The Cosmos Blockchain Network is based on the philosophy of advancing the entire industry using a combination of unique protocols. This differentiates the network from others in the market. It has a native ATOM cryptocurrency boosting internal economics.
Investors are taking note of its growth and constantly showcasing interest in Cosmos investment. While it sounds like an attraction toward the idea of investing in cryptocurrency, it also shows the rise in the recognition and adoption of blockchain technology.
This article attempts to provide a comprehensive guide to ATOM investment for potential investors.
What is Cosmos (ATOM)?
The Cosmos Network is alternatively known as the ‘Internet of Blockchain.’ It facilitates communication among blockchain networks seamlessly. Thereby, boosting the model of interoperability. It allows data sharing and transactions among blockchains on top of communication.
The network is a full suite of features and products for developers who want to access the next-generation technology. The ATOM token is primarily tasked with fulfilling its role in governance, staking, and transaction fees. Key features of Cosmos (ATOM) include scalability, interoperability, and decentralization.
Why Invest in Cosmos (ATOM)?
Some reasons to invest in Cosmos (ATOM) are blockchain scalability and growth, among others.
- Technological innovation has fueled Cosmo’s growth for a long time. This largely pertains to Cosmos SDK and Cosmos (ATOM) Nodes along with the Inter-Blockchain Communications Protocol, also known as IBC Protocol
- Cosmos SDK, for one, allows developers to access a set of tools required to build blockchains. All they have to do is deploy plug-ins and integrate core functionalities to get the project running
- The IBC Protocol offers different zones within the ecosystem via coding. This is essential for communication with the Cosmos Hub. The idea is to ensure that information flows accurately and smoothly
- ATOM, its crypto, is placed in the top 50 digital currencies all over the world in terms of market cap and top 40 in terms of trading volume. The token is listed at $5.05, up by 10.41% in the last 7 days
- The Cosmos ecosystem is constantly expanding with more projects and users. Plus, there is a future scope of onboarding a larger set of users
- Projects built on Cosmos cover Interchain Security and Neutron. The former helps to launch and scale securely while the latter assists in deploying smart contracts
- There is still potential for growth considering the segment is only gaining traction. ATOM, too, is poised to surpass $6 by the end of this year, or $10 maximum by the end of this decade
- It has positive adoption trends and the future outlook is only growing with time
- Other blockchain projects are largely busy in leading the market; however, they are ignoring the most fundamental aspect of coming together for collective growth. That’s where Cosmos is stepping in, and standing out in the competition
Investments in Cosmos (ATOM) are still subject to volatility and risks.
Risks and Challenges
All cryptocurrency risks apply to the ecosystem of Cosmos (ATOM) including, but not limited to, price fluctuations, technological risks, and uncertainty.
- Market volatility for Cosmos (ATOM) is 10.44% but could come down eventually as the conditions in the market ease
- Cosmos price predictions and market sentiments are natural to the industry. The key is to keep track and make trades at the right time, or to hold ATOM for a reasonable time
- Technological risks majorly pertain to blockchain challenges, as the technology is decentralized with no interference of intermediary
- Potential challenges of scalability and interoperability have been navigated to the moment. However, the landscape is evolving and so are the challenges
- Regulatory risks refer to obtaining a legal status from regulatory authorities. Also, it refers to having clarity about compliance with certain standards for the safety of users of the Cosmos ecosystem
- Uncertainty in global regulations surrounding cryptocurrencies pertains to having the international body, or every national body, on the same page just like they are right now for fiat currencies and traditional technological mechanisms
It is speculated that Cosmos, along with other players in the industry, will make advancements in the times to come. This goes on to cover their native cryptocurrencies – ATOM, for Cosmos.
How to Invest in Cosmos (ATOM)?
There are many ways to invest in Cosmos (ATOM).
- Buying ATOM is one option. It can be done through popular exchange platforms like Uphold, Kraken, and WazirX. ATOM can be purchased by first creating an account on any of these exchange platforms. Next, link a digital wallet (or create one first) to the platform. It could be mandatory to complete the KYC process before buying ATOM. Finally, move to the list of tokens available and complete the transaction. Wallets should be funded in advance to purchase the native token to the Cosmos ecosystem. Check out some of the best cryptocurrency wallets before accessing exchange platforms
- ATOM can be stored in hardware, software, or exchange wallets. Hardware wallets are more recommended as they store tokens out of the Internet. They are less susceptible to online malicious activities
- ATOM staking is the next way to invest in Cosmos. It not only helps the ecosystem to grow but also fetches rewards to the holders of ATOM. Potential reward often includes additional tokens (ATOM, in this case). It could be for a certain time or for any time
One should choose the best way to invest in Cosmos (ATOM) as per their preference, thorough research, and risk tolerance.
Conclusion
ATOM can be looked at as a long-term cryptocurrency investment. It is poised to fetch returns in years to come, if not months. It would still be ideal to monitor the performance regularly and take appropriate actions.
Risks like volatility and price fluctuations are obvious. They are also affecting the future of ATOM but the impact is likely to be minimized as the market stabilizes. Read more to discover the true Cosmos investment potential before investing.
