Last updated 28th Nov 2022
Cosmos (ATOM) is a digital currency and blockchain network that aims to tackle challenges in the cryptocurrency industry. The platform attempts to improve scalability, interoperability, and independence by using a Byzantine Fault Tolerant method. This enables Cosmos to become the “Internet of Blockchains” since it interconnects other platforms.
This page covers essential information about buying the ATOM token in 2022. We’ll cover topics like the best exchanges, pros & cons, and where to store the coin. This guide will also cover frequently asked questions from the community.
Best Brokers to Buy Cosmos in 2022
Cosmos is one of the most well-known projects today, sitting in the top 25 of all cryptocurrencies. Due to its popularity, Cosmos is available on most crypto brokers, P2P, and exchanges. Here’s a table of the best options for those looking to purchase Cosmos now.
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Cosmos facilitates scaling, interoperation, and communication between blockchains. The platform is well-known as the “Internet of Blockchains” due to the services it provides.
Cosmos delivers a secure system while interconnecting blockchains.
The ATOM coin of Cosmos lets users stake them for passive income. Also, it enables holders to validate and delegate to other validators.
Cosmos is a fully open-source project to ensure transparency.
Cosmos is a community governance system where key numbers identify investors.
What Is the Difference Between Owning Cosmos vs a Derivative Product
To buy cryptocurrency is significantly different than purchasing a derivative product. Buying from a crypto exchange means that you fully own your coins and can withdraw them to your hard or cold wallets. Owning your cryptocurrency means that you can participate in staking and liquidity pools to earn more crypto.
On the other hand, if you plan to use a broker or banking service to invest in cryptocurrency, you’ll purchase CFDs. It’s a great option because these services are more accessible to new investors. However, you won’t own the coins yourself with this method as you’ll be buying a digital product.
Different Ways to Buy Cosmos
Since Cosmos is a well-known cryptocurrency, it’s available on most crypto platforms. Here are some general options for buying the coin:
Brokers: Using a broker platform is great because you can speculate the price by shorting or longing positions. Moreover, you can purchase crypto at market prices and hold long-term without betting on how the market will move in the future. However, you can only invest in cryptocurrencies with brokers, and no option is available to withdraw coins.
Centralized Exchanges: The best method to own cryptocurrency is by using a centralized exchange. Platforms like Binance and CoinBase have easy-to-use interfaces and multiple payment options. Also, these companies have millions of clients, letting them have the lowest fees. However, when using an exchange, make sure it’s regulated to ensure your money is safe.
Decentralized Exchanges: You can connect your wallet to a decentralized exchange if you want to purchase crypto anonymously. The 1inch Network, UniSwap, and PanCake Swap are brilliant options used by millions of investors. However, these platforms are built on the Ethereum blockchain, meaning swapping coins has huge gas fees. Therefore, you’ll need to wait for ETH 2.0 for decentralized exchanges to become viable.
Banking Services: Your banking service can provide crypto CFDs for you to invest in. It’s an excellent start for getting into crypto since you can monitor your fiat and crypto from a single platform. However, the fees are much higher with banking services compared to exchanges.
Where to Buy Cosmos
The easiest method to buy Cosmos is on the CoinBase platform due to its straightforward interface. The buy and sell page is brilliant for new investors since it avoids the complicated trading platform. However, you’ll need to convert your currency to USDC to avoid the high fees of buying crypto directly with your bank card.
CoinBase has competitive fees
The CoinBase wallet lets you store coins safely
Must complete the KYC process
Only the most popular coins are available on the exchange
On the other hand, a service like eToro is ideal for investing in crypto with fiat currency. The platform lets you purchase CFDs in Cosmos instantly at the general market prices. Unlike exchanges, you can short and long positions, similar to the stock market. Therefore, you have various investment options by using a broker.
Provides options to invest in stocks and crypto
It lets you copy successful traders profiles
Sign up process is fast
Customer support is slow
Your account can have only one base currency
High non-trading fees
How to Buy Cosmos Online?
Purchasing Cosmos online is a straightforward process if you use a service like CoinBase. Below is a detailed step-by-step guide on signing up and investing in Cosmos.
Step 1: Create a CoinBase account
Step 2: Fill in the fields
Step 3: Verify your account
Step 4: Verify your identity
Step 5: Deposit funds into your account
Step 6: input the number of Cosmos you want to purchase
Step 7: Review the order, and click buy
How to Trade Cosmos?
Clients can trade Cosmos by using the in-depth trading platforms provided by brokers and exchanges. However, if you have little technical knowledge, perhaps using a broker is easier since you don’t need to know how to use crypto-wallets.
Step 1: Create an account
Step 2: Deposit funds into your account
Step 3: Open the trading interface
Step 4: Review the order
Step 5: Select the buy button
Crypto Investment Strategy
Before purchasing Cosmos, it’s crucial to have an investment plan beforehand and stick to it. This is because new investors in crypto can get afraid of the volatility and panic sell, losing huge amounts of money. There are two investment strategies that you can implement.
Long-term holding: HODLing (hold on for dear life) is the most well-known strategy that most crypto buyers implement. Long-term holding means that you’ll buy Cosmos and hold it for years waiting for the price to increase. However, crypto is volatile, so taking out profits at specific price points lets you minimize the risk.
Short-term holding: This strategy is more challenging to implement as you’ll need to have more knowledge about the crypto space. You’ll need to know about new developments and partnerships as this can increase the price of Cosmos. The investment strategy is holding the coins for a short period and selling them as soon as the price increases. It’s a riskier investment plan since the volatility can impact your profits, so invest what you can afford to lose.
