The Cosmos project and its ATOM coin are relative newcomers on the cryptocurrency scene, having only officially launched as a live network in March 2019. However, Jae Kwon and Ethan Buchanan started work on the project back in 2014 and the Cosmos ICO took place in April 2017, raising more than $17 million for future development work, so it’s a more mature platform/digital currency than it may at first appear.
In addition to the ATOM coin, which is the staking coin of the Cosmos network, there is also a Photon token in the ecosystem, which is used to pay the cost of transactions executed on blockchains in the system. Holders of ATOM coins who stake their coins to join a consensus hub on the network can earn photons as they help to validate new transactions and blocks added to the blockchain.
The founders of the Cosmos network aimed to build an ecosystem where numerous blockchains could coexist, independent of each other yet able to communicate and complete cross-chain transactions when desired. The architecture of the network was also designed to ensure the project was scalable in the future, with the potential to process thousands of transactions per second rather than to be limited to just 15 per second, as Ethereum is, or 7, as is the case for Bitcoin. Without the ability to scale to cope with the ever-growing interest in cryptocurrencies, many people feel that conventional blockchains will never be able to seriously compete with established electronic money transfer services that are capable of handling hundreds or thousands of simultaneous transactions.
Where to Buy Cosmos (ATOM) Coin
At the time of writing, the ATOM coin is available on major crypto exchanges such as Binance, which makes it easy for investors with exchange accounts to acquire. If you do not already have an account with Binance or a similar exchange, you can remedy this problem in just a few minutes. If you are planning to use your debit or credit card with Binance, you will also have to go through an identity verification process before you start to trade or invest but the actual account opening procedure will take very little time at all.
You can also buy ATOM coin on Coinbase, which is a broker exchange rather than a direct exchange that connects buyers with sellers, but most investors prefer to trade from an account with a fully-featured direct exchange like Binance, due to the hundreds of cryptocurrencies they offer their customers and the extra services they provide.
Best Cryptocurrency Exchange to Buy Cosmos (ATOM) Token
How to Buy Cosmos (ATOM) Coin
Unlike Bitcoin, ATOM coin cannot be bought directly with PayPal but you can, of course, pay for Bitcoin with your PayPal account then deposit your BTC in a crypto exchange account, before trading them for ATOM. It is possible to buy ATOM with your credit or debit card, on broker exchanges like Coinbase but if you want to buy and trade your coins on a big exchange like Binance, you will first need to acquire some Tether, which you can then exchange for ATOM coins.
If you already have some crypto holdings that you would like to trade for ATOM, you can do this on an exchange such as Binance. Binance has an ATOM/BTC pair on its exchange, enabling you to trade Bitcoins directly for ATOM coins at the going rate. If you hold Ethereum or another crypto at the moment, you will need to exchange your holdings for BTC or USDT and then exchange the BTC or USDT for ATOM coins. The simplest way to proceed, assuming you are not looking to liquidate any current crypto holdings, is to use your debit/credit card to obtain Tether on the Binance exchange, then trade that directly for ATOM coins.
It is not possible to mine ATOM coins because the blockchain uses a PoS rather than a PoW consensus. Therefore, the only way to earn coins is to acquire some in the first place to use as a stake, then become a consensus node and take part in the validation of transactions on the chain. Coins are awarded to validators as they are created in new blocks. In common with some other PoS cryptocurrencies, it is possible to delegate your ATOM coins to someone else, who will use your staking rights, take a commission from the validation rewards, and pay the balance to you.
How to Buy Cosmos Cryptocurrency on Binance
If you decide to open an account with Binance in order to acquire ATOM coins, you will find the whole process relatively quick and easy to complete. You simply have to fill in a few details on the registration form and confirm your email address. After that, you will be prompted to set up 2-factor authentication (2FA). Although this is not obligatory, you will find that you are prompted quite often on the Binance site if you don’t do it at the first time of asking so the easiest option is to set it up as soon as you have opened your account.
Buying Your ATOM Coins on Binance
Once you have registered a new account and verified your email (and completed the KYC requirements if applicable) you can then use your debit or credit card to purchase Tether, which you can exchange for ATOM coins using the ATOM/USDT pair on the Binance exchange. If you already have a Bitcoin holding you can, as mentioned previously, deposit the coins into your Binance account, then trade your BTC for ATOM using the ATOM/BTC pair on the exchange. There are a couple of ways in which you can place a cryptocurrency order on an exchange like Binance, the most popular of which are limit and market orders.
- Market Orders – If you just want to buy ATOM coins at the prevailing rate, you can simply place a market order to buy, which will execute immediately, at the current price for ATOM coins. If, on the other hand, you have a certain price in mind, at which you would like to buy a number of ATOM coins, you can enter what is known as a limit order on the Binance exchange.
- Limit Orders – With a limit order, you specify the price at which you would like the order to execute, which, if it is a buy limit order, will usually be lower than the current price. If and when the market for ATOM coin reaches the prices that you have specified, your order will be executed. You can also specify a price above the current market price, perhaps above a line of resistance that you would like the price to break before you invest: it is completely up to you.
If you are interested in placing more exotic orders, such as stop limit orders, you probably already have a good idea of what you are doing and if not, there is plenty of educational material available on the subject of exotic cryptocurrency orders.
How to Store Your Cosmos (ATOM) Coin
Once you have bought your ATOM coins, you will need a safe place in which to store them. While exchanges such as Binance provide relatively secure wallets, most crypto professionals opt for an independent mobile wallet or, for even more security, a hardware wallet that can be connected to a PC via a USB port, and disconnected when you are not depositing or withdrawing coins.
If you have a smartphone that runs Android or iOS, there are a couple of ATOM compatible mobile wallets you may wish to check out. The Cosmos team developed an official mobile wallet that was subsequently handed over to an independent team, known as the Lunie Wallet. In addition to functioning as a web and mobile wallet, the Lunie software can also be installed on hardware wallets, giving you full control over your Cosmos tokens in an ultra-safe environment. Binance’s Trust wallet is another mobile wallet with a good set of features and is compatible with ATOM coins.
If you prefer the security offered by a hardware wallet, the Ledger Nano S is the most obvious choice when evaluating the available options for holders of ATOM coins. As one of the leading crypto hardware wallets around, with support for hundreds of different coins, the Nano Ledger S will make a safe, convenient home for your ATOM coins. However, please note that if you wish to access and administer your ATOM coins in the Ledger Nano S, you will need to load the previously mentioned Lunie software onto your Ledger wallet. Apart from its functionality, and compatibility with a wide range of cryptocurrencies, the main attraction of the Ledger Nano S is that it offers a completely secure storage place for ATOM coins and many other digital tokens. Once you have loaded your coins and unplugged the wallet from your computer’s USB port, it is offline and out of reach of internet hackers.
Now that you know how to buy your ATOM coins and where to store them, you are ready to acquire a holding and find out more about the Cosmos network for yourself.