What is Cosmos (ATOM)?
Cosmos is a decentralized ecosystem composed of individual blockchains that are independent of each other. The blockchains run using the byzantine fault tolerance algorithm (BFT). It’s the BFT that achieves consensus on the network and allows for the staking of tokens through a Proof-Of-Stake mechanism. The ATOM token’s main use cases are for staking on the platform and carrying out tokenized transactions on the Cosmos Hub.
Cosmos aims to become the “internet of blockchain”, where blockchains interact with each other through the network. Upon launch in early 2019 the first blockchain produced on the Cosmos network was named the Cosmos Hub. Its main task is to connect the blockchains across the entire Cosmos network. Once the connections are made they are named zones. This allows for transactions of tokens to occur between zones on the network safely and quickly.
What makes up the COSMOS network?
There are 3 components that make up the COSMOS network. These components are known as the;
- Tendermint Core
- Applied Blockchain Interface
- COSMOS SDK
The Tendermint Core is the software that connects the Tendermint algorithm and the inter blockchain communication (ABCI). This allows for communication between the Cosmos hub and all the zones present on the network.
The Applied Blockchain Communication is very handy for developers as it allows them to develop areas of their blockchain in any language. The ABCI will then act to connect the Tendermint Core and the DSK for better communication.
The SDK acts as a framework by adding the simplest features of the network such as staking, tokens, and governance. This allows developers to add more features to the network without the need to do the extra work to add those 3 features. The extra features are added as plugins.
All three of these components work together to make up the network of Cosmos.
The ATOM Token
The ATOM token is usually misunderstood for its purpose on the platform. It is critical to understand that the Cosmos ecosystem is made up of different blockchains. These blockchains have different names and use their own cryptocurrencies. The ATOM token is used specifically on the Cosmos Hub. ATOM is used for staking and transactions on the Cosmos Hub only and not on the other blockchains created on the overall Cosmos network.
Staking ATOM tokens assists in securing the Cosmos Hub and is encouraged by the developers. The inflation of the ATOM token encourages investors to stake their tokens as the value of ATOM decreases every time more tokens are rewarded. Those who don’t stake ATOM risk their tokens decreasing in value and losing the money they invested. ATOM was not created as a currency hence why the team encourages people to stake the token to help secure the blockchain.
Cosmos uses a Proof-Of-Stake system which means you cannot mine the tokens. To gain more tokens without purchasing extra from exchanges you can stake them using the Atomic wallet. The current ROI for Atom is 8.18% and can vary over time. Staking ATOM is very easy, here are a few steps you can follow to stake your tokens, gain rewards and secure the blockchain in the process.
- If you’re new to staking. You can download the Atomic wallet which allows for staking of ATOM tokens. During wallet, setup you’ll be asked to create a password and secure your 12-word backup phrase.
- If you’ve already purchased your ATOM from an exchange you can send it to your Atomic wallet. If you haven’t purchased your tokens you can buy ATOM directly from the Atomic wallet using VISA.
- Once you’re ready to stake you can select the stake tab on the left-hand side. This will take you over to the list of cryptocurrencies you can stake. Select the Cosmos ATOM option.
- You’ll be sent to the page where you can see how much ATOM you have available to stake and the yearly yield.
- Press the stake button to enter the next page. You can now select the amount you’d like to stake and the amount of ATOM you’ll be rewarded and its USD price in the current market. Once you’ve decided how much you’d like to stake. Press the Stake button to complete everything.
There are other wallets you can use such as the Trust wallet by COSMOS (ATOM), which is compatible with Android and iOS devices. We will have a list of secure wallets later on in the article.
Where to Buy ATOM tokens?
There are several exchanges where you can purchase ATOM tokens with a variety of paired coins. Most exchanges will have BTC, ETH, and USDT pairs for ATOM. Binance Exchange will also have a Binance coin pair with ATOM.
Here at ChangeNOW, we have a unique exchange where you can convert almost any cryptocurrency we have on the platform to ATOM tokens. That means you can exchange tokens/coins such as XLM, DASH, EOS and many others for ATOM tokens. We also provide VISA and Mastercard payments to buy the cryptocurrencies available on our exchange. Currencies such as USD, GBP, AUD, JYP, CAD, and many more can be used to purchase cryptocurrencies here at ChangeNOW. It’s a big step as a couple of years ago it was very difficult to get into cryptocurrencies. Here at ChangeNOW, we’ve made it easy and secure for people to buy tokens and coins. So if you’re looking to purchase ATOM for the first time you can do it here at ChangeNOW.
What is the best ATOM wallet?
There are multiple wallets to store your ATOM tokens at. It’s best to use wallets that allow for the staking of ATOM tokens. Here are some hardware wallet and online wallets you can use to store your ATOM safely and securely;
- Nano Ledger X
- Trust Wallet
- Atomic Wallet
All the wallets mentioned are amazing and secure. It’s all down to personal preference on which one you’d like to use. The Nano Ledger X is arguably the most popular hardware wallet on the market. It’s the upgraded version of the Nano Ledger S. The great things about the Nano Ledger X is that it’s an offline wallet with Bluetooth compatibility. This means you can connect it to mobile devices that use iOS and Android.
The great thing about the Nano Ledger X and the Lunie platform, a platform created by Cosmos to store ATOM tokens, is that they are both compatible. This means you can get the added security of the Nano Ledger X alongside the great software of the Lunie wallet. The one advantage of having both compatible is that you can stake your tokens that are on the Nano Ledger X.
2020 Price prediction for ATOM
The ICO of ATOM was carried out in 2017 and was sold at $0.1 USD. The token was available to trade on its first exchange in early 2019. Since then ATOM has been listed on more than 20 different exchanges. The token reached an all-time high of $8.31 USD on March 16th, 2019. Those who got in at ICO were some very lucky individuals as the price spiked considerably. The current price of ATOM as of April 18th, 2020 is $2.41 USD with a market cap of $460,263,477 USD putting the token in rank 24 on the table.
There is still hope to make money on ATOM in 2020 as many individuals predict that the token price is expected to increase during the entire year. Predictions aren’t always 100% accurate so it’s always good to take them with a pinch of salt. Here are some predictions from reputable individuals.
- Previsioni Bitcoin predicts that ATOM will reach a high of $8.57 USD by December 2020 which is almost 4 times the current price.
- Coinpedia has a similar prediction for ATOM. They predict the price will be between $8 — $9 USD by the end of 2020.
- CryptoChartWizard91 suggests that there is a strong possibility for ATOM to reach $10 in 2020 after carrying out a chart analysis of the market.
Cryptocurrency enthusiasts are still bullish on ATOM and are investing in the token hoping for a price increase in the coming years.
Cosmos (ATOM) has an amazing product that is still profitable if you’re looking to invest in the token. Their efforts to become the “internet of blockchain” is very ambitious. However, they have the potential to succeed and make it to the big leagues. Hopefully, you’ve gained a great deal of knowledge on Cosmos and the ATOM token. If you’re interested in purchasing your first ATOM tokens we recommend using our ChangeNOW exchange for the best rates, low fees and secure access to tokens.