How to Store Cosmos?
After purchasing Cosmos on an exchange, the next step is to store them on your crypto hot or cold wallet safely. It’s better to withdraw your coins from the exchange because multiple platforms have been hacked in recent years and lost millions of dollars in assets.
The best web and mobile wallets are Exodus and Cosmostation, as they have user-friendly interfaces. Once you’ve made a profit, the apps have built-in exchanges that let you buy and sell Cosmos. Also, their multiple layers of security secure your coins more safely than crypto exchanges.
Moreover, if you want to hold your Cosmos for the long haul, investing in a cold wallet is the best choice. This is because hardware wallets are impossible to hack if you keep your seed phrase hidden. However, the negative of using a hardware wallet is they are easy to misplace and lose.
Here are the best options to store Cosmos:
Ledger Nano S
What Are the Different Ways to Pay For Cosmos?
Investors can use multiple payment methods to purchase Cosmos. However, the payment option availability can vary depending on the exchange or broker. Regardless, the platform you decide to use should have at least one of the following options.
Users can exchange cryptocurrency for the ATOM token. It’s a reliable option if you choose a stable coin like USDC or USDT because it negates the need to use fiat currency. Also, you won’t have to verify your identity and can remain anonymous when exchanging with a decentralized platform.
Investors can remain anonymous when buying Cosmos
The biggest crypto exchanges provide exchanges for Cosmos
Multiple crypto wallets let you exchange tokens from their user-friendly interface
Fees are huge when transferring cryptos through the Ethereum network
Decentralized exchanges have high gas fees
New investors can find it challenging to buy crypto with the complicated trading interfaces
Credit /Debit Cards
The most popular method to buy Cosmos is with a debit or credit card since it’s the most widely available option. Transferring funds into your account is instant, so you can own Cosmos within minutes of setting up your account. Input your card details, and you’re all set.
Moreover, sites like CoinBase have a dedicated section for those who want to buy crypto directly with their card, making it accessible for new crypto investors. However, by doing this, you’ll have to pay much higher fees compared to using the trading platform.
Instant transfers to the broker or exchange
Available on almost all platforms
Convenient to use
This payment method can be subject to higher fees compared to other option
Decentralized exchanges don’t accept credit or debit cards
Can’t buy crypto anonymously with this option
Another straightforward method of depositing funds to purchase Cosmos is a bank transfer. It’s a secure method that is available on most exchanges and brokers. Afterward, you can convert the money to a USD stable coin and purchase Cosmos.
Straightforward process to sending money
Reliable system that has multiple layers of security
Excellent transfer times
Some banks deny transfers to crypto platforms
The payment option is centralized
What to Consider When Buying Cosmos?
When investing in an altcoin like Cosmos, there are multiple factors you should consider. Here are the most important aspects to think of when looking at a coin like ATOM.
Different Fees: Platforms charge various fees for using their services. Before buying Cosmos, take a look at the best exchanges in your location regarding fees. The top platforms have the lowest fees as their huge following lets them set competitive rates. Also, withdrawing coins from an exchange has a transfer fee usually paid with the same crypto being sent.
Volatility: An altcoin like Cosmos has high volatility, making it risky. New investors can easily panic as the coin can go in either direction. Therefore, having an investment strategy can help prevent losses with emotional decision-making.
Regulations: When buying Cosmos, you need to learn your county’s law regarding the matter. This is because most exchanges have a KYC process that you need to complete for gaining access to withdrawal methods. Furthermore, only use platforms regulated by a respected authority to ensure your money is safe.
Investment Strategy: Cosmos is a great short and long-term investment because it’s a strong project with high volatility. Therefore, you can sell the coin after holding a few weeks and potentially receive a decent profit. On the other hand, you can hold for years and sell once you’re happy with the price. In any case, create an investment plan and stick to it as you want to avoid emotional investing.
Is It Safe to Buy Cosmos Online?
When buying Cosmos, use a regulated exchange or broker to protect your money.
Regulations make sure that the activities on the platforms are safe and have the clients' best interests at heart. Sites like eToro, Binance, and CoinBase have the best security and let you whitelist your wallet addresses.
Also, you can set up 2-step authentication to add an extra layer of security. Moreover, when withdrawing funds from your account, the platforms make you input an email, 2-step authentication, and phone code.
How to Sell Cosmos?
The steps to sell Cosmos are similar to the buying process. First, go to your platform’s trading interface and select Cosmos. Next, input the amount you want to sell and review the order. After, click the sell button for the trade to execute.
Is It Worth Buying Cosmos Right Now?
Cosmos has a huge market cap placing it in the top 25 of all cryptocurrencies. It’s performing exceptionally well due to the new partnerships and usefulness in the market. However, crypto is a volatile asset so do your research before purchasing the coin.
In my opinion, Cosmos is an excellent buy right now because of the technology and team backing the project. It aims to provide a bridge between blockchains that otherwise wouldn’t be compatible. However, this is a long-term hold as the cryptocurrency market needs to grow for Cosmos to reach its full potential.
In conclusion, there are multiple methods to purchase Cosmos and many factors to consider when selecting a platform. Exchanges offer the best solutions as they have low fees and deposit methods are usually instant. However, brokers are more friendly towards new investors thanks to their easy-to-use interface.
Remember to set an investment plan before buying Cosmos, as it’s a highly volatile coin. Therefore, having selling points can help minimize risk and let you take out profits early.
What is Cosmos?
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