Buy Cosmos (ATOM) - how to invest in Cosmos in Somalia

Cosmos (ATOM) 

Cosmos is an ever-expanding ecosystem of interconnected apps and services, built for a decentralized future. Cosmos apps and services connect using IBC, the Inter-Blockchain Communication protocol. This innovation enables you to freely exchange assets and data across sovereign, decentralized blockchains.

Cosmos Hub is the first blockchain launched in Cosmos, and its main purpose is to interconnect other blockchains in the ecosystem. Tokens can be safely and quickly transferred from one area to another using Cosmos Hub.

What is Cosmos?
What is Cosmos?

Cosmos: What is it made of? 

The Cosmos network is built on the basis of three key parts: 

  • Tendermint Core - Connects the network and consensus protocol layers in a software implementation of Tendermint Core. Contains the consensus Tendermint BFT algorithm and the IBC (inter-blockchain communication) protocol for hub/zone communication. 
  • Application Blockchain Interface (ABCI) - a BFT implementation of DApps in multiple programming languages. ABCI is language-independent and allows developers to create part of their blockchain application in any language. It is a linking interface between Tendermint Core and Cosmos SDK. 
  • Cosmos SDK is a resource for developers called Basic Coin. The main purpose of the SDK is to reduce the complexity of creating ABCI for general blockchain functionality and allow developers to focus on customizable applications in a standardized environment. 

Developers can take this basic framework with built-in tokens, control, partitioning - all the basic functions needed for blockchain - and then add the functionality they want with plugins.  Tendermint Core is responsible for consensus in Cosmos Hub. Blockchains that are linked to the Hub maintain their own sovereignty without switching to Tendermint. Developers can create their own blockchains and applications using the Cosmos SDK and run them on top of the Tendermint Core, caring only about the application layer. ABCI uses a socket protocol so that the negotiation mechanism controls the state of the application running in another negotiation process, making Cosmos capable of supporting a wide range of cryptocurrencies and scripting languages such as Bitcoin, Ethereum, ZeroCash, and others. These blockchains can communicate with each other using the IBC protocol, even if they have different coordinated algorithms. Developers can implement application-specific semantics on top of IBC, allowing valuable assets to be transferred between different blockchains while retaining their contractual features. IBC works best with blockchains with a high degree of completeness (PoS), but can be implemented via binding zones on blockchains that do not have this feature (PoW). A typical example of a tethering zone is Ethermint, which is basically a Tendermint-based Ethereum that has PoW features removed and runs on PoS consensus (something that projects like Casper have been trying to implement for years). 

Cosmos ecosystem
Cosmos ecosystem

The Tendermint algorithm 

Tendermint, the underlying Cosmos algorithm, is the first adaptation of the Proof-of-Stake consensus derived from the Byzantine generalist practical problem (PBFT) algorithm introduced by Castro and Liskov in 1999 after a 30-year research period. 

PoS protocols based on BFT pseudo-randomly assign a validator the right to propose new blocks during multiple voting. 

However, the fixation and finalization of blocks depends on a majority (in this case, two-thirds quorum) of all validators signing off on the proposed block. It may take several rounds before blocks are finalized. BFT systems can allow up to a quarter of failures, where failures can involve arbitrary or malicious behavior. 

Some features of this algorithm: 

  • Ensurable survivability in a partially synchronous network; 
  • Security threshold: ⅓ validators; 
  • Compatible with public/private networks; 
  • Instant Completion: 1-3 seconds depending on number of validators; 
  • Consistency prioritization; 
  • Consensus security. 

Cosmos' Proof-of-Stake algorithm is delegated, meaning that it is organized in such a way that stackers are split into two groups: validators and delegators. 

Delegators are tasked with deciding which validators get to participate in the consensus; validators must be part of the consensus, checking transactions and adding new blocks to the chain. At the moment, stackers are rewarded in ATOM tokens, but other cryptocurrencies such as Bitcoin and Ethereum may also be added in the future. If one of the nodes in this system starts working maliciously, it and its tokens are removed from the network.

Cosmos peg zone
Cosmos peg zone

How does the ATOM token work? 

