer my Bitcoins from Coinbase. Products like the Nano Ledger X will help cryptos such as Bitcoin become adopted the broader society. Fast delivery, good online tutorials, the cold wallet has support for multiple apps and also supports ‘staking’ using Ledger Live.
If you do decide to hold onto your Compound governance tokens in the long-term, you’ll want to transfer your investment to your wallet as soon as possible to prevent the possibility of a hack. Both software and hardware options will allow you to track the value of your Compound investment over time, and you can transfer your tokens back to your exchange wallet when you decide to take profits. A Compound wallet helps you protect your private key, not storing your Compound. If you are fairly new to cryptocurrencies you might still be struggling with the concept of private key and why it’s so important. Perhaps you just get into cryptocurrency by purchasing coins on an exchange platform but didn’t even realize that they hold the private keys to your cryptocurrency.