Looking into buying Cosmos cryptocurrency in Canada? Whether you’re an experienced cryptocurrency enthusiast or you’re just getting started in the exciting world of crypto trading, this guide is for you. We’re excited to teach you about Cosmos itself and answer all your questions about buying, storing, and using it!
Cosmos is a decentralized network of independent blockchains that connects various blockchain networks. This is achieved through the Tendermint consensus algorithm and the Inter-Blockchain Communication (IBC) protocols. The network also addresses some of the biggest challenges in the blockchain ecosystem, such as scalability, interoperability, and usability. Instead of focusing solely on its network, Cosmos supports an ecosystem of networks that can exchange data and tokens without central authority overseeing the process.
Jae Kwon and Ethan Buchman are the founders of Cosmos network. They also created Tendermint, the consensus algorithm that would power the Cosmos network. The two later introduced the Cosmos whitepaper and released the software in 2019. The Interchain Foundation, a non-profit organization dedicated to open-source blockchain projects, also played a role in Cosmos’ development. To fund the project, the Interchain Foundation held an initial coin offering (ICO) for the Cosmos crypto coin in 2017, raising over USD 17 million.
Now, let’s delve deeper into what is Cosmos crypto is all about. ATOM is the native Cosmos crypto coin, and it plays a crucial role in securing and maintaining the network. Cosmos operates on a proof-of-stake model, meaning that ATOM holders can secure the network and earn more ATOM by staking their Cosmos crypto. Some of its other uses include:
The Cosmos crypto supports the network’s sustainable growth, all while encouraging the community to get involved in developing and maintaining the platform.
The total ATOM supply during its launch was 236,198,958 tokens. Over time, the supply has increased to 292,586,163 because of a 14.22% inflation rate. The majority of ATOM tokens were distributed to public contributors. A portion was allocated to the Interchain Foundation and strategic partners.
The Cosmos network has two major components: the Cosmos Hub and zones. The Cosmos Hub is like the central control point of the network. It manages communication and security for all the connected zones. It also has its blockchain, where the zones and their tokens are stored. Individual blockchains or zones have their own rules for network operation. These zones can communicate with each other and the Cosmos Hub. Each zone operates independently but can interact with others through the Cosmos Hub. Validators verify transactions to ensure the network runs smoothly.
However, to become one of the validator nodes in the blockchain and vote on the Cosmos ecosystem, individuals must first stake ATOM tokens and be among the top 100 nodes staking ATOM. The voting power of each validator is based on the amount of ATOM tokens they have staked. Users may also delegate their ATOM to other validators to earn a portion of the block reward.
This interoperability is important for developing decentralized applications (dApps) that can use the strengths of multiple blockchains.
Cosmos SDK, Cosmo’s software development kit, provides tools for developers to create and deploy new blockchains while improving the existing blockchain’s security and performance. The independent blockchain created by developers is then chained to the Cosmos Hub. Developers can also build DeFi protocols, plugins, supply chain management platforms, gaming applications, and more in the Cosmos ecosystem.
The Cosmos price has shown significant growth potential over the years. In the past, the ATOM price ranged from 1 USD to 9 USD. The token hit a low of USD 1.66 on March 13, 2020. On September 20, 2021, it reached an all-time high of approximately USD 44.38.
Are you looking to trade, sell, or buy ATOM in Canada? Coinsquare is a cryptocurrency trading platform that offers convenient ATOM trading. You can purchase ATOM using various fiat currencies, including CAD, USD, EUR, and GBP. You can find ATOM alongside other major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Polkadot (DOT).
If you’re ready to buy Cosmos crypto, Coinsquare is ready to help. Here’s the fastest (and easiest) way to dive in. Want more information? Skip this section and keep reading below.
You will need to go through a few sub-steps to open your account; verify your identity and answer a few onboarding questions.
You’ll use these funds to buy your Cosmos (ATOM)
In this step, you can check the Cosmos price and convert Cosmos (ATOM) to CAD or USD as desired.
Welcome to Cosmos ownership! The currency is now yours to hold or trade!
When you’re considering investing in something novel like Cosmos (ATOM) cryptocurrency, you might automatically think of big trading platforms in the USA or Europe. Here’s why it’s smart to buy from a Canadian source:
Crypto trading platforms that sell Cosmos (ATOM) in Canada are just as active as the platforms in any other country or international platform. You don’t need to worry that you’re missing out on key opportunities or that you won’t get the best rates or prices.
