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Invest in Cosmos in 2022

Last updated 10th May 2022
Disclosure

Cosmos is a decentralized network that enables independent parallel blockchains. The main way through which it introduces uniqueness to the crypto world is that it is powered by BFT consensus algorithms, including the Tendermint consensus. This means that Cosmos is a decentralized ecosystem that enables interoperability, currency exchanges, and an Internet of Blockchains (IoB). Cosmos coin or ATOM is what powers this network and is used by the network.

Let’s take a deeper dive into how investing in Cosmos coin (ATOM) works, so you can have a better perspective going forward.

Best way to invest in Cosmos in 2022

There are multiple methods through which you can invest in Cosmos or the ATOM coin in 2022. We have provided you with a list of some of the best providers in the industry, so you can instantly create an account and start trading ATOM today.

1
eToro
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2
Atani
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Coinmama
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Coinbase
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Paybis
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What is Cosmos?

Jae Kwon originally created Cosmos in 2014, and Ethan Buchman joined later on throughout the development. They created the platform’s SDK initially with the goal of lowering the barrier of entry for blockchain development.

Individual chains are divided into zones that are connected through the Cosmos hubs, where each hub validates transactions and provides cross-chain compatibility. Each individual chain can then choose to run its own independent governance. Cosmos have their own software stock which is rooted in the Tendermint Core through the Cosmos SDK.

Pegged coins can also be created to enable conversions between Proof-of-Work (PoW) and the native Proof-of-Stake (PoS) system in the Tendermint Core.The ATOM coin plays a key role when it comes to the maintenance of the interoperability between all of the zones in the wider Cosmos network. They can be used for holding, staking, spending, or staking.

ATOM can become a lot more valuable the more blockchains are built in the network, which relies on the Cosmos Hob as a form of maintenance to their transaction history. Through owning and staking ATOM coins, users can vote on the network upgrades as well. Additionally, their vote is proportional to the number of ATOM coins they end up staking.

At the time of writing, Cosmos had a market cap of $8,090,833,371, with a circulating supply of 223,378,419.19 ATOM coins.

Pros

  • Fully open-sourced project

  • The protocol used ensures an easy connection between different blockchains

  • ATOM can be staked, and stakers receive interest on the coins

Cons

  • Delegated staking can result in ATOM being frozen while validators carry out duties

  • Staked ATOM are locked for a pre-defined period of time

How does Cosmos work?

The Cosmos network can be viewed as a combination of two parts that make it up. First, there is the Tendermint Core, the open-source base layer of the blockchain development platform. What this means is that anyone with an application can use this implementation to integrate their own decentralized network alongside their own BFT compatible consensus model. Then there is the second part, which is the Inter-Blockchain Communications (IBC). This layer enables the communication between individual chains. This, in turn, creates a series of interconnected zones as well as hubs that act independently but share a common system architecture. This is also known as the key layer for the coin, data, and even digital asset exchanges across chains.

Alongside all of this, Cosmos integrates both processing and verification hubs to keep everything running. Hubs essentially use Proof-of-Stake (PoS) consensus in order to validate the Tendermint transactions.Validator nodes that stake a higher quantity of ATOM tokens are more likely to be chosen to verify the transactions and earn rewards. Nodes that act dishonestly or do not follow the rules are penalized as well.

Ways to buy Cosmos

Cosmos coin (ATOM) can be purchased in a multitude of different ways. You can use cryptocurrency exchanges, CFD brokers, P2P marketplaces, or in-person trading.

  • CFD Brokers: There are CFD brokers that will allow you to buy Cosmos (ATOM) directly from them. Note that they have a high level of liquidity. However, they also set the price for the coin.

  • Cryptocurrency Exchanges: You also have hundreds of cryptocurrency exchanges to pick from when it comes to trading the ATOM cryptocurrency coin. All you really need to do is find the ones that have the most competitive fees as well as a wide range of features that live up to your standard.

  • P2P Marketplaces: P2P or Peer-to-Peer marketplaces are ones that connect you directly with a seller of the ATOM coin. This means that you need to find someone willing to sell their ATOM coins for your other cryptocurrency coins. Typically, FIAT currencies aren’t used here.

  • In-Person Trading: This is a process where you essentially meet the person you are buying the coins from in real life. You agree on the price, and they send you the cryptocurrency coins to your cryptocurrency wallet.

Here is everything you need to know about buying Cosmos (ATOM):

  • Create and verify your account: The first step is for you to sign up and verify your account at the cryptocurrency exchange or brokerage that you have selected for this task specifically. Try to find one that supports the Cosmos (ATOM) coin.

  • Fund your account: The next step will involve you funding your account. To do this, you can use credit cards, direct bank wire transfers, and e-wallets. Once you complete that process, search for Cosmos (ATOM), and once selected, choose how many coins you would like to purchase.

  • Purchase ATOM coin: To complete your transaction, you need to click on “Buy.” Once the transaction is confirmed and completed, you should now see your account balance have the ATOM coin.

How to invest in Cosmos

You can invest in Cosmos (ATOM) as well, and not just buy it directly. Here, you would speculate on the various price swings of the coin without owning it directly. The price can go up or down, so if you guess correctly, you can profit from both the ATOM going up in value or the ATOM coin going down in value. You can use a short-term or a long-term strategy and utilize margin and leverage trading to ensure maximum usage of the account equity in question.

Here is everything you need to know about investing in Cosmos (ATOM).

  • Brokerages: By using a cryptocurrency brokerage, especially one that is fully regulated, you can easily get access to the Cosmos (ATOM) coin and start trading it instantly. Note that you might need to confirm your identity through completing a know-your-customer (KYC) procedure, as well as an anti-money-laundering (AML) procedure, but this takes only a few minutes to complete.

  • Exchanges: You also have many cryptocurrency exchanges on offer. All you really have to do is conduct an analysis on the trading pairs you have on offer for ATOM, as well as the trading fees associated with trading the coin.

  • ETFs: Exchange-traded funds (ETFs) give you the opportunity to get access to a diversified portfolio of cryptocurrency coins that you can trade with a higher level of transparency.

  • Index Funds: Cosmos (ATOM) index funds give you the ability to buy a share of the ATOM coin instead of buying it or investing in it directly.

  • Mutual Funds: You can even find Cosmos (ATOM) mutual funds, where you can put your money into the fund instead of the coin itself.

  • Trusts: You can hold your ATOM coins into trusts, where you can trade your shares through a brokerage or cryptocurrency exchange.

  • Apps: You should also be able to easily find many online applications that allow you to directly trade the ATOM coin from the comfort of using your mobile device. They typically require you to download and install them; however, they should all work on Android and iOS-based devices, which provides you with a high level of convenience.

Is it safe to invest in Cosmos right now?

Cryptocurrencies are volatile assets, and Cosmos is no exception to this rule. That being the case, the coin has had its fair share of price swings. Ultimately, this will depend on your preferred investment strategy. Never invest more than you are willing to lose. The coin has fluctuated in terms of price of around 5-10% on a daily basis.

That said, if you want a safe environment through which you can invest in the Cosmos coin (ATOM), you should pick a regulated cryptocurrency brokerage that follows KYC and AML procedures to ensure the highest level of security.

Khashayar Abbasi

Khashayar Abbasi

Khashayar discovered Bitcoin back in 2014 and has since spent countless hours researching the different use cases of cryptocurrencies. He has a bachelor's degree in International Relations and has been a writer in the financial services industry for nearly half a decade. In his spare time, Khashayar enjoys photography, cycling, and ice skating.