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Home Bitcoin Covesting Brings Bitcoin Investing Alternatives To The Crypto Market

Covesting Brings Bitcoin Investing Alternatives To The Crypto Market

by James Musoba
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Let’s be real: should you invest in Bitcoin? We’re not asking about if Bitcoin is worth investing in, but instead should you personally be investing in cryptocurrencies – a highly volatile asset class? Unless you have experience with markets, the answer is probably no and less volatile assets like stocks are more suitable.

Cryptocurrencies are not for the faint-hearted, but for those that are new but simply must get involved in Bitcoin, Ethereum, and the rest of what the market has to offer, fortunately Covesting has some solid alternatives to investing in Bitcoin in a traditional sense.

What Is Covesting?

Covesting is a name given to many things: the utility token, the copy trading module, and the Europe-based developer that created the rest.

Covesting it a DLT-licensed fintech software designer who sought out to create a copy trading solution for the masses, and at the center of it all was the COV utility token that powers the ecosystem and provides token holders with the most possible value.

The Covesting team, for example, regularly burns COV tokens to reduce the circulating supply and improve the conditions for token holders. Tokens in circulation can be staked to unlock a variety of account level utilities through three new memberships: Advanced, Premium, and Elite.

Using the COV token is the key to getting the most out of the many Bitcoin investing alternatives that Covesting has created.

What Is Copy Trading?

The first alternative to traditional crypto investing is called the Covesting copy trading module, and it is available on the award-winning trading platform PrimeXBT. Covesting chose to launch its copy trading module on PrimeXBT due to the large variety of CFDs, long and short positions and other tools that make strategy managers more effective.

Traders use Covesting to become strategy managers, who then trade at their best possible skill level to try to advance the ranks of the fully transparent global leaderboard system. The higher the profits they make, the higher their ranks. Strategy managers can also stand out from the pack by getting all five stars in the specialized rating system. Each star denotes a specific adherence to high success, low loss rates and maintaining strict margin allocation.

The way anyone can utilize Covesting as an alternative to Bitcoin investing, is by becoming a follower. Followers on Covesting can follow top strategy managers and copy their trades. Rather than being exposed to Bitcoin and suffering losses when there’s a drawdown, using Covesting users can copy the trades of more skilled users who know how and when to short the market.

Top Covesting traders had more than 1,000% ROI after their recent crypto crash while most others on traditional Bitcoin investing platforms were left with substantial losses to show for it.

Becoming a follower is easy and takes only a few clicks. Using the transparent data followers can select which strategies are right for their goals and risk appetite. Followings can be stopped at any time, and more than one following is possible at once so anyone can build a diverse portfolio.

Rather than investing in all kinds of altcoins, puting capital behind these strategy managers who regularly show success can be much more profitable and rewarding. Followers can take their profits even further by staking COV tokens, which unlocks additional account level utilities that boost profits.

Strategy managers also benefit from staking COV tokens, which unlock a trading fee discount for strategy managers. Strategy managers can also increase their follower account, while followers can improve the profit share in their favor. Finally, new following entry fees can be eliminated with any COV staking membership level.

What Are Yield Accounts?

Coming down the pipeline according to the Covesting development roadmap and a company announcement from PrimeXBT, is another alternative to traditional Bitcoin investing called Covesting Yield Accounts.

An extremely popular alternative to Bitcoin has been the DeFi industry, or decentralized finance. Most of DeFi is built on top of Ethereum which is why Ethereum has outperformed Bitcoin for the last several years.

DeFi is designed to disrupt traditional finance by offering permissionless access to borrowing and lending services. Rather than submitting a credit check and personal details, in a few clicks users can stake their tokens, and get a flash loan to pay bills or cover an emergency situation. Best of all, there’s no need to sell any coins.

Probably the most popular aspect of DeFi, however, has been generating an APY through yield generating accounts. Most crypto centralized crypto exchanges provide liquidity for users. But with DeFi platforms like Uniswap, users provide the liquidity to the platform itself.

In exchange for staking tokens and providing liquidity for traders, the users receive an APY rate paid in crypto rewards. It is a financial incentive for providing liquidity paid for by the fees generated from trading. When trading volumes are high, APYs can increase due to demand. This is how variable APY rates are set.

The problem with DeFi, however, is the fact it takes a lot of technical know-how and experience to utilize properly. Users must connect a crypto wallet to a decentralized exchange and then provide liquidity. There are risks involved with providing liquidity, so be sure to understand what this entails.

Making it a lot easier for those without tons of experience with blockchain technologies or DeFi, Covesting will debut new Covesting Yield Accounts in Q3 2021. The system is designed to provide quick and simple access to top DeFi protocols right through the PrimeXBT dashboard. There’s no need to connect wallets or jump through hoops – just load up the account system and select which assets to begin staking in exchange for an APY.

The Covesting Yield Account interface will sum up expected returns before users confirm to proceed with staking. Users can stop staking at any time, and by staking COV tokens, users can unlock up to a 2x APY boost. There’s also a 1% APY boost during the first month after launch for those who sign up to a growing waitlist.

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