Cosmos is one of the much-talked-about tokens in the crypto space today. The opportunities provided by this token make it one to hold for several crypto investors.
Cosmos is currently listed among the top 30 crypto coins in the world by CoinMarketCap. As other altcoins look to better Bitcoin in their projects, Cosmos isn’t different.
If you’ll need to invest in this token, you’ll need to know more about it before investing. In this post, we’ll learn about Cosmos and why you should consider it if you’re diversifying your portfolio.
What is Cosmos?
Cosmos is a project that aims to solve some of the ”hardest problems” facing the blockchain industry. Its origin can be dated back to 2014, when Tendermint, a core contributor to the network was founded. In 2016, a white paper for Cosmos was published and debuted its token in 2017.
The co-founders of Cosmos are Jae Kwon, Zarko Milosevic and Ethan Buchman (all from Tendermint). The Cosmos token trades by the symbol ‘ATOM’. The ATOM tokens are earned through a hybrid proof-of-stake algorithm, and they help to keep the Cosmos hub.
Cosmos token
What is Cosmos’ Worth In Crypto Market Today?
Cosmos is currently ranked 21st among thousands of crypto coins by CoinMarketCap. The price of Cosmos today is $25.77 USD with a 24-hour trading volume of $435, 649, 318 USD.
Cosmos have a live market cap of $7, 379, 709, 802 USD. It has a circulating supply of 286, 37, 297 ATOM tokens. It is now one of the tokens to invest and buy by crypto investors/traders today.
Two private sales were held in January 2017, followed by a public sale in April 2018. This raised a total of $16 million, which is the equivalent of about $0.10 per ATOM.
Breaking down the token’s distribution, about 80% was allocated to investors, while the remaining 20% was split between two companies. They are ‘All In Bits’ and the ‘Interchain Foundation’.
What Makes Cosmos Different From Other Crypto Assets?
Cosmos is special as it aims to offer an antidote to ”slow, expensive, unscalable and environmentally harmful” proof-of-work protocols. It offers an ecosystem of connected blockchains just like those of Bitcoin.
The project’s other goals include making blockchain technology less complex and difficult for developers. This is due to the modular framework that demystifies decentralized apps.
Cosmsos’ inter-blockchain communication protocol makes it easier for blockchain networks to communicate with each other-preventing fragmentation in the industry.
It is also described as ”Blockchain 3.0” whose big goal is to ensure that its infrastructure is straightforward to use. To this end, the Cosmos software development focuses on modularity. This allows a network to be easily built using chunks of code that already exist.
For its future, it is hoped that its complex applications will be straightforward to construct.
The network is secured via a proof-of-work consensus algorithm. Validator nodes that stake a higher quantity of ATOM tokens are more likely to be chosen to verify transactions and earn rewards. Nodes that are found to be acting dishonestly are penalized and can end up losing the tokens that they had at stake.
How Does Cosmos Differ From Bitcoin & Ethereum?
Bitcoin is undoubtedly the father of all cryptocurrencies. Although several projects were created from its model, they tend to better Bitcoin in their making.
Ethereum also follows Bitcoin closely, making it the number two crypto assets. The enormous possibilities presented by Ether makes it one of the largest crypto assets.
Cosmos is however better than both Bitcoin and Ethereum in scalability. This means that more transactions can be processed a second more than Bitcoin and Ethereum.
If blockchains are to ever achieve mainstream adoption, they’ll need to be able to cope with demand as well as existing payment processing companies/sites or be even better.
How To Earn Cosmos Tokens
The total number of supply for ATOM is 260, 906, 513. As at the time of writing, about 203, 121, 910 tokens were in circulation.
Bitcoin, Dogecoin, Litecoin and several other tokens can be earned via mining. This is actually different from Cosmos which aren’t mined but earned through staking.
Staking is a process that involves committing your crypto assets to support a blockchain network and confirm transactions. It’s available with cryptocurrencies that use the proof-of-stake model to process payments. This is a more energy-efficient alternative to the original proof-of-work model.
Proof-of-work requires mining devices that use computing power to solve mathematical equations. Staking is therefore a great way of using crypto to generate passive income, especially because some crypto offer high interest rates for staking.
Where To Buy Cosmos Token?
Cosmos is now available across a number of major exchanges in the world. Among these major exchanges include Binance, Coinbase, and OKEX. It is possible to find trading pairs with a number of fiat currencies.
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In Conclusion
Investment in crypto assets are no doubt the highest form of risky investments you can dabble into. This is because of the volatility in price of the assets which may not guarantee returns on investment. The knowledge of the coin to invest in is also important in this form of investment.
If you’ll need to consider Cosmos token for your investment, you have to study the market before putting your money. If you are putting money into it, you have to put what you can afford to lose.
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Using its app, you can easily exchange your Bitcoin for Nigerian Naira (NGN) or Ghana Cedis (GHC), just as other cryptocurrencies can also be traded. The Prestmit app is equipped with modern security tools, like the 2FA authentication and centralized security system to keep your account safe always.
Also Read– Top 10 Best Memecoins To Invest In 2022
