Users are able to earn passive rewards from delegating to validators that have been voted top 125. There are two ways users redeem their rewards—compound or cash-in. When choosing to compound rewards, users immediately add their newly received ATOMs to their existing delegation to potentially gain rewards at a faster pace. When cashing in rewards, users will receive the ATOMs from delegation. Unlike the compound option, these ATOMs won’t be delegated and locked yet, which means that the ATOMs can be used for transactions.
Users should be aware that when redelegating or delegating more assets to a validator, outstanding rewards will be claimed without creating a transaction. This means that there wouldn’t be a trace of this, except that it will be reflected in your balance. Also, since an ATOM holder gets to vote on the validators, if a validator drops out of the top 125, you will stop earning rewards since the validator can’t create blocks. Since Cosmos is the “internet of blockchains,” it’s available across a number of major exchanges and many people choose to buy on Binance, Coinbase, and OKEx.
View more information: https://marketrealist.com/p/what-is-cosmos-crypto/