If you want to invest in the cryptocurrency market , in the course of an exploration your path will sooner or later cross that of the ATOM and its COSMOS blockchain . Available on many exchanges, no doubt you will hear about the “ Internet of Blockchains ” and its native token. Unfortunately, it’s difficult to find your way around with the multitude of service providers offering to buy them… But there’s no need to panic, dear astronaut! Today, we are going to explore space with you. Equip your space suit, fasten your seat belts, and get ready to explore one of the most promising projects of the year 2022! Our rocket takes off, heading for your first purchase of ATOM, safely and easily.
ATOM: WHAT IS IT?
As we have seen, the COSMOS project is therefore defined as “the internet of blockchains”. In fact, COSMOS offers tools to easily create a blockchain adapted to the specific needs of decentralized applications. Developers therefore no longer have to adapt to the specificities of the blockchain on which they are based. By creating the blockchain that will support the needs of their application themselves, they can focus on developing the latter, without having to worry (too much) about the environment that supports it.
ATOM is the native token of the COSMOS ecosystem. By definition, it therefore has several uses:
- Pay the gas fees that allow transactions to be made on the network . With each transaction you make on the network, you will have to pay a fee in ATOM. This rewards miners and prevents the network from being congested by malicious entities.
- Securing the network . As the COSMOS network is based on the proof of stake system, node operators (which include transactions in blocks) must post a certain amount of ATOM as collateral. If they attempt an attack on the network (by modifying the data of previous blocks to steal or create tokens for example) and the rest of the network detects it, the ATOMs involved will be destroyed and the node will be excluded. This mechanism is based on game theory, encouraging actors to adopt benevolent behavior since it is in their interest.
- Delegate to receive rewards . In connection with the previous point, you can delegate your ATOMs to a validator. This will use your ATOMs to secure the network and transactions. In exchange, he will take a small commission (usually 5-10%) from your rewards. So you can start generating passive income today with your ATOMs.
- Have voting power in the ecosystem . Users who deposit their token in a validation pool gain voting rights on the Cosmos Hub. Regularly, votes are submitted to the community. Depending on your amount of delegated tokens, you can therefore participate in the governance of the network and the decisions made there.
A brief history of Cosmos
- April 2017 – $17 million is raised in the first 29 minutes of the initial Cosmos token sale.
- December 2018 – Game of Stakes is launched, which widely tested the Cosmos network for the first time.
- March 2019 – the Cosmos official mainnet is launched.
- November 2019 – Kava labs becomes one of the first projects built using the Cosmos SDK to launch its mainnet.
- February 2020 – The Cosmos team splits and founder Jae Kwon steps down as CEO.
- September 2020 – Cosmos partners with Nym to bring anonymous credentials to the Cosmos ecosystem.
- February 2021 – Cosmos launches Stargate, which includes the first public release of the Inter-Blockchain Communication (IBC) protocol.
WHERE TO BUY YOUR FIRST ATOM?
|Platform||Minimum deposit||Costs||Accepted deposit methods||Link to platform|
|Binance||15€||1.8%||CB||Buy ATOMs on Binance Now|
|Ascendex||44€||5.25%||Card and SEPA Transfer||Buy ATOMs on Ascendex Now|
|Crypto.com||€0.50 per Card||2.99% per Card|
0% per SEPA Transfer
|Card and SEPA Transfer||Buy ATOM at Crypto.com Now|
|Kucoin||€40 per Card|
€1 per SEPA Transfer
|3.3% per Card|
0% per SEPA Transfer
|Card and SEPA Transfer||Buy ATOM on Kucoin now|
|Coinbase||1,99€||Less than €10: €0.99.|
Between €10 and €25: €1.49.
Between €25 and €50: €1.99.
Between €50 and €200: €2.99.
Over €200: 1.49% commission.
€0.15 per SEPA transfer
|Card and SEPA Transfer||Buy ATOMs on Coinbase Now|
HOW TO BUY ATOMS? STEP BY STEP GUIDE
First stop of our space mission. Check your equipment one last time, we’re landing on Binance . Our mission? To buy our first ATOM as simply as possible of course!
Is your communication equipment functional? Here we go, let’s do this together. To perform the operation you need:
- From a Binance account
- To have verified your identity on the platform
- From a credit card
Are you ready to fulfill our mission of buying ATOM explorer? To do so, 3 steps in our journey:
- Deposit Euros on Binance
- Convert your euros into USDT
- Buy ATOMs with our USDT
DEPOSIT EUROS ON BINANCE
First step, go to Binance , the industry reference platform. Note that you can access it from a computer, or by using the Binance application, available on the Apple Store and the Android Play Store . If you haven’t already, we invite you to register to be able to buy your first ATOMs. Once done, log in, and go to the home page to follow our buying guide step by step.
