How to Buy the COV Token [2021]
The COV token has been one of the top performing cryptocurrencies of 2020 with its price growing by more than 1,000% from March 2020 until the end of the year, and this dramatically outperforming many of the other altcoins in the market throughout the same period of time.
The rapid growth in the value of COV has been largely fuelled by the significant amount of hype surrounding covesting, the world's first form of cryptocurrency copy trading, and the project behind the COV token which has grown exponentially over the past few years in the cryptocurrency space.
This guide is taking a deeper look at covesting as a way of interacting with the cryptocurrency market and the COV token as a potential investment for 2021 is bull run, starting with a look at what the COV talking actually is and what the new COV token utilities are as well, before moving on to looking at buying COV on a number of popular platforms.
What is the COV Token?
The COV token is the native cryptocurrency of the Covesting ecosystem, which means that users of covesting are able to spend COV in order to access a number of different utilities which can on lock powerful benefits that reduce the cost of using the Covesting module and increase the amount of revenue that can be generated there.
COV launched in 2017 when Covesting.io ran its ICO and raised more than $18 million as a result of the high demand for cryptocurrency copy trading that had been unmet until the launch of the project, as well as the range of innovative features and tools that Covesting touted that it will be bringing to the market.
Now 4 years later we can see that Covesting.io was indeed true to its word and has exceeded the initial promises that it made during its ICO and has turned covesting into one of the most hyped and enthusiastically received trends of 2020 and 2021 as a result.
What are the COV Token Utilities?
The COV token utilities are a range of new ways that COV can be spent on the Covesting model on PrimeXBT in order to open up a number of different features that will work to increase the demand for the COV token and reduce its supply, while also benefit in covesting users at the same time.
The 4 new COV token utilities that have been recently announced by the project are the ability for followers to remove the need to pay a 1% entry fee for following new strategy managers, the ability for followers to gain more of each success fee that is generated as a result of positive trades, the ability for strategy managers to reduce their trading fees by up to 75%, and the new COV token burn program which will see up to 50% of the fees generated on the Covesting module put towards buying and burning COV.
These 4 new COV token utilities are only the beginning of a myriad of new token utilities that have been announced and will be integrated into PrimeXBT, however even just these 4 initial token utilities have had a dramatic impact on both the covesting community and the price of the COV token.
Buying COV on UniSwap
Pros of UniSwap
Retain Custody of Assets
One of the main advantages of using Uniswap is the ability to retain custody of any assets that are traded there, being that Uniswap is a decentralised exchange, and this means that instead of having to deposit assets, such is the case with centralised exchanges, only the connection of a wallet such as Metamask is required.
This means that users only access their Metamask balance and do not provide custody of the tokens that are stored on Metamask to Uniswap, with this allowing for a safer way for trading that reduces the risk of being hacked or of the trading platform being used stealing their funds or of being hacked themselves.
This is particularly advantageous considering the number of centralised trading platforms which have been hacked over the past few years including some of the largest platforms in the world like Binance and even KuCoin as well, which saw $150 million stolen from it in 2020.
Modern Attractive User Interface
Uniswap has a modern and attractive user interface which makes it enjoyable to use the platform and also makes it easy to navigate throughout the different sections of Uniswap.
Being the fact that Uniswap is less than a year old it, uses an engaging and interesting design structure and also being that the platform is a part of decentralised finance, which is a cutting-edge section of the cryptocurrency space, most of these platforms choose user interface designs which is a bit more innovative.
While centralised trading platforms often have a professional design, the design used on Uniswap is a lot more along the lines of low-key and minimalist.
Cons of UniSwap
Typically More Slippage with Larger Trades
Because Uniswap uses a bonding curved in order to decide what the trading value will be at any point, as opposed to using an orderbook such as centralised exchanges like KuCoin does, it means that when higher larger trades are executed that there is a higher chance of there being more slippage present.
