Since its inception, Cosmos has garnered much interest due to its unique approach to the crypto sphere. It is the first network to enable interchain communications between blockchains using a combination of unique protocols. For the Cosmos network, it was never about competition or recognition but advancing the blockchain ecosystem. Although numerous blockchains operate on the Cosmos network, they are autonomous and powered by their native tokens.
Now, with each new project on the Cosmos ecosystem, the network utility token ATOM tends to become more valuable because the Cosmos Hub is utilized to transfer data and assets among the various networks in the ecosystem. That said, the Cosmos network is a remarkable success, currently hosting over 250+ blockchain projects.
Today’s Cosmos price is $10.92 with a 24-hour trading volume of $254,521,427. Cosmos is up 5.69% in the last 24 hours. The current CoinMarketCap ranking is #26, with a live market cap of $3,127,059,366. It has a circulating supply of 286,370,297 ATOM coins and the max. supply is not available.
This piece is curated to guide interested investors on how to buy Cosmos (ATOM), what it offers, and the risks you may encounter by investing in the cryptocurrency.
What is Cosmos?
Cosmos is a decentralized network that allows inter-operability between heterogeneous blockchains that employ BFT (Byzantine Fault Tolerant) consensus algorithms. The development of this network can be traced as far back as 2014.
In 2015, Jae Kwon and Ethan Buchman created the Tendermint Byzantine Fault Tolerance (TBFT) consensus, which serves as the engine of the Cosmos Network, processing up to 10,000 transactions per second. While built to be scalable, the network also processes transactions at low trading fees ($0.01). By 2017, they launched Cosmos through an initial coin offering (ICO), raising a whopping $17 million.
Dubbed the ‘Internet of Blockchain,’’ the goal of Cosmos is to enable the easy development of sovereign blockchain applications capable of transferring data and tokens to one another. This can be achieved via three open-source tools: the Tendermint BFT, the Cosmos Software Development Kit (SDK), and Inter-Blockchain Communication (IBC) Protocol.
The Tendermint BFT consensus offers a ready-network framework that allows developers to build application-specific blockchains quickly while focusing on efficient software development rather than underlying protocols. This helps to speed up the development time of blockchain projects.
On the other hand, the Cosmos-SDK consists of a set of programming frameworks called modules that assist developers in building their various applications without having to write the program codes from scratch. While built-in modules exist in the Cosmos SDK, developers can set up new modules to suit their applications.
Finally, the IBC protocol utilizes the instant finality property of blockchain engines, such as the Tendermint consensus, to enable independent, parallel blockchains to interact. In addition, blockchain applications built on the Cosmos network retain total network control. They have their native tokens and run as an autonomous entity.
In connecting blockchains to one another, Cosmos employs a Hub and Zone model. A zone is a typical independent blockchain, while a Hub is a blockchain designed to connect multiple zones.
For example, the first hub on Cosmos launched with the network is called the Cosmos Hub. It is an open-source, Proof-of-Stake blockchain with a native token called ATOM.
While each zone is operated using its cryptocurrency, ATOM remains the primary token of Cosmos, and it is vital to maintaining the inter-operability of the network. ATOM can be traded, spent, or even staked. Staking an ATOM simply means users are allowed to participate in voting on network upgrades and earn special rewards.
Where can you buy Cosmos?
Investing in Cosmos (ATOM) is pretty straightforward as you can find the token on almost all major cryptocurrency exchanges, including;
Binance is the world’s top cryptocurrency exchange with a trading volume of about $5.54 trillion in the first quarter of 2022. Binance has a native cryptocurrency called the Binance coin, which powers the Binance Smart Chain – one of the many networks built on Cosmos-SDK and Tendermint BFT.
You can purchase ATOM with several crypto trading pairs such as ATOM/BNB, ATOM/BUSD, ATOM/USDT, and ATOM/BTC. ATOM/BTC, ATOM/USDC, etc. The stablecoin pairs of USDT, USDC, or BUSD are some of the recommended options when buying ATOM.
