The crypto industry has been the face of innovation when it comes to streamlining transactions in a discreet, affordable, and efficient manner. However, while the project is mostly backed by great technology, it continues to have its limitations. For instance, a limited rate of transactions has been one of the major pain points of the technology.
However, this is where projects like the Cosmos Blockchain network make an impact. Cosmos is a unique crypto project aiming to resolve the ‘hardest problems’ in the Blockchain industry. Therefore, the technology tends to offer faster, scalable. Besides, since it operates over the PoS or Proof-of-Stake protocol, the project is also environmentally safe.
Overall, the project’s unique concept has allowed it to come into the direct spotlight, making it an investment opportunity for many. So if you’re one of those opportunists looking for different ways to invest in the Cosmos project, this is the blog for you.
Continue reading as we explore the different aspects of the project and determine whether it’s worth investing in.
But, What is Cosmos?
As per its whitepaper, Cosmos is a unique proposition developed over an ecosystem of networks that allow Blockchains to exchange data and communicate among themselves. This way, the program facilitates increased scalability and better interoperability.
In other words, Cosmos aims to create a unique ecosystem connecting and securing different Blockchains. Besides the unique proposition, the platform also reduces the complexities of Blockchain technology by making it faster, more effective, and more reliable.
Regarding the technology, the Cosmos network runs over a Proof-of-Stake (PoS) mainnet and Zones (customizable Blockchains over its platform). In addition, its main chain, Cosmos Hub, facilitates the exchange of information and other assets between different Zones to provide a shared level of security for every connected network.
Interestingly, the platform also adds to the ease of developers via its modular framework that demystifies decentralized apps. The platform leverages Zones to run a wide range of applications. Here, each Zone can operate independently as it can authenticate its transactions, implement customized developments, and, most importantly, interact with other Zone in the Cosmis system (only if they’re allowed to do so).
At the core of Cosmos is ‘ATOM,’ the native crypto associated with the Blockchain network. Interestingly, it has three primary use cases. They are:
- ATOM is required to simplify operations over the platform.
- Validators can stake the coin to secure the Cosmos network.
- Investing in ATOM provides voting powers to the Cosmos Hu governance system.
In a nutshell, Cosmos is an internet of Blockchains with the ability to network.
How To Invest In Cosmos (ATOM) – A Quick Tutorial
Being a fresher, investing in any token can be challenging as there are multiple aspects associated with any crypto purchase. So to help you better, we’ve listed this quick tutorial on how to invest in the ATOM tokens:
- Choose A Reliable Exchange: Registering with a reputable broker is the first step in investing in the ATOM token. It is your gateway to ensuring safe and secure transactions over the Blockchain network. Besides, once you sign up with a decentralized exchange, you’ll also be provided with a crypto wallet to safeguard your funds.
- Deposit Funds Into Your Account: Once registered and verified, the next step is to fund your wallet. Depending on the payment options provided by your exchange, you could opt for transfers via credit/debit card, bank transfer, or e-wallet.
Note: Different means of transactions attract different fees.
- Purchase Ethereum: Now that you have the funds in your account, proceed to purchase Ethereum. To do this, you must search for ‘Ethereum’ in your online exchange and enter the number of tokens you’d like to purchase. Once done, click on the ‘purchase’ option to finalize the transaction and receive it in your wallet.
- Invest In ATOM Token: Being a potential performer, ATOM is listed on almost every major exchange across the industry. So once you’ve found the ATOM tokens, link your wallet to the exchange and swap your ETH for ATOM.
Unique Fundamentals Of The ATOM Token
The uniqueness of different tokens is what makes them valuable. Keeping the same in mind, every crypto project that we come across today has a lot of prospects to it. Besides, it becomes almost impossible to predict the success of a token before determining its unique fundamentals.
So to help you plan better, we’ve listed some unique aspects that help you analyze the project. Let’s check them out:
Access To Staking
Cosmos also has a Hub staking module built on the Tendermint BFT consensus engine, as with every other Blockchain project that aspires to make it big. This module is one of the most efficient PoS implementations in the industry currently.
However, that’s not all. The function allows ATOM token holders to secure the developed chain by locking their ATOM tokens to reduce the overall transaction fees. Besides, stakers have an opportunity to earn 9.7% APY annually.
The Gravity DEX is by far one of the unique features of the ATOM project. This unique proposition will enable the users to swap different digital assets that come over the interchain seamlessly.