Done, are you connected? Perfect, we can get started. Start by going to the “ Buy cryptos ” section.
Select the “Buy Cryptos” link at the top left of the homepage. The link is framed in blue in the image above.
From the drop-down menu, select the “Deposit by card” option .
On the new page, select the currency you want to pay with (in my case, Euros) and click “Continue” . Then, complete your mission of depositing euros into your Binance account . This is your first solo expedition, but there is no doubt that you will be able to carry it out.
Funded your Binance account with euros? Perfect, congratulations explorer. Now, let’s embark on the purchase of our first ATOM. Important point, it is not possible to buy directly from ATOM with euros. To do so, our first stopover is to convert our euros into USDT (a stablecoin that is always worth 1 dollar). We therefore embark by selecting “ Trader ” then “ Markets ” in the Binance menu. The page that appears may seem daunting, but you’re on the right track. In the search bar, type “ USDT ” then select “ Trader ”. At the top left of the page that appears, click on ” BUSD/USDT “, type ” EUR/USDT ” and select this currency pair from the list.
You are almost there! In the menu on the right, select “ Sell ”, then set the amount of euros you want to convert to USDT. To confirm the sale, click on the red button “ Sell EUR ”, and… operation successful. You are now the proud owner of USDT stablecoins.
After this stopover, let’s head to the final stage, the purchase of ATOM ! In the same way as for the purchase of USDT, go to the “ Trader ” tab then “ Markets ”. Search ATOM from the search bar then click on the corresponding line. This time, you arrive directly on the relevant purchase page.
In the menu on the right, enter the price at which you want to buy your ATOMs (for the order to be placed directly, leave the default price, it is the market price) and the amount of USDT you want to spend. Once done, select the green button “ Buy ATOM ” and…
Congratulations, you are now the proud owner of ATOM tokens .
SHOULD YOU BUY ATOMS?
Now that you know how to buy ATOMs on Binance , comes the time for the fateful question. Should you board the COSMOS and buy ATOMs ? Excellent question, apprentice cosmonaut.
To answer it, a brief overview of the Cosmos. What is the project, and what is it for? Initiated in 2016, the development of the Cosmos project is mainly led by Tendermint Inc , a private for-profit entity, while development funding comes from the Interchain Foundation , a non-profit organization, based in Switzerland.
The objective of the Cosmos network is to respond to a double problem:
- The Isolation of Blockchains . Each of them operates in a vacuum, with its own technical characteristics, governance token and rules. Except in the age of the internet and hyper-connectivity, this isolation does not really make sense and poses limits to development and adoption. This is where the Cosmos Hub will come in, a real connection and exchange zone for the ecosystem and the blockchains that compose it. We will come back to this later.
- The technical rigidity of blockchains as a brake on development . Indeed, for a developer of Dapp (decentralized application), it is impossible to override the operation of the blockchain which supports its application. If you want to code an application based on Ethereum, you must design your application so that it adapts to the constraints of the latter. We are therefore returning to a “platform then application” way of thinking that current IT tends to make disappear in order to think about applications first. The lower layers should serve as supports and not as constraints.
To respond to these issues, the Cosmos project relies on three essential elements that form the heart of the ecosystem.
- Tendermint Core : Tendermint is an open-source blockchain launcher that allows applications to be developed in any language. Even better, they can communicate with other blockchains. The Terndermint Core will use the Byzantine Fault Tolerance (BFT) consensus in order to be able to process 250,000 transactions per second. It is this mechanism of consensus and network that constitutes the strength of Tendermint.
- Cosmos SDK : suite of tools that can then be used by blockchain developers to build the one of their choice, based on Tendermint Core modules (if they wish). For developers, building a blockchain shouldn’t be more complicated than coding a few modules using this tool.
- Inter Blockchain Communication Protocol (IBC) : this third component allows communication between all existing individual blockchains in the Cosmos ecosystem. It is this protocol that drives Cosmos to refer to itself as the Internet of Blockchains.
TRADER ATOM: WHAT TAXATION? HOW TO DECLARE?
On this side, the ATOM undergoes the same treatment as other cryptocurrencies. And unfortunately for your investments, you will have to pay the flat-tax.