Platforms registered with the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) are subject to local regulatory oversight and accountability. Always check with the CSA and CIRO for their list of registered crypto trading platforms as well as their banned platforms.
Customer service operates within Canadian time zones and provides service in both official languages to answer any questions about your Cosmos (ATOM) transactions.
Cosmos (ATOM) transactions can be done in CAD, which saves money on currency exchange rates and makes it less complicated to see the value of your assets.
Local funding options like Interac e-transfers can be used to purchase Cosmos (ATOM). There’s no need to set up offshore accounts or use payment services that you’re not familiar with.
There are no deposit fees when you use local banks and local payment methods like Interac e-transfer, giving you security and peace of mind that your money isn’t going through offshore financial institutions.
Deposit and withdrawal times are faster because you’re not relying on international transfers. You want your valuable assets working for you full-time without delay!
Legal recourse and dispute resolution are easier. It’s much simpler to research Canadian regulations and laws concerning your crypto assets and to find local representation for your concerns.
Tax reporting of your Cosmos (ATOM) profits is simpler, and the platform you use may help you with reporting requirements. You only have to concern yourself with Canadian taxation rules.
Now that you’ve got them, what do you do with them? Here are some common uses for cryptocurrency:
If you need to transfer money internationally, you may be able to do it more quickly and with lower fees compared to going through your bank. Peer-to-peer transactions can also be simpler with Cosmos (ATOM) cryptocurrency.
Some online retailers might accept Cosmos (ATOM) along with other cryptocurrencies as payment for goods and services, and some physical stores also accept crypto. You may also be able to pay utility bills, rent, or other recurring expenses, as well as use Cosmos cryptocurrency for travel expenses.
Additionally, you might be able to use cryptocurrency for in-game purchases and other digital assets in some platforms, such as NFTs.
It’s become mainstream for investors to hold cryptocurrency in anticipation of a price increase, the same way you might hold stocks or bonds. This requires knowledge and familiarity with the way crypto markets work, including their inherent and dynamic risks.
You can also trade Cosmos (ATOM) for other cryptocurrencies, such as Bitcoin, Ethereum, XRP, Dogecoin and many other crypto coins. These transactions are straightforward on the Coinsquare platform.
Staking your cryptocurrency is another way to use it and earn rewards. Staking allows you to participate in the validation of transactions on a blockchain network, for which you are awarded additional crypto assets. Here’s how it works:
You lock up (stake) part of your crypto as a way of ensuring your commitment to the validation process.
Validators are randomly selected to validate transactions and create new blocks on the chain. The probability of being chosen can depend on the amount of cryptocurrency you stake.
You earn rewards in the form of additional cryptocurrency for your contribution to the network’s operations.
Staking your Cosmos cryptocurrency can be very rewarding; it helps you earn passive rewards and contributes to the security and efficiency of the blockchain network. Staking comes at the cost of locking your assets up for a specific period so be certain of your timeline for holding or selling before you stake your Cosmos holdings!
Decentralized finance (DeFi) involves financial services and applications that operate on blockchain networks without relying on traditional financial organizations such as banks or individuals like brokers.
As cryptocurrencies become increasingly accepted as currency, their uses will continue to grow. If you’re a cautious investor, you can always start small and continue to educate yourself on the ins and outs of trading Cosmos (ATOM) and other cryptocurrencies. Coinsquare offers you the opportunity to get into crypto investing and trading in an easy, accessible way, with plenty of support!
You have plenty of options for buying Cosmos (ATOM) cryptocurrency. Here are some places you can make your first purchase:
There are Canadian-based platforms as well as international ones. Some international crypto platforms offer support for Canadian dollar transactions; check on this before you sign up if you plan to use Canadian funds. Look for a platform that has a user-friendly interface high security, and that allows you to make your purchases in the currency of your choice. Keep in mind that transacting on non-Canadian platforms can involve additional fees and mark-ups on exchange rates, as well as investor protection risks. Choosing a Canadian platform like Coinsquare means that you can avoid these currency exchange fees and mark-ups, and make sure that your accounts are safely maintained to the highest security standards as any other financial institution in Canada.
P2P platforms allow you to buy, sell, and trade digital assets like Cosmos (ATOM) crypto directly with other people without the involvement of an intermediary like a bank or a centralized platform.
To use a P2P platform for trading cryptocurrencies like Cosmos, you may need to invest time to learn how they work, and you should be prepared to spend more time on each transaction due to the manual work involved.
