The Ultimate Guide to
Trading Cosmos ATOM
The Cosmos ATOM is the digital currency or token used on the Cosmos Hub, which is the first of a network of independent parallel blockchains that make up the Cosmos Network. While this may sound elaborate, essentially the Cosmos Hub is based upon open-sourced blockchain software developed by Tendermint, and the network is secured by people known as validators.
Validators commit fresh blocks in the Cosmos blockchain, being paid in exchange for their efforts on behalf of the Cosmos Hub. Moreover, validators need to participate in governing the network by voting on proposals, with their voting share being weighted according to their total stake. Their stake is determined by the number of tokens or ATOMs they own, as well as the total tokens delegated to them by other users.
The command line interface known as the Gaia Client (Gaia CLI) allows users of the Cosmos Hub to interact with it. The Gaia CLI tool supports all of the Cosmos Hub features, which include managing accounts, delegation, token transfers and blockchain governance.
Keep in mind that buying and selling the ATOM cryptocurrency is generally more secure if a regulated online broker acts as an intermediary in the transaction.
How to not get scammed when trading Cosmos ATOMs
Many people use exchanges to trade cryptocurrencies, but these enterprises can be rather poorly regulated and have been subject to security breaches that have resulted in large losses for investors. For example, in 2018, the Tokyo-based Coincheck exchange experienced a $534 million hack of XEM coins. The South Korean crypto-exchange Youbit also went bankrupt in 2017 after getting hacked twice that year.
Unfortunately, investors must be mindful of fraudulent activities online. Be extra diligent when a firm asks for an initial fee to trade ATOM tokens for cash. Also, be cautious of investment programs that claim they will multiply assets fast, as schemes that seem too good to be true probably are.
Phishing is another common scam often observed in social media messages and emails. This involves a person impersonating a business to obtain access to their personal, account or even currency wallet information. To minimize this risk, avoid making financial arrangements or providing account information through links in direct messages. Additionally, be conscious of fake cryptocurrency exchanges and cloud mining cons.
For more insights regarding tips to avoid fraudulent activities online, check out “Scams to look out for”.
A secure way to trade ATOM tokens will be through the use of regulated brokers. Fortunately for traders, the process of exchanging ATOM coins for fiat currency and other cryptocurrencies through these financial firms has become very straightforward. An example of a regulated broker is AvaTrade , a Dublin, Ireland based broker that is part of a publicly traded firm with an impressive market capital of $17 billion. EToro is another regulated broker with European offices that supports social cryptocurrency trading. Each of these EU based brokers must operate under the Markets in Financial Instruments Directive (MiFID), as well as its revised version known as the MiFIR.
Trading Cosmos ATOM through AvaTrade
AvaTrade supports a popular and very user-friendly trading platform known as MetaTrader 4, freely available from its developer MetaQuotes
This highly customisable platform includes charts for technical analysis, allows brokers to trade other assets through its platform, and is suitable for traders of all experience levels. Moreover, it can be used on desktops, web browsers, tablets or smartphones.
Nevertheless, as with all currency trading, there are certain levels of risk associated with it. For example, the market price of tokens, like that of ATOM can fluctuate depending on various fundamental factors.
Key influences on Cosmos ATOM
The Cosmos ATOM is a dynamic cryptocurrency, with its value influenced by a variety of different factors, including levels of supply and demand. For example, if a trader buys a large number of ATOM tokens, then their price will generally rise.
Additionally, when national governments try to regulate digital currencies, the value of tokens like ATOM can decline. A prime example was the Cyprus banking crisis in 2013 that helped to promote rallies in cryptocurrencies such as bitcoin, as people rushed to purchase them in order to store their wealth outside of their local government’s jurisdiction.
Another event that tends to favourably impact a cryptocurrency’s price occurs when large companies and payments firms start accepting them. This will typically make the value of the newly accepted tokens rise. When major exchanges get hacked, that tends to prompt a decline in the value of cryptocurrencies once the news is released.
Cosmos (ATOM) Quick facts:
Source: CoinMarketCap.
- Month Cosmos ATOM started trading: March 2019.
- Daily volume of ATOM exchanged (July 18th, 2019): US $196,651,757.
- High closing price in U.S. dollars: $8.31 on March 16th, 2019.
- High closing price in bitcoins: 0.00204888 BTC on March 15th, 2019.
- Market Capitalisation (July 18th, 2019): $545,368,942.
- Circulating and Total Supply: 190,688,439 ATOM.
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