Additionally, the Gravity DEX functionality is expected to improve the existing designs by combining different aspects of AMM features. For example, this would allow the users to execute operations over an order book-based model, providing a more efficient trading experience.
Security is one of the most determining features of any Blockchain. Keeping the same in mind, Cosmos has developed a unique proposition called ‘Interchain Security.’ This security feature would secure more than just staked ATOM tokens over the platform.
In practice, this feature would allow validators to validate the so-called ‘child-chains’ on an opt-in basis, with the ATOM tokens as a delegation of the collateral. However, this feature also adds to the passive earning opportunity as ATOM stakers are rewarded additional rewards in exchange for securing child-chains.
Liquid Staking has to be one of the most determining aspects of the cross-chain Defi space. At its core, the liquid staking function claims against staked ATOM. This feature adds to the limits of the staking opportunities available over the platform.
Besides, liquid staking gives you access to accrued staking rewards like the concept around staked ATOM tokens. However, unlike ATOM staking, it is ‘liquid,’ meaning that the ATOM, in this case, is transferable.
Is ATOM A Good Investment?
The ATOM token was initially listened to on any exchange in 2020. Following this, the coin experienced a significant bullish run. Initially launched for $3.40, the token went a long way to multiply its value by 9x in the coming months.
The project aims to introduce a revolution in the Blockchain industry and has given a great return to investors so far. However, it can be challenging to determine the success of a token by its price movement only. So let’s look at some other crucial factors that could give you a better understanding of the investment opportunity in our case study.
Performance Since Launch
Before its launch in 2020, ATOM had a successful presale round, allowing early-bird investors to make the most of the opportunity. Here’s a highlight of the token’s short but comprehensive overview:
- ATOM was listed at an ECO of around $3.40.
- The token provided up to 1200x return to its investors within a year.
- In just two years of its listing, ATOM has successfully generated over 200,000% in gains.
Overall, ATOM has successfully provided scalable returns to investors of every type, making it an optimistic project for the future.
Platform For The Developers
The Cosmos Blockchain project keeps in mind the developers that might also use the platform for development. Therefore, the ecosystem’s SDK unit is an open-resource software development kit that can be used to create ‘Zones.’
Additionally, developers get to simplify the entire process with complete transparency using the ‘Cosmos SDK’ architecture. This allows them to develop a program without sacrificing the expected Blockchain standards.
The ‘Gravity Bridge’ is expected to be one of the unique aspects of the Cosmos Blockchain. The platform is backed by ATOM tokens worth billions of dollars staked on the Cosmos Hub.
Overall, the Gravity Bridge seeks to provide a more efficient, secure, and decentralized cross-chain from its platform to Ethereum. Additionally, the bridge will allow a swift change between assets between the two ecosystems.
How To Sell ATOM And Cash Out
Since the token is already available in the market, purchasing and selling your ATOM tokens is relatively simple. In addition, the token can be sold in the reverse order of how it was bought. Go to your exchange’s marketplace and click on the “sell” order to liquidate your ATOM tokens.
Or you may also swap TON for USDC or USDT. Additionally, you must transfer your funds back to the exchange if you keep the tokens in cold storage.
Note: The time required to sell your tokens depends on the buyer’s availability.
Is It Too Late To Invest In ATOM? – BG’s Case Study
The Cosmos project was recently listed in 2020 and has shown considerable price movement. As evident from the graph below, in just two years, the project has made a significant movement of a few years. Currently ranked at #20 in the market, the token initially showed great positive movement while ending 2022.
However, fast forward to a few weeks into 2023, which is another bearish phase for ATOM. But if we consider the token to reach its new low, it might act as a strong support line for the coming weeks. As the chart below shows, ATOM has been at its lowest low and might soon boom to its old price levels.
Overall, looking at the token’s overall movements, our analysts at Blockchain Gossip are mostly optimistic about the project’s future.
Note: Predicting the future of any token can be challenging. Therefore, even if we can continually assess and forecast the potential outcomes, it is safe to conduct your homework before investing in any token.
Should I Invest In ATOM Token?
Cosmos is a unique project that allows users to make the most of their Blockchain ecosystem. The project is backed by individual fundamentals and brings some unique experiences.
However, like many other crypto projects, ATOM is also subjected to volatility. We suggest putting efforts into research before you invest in the project. All the best!