A recent addition to the cryptocurrency world, Cosmos (ATOM) is a project that has captured the attention of many. As a result, its native token has seen a surge in price and market capitalization. As per Coinmarketcap, ATOM is currently the 16th largest cryptocurrency with over $2.5 billion in market capitalization. This article will give an overview of the things potential investors should consider before purchasing ATOM.
What is Cosmos?
It is defined as a decentralised network of independent parallel blockchains powered by BFT consensus algorithms like Tendermint. The project came into effect in March 2017 and is currently being developed by the Interchain Foundation. Its vision is to establish an Internet of Blockchains, where different blockchains can interact with each other seamlessly. The primary goal is to form a network of thousands of blockchains, which would be able to process millions of transactions per second.
The native token of the Cosmos connection is ATOM. It is used to pay transaction fees on the network and can also be staked by validators to earn rewards.
Several key things to consider are:
Before investing in any cryptocurrency, it is imperative to understand what the project is trying to achieve. What problem is it solving? Is the team behind the project capable of delivering on their roadmap? These are some of the questions that need answers before investing in it.
The technology behind a project is always a critical factor to consider. In the case of Cosmos, the project builds on top of the Tendermint consensus protocol. It is a Byzantine fault-tolerant (BFT) consensus algorithm that makes public and private blockchains. It is one of the most popular consensus algorithms in the blockchain space.
Does the project have real-world applications? Are there any significant partnerships? Cosmos has several potential use cases, and one of the most crucial promising use cases is cross-chain interoperability. It aims to build a network of blockchains that can interact with each other seamlessly. This would allow different blockchains to exchange information and assets efficiently.
How are decisions made on the network? Who makes these decisions? When it comes to Cosmos, the network is governed by validators. They are responsible for maintaining the web, and they earn rewards. The more ATOM tokens a validator has staked, the more influence they have in the governance of the network.
How is the token used on the network? What is the total supply of the token? The Cosmos (ATOM) token is used to pay transaction fees on the network. Its total supply is limited to 210 million tokens. It is distributed through a staking process that allows users to earn rewards for participating in it.
Does the team have a clear plan? Are they on the right track to achieving their goals? The Cosmos team has a clear roadmap and is currently on its way to achieving its goals. The project is now focused on scaling the network in its third phase.
Find the Right Platform
So, now you learn what is Cosmos and what to consider before purchasing ATOM, it’s time to find the right online platform. So, what should you look for? Many best cryptocurrency exchanges are available on the internet, but not all of them will offer ATOM. The exchanges that do offer this might not be available in your country.
When looking for an optimum platform, make sure to consider the following:
- Does the exchange offer ATOM?
- Is the exchange available in your country?
- Does the exchange allow you to buy ATOM with fiat currency?
- Does the exchange have a user-friendly interface?
These are a few key factors but not an exhaustive list. It is always important to do your research before investing in any cryptocurrency.