In a year of great trends in the cryptocurrency market that has reactivated enthusiasm for investing in digital assets, there is one that is accumulating enormous demand thanks to its new collaborative way of operating in the markets.
Covesting is the first form of copy trading available in the cryptocurrency market, and as such it has opened up an entire subsector within the market that allows investors to partner to boost their profits.
This guide takes an in-depth look at not only covesting itself, but also the platform that offers access to this new form of cryptocurrency investment: the world's largest multi-asset margin trading platform, PrimeXBT.
The Basics of Covesting PrimeXBT
Covesting is a powerful tool for investors in cryptocurrencies and traditional assets, allowing them to collaborate to operate in global markets and form partnerships where they can take advantage of the knowledge of the best investors in the market.
Covesting offers advantages for a wide range of users, as investors who normally generate profitable strategies can easily secure a higher investment volume, while beginner investors can take advantage of the knowledge of more veteran investors.
As a testament to the value generated through covesting, it has become one of the fastest growing trends in the field of cryptocurrencies in 2020.
The Creation of Covesting
Covesting was developed in 2017 by what is now the leading cryptocurrency copy trading platform, Covesting.io. In that year, this platform was able to raise 18 million dollars in financing to incorporate copy trading into the cryptocurrency market.
Due to the clear demand for copy trading, the last few years since the launch of Covesting.io have seen how the platform incorporates the technologies and infrastructure necessary for the operation of this type of investment in the market.
2017 was a year in which many projects in the field of cryptocurrencies managed to be financed with several million dollars, but Covesting.io is one of the few that has really been able to build a new tangible industry, and it has become one of the authentic success stories from the field of cryptocurrencies.
What is the Structure of Covesting?
Covesting has a simple, but effective structure that involves two distinct groups of users operating with each other to reduce their collective risks.
Experienced investors, also known as 'strategy managers', start by creating peer-to-peer mutual funds in PrimeXBT's Covesting module, and link these funds to a specific strategy.
Investors, known as ‘followers’, choose which strategies they want to invest in, and by doing so they can copy the same trades as strategy managers, paying 20% of all profits that the manager is capable of generating for their followers.
What is Copy Trading PrimeXBT?
The Basics of Copy Trading
Basically, copy trading is a tool where some investors allow others to see the operations that they are going to execute in the market, and allow them to copy the same operations, share the same ROI and benefit from their knowledge and experience in the market.
In exchange for allowing others to copy their investments, the investors who lead them are rewarded, either with a one-time payment, or with a percentage of the profits they generate for others.
Because of the unique opportunities that copy trading offers, it has quickly become one of the most popular ways to trade online financial markets.
Copy Trading in Traditional Markets
Although covesting is now available in the cryptocurrency market, the original form of copy trading was introduced to traditional asset markets almost 15 years ago.
During this period of time, copy trading has grown rapidly, and is currently one of the main subsectors of traditional asset markets around the world. Millions of different investors use copy trading to invest in stocks and foreign currencies.
Large traditional asset market copy trading platforms, such as eToro, have been very effective in popularizing this form of collaborative investing, and have become capital platforms of the traditional asset market.
Advantages of Copy Trading versus Investing in Solitaire
The reason for the rapid growth of copy trading, both in the traditional asset market and now in the cryptocurrency market thanks to the launch of covesting, is the number of advantages it has compared to investing alone.
The most obvious is that investors can take advantage of the knowledge and experience of the best investors in the market, and by doing so, they can dramatically reduce their risks and have a much greater chance of generating returns with their capital.
Seasoned investors, who would normally only have access to their own capital to generate profits, can now use copy trading to maintain the same level of personal capital exposure, while enhancing the profits they can generate.
Why 2020 is Important in the Growth of Covesting?
Although Covesting.io has been building the necessary software to develop covesting for a wider audience in the crypto field, the greatest impact on its growth has been achieved thanks to its partnership with the leading global multi-asset margin trading platform, PrimeXBT. .
In late 2019 it was announced that the partnership between PrimeXBT and Covesting.io would incorporate covesting into PrimeXBT in 2020, which meant that this new form of cryptocurrency copy trading would reach a wider audience.
PrimeXBT is one of the world's leading cryptocurrency margin trading platforms, and the integration of covesting into their systems has been a significant step for both Covesting.io and PrimeXBT.
Where Can Investors Covest PrimeXBT?
