How to Buy Cosmos UK – Beginner’s Guide
The interoperability of blockchain networks has been one of the obstacles to scale up the use of this innovative technology. A project has emerged to solve this issue and it is known as Cosmos. In this article, we provide more details on what Cosmos is and how to buy Cosmos UK.
Step 1 – Choose a Cryptocurrency Broker
Coinbase – Top US-based Broker to Buy ATOM Crypto
Coinbase is one of the world’s largest centralized cryptocurrency exchanges, serving over 35 million users and offering access to an ample portfolio of tokens going from top-of-the-list assets like Cosmos crypto to rare DeFi coins.
The company was launched back in 2012 and it recently went public in the United States stock market – trading under the ticker symbol COIN.
Coinbase is a regulated entity overseen by the United States Securities and Exchanges Commission (SEC). This makes it a top choice of US-based customers and they allow users to buy ATOM crypto.
- US-based, highly regulated broker specialized in cryptocurrencies.
- Low minimum deposit.
- Ample selection of available cryptocurrencies to trade with including ATOM crypto.
- Crypto staking is supported by this provider.
- High trading commissions (variable scheme).
- Not available in all countries.
Step 2 – Research Cosmos
In this section, we will dig deeper into the details of this crypto project. Investing in cryptocurrencies is an activity not suited for the faint-hearted as the market is relatively young, liquidity is low, and volatility is the name of the game.
However, top cryptocurrencies have outperformed traditional assets for years now as the underlying technology is expected to set the foundations for multiple up-and-coming trends including web 3.0 and decentralized finance.
What is Cosmos?
With the rise of blockchain technology, the interoperability of these networks has been one of the major topics of discussion among developers as the ecosystem needs to be able to connect and interact in a way that guarantees the steady flow of information across different projects.
Cosmos has emerged as a potential solution to this riddle by creating an ecosystem that interconnects different blockchains through the use of a common language and other technical tools that allow independent blockchains to communicate and exchange data.
This would prevent the high level of fragmentation that the ecosystem as a whole is experiencing as blockchains are currently competing with each other to attract the highest number of developers.
By introducing a protocol that all networks can adopt to communicate with each other, Cosmos aims to become the “Internet of Blockchains” – meaning that developers will use the network as a hub to move assets and perform operations across multiple networks in the ecosystem.
The Cosmos project was officially launched in 2016 when the white paper for the solution was released. However, its origins date back to 2014 when Tendermint – one of the most important protocols that help the network in achieving its mission – was presented to the crypto community by its founders Jae Kwon, Zarko Milosevic, and Ethan Buchman.
The Cosmos ecosystem is powered by the ATOM crypto – the network’s native token. According to data from Kraken, there is no maximum supply for ATOM crypto as new tokens are created based on the rate at which they are staked. This results in average annual inflation of around 7% to 20%.
Cosmos Key Features
The following is a summary of the most relevant technical aspects that make Cosmos a unique crypto project.
- Blockchain Engine (Tendermint)
The Tendermint protocol originated the Cosmos network as we know it at the moment. Its purpose is to allow developers to build decentralized blockchains using the infrastructure of Cosmos.
This means that Cosmos nodes will be in charge of validating all transactions made by any of the blockchains built using Tendermint. As a result, developers can focus on programming the blockchain while leaving Cosmos all the heavy lifting related to guaranteeing the safeness, scalability, and speed of the underlying infrastructure.
- PoS-Powered Network
Cosmos is powered by a proof-of-stake (PoS) protocol. This means that investors can stake their ATOM crypto to strengthen the network’s safety and execution speed while earning rewards in the meantime. This also allows Cosmos to be an eco-friendly blockchain project. The developing team claims that its carbon footprint is 99% lower than that of other networks.
Staking is also a way to keep up with token inflation as the Cosmos coin (ATOM) has no maximum supply. At the moment this is written, the annual percentage yield (APY) for staking Cosmos stands at 9.7%.
