Similar to my last article on Algorand, you can shoot to the stars and earn 5% APR (APY) on Cosmos (ATOM) via Coinbase.
This still beats many UK high street banks who only offer 0.01%-0.2% APR at the moment on your savings.
As ATOM is a Crypto currency, so the Crypto price vs Fiat currency will always fluctuate, but the 5% APR is based on ATOM* payouts on the total amount of ATOM you have invested in your account.
What is Cosmos?
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.
Serving as the economic center of Cosmos, the Cosmos Hub is a blockchain that provides vital services to the Interchain.
In return for securing the services on the Cosmos Hub, transaction fees and staking rewards are distributed to ATOM stakers.
Cosmos is a essentially a decentralized network of independent parallel blockchains, each powered by consensus algorithms
The chart below shows the trading price of Cosmos over the last year.
How often are the Cosmos payouts?
Using Coinbase, when you hold Cosmos ATOM in your account you can earn c. 5.00% APR. The exact amount is based on the Cosmos rewards generated by the protocol.
To get started just add a minimum of 1 Atom to your Coinbase account. n.b. 1 Atom is currently ?15.75. Your first Atom reward should then appear in your account within a few weeks. After that the rewards will be added every 6 or 7 days.
And I can certainly vouch that it does payout. I have about 2.34 ATOM (?37.00). It took 16 days for the first payout, and then it pays out again every 5 or 6 days. It's isn't huge (?0.03 per payout - about half a pence daily).
In terms of an investment I put in ?31.76 just under a month ago, and today it is worth ?36.93 - a 16% increase in fiat equivalent. But I am aware the prices fluctuate and may go down as well as up.
Should I buy ATOM?
If you are a trader, you are probably not interested in a 5% APR (APY) return. You would be able to make much more by trading.
However, if you are a HODL'er then it may be worth thinking about having some ATOM in your portfolio. As well as hoping that the Crypto price will rise over time, you will also receive ATOM over the time period too.
This is my second foray into Crypto and I am still only investing small levels whilst learning about the markets and seeing how it works and if the rewards would be paid.
I personally think that ALGO provides better returns on paper than ATOM does as it has a higher interest rate and a daily payout. But it depends on how you think the value of ATOM will rise in the future, and how you want to spread your own risk across your portfolio.
Note : All of my articles are my own work and relate to my own personal experience. Investing is always at your own risk.