PrimeXBT is the world's leading multi-asset margin trading platform, and one of the leading cryptocurrency investment platforms. It was launched in early 2018 with a waiting list of more than 150,000 investors, and in recent years it has grown rapidly to manage more than 2 billion dollars of global investment daily.
PrimeXBT is considered a next-generation cryptocurrency investment platform, and has been one of the industry's top innovators since its launch.
At the beginning of April 2020, the project announced the launch of the beta phase of the Covesting module on its platform. The beta was operational for 4 months and was declared a success in August 2020, after receiving more than 1 million dollars in capital in its different funds.
Unlike many other cryptocurrency investment platforms that were built years ago and have maintained the same software ever since, PrimeXBT is a more modern and technologically superior cryptocurrency investment platform.
PrimeXBT's investment engine is much more robust than other platforms and is capable of executing up to 12,000 trades per second, ensuring that it is free of glitches during periods of high trading volume.
PrimeXBT is a professional investment platform that has been designed to be reliable and has some of the best investment tools and services on the market.
PrimeXBT is known for being a safe investment platform, a result largely of the fact that it has never been hacked or leaked in all its years of operation.
To achieve this, PrimeXBT has integrated a range of bank-grade security tools including cold storage of digital assets with multi-signature technology and FIPS PUB 140–2 Level 3 or higher security hardware modules.
A big difference between PrimeXBT and many of the other cryptocurrency platforms is that PrimeXBT does not use a hot and cold wallet system, but instead stores all its users' funds in a cold wallet to prevent any kind of hacking.
Users on PrimeXBT have direct access to some of the cheapest ways to trade global markets, as the platform offers the lowest fees of the major cryptocurrency platforms.
Investors in PrimeXBT pay a flat fee of 0.05% on all trades, regardless of the asset class they trade or the volume of the trade, which is much less than on many other platforms.
Additionally, as PrimeXBT is one of the largest multi-asset investment platforms in the world and offers access to different asset classes from a single account, investors can move their assets from the cryptocurrency market to the traditional asset market and save time and money. money.
Advantages of Covesting: Followers
Copy the Best Investors in the Market
Easily the biggest advantage for followers when covesting on PrimeXBT is the ability to copy the trades of the best investors on the market and share their same profitability levels.
This follower capacity is unprecedented and unique to covesting on PrimeXBT. There is no other way to quickly and easily partner with the best investors on the market and duplicate your operations.
This offers great advantages for a large number of investors who are not able to create as profitable operations as the best investors in the market.
New Investors Massively Reduce Their Risks
Perhaps the group of people who gain the most from covesting on PrimeXBT are inexperienced new investors who typically take the greatest risks when starting trading.
By using covesting, these novice investors can easily tap into the knowledge of the market's veterans, and in doing so can greatly reduce the risks they take.
This is the first time that new investors have been able to trade the markets in a carefree way and simply leave their capital in the hands of the best professional investors.
A huge advantage for followers of the PrimeXBT Covesting module is that they have access to a wide range of data in order to decide where to invest in a more informed way.
This includes metrics on each strategy such as the total capital that the manager has put into it, the total capital of the followers, the total number of followers, the margin that the manager has used, its historical profitability and its profitability in the last 24 hours .
With this and other data, followers can better understand each strategy and discern if it fits their goals in terms of potential risks and benefits, so they can make an informed decision whether to invest in it.
Advantages of Covesting: Strategy Managers
Enhance the Benefits with the Same Exposure
Strategy managers can move their existing operations on the platform to PrimeXBT's covesting module, and without increasing their capital, they can take advantage of the capital of their followers to increase their profitability.
Previously, investors would have to borrow or use very high leverage to achieve the same results, but PrimeXBT's Covesting module facilitates this increased profitability without increasing risks.
For this and other reasons, we have seen significant growth in the number of strategy managers who are using PrimeXBT's Covesting module to build new profit streams in the markets.
Access to a Wide Pool of Investors
Strategy managers can also use PrimeXBT's Covesting module to access a broad set of investors who are actively looking for the best opportunities to invest on the platform.
This is in contrast to what would normally be required, with strategy managers looking for investors abroad to convince them to invest in their operations.
Now, strategy managers can focus on creating profitable and consistent trades in the markets without spending any time searching for investors abroad, allowing them to use the transparent data provided on the success of their trades as a marketing tool.
Chance to Earn Reputation
Strategy managers at PrimeXBT can also gain a strong following on social media following their success, and gain a greater presence in the investment world.
This has the effect of boosting your exposure in the field of cryptocurrencies and increases your following and the volume of investment in your strategies.