The official token of the Cosmos ecosystem is called ATOM. 168 million coins were sold as part of the 2017 ICO, as a result of which the project raised $ 17.3 million in just 28 minutes (which corresponds to 100% of the original sale goal). The team retained 50 million ATOMs to use for funding and strategic partnerships. The supply of tokens will not be limited as the project plans to introduce an inflationary model for a year.

Buy Cosmos or get it through mining? 

Cryptocurrency can be mined, stored in a cryptocurrency wallet, or you can invest Cosmos using an exchange or broker.

What is mining? 

First of all, mining is the process of creating new coins and launching them into the network. It is also a key element in the development and maintenance of a working blockchain.

Mining ensures that recent transactions are verified and new blocks are added to the blockchain:

  • Transaction Verification. Computers connected to the mining network select transactions in processing status and verify that the sender has sufficient funds for the transaction.
  • Creating new blocks. The mining computers compile the transactions in progress into a new block and attempt to create an encrypted link to it by solving a complex mathematical algorithm. Once the link is created, the new block is added to the blockchain and the corresponding links are distributed to the network.

Cosmos Mining 

The Tendermint mining algorithm is a variation of the PoS consensus algorithm mining combined with Byzantine Consensus Fault Tolerance pBFT (BFT protocol). The network supports and processes all transactions by the 100 validators (network miners) with the largest deposit volumes in ATOM. According to the principles of pBFT, as long as more than a quarter of the voting nodes are honest, the protocol will work without problems.

Transactions between blockchains are synchronized with the main blockchain, the Hub. The transaction is frozen until confirmation is received. Then tokens are credited to the blockchain - receiver of coins and destroyed in the blockchain - sender of coins. This system avoids double spending.

Cosmos : get ATOM and stake
Cosmos : get ATOM and stake

How to invest in Cosmos in Somalia? 

Indeed, there are many ways to make money from crypto: mining and trading are the most popular and widely known. And while making money by mining requires you to invest a lot of money in equipment and at least cheap electricity, for trading you just need to register on an exchange and play at the rate of.

In trading there is a whole set of rules and laws that must be followed to "stay in the game". In particular - you need to understand at least the basics of technical and fundamental analysis, get acquainted with trader's tools, keep your hand on the pulse, in order not to miss important news, which can dramatically change rate of cryptocurrency.

To trade cryptocurrency, traders use so-called crypto-exchanges.

Invest in Cosmos in Somalia through online broker
Invest in Cosmos in Somalia through online broker

What is a crypto exchange? 

Simply put, a crypto-exchange is a platform (website) where you can trade cryptocurrency. Buy ATOM, sell ether, etc.

Basically - a crypto exchange brings together users who want to trade cryptocurrency. The moment you place a sell order and someone else places a buy order, the platform brings you together and helps you execute the transaction. The exchange most often charges a commission for this work.

You can buy Cosmos in Somalia on many exchanges.

How else is profitable to invest in Cosmos 

A convenient alternative to exchange trading is the use of contracts for difference - CFD. 

CFD is a derivative financial instrument, where a broker agrees to pay a trader the difference in the value of an underlying security between two dates: the date of opening and closing of the contract. In doing so, you can either hold a long position (assuming that the price goes up) or a short position (assuming that the price goes down). 

For instance, by trading Cosmos CFDs, you speculate on the Cosmos/USD price movement.

There are differences between buying cryptocurrencies directly and trading cryptocurrency CFDs. Because of the need to pay a fee for carrying positions over to the next day, CFDs are generally not considered a long-term investment.

When you buy cryptocurrency, you keep it in your wallet, but when you trade CFDs, the position is held in your trading account, which is subject to regulatory oversight. You have more flexibility when trading CFDs because you are not tied to an asset; you simply buy or sell a derivative contract. You can also make money when the price falls, as you can take a short position. In this case, you will lose money if the price rises.

Buy ATOM in Somalia via online trading platform
Buy ATOM in Somalia via online trading platform

Cryptocurrency Trading Strategy 

There are many trading strategies, you can choose any and build your own effective trading system. 

The most successful traders build their strategies by relying on analysis, setting stops and take profit orders, controlling the number of trades and working with a diversified portfolio such as stocks, commodities, indices and currencies. Following a strategy when trading cryptocurrencies can help you reduce your risk.  

For example, you can choose from a list of the most popular trading strategies, build your own trading plan, and adjust it according to your personal needs.

GENERAL RISK WARNING:
The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose