How to Buy Cosmos (ATOM) in 3 Simple Steps
Cosmos describes itself as the “Internet of Blockchains”, bringing the once fragmented world of separate blockchains together in a new interoperable universe of connected services. The fast, cheap, and efficient blockchain at the heart of Cosmos is secured and powered by its native cryptocurrency—ATOM.
If you want to have a stake in the decentralised future Cosmos is building, this guide will show you how you can purchase ATOM and delve a little deeper into the project’s pioneering blockchain technology.
3 Steps to Buy Cosmos
1. Choose a broker or exchange
Before you can get your hands on ATOM, you’ll need to sign up with a platform that offers it. Each platform has its own pros and cons and not all of them are regulated. However, we’ve shortlisted some of the best regulated platforms later in this guide to help you get started right away.
2. Create and fund your account
In order to create an account with your chosen platform, you will need to provide some personal information. Once you’ve filled in the registration form, you may have to provide documentation such as a photo ID before your account can be verified. After that, you can make a deposit with one of the supported payment methods.
3. Buy Cosmos
Now you can search for the trading pair for ATOM and your local currency. Enter how much ATOM you wish to purchase in a buy order. If you make it a market order, the purchase will happen straight away. A limit order, on the other hand, will execute automatically in the future once your specified price has been reached.
Where to Buy Cosmos: Compare the Top Platforms
There is an ever-growing number of crypto platforms available, but it is worth comparing them to find which offer the best security and the lowest fees. To make things simpler, we’ve already compared some of the top platforms that offer ATOM below.
What Is Cosmos?
Cosmos is an ecosystem of apps and services with the Cosmos Hub blockchain at the centre. The project aims to tackle some of the obstacles to blockchain adoption, such as cost, speed, scalability, interoperability, and the difficulty of development.
Previously, blockchains were fragmented and unable to communicate with each other, but Cosmos introduced the Inter-Blockchain Communication protocol (IBC), which allows assets and data to be freely exchanged across separate, decentralised blockchains. This makes different blockchains interoperable and allows for the creation of cross-chain applications.
The Cosmos SDK makes it easier for developers to build applications that interact with the Cosmos Hub. These applications also benefit from the efficiency of the blockchain, which can handle thousands of transactions per second with fees of just $0.01.
Cosmos Hub’s efficiency is thanks to its Proof of Stake consensus mechanism, which involves its native ATOM cryptocurrency being staked to secure the network. ATOM is also used for paying transaction fees and voting in protocol governance.
Ways to Invest in Cosmos
Different investors may have different goals and levels of experience, which can affect the way they prefer to invest. Some may have long-term plans while others may have short-term ones. Both of these options have their benefits, though, as we shall explore below.
Buy and hold Cosmos
As the name suggests, the buy and hold strategy requires that you buy ATOM and hold onto it over a period of time. This is the easiest strategy to follow as no particular skills are needed. It also doesn’t take up much of your time, but still has the potential to be profitable.
One of the benefits of holding ATOM is that you can easily stake it to earn rewards from transaction fees and inflation. Staking ATOM also gives you the right to vote on proposals that affect the network.
Best Cosmos wallets
When holding onto tokens over a long period of time, it may be preferable to store them in your own private wallet. This ensures that you have total ownership of your ATOM and can provide better security.
The wallets that provide the best security are hardware wallets such as Trezor, BitBox, and Ledger. They are often USB sticks and have to be paid for. Another option is software wallets, which are a bit less secure but tend to be free and easier to use.
Cosmos also lends itself to trading as its price volatility means traders can buy and sell the token quickly to generate more frequent profits. Finding the best times to buy and sell, however, requires careful analysis, so trading strategies are best for those with more time and skill.
You will want your tokens to be easily accessible if you are trading with them regularly, so a private wallet could prove inconvenient. Traders often prefer to use the web wallet provided by their trading platform.
Should I Buy Cosmos Now?
You will have to make this decision for yourself once you have read all the available information. The supply of ATOM is subject to inflation, which could potentially lead to the depreciation of the token over the long term. However, this is to incentivise staking, which could counteract inflation and drive demand.
A further source of demand is the fact that ATOM is needed to pay transaction fees. There are already more than 250 apps and services built on Cosmos, and as the ecosystem grows, the increasing number of people using and building on Cosmos could be positive for ATOM price.
The planned growth for Cosmos includes a number of exciting features. Upcoming additions to the ecosystem include interchain accounts, liquidity pools, a decentralised exchange, and wrapped Bitcoin and Ethereum.
These developments may just be the start, however. Cosmos’ efficient consensus, developer-friendly tools, and pioneering interoperability could see it become a vibrant and essential part of the ever-growing blockchain industry.
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Frequently Asked Questions
Many wallets and exchanges support ATOM staking. You will have to choose one or more Cosmos validators to delegate your tokens to if using a wallet, then click “stake”.
Yes. You can unstake your tokens at any time, but they will be locked for 21 days before you can access them.
Yes. If a validator doesn’t do their job properly or experiences downtime, a portion of the tokens delegated to them may be confiscated. Delegating your ATOM to multiple validators is therefore recommended to spread the risk.
The tokens are locked up on their original chain and proof of this is relayed to the destination chain. Once this proof is verified, representations of the tokens are created on the destination chain.
Tendermint is a software company and core contributor to Cosmos development. They created the Tendermint Proof of Stake consensus algorithm and the Tendermint BFT engine, both of which are used by Cosmos. This is what makes Cosmos secure, easily programmable, and high performance.