Due to the data it offers on the success of its operations, PrimeXBT's Covesting module works as an excellent promotional vehicle for any investor who wants to become an influencer in the field of cryptocurrencies.
Covesting on PrimeXBT: Account Settings
Registration or Access
The first step to start covesting in PrimeXBT for both managers and strategy followers is to have an active account, so you will have to access yours or register a new one.
To register a new PrimeXBT account, simply go to the PrimeXBT registration page, and from there you will be prompted to enter a phone number and an active email address.
PrimeXBT is fully KYC / AML compliant and offers its users a simple registration process, unlike many other platforms that request a lot of invasive personal data.
When you have accessed your PrimeXBT account, the next step is to fund it. PrimeXBT offers a wide range of ways to fund your account.
You can simply click on the profile icon in the upper right corner of the screen, and in the drop-down menu, click on the 'Deposit to Wallet' tab to go to the deposit interface.
Here you will see that you can make a direct deposit with Bitcoin to your account, or use the PrimeXBT integration with Changelly to make a direct deposit using a credit or debit card.
Go to Covesting Module
The next step after funding the account is to go to the main interface of the Covesting module and see how it works.
This can be easily accomplished by clicking on the 'Covesting' tab in the top menu of any page. You will then access the main interface of the Covesting module, which shows a table with all the available operating strategies.
In this interface, in addition to seeing the strategies where you can invest, there is also a menu on the left that shows some important options.
The main interface of the Covesting module is the starting point of covesting in PrimeXBT, for both managers and strategy followers, and is the central page to access all other screens
Covesting en PrimeXBT: Followers
The next step for followers in the PrimeXBT Covesting module is to analyze and compare the different strategies available to invest in the module.
In the table you will see that a whole series of data is shown. Additionally, clicking on any strategy will take you to its main page, which offers even more details.
Data is available for followers to analyze and compare strategies, including your profitability, your number of followers, your total capital, the amount of your manager's capital, and the margins you have used.
When you have thoroughly analyzed and compared the strategies, you can decide which ones you want to follow to copy the same operations used in them.
It is a simple process that begins in the main interface of the Covesting module, where followers can click the 'Follow' button to the right of each strategy they want to follow.
Alternatively, followers can click on the strategy and, on the next page, press the 'Follow' button to the right of their screens.
Monitor the Portfolio
When a follower has officially started following a strategy, all that is left for him to do is monitor the progress of his investment and check the performance of the strategies he is following.
This can easily be done by going to the main interface of the Covesting module and clicking on the 'Portfolio' button in the menu on the left.
Here you will see all the currently active strategies that you are following, as well as a list of the previous strategies that you were following, but no longer.
Covesting at PrimeXBT: Strategy Managers
Compare Existing Strategies
As a strategy manager at PrimeXBT, the first step is to review the strategies that have already been implemented by other strategy managers.
This can be done by going to the main interface of the Covesting module and then reviewing the table where all the currently operating strategies appear.
You will be able to see metrics such as the profitability that other managers are achieving with their strategies, the number of followers and the volume of their investments, and the types of margin that each manager uses. All this informs about the different successful strategies that are implemented in the market.
The next step is to create your own strategy in the PrimeXBT Covesting module, to start investing and get followers and investment.
This can be done by going to the main interface of the Covesting module and then clicking the 'Create Strategy' tab from the menu on the left.
In the next interface, all you need is to name your strategy, describe it in detail and decide the amount of Bitcoin that you will deposit in it as an initial investment.
The final step for strategy managers is to manage the strategies they have created. It is a simple process in the PrimeXBT Covesting module that will allow you to know how many followers your strategy has generated and how it is performing.
Strategy managers can create and manage a variety of strategies, so it is important that they understand which ones perform the best and what modifications to make to the others.
In PrimeXBT's Covesting module, the best strategies are prominently displayed at the top of the table in the main interface. This acts as an incentive to offer followers the best possible strategies and thus achieve the highest levels of exposure.
The launch of covesting has been one of the most significant developments in the field of cryptocurrencies in recent years, and since then we have seen the adoption and exposure of covesting grow exponentially.
During 2020, covesting has achieved even higher levels of exposure, as the partnership between Covesting.io and PrimeXBT has enhanced the profile of covesting and exposed it to a much wider audience than before.
If you want to know more about covesting in PrimeXBT, the advantages of covesting compared to other forms of investing, and the kind of tools available in PrimeXBT, visit the PrimeXBT Covesting module page.