How To Buy Cosmos (ATOM)?

A common question you often see on social media from crypto beginners is “Where can I buy Cosmos?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Cosmos on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.

Step 1: Create an account on an exchange that supports Cosmos (ATOM)

First, you will need to open an account on a cryptocurrency exchange that supports Cosmos (ATOM).
We recommend the following based on functionality, reputation, security, support and fees:

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase Cosmos (ATOM) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy Cosmos (ATOM)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Cosmos (ATOM) or Cosmos (ATOM) trading pairs. Look for the section that will allow you to buy Cosmos (ATOM), and enter the amount of the cryptocurrency that you want to spend for Cosmos (ATOM) or the amount of fiat currency that you want to spend towards buying Cosmos (ATOM). The exchange will then calculate the equivalent amount of Cosmos (ATOM) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Cosmos (ATOM) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

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What Is Cosmos (ATOM)?

Strictly speaking, Cosmos is a decentralized network of independent parallel blockchains, each powered by BFT consensus algorithms like Tendermint consensus.

In other words, Cosmos is an ecosystem of blockchains that can scale and interoperate with each other. Before Cosmos, blockchains were siloed and unable to communicate with each other. They were hard to build and could only handle a small amount of transactions per second. Cosmos solves these problems with a new technical vision. In order to understand this vision we need to go back to the fundamentals of blockchain technology. 

Rather than prioritizing its own network, its goal is to foster an ecosystem of networks that can share data and tokens programmatically, with no central party facilitating the activity. Each new independent blockchain created within Cosmos (called a “zone”) is then tethered to the Cosmos Hub, which maintains a record of the state of each zone and vice versa. 

The Cosmos Hub, a proof-of-stake blockchain, is powered by its native ATOM cryptocurrency. 

The project’s other goals include making blockchain technology less complex and difficult for developers thanks to a modular framework that demystifies decentralized apps. Last but not least, an Interblockchain Communication protocol makes it easier for blockchain networks to communicate with each other — preventing fragmentation in the industry.

Cosmos’ origins can be dated back to 2014, when Tendermint, a core contributor to the network, was founded. In 2016, a white paper for Cosmos was published — and a token sale was held the following year. ATOM tokens are earned through a hybrid proof-of-stake algorithm, and they help to keep the Cosmos Hub, the project’s flagship blockchain, secure. This cryptocurrency also has a role in the network’s governance.

Who Are the Founders of Cosmos?

The co-founders of Tendermint — the gateway to the Cosmos ecosystem — were Jae Kwon, Zarko Milosevic and Ethan Buchman. Although Kwon is still listed as principal architect, he stepped down as CEO in 2020. He maintains he is still a part of the project but is mainly focusing on other initiatives. He has now been replaced as Tendermint’s CEO by Peng Zhong, and the whole board of directors was given quite a substantial refresh. Their goals include enhancing the experience for developers, creating an enthusiastic community for Cosmos and building educational resources so greater numbers of people are aware of what this network is capable of.

Tendermint

The most essential element to this layered design is the Tendermint BFT engine, the part of the network that allows developers to build blockchains without having to code them from scratch. 

Tendermint BFT is an algorithm used by the network of computers running the Cosmos software to secure the network, validate transactions and commit blocks to the blockchain. It connects to applications through a protocol called the Application Blockchain Interface.

Tendermint Byzantine Fault Tolerance (BFT)

Central to Tendermint is Tendermint Core, a proof-of-stake (PoS) governance mechanism that keeps the distributed network of computers running Cosmos Hub in sync.

In order for the participants (“validator nodes”) to power the blockchain and vote on changes, they need to first stake ATOM. To become a validator, a node needs to be in the top 100 of nodes staking ATOM. Voting power is determined by the amount of ATOM staked.  

Users can also delegate their tokens to other validators, allocating votes to them while still earning a portion of the block reward. 

Validators are incentivized to perform honestly, because users have the flexibility to easily switch between the validators they delegate ATOM to, depending on their voting preferences.