You can find cryptocurrency ATMs in major cities across Canada. You can use these machines to buy Bitcoin and other cryptocurrencies using cash or debit. There are numerous websites and smartphone apps that you can use to locate these machines.
Cryptocurrency brokerage services serve as intermediaries between buyers and sellers. They provide services for both beginning traders, experienced traders, and everything in between.
Brokerage companies are designed to be user-friendly, and many of them provide educational resources such as tutorials and customer support. They can be a valuable resource for people who are short on experience, knowledge, or time.
These services also offer custodial functions such as storage and insurance for assets they hold for their clients. They may also offer portfolio management, similar to other investment service providers.
Unsurprisingly, it can be more expensive to use a brokerage than to trade directly on a trading platform. Users also relinquish some control over their funds and their private keys.
Crypto apps are smartphone applications that give you access to trading platforms but also provide additional functionalities to help you manage your holdings and stay up to date when you’re on the go. Many of these apps also have desktop versions for your convenience. Some of the additional functions of crypto apps are wallet services, portfolio management, and news alerts.
Exchange-traded funds (ETFs) are pooled investments that can be bought and sold the same way stocks can. ETFs are not actively managed the way mutual funds are because their function is to track the performance of the underlying group of assets rather than trying to outperform it. You might think of it as similar to an index fund, but ETFs can be traded throughout the day, whereas index funds can only be traded once a day after the market closes.
Crypto ETFs use one or more cryptocurrencies, such as Ethereum or Bitcoin, as the underlying asset. They are traded on regular stock exchanges and, therefore, subject to the same regulatory oversights as other assets traded on that exchange.
Although you don’t directly own the cryptocurrency when you invest in an ETF, the additional liquidity, ease of tax reporting, regulatory oversight, and added security make them an attractive option for many investors.
As of August, 2024, Cosmos is not approved for ETFs. Fortunately, there’s always Coinsquare when you want to purchase ATOM in Canada.
Storing cryptocurrency securely is crucial for protecting your digital assets from theft, hacking, and loss. With the increasing use of cryptocurrencies, these threats are ever more prevalent.
When you store cryptocurrency yourself, you are given two keys. The first is your public key, which is used to generate your public address. This key can be shared with others, like an account number. The second key is your private key, a secret alphanumeric code that allows you to access your cryptocurrency. Your private key is similar to a password. The private key is what you are safeguarding in storage because access to your private key means access to your funds.
Storing your Cosmos in your Coinsquare wallet is easy and straightforward. Coinsquare does all the heavy lifting in terms of security and keeping your crypto safe in cold storage. You’ll even benefit from a comprehensive insurance policy on your crypto holdings.
Hot wallets store private keys on devices that are connected to the Internet. Hot wallets are suitable for frequent transactions, but they are more vulnerable to hacking and malware and should not be used exclusively. Hot wallets can be web-, app-, desktop- or hardware-based (held on an external storage device such as a USB).
Cold wallets are offline and, therefore, more secure. They are also called offline wallets or hardware wallets. In general, the safest way to transact with your Cosmos holdings is to keep them in a cold wallet and transfer the amount you need to a hot wallet just before you plan to use it. A special type of cold wallet is the paper wallet, which entails recording your private key manually on a piece of paper (carved in a rock, engraved in a ring, etc), but this has obvious vulnerabilities. Paper wallets should be securely stored in multiple locations.
Custodial wallets are provided by third-party services that store your cryptocurrency on your behalf. Custodial wallets make it easy to buy, sell, and store your Cosmos cryptocurrency, but it means giving a third party your private key. You must be certain of the security measures the third party uses before storing your cryptocurrency with them.
Non-custodial wallets, in contrast, are wallets that don’t involve a third party. Non-custodial wallets can be either hot or cold.
If you choose not to store your ATOM in your Coinsquare wallet where it is protected in cold storage and insured, there are a few things you’ll need to do to increase the security of your digital assets.
Here are some important tips that will help keep your Cosmos holdings safe and secure:
Ready to dive in with your first Cosmos purchase? Coinsquare offers a user-friendly platform that gives you access to over 53 cryptocurrencies, no fee deposits, free withdrawal options, and unmatched customer support. We are the most trusted crypto trading platform in Canada, built by Canadians for Canadians.
With the Coinsquare trading platform, you can start transacting with cryptocurrency in as little as five minutes. Download our app from the Apple App Store or Google Play today and join the exciting world of cryptocurrency trading!