Founded in 2012, Coinbase is an American public limited company that runs a cryptocurrency exchange. Coinbase also offers its cryptocurrency wallet operational in over 150 countries.
Coinbase users can buy ATOM directly using their bank account, debit card, or wire transfer.
On Kraken, you gain access to cryptocurrency futures, margin trading, and over-the-counter trading options. Kraken is a company based in California, United States, valued at 11 billion dollars as of June 2022.
Numerous cryptocurrencies are accessible on Kraken, including ATOM. With Kraken, you can buy ATOM using assets such as BTC or ETH. However, you will be required to provide additional information on your identity to purchase directly with fiat currencies.
Kucoin is rated as one of the top cryptocurrency exchanges in the world. The platform boasts about 18 million users globally and has over 600+ coins available for trading. KuCoin is the first crypto exchange to offer NFT exchange-traded funds (ETFs).
You can acquire ATOM on KuCoin using trading pairs such as ATOM/BTC, ATOM/ETH, and ATOM/USDT.
How to buy Cosmos on Binance in 3 steps
Step 1: Set up a Binance account on the website or mobile app.
- Before you can carry out any transaction on Binance, you will need to register an account and verify your identity.
- You can open an account on Binance with your email, mobile number, existing Google account, or Apple ID.
Step 2: Fund your account with fiat/crypto
- To buy ATOM, you must deposit crypto assets into your account, preferably a stablecoin like USDT or BUSD. Depending on your preference, you can fund your account using a credit or debit card, bank transfer, peer-to-peer trading, or any acceptable third-party payment method.
Step 3: Purchase Cosmos
How to buy your ATOM/BUSD
- On your Binance dashboard, click on the Markets tab.
- Click on Spot Markets, search ATOM and select the ATOM/BUSD trading pair.
- Scroll down to the spot trading interface and pick your order type (limit, market, stop-limit…). Choose market order if you want to buy ATOM at the current market price or limit order if you have a price preference.
To learn about order types, you can watch the video at the link https://youtu.be/C-Lso4v0Rew
- Enter details such as price and amount, and click on Buy ATOM.
Voila! You just bought your first ATOM! Easy peasy!!
How to buy Cosmos ATOM on Kucoin in 3 steps
Step 1: Register an account on KuCoin via their website or mobile app.
- To trade on KuCoin, you need to create an account.
- You can create a KuCoin account with your email or phone number.
Step 2: Fund your account with fiat/crypto
Similar to Binance, ATOM is purchased on KuCoin via trading pairs, including ATOM/BTC, ATOM/ETH, and ATOM/USDT. Hence, you are required to deposit one of USDT, BTC, and ETH.
You can buy crypto by Fast Trade – which involves using credit/debit cards – peer-to-peer trading, and third-party systems.
Step 3: Buy ATOM
Assuming you have purchased USDT,here’here’syouu can buy yourself some ATOM.
- Click on the Markets tab on your dashboard.
- Search for ATOM and click on ATOM/USDT
- On the right hand, switch to the Trade tab and click on Spot.
- Input your 6-digit trading password. For new users on KuCoin, you will be required to set this up. It is an easy and fast process.
- Enter details such as price and amount, and click on Buy ATOM.
And you have ATOM in your KuCoin exchange wallet. That easy!
Best Crypto wallets to store Cosmos
You can store Cosmos on both software and hardware wallets. Here are some of the best cryptocurrency wallets:
Best Hardware Wallet
- Ledger Nano X (Cold Wallet)
Ledger Nano X is the best hardware wallet for storing ATOM tokens. It is suitable for over 1500 cryptocurrencies and compatible with various operating systems, including Windows, Linux, Mac, iOS, and Android. Ledger Nano X allows Cosmos users to trade ATOM and stake the token directly from the Ledger live account without needing an intermediary wallet.
