The Cosmos ecosystem is a decentralised network of blockchains that the developers hope will create a new cryptocurrency economy.
Where to buy Cosmos coin
Read on to find out more about Cosmos and how it works or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is Cosmos?
The idea behind Cosmos relates to connectivity. Instead of creating one blockchain, the team behind Cosmos have created a network of hubs that connect independent blockchains.
With Cosmos, operations processed inside individual blockchains won’t affect the network and issues of usability, scalability and transaction speed are greatly reduced.
The Cosmos cryptocurrency (ATOM) is used within the network. During a groundbreaking ICO back in 2017, the project raised over seventeen million dollars in the first half-hour.
How does Cosmos work?
Unlike Bitcoin and Ethereum, which use Proof-of-Work algorithms, Cosmos blockchains will be powered by a proof-of-stake model. This means Cosmos ATOM coins aren’t mined. Instead, nodes earn tokens by staking ATOM. The more ATOM staked, the more chance the node has of becoming a validator.
Cosmos ATOM is widely available, and while it’s not exactly the most valuable coin on the market (its value peaked at $8.31 in early 2019), the Cosmos team have big plans for the coming months and years, so it’s definitely one to watch.
How to buy Cosmos online – step-by-step guide
Step 1. Get a suitable wallet
There are plenty of options for storing your Cosmos ATOM, so to narrow your search down and save you some valuable time, we’ve handpicked three of our favourite wallets:
- Trust Wallet: If you’re looking for a mobile-ready wallet with a great interface, then look no further than the Trust Wallet. It’s easy to download and set up and it’s compatible with iOS and Android, so most people should be covered.
- Atomic Wallet: When you’re after something that’s a little more versatile, check out Atomic Wallet. It’s compatible with all the usual devices and the desktop client supports Windows, macOS, Ubuntu, Debian, and Fedora.
- Ledger Nano S: If optimal security is your thing, then head on over to Ledger and pick up the Nano S hardware wallet. It supports multiple-coins and while it’s not the cheapest option for storing ATOM, it’s still reasonably priced and shouldn’t break the bank.
Step 2. Find a Cosmos exchange
ATOM is available at all the best-known exchanges, so you won’t have a problem securing your funds. Rates and fees are variable, though, so it’s always worth shopping around and comparing offers. Here are our preferred places for picking up Cosmos ATOM:
- Changelly: when you’ve seen as many cryptocurrency exchanges as we have, you inevitably start to pick your favourites and Changelly is near the top of our list. They usually have great rates, they generally have what we’re looking for and the interface and buying process couldn’t be simpler.
- Binance: Another great place to start your search no matter which coin you’re trying to acquire, Binance usually has what we need. If you can’t find ATOM elsewhere, head over to Binance and you’ll be stocked up in no time.
Step 3. Withdraw your Cosmos
Once you’ve paid for your funds, it’s a good idea to move them to a wallet as soon as you can as it’s safer than leaving them on the exchange. Transferring coins is usually fairly simple and can be done in a few clicks.
How to trade Cosmos – step-by-step guide
If the only thing on your mind is trading, you don’t need to bother setting up a wallet as you’ll only be speculating on the value of your cryptocurrency, rather than buying and owning it.
Step 1. Find a broker
There are lots of reputable brokers on the market these days, but they all have different fees and levels of support. Some are set up to cater for newbies and some are perfect for more experienced traders so who you choose will depend on what you’re looking for. Plus500 and eToro are two of our favourite brokers right now.
Step 2. Deposit money
Before you start trading, you’ll need to put down a deposit. The minimum requirements aren’t huge (usually around $100 – $200) so they shouldn’t put anyone off.
Step 3. Decide how you’d like to trade
Spread Betting and CFDs (Contract for Differences) are the two main ways to trade cryptocurrencies. At first glance, these look pretty similar but dig a little deeper and you’ll see they’re not the same. If you don’t know whether you prefer Spreads or CFDs or you want to find out more about their differences, it might be a good idea to do some more research.
Step 4. Start trading
Once your deposit has gone through you’re good to go, but we recommend setting up a demo account before you jump in. This will give you a good understanding of how everything works and you’ll also get to see how volatile your chosen currency is without risking anything.
After you’ve played around with your demo account, you’ll see that trading isn’t too complicated. All you need to do is take a position on whether the value of your currency will rise or fall. If you think it will rise, take a long (buy) position, and if you think it will fall, take a short (sell) position.
Depending on the broker, you may also be able to add leveraged betting to your strategy. The way this works is you only put down a fraction of what the trade is worth and your broker covers the rest. This isn’t for beginners, though. It’s a high-risk strategy and it’s easy to win or lose large sums of money fairly quickly. Savvy traders use stops to mitigate risk and limit potential damage.