Essential Facts to Know Before You Buy or Invest in the Crypto Cosmos (ATOM) Coin
Ready to learn more about Cosmos and known as the “internet-of-blockchains”. Interoperability is a key component of the cryptocurrency industry’s potential. It allows blockchains to communicate with each other. Cosmos (ATOM), one of many blockchains that tackle this problem, has already attracted attention from some major crypto projects.
Here are some things investors should know.
1. It has increased almost 370% in the last year
Cosmos hit an all-time high price of $44.59 last Wednesday (Sept. 19), however, the price has fallen slightly since then. According to CoinMarketCap data, Cosmos had increased almost 370% in value since the beginning of the year. Although this is quite a dramatic jump, it’s not too significant when you consider the fact that the global crypto market capitalization has risen by nearly 140% over the same time period.
The volatility of cryptocurrencies means that there are both huge returns and dramatic losses. It is crucial to only invest the money you can afford to lose and to be comfortable with the risks involved.
2. It has been called the “internet for blockchains”.
The crypto world faces one problem: individual blockchains don’t communicate well with each other. This is a problem when you think about the goal of transferring crypto assets worldwide in an easy and cost-effective manner. It’s not an easy analogy but it could be like Whole Foods accepting Visa payments while Walmart accepts Visa payments.
Interoperability is important because of this. This is what drives Cosmos and why it’s known as the internet for blockchains. Cosmos was also designed to scale and quickly process transactions. Each transaction on the network costs $0.01. CoinMetrics stated in March that Ethereum’s median transaction fee was $10.
3. Cosmos uses hubs for blockchain communication
Interoperability solutions do not attempt to transfer tokens between networks. They use smart contracts to lock the tokens on one platform, then mint replica tokens on the other. This could be used to lock 5 BTC on the Bitcoin blockchain and Ethereum blockchain, or issue 5 pegged tokens like Wrapped Bitcoin (WBTC), on another blockchain.
Cosmos, on the other hand, uses hubs to allow different blockchains to communicate with each other. Each hub can be connected to many other blockchains. This is possible through Cosmos’ Inter-Blockchain Communication tool (IBC), launched earlier in the year.
4. It hosts over 255 apps on its network
Any cryptocurrency needs to be adopted. Only great technology can be used by people. Cosmos boasts 255 applications on its network. This includes big names such as Crypto.com and Binance Smart Chain. Investors should be aware of the Cosmos fees structure. Cosmos is different from Ethereum which charges transaction fees in ETH to all applications on its network. Crypto.com users, for example, pay Cosmos app fees in Cosmos’ native token (CRO) and not in ATOM.
5. It is available on most major crypto exchanges
AtOM tokens can be purchased by U.S. cryptocurrency investors via a variety of top cryptocurrency exchanges and apps. These include:
- Coinbase
- Binance.US
- Kraken
6. Other blockchains exist in this space.
It doesn’t matter what investment you make, it is crucial to understand the market. Cosmos is an example of this. It means that we need to look at both interoperability and programmable blockchains.
Avalanche and Polkadot are the other major players in interoperability. Each operates in a slightly different way and both have seen higher-than-average price rises this year. AVAX has risen by around 2,000% in the past year, according to reports.
7. Regulators could make it more difficult for the Decentralized Finance (Defi) industry
A group of products called decentralized finance that eliminates the banks and middlemen from financial services is known as decentralized finance. This category includes many of the applications in Cosmos’ network.
Regulators are concerned that these products could be mistaken for banks and offer no protection to consumers. There is a growing push to increase regulation, from the SEC and the Treasury. Although we don’t know yet what regulation will look like, it could have an impact on any crypto with Defi links, particularly if it is too heavy-handed.
Bottom line
Cosmos is a solid cryptocurrency that solves a critical problem in the crypto industry. The ability to connect blockchains allows cryptos to excel in a particular area and then collaborate with other blockchains with complementary strengths. Every currency doesn’t have to solve every problem to be successful.
There is a lot of uncertainty in the regulatory landscape right now. Investors in crypto need to be aware of the possible impact regulation could have on the market.
FAQ Cosmos (Atom)
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What are the key drivers of adoption?
Great technology is only great if people actually use it.
What’s the problem with individual blockchains?
One issue faced by the crypto world is that individual blockchains aren’t great at communicating with each other.
What is Cosmos?
This is the driving force behind Cosmos, and the reason it’s seen as the internet of blockchains.
What is Cosmos Blockchain?
Learn more about Cosmos and the “internet of blockchains.” If the cryptocurrency industry is to achieve its full potential, it’s essential that blockchains can talk to each other — known as “interoperability.” Cosmos (ATOM) is one of several blockchains tackling this issue, and it’s already gained traction with some big-name crypto projects.
Is Cosmos Worth It?
That’s why it is important to only invest money you can afford to lose and make sure you are comfortable with the risk involved.
What are the current crypto market trends?
This is a significant jump, but not so dramatic when you consider that the total crypto global market capitalization has increased by almost 140% in the same period.
Where can I buy ATOM?
U.S. crypto investors can buy ATOM tokens from several top cryptocurrency apps and exchanges.