Best Software Wallet
- Lunie (Hot Wallet)
Lunie is the best open-source software wallet for ATOM. The Cosmos team developed the wallet for web and mobile, but it presently operates as an independent company. With Lunie, cryptocurrency users can store and stake their ATOM tokens.
- Trust Wallet (TW)
Trust Wallet is a popular mobile wallet with versions for both Android and iOS devices. It is the official wallet of the Binance network and provides support for ATOM tokens. It features an in-built web3 browser and Binance DEX compatibility. TW lets users stake ATOM tokens and initiate purchases directly from the app.
Where can Cosmos be traded?
Cosmos (ATOM) is listed on several crypto exchanges, including Uphold, Binance, Coinbase, KuCoin, Kraken, and OKEx.
Advantages of buying Cosmos
Cosmos is the first network designed to allow different blockchains to interact with each other. With the successful implementation of this interoperability, there is a continual expansion of the Cosmos ecosystem, which will create a positive market sentiment around the network and drive investment.
- DeFi Integration
Asides from regular blockchains, the Cosmos network also includes DeFi projects such as decentralized exchanges (DEX) and crypto lending platforms. For instance, the fluidity of the IBC protocol enables DEX to swap tokens seamlessly with each other.
Considering the enormous potential of DeFi, this development could significantly impact the growth of Cosmos. DeFi projects on Cosmos may include Osmosis, Gravity DEX, SifChain, Kava, etc.
This is simply the process of locking up your cryptocurrency (ATOM) to contribute to blockchain (Cosmos) security. Staking your digital assets enables you to participate in network governance by voting on any proposed upgrades.
Staking usually comes with varying rewards, depending on different cryptocurrency platforms. On Cosmos, the annual percentage interest is 9.7% of your staked ATOM, in addition to a 10.28% commission. However, this reward may vary between network validators. These rewards are generated by transaction fees and newly created ATOM tokens.
Suppose you do not have the luxury of time to explore the staking process by yourself. In that case, Cosmos allows you to delegate ATOM staking activities to one or more consistent users on the network. That said, it is highly recommended to stake your ATOM across multiple validators in case one experiences an attack.
Risks of buying Cosmos
- Growing Competition
While Cosmos may be the first successful interoperability solution, similar projects like Polkadot, Chainlink, and Avalanche are gaining traction.
For example, the Polkadot ecosystem is currently home to over 500 projects. Thus, it is vital Cosmos improves on its properties which enables it to attract more investment than the other projects.
- Staking Flexibility
While staking your ATOM on Cosmos offers good rewards, you want to be weary of retrieval restrictions and the possibility of your delegator misbehaving. Unlike Binance, which offers flexible withdrawals on staked coins, it takes a minimum of three weeks to retrieve your ATOM tokens on Cosmos. Apart from this, if a delegator is compromised, their ATOM tokens are destroyed, and you also have a chance of losing yours.
It is worth noting that there is no limit to the number of ATOM tokens that can be created. Every year, several ATOMs are created to reward stakers. Therefore, if you are an ATOM holder, it is advisable to participate in staking, as the creation of new tokens brings about inflation, reducing the value of your holdings. The yearly inflation rate of ATOM ranges between 7%-20%.
Should you buy Cosmos?
Earlier this month, ATOM experienced a 10% boost as top DeFi protocol THORChain integrated the token into its platform. In the last 30 days, ATOM has proven to be a high-performing coin, gaining a massive 28.76% on its market price. Price prediction experts expect the token to surpass its all-time high value, trading as high as $60.78 in the coming years. Investors want to profit, and the Cosmos prediction looks good for the future.
However, like all cryptocurrencies, ATOM’s price is determined by its adoption level; and for ATOM, a significant contributor to its value is the continuous usage of the Cosmos hub and not just the addition of more projects to the Cosmos ecosystem.
As an investor, you are advised to combine all information above with your research before engaging the market.