Best 3 Ways Covesting Can Improve Your Crypto Investing

As the cryptocurrency market has become more sophisticated in the past few years, a number of alternative ways of interacting with the market for optimized outcomes have become popular and have grown rapidly, building large numbers of followers and making up a large amount of total global trading volume in the crypto market.

One particular cutting-edge new way of investing in cryptocurrency market is Covesting, the world's first form of cryptocurrency copy trading and a unique way to be able to partner with some of the top performing traders in the market and to take a hands-free approach to investing.

In this guide, we take a look at the best three ways Covesting can improve your crypto investing in 2021, starting with a look at what Covesting actually is and how Covesting is grown in the past years, before moving on to look at the partnership with PrimeXBT that has dramatically increased the growth of Covesting, then some of the benefits of Covesting, and the three best ways that Covesting can improve your crypto investing.

What is Covesting?

Covesting is the largest and most popular form of copy trading in the cryptocurrency space, and as well as this it was the first kind of copy trading to become available in 2017 when Covesting.io successfully launched with an ICO that netted the project more than $18 million in funding.

Covesting allows cryptocurrency users to be able to connect with each other and to be able to collaborate in order to achieve improved outcomes in the cryptocurrency market by allowing the top performing traders to designate how capital will be allocated for the rest of the group.

The mechanism used in Covesting in order to achieve the system is a peer-to-peer investment fund structure where uses known as strategy managers can create funds that are directly connected to the strategies and trades, and then other uses known as followers are able to invest that capital into those strategies.

How Has Covesting Grown in the Last Few Years?

When Covesting began there was no other option for cryptocurrencies users to be able to access copy trading and therefore the project has grown exponentially over the past few years as a huge number amount of unmet demand that had been in the cryptocurrency space for years was finally being catered for by Covesting.

The project has gone from strength to strength as it has forged a number of powerful partnerships and has worked tirelessly to develop the tools and infrastructure that will be required to bring copy trading to the cryptocurrency space for the first time.

In particular, over the past 18 months Covesting has grown exponentially following a partnership with the world's leading multi-asset margin trading platform, PrimeXBT, and the integration of Covesting into PrimeXBT systems to allow its users to have direct access to crypto copy trading.

PrimeXBT Partnership

News broke in early 2020 that a partnership between PrimeXBT and Covesting.io had been agreed upon and that the aim of the partnership was to develop a module that would be integrated into PrimeXBT and that would provide direct access to Covesting to its users.

From April 2020 until August 2020, PrimeXBT's Covesting module ran as a beta in order to gather data and feedback from users in order to optimize the way that the module operated.

In August 2020, the beta phase of PrimeXBT's Covesting module was announced as a success following more than $1 million in equity being provided by different followers into strategies on the platform, and the top performing strategy managers earning their followers more than 1800% ROI over the course of the beta phase.

What are the Benefits of Covesting?

Reduce Your Risk

The main benefit of using Covesting is the ability to dramatically reduce risk by partnering with some of the top performing traders in the cryptocurrency market and leveraging their knowledge and experience in order to be able to create profitable trades regularly and reliably.

This means that the Covesting module is particularly advantageous for inexperienced and novice traders that are new to the market and that are still learning the best ways to be able to execute profitable strategies.

This ability to partner with some of the top performing traders in the cryptocurrency space is unprecedented and has never been available before, however with the use of Covesting it is possible to be able to share in the same ROIs as veteran professional traders, even with only a few weeks or months experience in the crypto space.

Increase Your Revenue

For traders that already have a level of experience that they are able to reliably generate profit with cryptocurrencies, they are able to use PrimeXBT's Covesting module in order to be able to boost the revenue they generate with the trades, being that as well as the revenue they generate from their own capital, now using Covesting there are able to generate additional revenue streams from the followers as well.

In return for providing the followers with the ability to be able to copy the trades, strategy managers earn a success fee of 20% on all the profit that they generate on the half of the followers, with this often leading to higher revenues from that follower success fees event from their own capital.

Typically it can be complicated for successful traders to be able to access additional funds to boost the revenue, however by using PrimeXBT's Covesting module this becomes an easy process where there is a ready pool of investment waiting to invest into the strategies.

Build a Following

Many of the top performing strategy managers in PrimeXBT's Covesting module have built large followings on crypto social media as a result of using the metrics from the module to display their ability to be able to trade effectively.

One of the key advantages of using the Covesting module is that there is a huge amount of data provided about each strategy and each strategy manager, with strategy managers being able to publicly display the that successful trades and the percentage of the trades they execute which are successful and this acting as an effective marketing tool for them in social media.

No other platform provides the opportunity for traders to be able to market themselves so effectively throughout the Internet as PrimeXBT's Covesting module, and many of the leading traders on the platform have built significant followings throughout crypto social media as a result of this.

Best 3 Ways Covesting Can Improve Your Crypto Investing

Partner with Veteran Traders

PrimeXBT's Covesting module provides the ability for easy access to professional traders and a system that facilitates partnerships between traders that may have a lesser experience and those traders that can reliably generate profits.

Typically it can be almost impossible for new traders to be able to find experienced traders to invest their capital with, especially at the retail level where there aren't the same sorts of services that institutional investors have at their disposal, and instead many retail traders and investors are left to have to create trades themselves and to compare the results of those trades whether they are profitable or losses.

However, now with use of PrimeXBT's Covesting module it is possible to be able to partner with top performing traders and to place your capital in their hands, taking a hands-free approach to cryptocurrency investing, and generating larger amounts of revenue in the process as well.

Easily Diversify Investments

Diversification is one of the most important considerations to make when developing a well-balanced and secure crypto portfolio, with it being important to spread investments across a number of complementary assets and asset classes in order to be able to protect the investment against adverse events and news.

Typically when diversifying a portfolio, investors will have to stand select each investment themselves and this can take a significant amount of time, particularly if the investor is looking to select a wide range of different cryptocurrencies to invest into.

However with use of PrimeXBT's Covesting module it is easy to diversify a crypto portfolio by selecting a relatively small number of strategies to follow, with the likelihood being that each of the strategies will then be invested into different assets themselves, and this then leading to an automated diversification process where by following a relatively small number of different strategies that in total capital from the follower will be invested into a much wider number of assets.

Access Many Assets

While typically crypto investing will be a relatively homogenous process that focuses solely on a few different sectors of the crypto space, with the use of PrimeXBT's Covesting module investors able to have the portfolio and contain not only cryptocurrencies but also traditional assets as well, being that PrimeXBT is the world's leading multi-asset margin trading platform.

This is a unique advantage of using PrimeXBT, and in particular using PrimeXBT's Covesting module, being that strategy managers are able to invest into a wider range of assets on behalf of the followers than any other related copy trading system in the cryptocurrency space.

This makes it easy for followers to be able to take a hands-free investing approach while also enjoying the benefits of investing across a wide and diverse range of different assets that may include stocks, forex pairs, and commodities as well as cryptocurrencies.

Final Thoughts

We see that Covesting provides a number of advantages and benefits and that the best three ways of Covesting can improve your crypto investing are the ability to partner with veteran traders, the ability to easily diversify investments in the crypto market, and access to a wide range of assets to invest into.

Each of these advantages works together in order to provide unique forms of value for users and to open up a range of opportunities that are presented and that can lead to dramatically better outcomes in the crypto space.

You like to learn more about Covesting, how to start Covesting, and more of the advantages of doing so, check out PrimeXBT's Covesting module.