Buy Cosmos (ATOM)
Cryptocurrency Cosmos (ATOM) - what is it and why is it needed
The cryptocurrency community is rapidly evolving. Today, virtual money and the platforms on which it is created are actively used on the Internet for a variety of purposes. In view of this, this market requires constant updating, new technical developments, interesting ideas, only the most conceptual solutions and implementation of new technologies. This is the only way to improve the relationship between users and crypto.
An innovative project that is gradually taking a leadership position on the cryptocurrency market is Cosmos with its digital kinoin called ATOM. This project is very interesting for many users. It offers unique functionality. No wonder that interest in Cosmos is growing rapidly. That is why the information about its features, as well as the possibilities of mining is so relevant. This is what we will talk about next.
History of Cosmos
Officially, the history of Cosmos began in 2017, although the first altcoins saw the light in 2013. However, if we dig a little deeper and study the historical facts in detail, we can conclude that the project began in 2014. That's when Jae Kwon developed the Tendermint protocol. In 2017, a company of the same name was founded. On its basis, Cosmos was launched. Its objectives are to solve problems typical of traditional blockchains:
- Create a scalable protocol that is fast, secure and perfectly scalable;
- Develop a simple, modular system that allows you to create your own blockchain using any programming language;
- Provide a unique technology that will allow transactions and data exchange by chains.
Cosmos is a global ecosystem that has managed to harmoniously integrate completely different blockchains.
The developers themselves call it the blockchain internet. The system is equipped with its own blockchains - the Cosmos Hub. It also has smaller hubs, as well as areas at the disposal of other networks. However, these networks have different algorithms. How to come to a consensus from this point of view? That's what Tendermint is designed for. Each zone has this built-in protocol. It is like an "equalizer" for them. The huge priority of the protocol is also that transactions that are processed on standalone blockchains do not affect in any way the overall level of workload in the system. It is true that such chain-linking operations use the resources of the entire network. This is why developments related to scalability are ongoing and still active.
If we look at it from a theoretical point of view, such developments are a ready-made solution that will help unite disparate blockchains. In addition, Cosmos is an excellent alternative to modern crypto-exchanges. True, there are small nuances:
- Synchronization only occurs between the platform and the chains that use smart contracts;
- Interblockchain Communication is still being tested and works in the same test mode.
Even though there are "inconsistencies", the idea has generated genuine interest in the community. Particularly among developers, who, roughly speaking, got a simple tool to help quickly create a blockchain and synchronise it with other networks.
Distinctive features of Cosmos
Cosmos Hub is a cryptocurrency platform that operates on the PoS Tendermint software consensus. The internal token used for exchange and settlement between users is ATOM.
Digital currencies form the deposits of users.
Users act as validators, which are involved in the PoS algorithm.
Cryptocoin has low payments liquidity. It is not used to pay transaction fees. The token provides the engagement of user nodes, which take the position of validators in the consensus.
Incidentally, the Cosmos cryptocurrency network, in addition to Atoms, also uses Photons as cryptocurrency, which have their own characteristics and purpose. For example, Atoms are typically used for deposits, while Photons are used for transactions. Users who own Atoms receive financial rewards for completing verification activities. In this case, if someone decides to redeem a lot of Atoms (a significant portion of them), the financial liquidity of the coins will be reduced depending on the number of Photons purchased. This prevents attacks on the cryptocurrency, reducing them to zero.
Transactions in different cryptocurrencies are possible with different fees. Denomination is also done by different resources. This increases the stability and security of the project. In the future, it can be a major boon for dividends and the user audience will expand considerably. After all, a reliable cryptocurrency marketplace is exactly what many users need.
ATOM is also notable for the fact that there is currently no specific site where it can be mined. This is most likely due to the inability to mine the cryptocurrency, which is due to the specifics of the parent Cosmos crypto platform.
First, let's talk about what mining is.
Mining is the creation of cryptocurrencies using a special algorithm. A computer generates a unique data set (or block) which confirms the validity of payment transactions.
The block consists of a header hash of the previous block, a transaction hash, and a random number. The chain containing all the transactions is called a blockchain. There is a reward for each block found. It varies from coin to coin. For example, the oldest and most expensive cryptocurrency, Bitcoin (BTC), has its reward halved every four years. Since May 2020, the reward is 6.25 BTC, the next decrease in the reward will occur in 2024.The reward per block when mining Ethereum (ETH) from January 2019na reward is 2 ETH, and over time, Ethereum will go to POS algorithm and mining will stop, it will be replaced by stacking - the reward will be charged to ETH token holder (the balance must be at least 32 ETH).The success of mining depends on the computing power of your computer or farm. The more power, the higher the likelihood of getting the reward, but in pools the reward is simply divided in proportion to the power given, it is more stable and allows you to participate in mining even on a regular PC.
Characteristics of Mining and Blockchain:
- There is no centralized control in the virtual currency mining system. Therefore, it cannot be blocked or subjugated.