Meanwhile, the network claims to be able to process up to 7 transactions per second and fees are as low as $0.01 per transaction.
- The Cosmos Hub
The Cosmos Hub is the environment used by all blockchains that adopt Cosmos to communicate with each other. The Cosmos Hub is comprised of multiple “Zones”. Each zone is an individual blockchain that communicates with others through the network’s Inter-Blockchain Communication Protocol (IBC).
Each individual network is sovereign and all transactions are recorded using their proprietary infrastructure and mechanisms. However, when they communicate with other networks via Cosmos they will follow the IBC protocol to guarantee that data can be exchanged and recorded appropriately.
- Cosmos SDK
The developing team behind Cosmos has designed a software development kit (SDK) that programmers can use to build blockchains using Tendermint. Think of this as a tutorial that includes all the guidelines that must be followed to launch a network that relies on Cosmos’s infrastructure while also designing it in a way that it can communicate with others using the IBC.
Is Cosmos a Good Buy?
Cosmos considers itself the future of the blockchain – also known as Blockchain 3.0. The idea behind this statement is that Cosmos will enable multiple blockchains to interact and communicate with each other. This is pretty much what the TCP/IP and HTTP protocols do for the internet.
The idea that Cosmos will play such a key role in the future of the crypto ecosystem depends largely on the rate at which independent blockchains adopt its protocol to connect with other networks.
The ATOM crypto will be the token used to settle all the transactions made using the Cosmos Hub and other similar features and, therefore, widespread adoption will remain an important driver for its price.
According to its website, a total of 256 apps are currently being powered using Cosmos including some prominent ones like the Binance Smart Chain, Crypto.com, and Polygon (MATIC).
The fact that some major players in the ecosystem have already adopted Cosmos as a solution to connect with other blockchains speaks loud about the feasibility of its underlying technology.
Considering the huge market capitalization of the crypto environment as a whole – near $2 trillion – the importance of a protocol like Cosmos to power the so-called Blockchain 3.0 may not be fully priced into its valuation as the Cosmos network is being valued at around $11 billion on a fully diluted basis.
Cosmos Crypto Price History
Past performance is not an indication of future results
The price of Cosmos crypto has been posting a series of higher highs in 2021, possibly as prominent blockchains have progressively adopted its protocol. So far in 2021, the price has surged 528% while in 2020 the Cosmos crypto increased by only 54%.
Currently, the price action seems to be forming a symmetrical triangle that points to an ongoing consolidation as market participants are still struggling to reach a consensus in regards to the value of the network.
Symmetrical triangles are unbiased patterns. This means that the formation is not either bullish or bearish unless a break above or below the triangle occurs.
Cosmos Crypto Price Prediction
Algorithm-based predictions from Wallet Investor are leaning toward a bearish outlook for Cosmos crypto. For what remains of 2021, an analysis of the price trend is pointing to an ATOM crypto price prediction ranging between $39 to $37 by the end of the year.
However, the algorithm’s long-term Cosmos crypto price prediction is pointing to an important upcoming surge for the token with the price being expected to jump near the $60 level by the end of 2022.
Step 3 – Choose Your Payment Method
Next up, choose your preferred payment method for purchasing Cosmos. This can be debit card, bank transfer, PayPal, and many more depending on the exchange you use.
Step 4: Buy Cosmos
Head on over to you preferred and chosen exchange and execute your trade to get some Cosmo.
Cosmos is an interesting project that could help the blockchain ecosystem in scaling up significantly. By allowing independent blockchains to communicate which each other without giving up their sovereignty, Cosmos can achieve its mission of becoming the internet of this ecosystem.
That said, widespread adoption of its communications protocol is an important factor that may continue to either drive the price higher or plunge it depending on (1) the appearance of easier to implement communication protocols and (2) the safety, scalability, and speed of its top solution – the Cosmos Hub.
Don’t invest in crypto assets unless you’re prepared to lose all the money you invest.