A cryptocurrency called Cosmos (ATOM) supports a network of interconnected blockchains that is built to grow. The group’s objective is to build an Internet of Blockchains, a system of blockchains capable of communicating with one another in a decentralized way.

Step-by-step transaction

Create an account with a trusted exchanger, input money, choose ATOM from the network listing, and then purchase ATOM or store ATOM to begin swapping. 

To avoid trading aimlessly, this article on how to trade assets will explain everything in simple words. Here are the sequential steps you must follow to start the trading process, though, before you grasp the foundations of the transaction.

Step 1: Create a crypto profile with an authorized Crypto exchange

Step 2: Deposit money into your account

Step 3: Decide how many coins you want to buy 

Step 4: purchase or sell the coins

Step 5: Verify the trade

Trading principles 

The underlying principles of buying and selling Cosmos are similar to those of many other investment assets, including jewelry, equities, and commodities. This means, they are all driven by supply and demand, and to execute successful trades, you need to have a thorough understanding of how demand and supply work. The variables that affect the demand and supply of the coin are listed below.

Price movement 

If you have experience purchasing Cosmos or any other coin, you are aware that price changes can help you determine where to place your bets. For instance, if the price increases significantly, this might mean more investors think it’s a smart bet. This might happen if a famous person endorses the token. On the other side of the board, the decline can indicate that more investors are selling or that the marketplace has been negatively affected elsewhere.

Trading pairs 

The pairs simply inform you of the commodities you will use. Swapping two virtual currencies are possible and are referred to as a “crypto-cross.” Or you might choose a trade where one side is conventional money and the other is a coin. These combinations are known as “crypto-to-fiat” ones. A crypto-to-fiat pair is typically the easier choice and is recommended if you are new to exchanging Cosmos.

Long-term or short-term trading 

It is a smart practice to think about what manner fits your spending limit and financial strategy before you begin your experience with crypto exchanges. For instance, you would choose the buy-and-hold strategy if you believed that the coin will appreciate and be a worthwhile investment over the long term.

You would buy the token directly, preferably from a licensed operator, and then keep it in a cryptocurrency wallet until you decide it is ready to resell and generate revenue. This strategy, which is often referred to as “HODLing,” does need some determination. 

To withstand any volatility that the token may have, you must remain steadfast in your strategy.

Short-term deals can be beneficial. However, this strategy primarily depends on a solid grasp of fundamental research, which includes several signals and chart interpretation. Therefore, the buy-and-hold strategy might be a nice place to start if you’re new to buying or selling coins.

Earn through trading 

By skating the cosmic coins, you can earn money. It simply denotes how much you are willing to take on each ATOM exchange. Like any monetary transaction, your result (sizable profit or a painful loss) depends on how much you are willing to invest. To present you with an illustration, you wager $330 on Cosmos and win a sizable 5% return or earnings of $16.50. If you invested $3,300 on your Cosmos transaction, it would have resulted in you earning a $165 profit.