- The system is anonymous. Users do not have to provide official personal data. Due to this, it is simply impossible to trace any transaction.
- Mining on video cards works according to the originally set algorithms. This makes it impossible to create more bitcoins and altcoins than it should.
- Transactions cannot be undone, and all information about them is stored in a shared database. At the same time, it uses the blocks arising in the process of creating bitcoins.
- Cryptocurrency is earned using the resources of a separate computer. Not only can the bitcoins mined be exchanged within the network for various goods and objects, but they can also be converted into real money.
Does ATOM mining exist?
Many sources give information that ATOM is a token with which transaction fees can be paid, among other things. In fact, this one is incorrect. The technical documentation states that ATOMs are for the sole purpose of developing both the system and making it more secure. How? Let's find out.
Thanks to the Transtermint protocol, hybrid mining is possible.
This operation is analogous to PoS. It is the responsibility of 100 validators to process transactions as well as keep the network up and running. The selection is made among the users who have the largest number of tokens. It is mandatory for a validator to freeze its assets. If it is spotted cheating, the tokens are immediately destroyed. It is impossible to mine Atoms in the usual sense of the process within Cosmos. But the system opens up many other interesting and useful opportunities. For example, everyone can make an effort to become a validator and receive rewards for transactions made. It's also possible to become a delegate, invest assets in a chosen validator and receive interest. However, you won't be able to earn much in this way: the dividend interest per month is too low - no more than 0.6%.
How to buy Cosmos in Pakistan?
Given the fact that the coin is quite young, and in addition has a technical specifics, it can not be used for the purpose of financial transactions. Also, until recently, conversion of crypto was not available on digital exchanges, so its purchase was only possible. The same situation was on online exchanges - Cosmos exchange was unavailable. It was possible to get Atoms coins only by actively participating in the Cosmos crypto marketplace.
Today, Atoms can be found on major exchanges, so to buy cryptocurrency, there should be no significant problems.
Tokens are traded in pairs with BTC, ETH, USDT, BNB, dollars, euros and South Korean won. Trading platforms such as Bibox, Binance, Hotbit, Huobi, Gate.io, OKEx, and BitForex are selling tokens. You can buy or sell them for cryptocurrency or fiat.
It is worth saying separately about the value of this altcoin. Back at the beginning of its existence, during the ICO, its value did not exceed 10 cents. When it appeared on the market, which happened in March of the current year, the value rose sharply and reached $ 6. Two days later, it grew by several dollars and became equal to 8.3 dollars. By the way, this value is the historical maximum for today. Experts explain such a sharp growth rate by the genuine interest that the altcoin has caused by its appearance on the market. However, after reaching the maximum price value began to decline sharply. Already by the middle of March, the value went down to $ 5, and in a few days - the decline was 20%.
Where to store Cosmos?
Until recently, storage was only possible on currency exchanges. However, it was not safe, the wallet could be subjected to hacker attacks. In addition, the exchange could close at any time, and, consequently, all active users simply disappeared. Today, there are many reliable ways to store Cosmos. Special applications and wallets have been developed just for this purpose. Among the most popular cryptocurrency wallets is Lunie. As for applications, you can use such as Cosmostation, Lunagram, Trust Wallet, imToken and others.
How to invest in Cosmos in Pakistan?
You can buy ATOM and sell it on specialized exchanges. However, there is another way - trading with contracts for difference (CFD). Today we will look at this relatively complex financial instrument and explain the principle of its operation in simple words.
Investing in Cosmos through a broker is profitable and convenient.
What is CFD?
CFD is an agreement between a trader and a broker. If a trader buys a CFD on ATOM, he does not own the cryptocurrency itself. He only owns the contract that specifies the price at which he bought the ATOM. At any time, the trader can close the position and return his contract to the broker. If his forecast turned out to be correct, he will receive a corresponding reward. In the case of an error, the same amount will be deducted from his account. With the help of CFD traders can bet on the growth as well as on the decline of the exchange rate.
The main terms for CFD traders
To understand the basics of CFD trading, you should recall some of the most common terms and concepts:
- Long position: you open a long position when you think the market will go up.
- Short position : you open it if you are preparing for a decline.
- Spread : the most common way a CFD broker compensates. The spread is the difference between the bid and ask prices.
- Leverage allows you to increase your effective capital. It allows you to multiply your profits if you predict correctly. However, leverage not only multiplies profits, but also increases losses proportionally.
- Stop Loss. To avoid excessive losses, you must use stop losses. These orders automatically trigger and close the position when a certain price is reached.
- Take-Profit. This type of order automatically closes the position when a specific profit is reached, the amount of which is determined before the transaction is made.
Advantages of Cryptocurrency CFD Trading.
First of all, transactions are executed very quickly and allow you to bet not only on the growth, but also on the decline of cryptocurrencies. In addition, anyone can open a free demo account. It allows novice crypto traders to practice and get familiar with the market. Finally, you can start trading with a minimal sum and get support from the broker at any time.