In France, you are liable for 30% of your capital gains for any conversion of your cryptocurrencies into fiduciary currencies (euros, dollars, etc.). Similarly, if you use the Binance payment card to pay for your purchases, you will have to pay this tax. To do so, you will need to indicate the amount of your capital gains on cryptocurrencies converted into fiat at the time of your annual tax declaration , in May.
Remember that each conversion to a fiat currency will subject you to capital gains tax. On the other hand, crypto-to-crypto conversions are not taxable. You can therefore convert your ATOMs into stablecoins (USDT, DAI, jEUR, etc.) or into bitcoins without this making you taxable.
CAN I BUY ATOMS VIA PAYPAL?
Unfortunately, it is not possible to deposit funds via Paypal on the platforms we recommend to buy your ATOMs. You will have to turn to service providers like eToro, for example, to find this option. But beware, young cosmonauts, expect hidden costs that are often very high! For this reason, we recommend that you turn to the exchanges present in this article.
CAN I BUY ATOMS VIA APPLEPAY OR GOOGLEPAY?
Among the platforms we recommend to buy your first ATOMs, only AscendEX will allow you to use Apple and Google Pay to deposit your funds. Do not hesitate to use it if you want to use these means of payment.
WHERE TO STORE YOUR ATOMS?
You have just collected your ATOMs during your first space expedition. Perfect, but what do we do now? Several options are available to you, overview:
- Leaving your ATOMs on the purchasing platform: once your ATOMs have been purchased via one of the platforms presented above, it is entirely possible to leave them on this one. The advantage is twofold : not having to worry about storage and transfer to your wallet; And be able to easily and quickly mobilize your funds to sell or exchange your ATOMs. However, this option has significant drawbacks. The first of them, you don’t actually own your ATOMs. Indeed, only holding the private key of your wallet allows you to exercise full ownership of your funds. As we often say: “ not your keys, not your crypto!” (not your keys, not your crypto). Therefore, you remain at the mercy of a platform hack that holds your tokens. Rest assured, the risk is still measured on the biggest platforms on the market! On the other hand, it happens that certain movements of withdrawals of your crypto are temporarily unavailable from the exchange platforms, which may be penalizing if you need them quickly.
- Store your ATOMs on Keplr (or another hot Wallet): If you want to participate in the life of the network, we recommend that you use Keplr . It is a wallet in the form of a browser extension allowing you to manage your ATOMs by interacting with the Blockchains of the Cosmos. In particular, you can delegate your tokens to secure the network. To do this, you will delegate your tokens to a validator, which runs a validation node and therefore participates in network security for you. In exchange you will receive rewards, in ATOM. Note, the validator will take a small commission from you on this reward. A good way to grow your capital.
- Store your ATOMs on a cold wallet: If you follow us regularly, you already know that we recommend that you use a cold wallet such as Ledger rather than a browser extension. The main difference is that your private key is stored on your Ledger (a physical tool, similar to a USB key). Thus, no one can make a transaction from your wallet if they do not have this tool. Conversely, if you use a hot wallet, you are at the mercy of hackers and other malicious actors. And of course, Ledger is compatible with Keplr, to take advantage of all its features while enjoying maximum security.
WHAT TO DO WITH HIS ATOM?
As with most cryptocurrencies, there is a wide range of choices available to you:
- Hold them until they increase in value.
- Stakers on Keplr to get rewards.
- Use them to power decentralized finance (DeFi) Dapps such as Osmosis and generate passive income.
- Participate in the governance of the ecosystem using your voting rights, again via Keplr.
- Note that for now, there is (to my humble knowledge) no NFT on Cosmos. But it probably won’t be long!
END OF THE “COSMOS (ATOM) PURCHASE” EXPEDITION, RETURN TO THE JOURNAL DU COIN
And voila dear cosmonaut, you now know more about the Cosmos ecosystem and its native token ATOM. To buy Cosmos (ATOM) it’s very simple: the best way is to go to Binance. Hoping that this guide has allowed you to acquire your first ATOMs, to stake them and to vote to participate in the governance of the ecosystem.
Given the capitalization of the token (8 billion at the time of this writing), there is still time to make your first purchases on Binance . And thus to hope to benefit from a consequent increase in its value, in connection with the growth of its ecosystem, driven in particular by Decentralized Finance. Indeed, everything seems in order for the Cosmos to experience strong growth in the coming year: more and more applications are being launched or reinforced within the ecosystem, such as Osmosis. Be careful though, as usual, any investment has its risks. We therefore encourage you to find out about this very promising project yourself, and if you believe in its future, to make your first acquisition with our partners.