Cosmos Hub and Zones

The Cosmos Hub was the first blockchain to be launched on the Cosmos network. It was built to act as an intermediary between all the independent blockchains created within the Cosmos network, called “zones.”

In Cosmos, each zone is able to carry out its essential functions on its own. This includes authenticating accounts and transactions, creating and distributing new tokens and executing changes to its own blockchain.

The Cosmos Hub is tasked with facilitating interoperability between all the zones within the network by keeping track of their states. 

Inter-Blockchain Communication Protocol

Zones are connected to the Cosmos Hub via the Inter-Blockchain Communication protocol (IBC), a mechanism that enables information to travel freely and securely between each connected zone. 

Once a zone is connected to the Cosmos Hub, it is interoperable with every other zone connected to the hub, meaning blockchains with vastly different applications, validators and consensus mechanisms can exchange data. 

Cosmos SDK

The Cosmos team has also built the Cosmos software development kit (SDK), allowing developers to build blockchains using the Tendermint consensus algorithm. 

The SDK minimizes complexity by offering the most common functionality contained among blockchains (i.e., staking, governance, tokens). Developers can create plugins to add any additional features they want to have. 

Cosmos development updates in 2023

Cosmos (ATOM) has undergone various significant developments in 2023, which have contributed to its growth and evolution in the blockchain and cryptocurrency sector. Here are some key updates:

• Proposal to Reduce ATOM Inflation: Zaki Manian, co-founder of decentralized asset management protocol Sommelier, proposed reducing the maximum inflation rate of ATOM from 20% to 10%. This change aims to better align the staking rewards with the services provided by stakers and encourage adoption of the Cosmos Liquid Staking Module (LSM) and other yield-generating protocols within the Cosmos ecosystem​​.

• Interchain Security Implementation: A notable breakthrough for ATOM stakers is the implementation of interchain security. This feature allows independent blockchains, termed consumer chains, to rent security from the validators of the Cosmos Hub. The successful testing of this feature during the “Game of Chains” campaign set the stage for its rollout in the lambda upgrade (v9) of the Cosmos ecosystem, potentially bringing additional staking rewards for ATOM holders​​.

• Ecosystem and IBC (Inter Blockchain Communication) Expansion: The introduction of Circle’s stablecoin, USDC, on Cosmos is expected to enhance the liquidity of its decentralized finance ecosystem. The growth of the IBC, which enables interoperability between Cosmos-based blockchains, has been substantial, contributing to the expansion of the Cosmos ecosystem. The interchain scheduler is another key development, which will create an open and transparent marketplace for cross-chain transactions, standardizing ATOM as the default gas token for IBC transfers​​.

• Roadmap for 2023: Cosmos’s roadmap for 2023 includes significant upgrades such as Interchain Accounts (v8 Rho), Interchain Security (v9 Lambda), and Interchain Queries. These developments are expected to bring new use cases and enhance existing protocols within the Cosmos ecosystem, contributing to the broader goal of crypto mass adoption. Interchain Security, in particular, sets the foundation for consumer chains, allowing applications to build on Cosmos without running their own validator sets​​.

• Growth in Total Value Locked and User Base: Despite facing challenges like the downfall of Terra, Cosmos has seen growth in its Total Value Locked (TVL) with key projects like Cronos, Osmos, Canto, Kava, and Thorchain leading the way. The ecosystem continues to attract monthly active users, a crucial metric in a bear market. The development of decentralized trading experiences and uncollateralized lending within the Cosmos ecosystem, along with the growth of projects like Mars Protocol and Kujira, further underline the ecosystem’s expansion​​.

These developments indicate that Cosmos is focusing on enhancing its interoperability features, improving its tokenomics, and expanding its ecosystem, which are essential steps towards sustaining its growth and relevance in the blockchain space.

Official website: https://cosmos.network/

Best cryptocurrency wallet for Cosmos (ATOM)

There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.

HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Cosmos (ATOM)?

Deciding which type of wallet to use depends on a variety of factors, including:

• How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades. 
• What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
• Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
• How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
• What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.

For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.

If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.

Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).

Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).