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Is Cosmos (ATOM) a good investment?  • Benzinga Crypto


Have you decided that Cosmos is a good investment? You can get ATOM on Coinbase today!

It is essential to answer the following questions to determine if a crypto project is a good investment. Does it solve a real world problem? Who is the team behind the project? Are there any rivals? How do they stack up? What is the circulating supply of a coin or token compared to the total supply?

Cosmos addresses 3 major blockchain challenges: sovereignty, scalability and sustainability. Think of Cosmos as an ecosystem of blockchains that can scale and communicate with each other. Interoperability between blockchains is a significant advance because previously, blockchains were isolated islands with their own ecosystems, unable to interact with another blockchain.

What is the Cosmos (ATOM)?

© Image credit: Cosmos

Jae Kwon co-founded Cosmos and worked on the foundations of Cosmos as early as 2014. Tendermint BTF (Byzantine Fault Tolerance) was created in 2015 by Jae Kwon and Ethan Buchman. The ability to tolerate machine failures in a variety of ways, including becoming malicious, is called Byzantine fault tolerance. Cosmos is powered by the Proof-of-Stake Tendermint BTF consensus algorithm.

Tendermint blockchains are widely considered to be among the most secure and scalable in the crypto space. Jae Kwon and Ethan Buchman published Cosmos’ white paper, “A Distributed Ledger Network”, in 2016 and launched Cosmos via an ICO (Initial Coin Offering) in April 2017.

Cosmos is a decentralized network of parallel blockchains powered by BFT consensus algorithms such as Tendermint. The goal of Cosmos is to make it easy for developers to create application-specific blockchains that break down barriers between blockchains, allowing them to communicate and transact with each other. The Cosmos Hub is a decentralized network of independent, scalable and interoperable blockchains that Cosmos strives to build.

The Cosmos Hub is the first of thousands of interconnected blockchains that will form the Cosmos network in the future. The Cosmos Hub is the first public BFT blockchain powered by Proof-of-Stake, and the first large-scale BFT system in the more than 40-year history of Byzantine Fault Tolerance (BFT) research.

Is Cosmos (ATOM) a good investment?  • Benzinga Crypto

© Image credit: Cosmos

The developers of Cosmos have created the Cosmos SDK to achieve their goals. The Cosmos SDK is an easy-to-use modular framework that allows developers to build custom blockchains from scratch that can interact with each other on top of Tendermint. Cosmos has been used to create 260 apps and services to date.

Tendermint blockchains, in terms of scalability, can theoretically handle up to 10,000 transactions per second and continue to function even if 1/3 of the validating nodes are offline or attempting to corrupt the network.

The native token of the Cosmos blockchain is ATOM, but Cosmos can support any number of tokens. ATOM tokens can be staked to help secure the network, and owning ATOM tokens grants you voting rights that allow you to influence the future of the Cosmos Hub through on-chain governance proposals.

Cosmos (ATOM) Price History

Since its ICO over 4.5 years ago, the ATOM token has seen incredible price growth. From the ICO price of $ 0.10 per token, ATOM hit a high of $ 46.68 (Binance) on September 24, which is a gain of over 46,500%. If any investors participated in the ICO and held onto their tokens, they are sitting on huge profits.

Is Cosmos (ATOM) a good investment?  • Benzinga Crypto

According to ATOM statistics, the total token supply is 282,557,769, with 224,773,165.92 in circulation. ATOM’s current price is $ 26.40 which gives it a market cap of $ 5,936,912,085 and ranks 37th on CoinMarketCap. ATOM’s peak price had a market cap of $ 10,492,411,385, so as you can see ATOM is down about 44% from its peak.

Cosmos Competition (ATOM)

Cosmos’ main competitors are Polkadot (DOT) and Avalanche (AVAX). All 3 projects aim to address the scalability and interoperability issues that plague most blockchains, but they do it in different ways.

Polkadot uses parachains, or parallel chains, with the main chain in the center known as the relay chain. The relay chain validates transactions and distributes new transactions to surrounding chains. Polkadot can achieve processing speeds of over 1000 transactions per second by separating the validation process from new transactions.

The heart of Avalanche is a subnet (subnet) called the mainnet. There are three blockchains in the mainnet: an exchange chain (X chain), a platform chain (P chain), and a contract chain (C chain). The exchange chain is used to create and trade crypto assets. The platform chain allows the creation of new blockchains and subnets.

It also keeps track of active subnets and manages transaction validators. Ultimately, the Avalanche network will be made up of thousands of subnets that will form an interoperable network with many blockchains. Avalanche has a very high throughput of 4,500 transactions per second (TPS) per subnet and very low latency, with 90% of all transactions occurring in less than a second.

Cosmos, on the other hand, uses a multi-layered design. It all starts with a central hub called the Cosmos hub, which acts as an intermediary between all the other independent blockchains called zones.

Zone blockchains are linked to the Cosmos hub via the Inter-Blockchain communication protocol (IBC), which allows information to flow freely between each connected zone. Any zone linked to the Cosmos hub can communicate with any other linked zone. Cosmos claims theoretical transaction speeds of up to 10,000 transactions per second.

How to buy Cosmos (ATOM).

If you want to invest in ATOM, you can buy it on Coinbase. For those who live outside of the United States, Binance, Gate.io, and Houbi Global are highly rated cryptocurrency exchanges with a huge selection of cryptocurrency.

If you are buying ATOM from an exchange, you will need a crypto wallet to protect your private keys. You can just leave it on the exchange, but for security reasons, especially if you’re buying a large amount of cryptocurrency, it’s usually best to remove it.

There are many types of cryptocurrency wallets, but the most secure is a hardware wallet. The next section will explain what a hardware wallet is and which is best suited for storing ATOM.

1 minute exam

Coinbase is one of the largest cryptocurrency trading platforms on the internet. From Bitcoin to Litecoin or from Basic Attention Token to Chainlink, Coinbase makes it easy to buy and sell major cryptocurrency pairs.

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and improved functionality.

While Coinbase doesn’t offer the most affordable prices or the lowest fees, its straightforward platform is fairly easy for complete newbies to learn in a single transaction.

Best for

  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform
Advantages

  • The simple platform is easy to use
  • Full mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto to learn more about available coins
The inconvenients

  • Higher fees than competitors

Best Hardware Wallet for Cosmos (ATOM)

So you have decided to invest in ATOM, but you want to get yourself a cryptocurrency wallet first. There are several types of wallets available, but a hardware wallet is the safest option.

Because it can be disconnected from the Internet, a hardware wallet is a cold storage wallet. Due to the wallet’s isolation from the internet, hacking is extremely difficult, if not impossible.

Best hardware wallet: Ledger Nano S or Nano X

Is Cosmos (ATOM) a good investment?  • Benzinga Crypto