This means that when using Uniswap it may be beneficial to make smaller trades instead of making one large trade, however this reduces the efficiency of using the platform in comparison to a centralised exchange where a single trade can be made.
While this isn't the end of the world, it certainly is an important consideration for regular users of Uniswap that need to regularly buy and sell COV.
Buying COV on KuCoin
Pros of KuCoin
More Liquidity
KuCoin is the largest trading platform that provides access to COV markets and as a result has a large amount of liquidity in relation to COV.
This is advantageous for all traders of COV, but in particular it is advantageous for those that would like to make large trades being that there is lower slippage with KuCoin and that more optimal entry and exit points can be found.
While currently KuCoin is the largest trading platform that provides COV markets, Uniswap is growing rapidly in the amount of trade volume that it provides for COV users and may overtake KuCoin at some point in the future.
Uses Orderbook
KuCoin is a centralised cryptocurrency trading platform and therefore uses an orderbook in order to decide what the exchange rate will be for any trades that are executed on the platform at any given time.
If this means that unlike bonding curve-based trading platforms, that trades of all sizes typically have less slippage and the impact of liquidity does not have such a big impact like it can on decentralised exchanges such as Uniswap.
Orderbooks are often easier for many users to understand as well in comparison to having to understand the way that bonding curves work and to figure out exactly what the amount of COV will be traded for the amount of the counterasset.
Cons of Kucoin
Custody Taken on All Assets
Being a centralised exchange, KuCoin takes custody of all assets that are traded once a trader makes a deposit into their balance, and while inherently this is not an issue if a platform is secured, KuCoin has had recent issues with a $150 million hack.
What this means is that unlike other centralised trading platforms that may be secure and have never been hacked, the fact that KuCoin has been hacked recently means that large amounts of cryptocurrency should not be stored on the platform, where this is not a concern for Uniswap being that Uniswap does not take custody of any assets.
In order to safely secure COV once it is purchased on KuCoin it is a good idea to use a hardware wallet such as Trezor in order to store your COV safely.
Buying Cov on PrimeXBT (Soon)
Pros of PrimeXBT
Lowest Fees
PrimeXBT provides the lowest fee schedule of any major cryptocurrency trading platform on the market with a low flat rate of 0.05% on all trades are respective of the asset class being traded all of the size of the trade.
To put into perspective how low PrimeXBT’s trading fees are in comparison to other trading platforms, there are other major crypto trading platforms in the market that charge anywhere up to 10 times as much as PrimeXBT in order to use their services.
When using PrimeXBT, a significant amount of cost can be saved by traders and investors and this is one of the reasons that PrimeXBT has grown at an exponential rate since its launch in early 2018.
Best Security
PrimeXBT is one of the leading crypto trading platforms with regards to security and the safety of users, with PrimeXBT never being hacked and never being breached throughout its many years of operation.
This puts PrimeXBT into a small group at the top of the cryptocurrency markets that have never been hacked at all, with PrimeXBT implementing a range of bank-grade security features that have ensured that this has been the case.
One of the more interesting security features implemented on PrimeXBT is the fact that the platform does not implement a hot and cold wallet system as many other trading platforms do, but instead simply implements a cold wallet system and stores all of its users’ funds in accounts disconnected from the internet for additional protection.
Cons of PrimeXBT
Not Available Yet
The only real disadvantage of using PrimeXBT to buy COV tokens is that currently this is not available, and it is in the pipeline as to when PrimeXBT is going to implement this functionality.
Once COV is available for purchase on PrimeXBT it will perfectly complement the fact that the home of covesting online is PrimeXBT’s Covesting module and covesting users will be able to buy COV and use it on the Covesting module under a single roof.
Other than this, PrimeXBT is an excellent trading platform to use for investing in COV, as well as investing in a range of cryptocurrencies and traditional assets that are listed on the site and it is one of the leading trading platforms in the market in 2021.
Final Thoughts
COV is touted to be one of the top performing altcoins of 2021’s bull run, with this being largely as a result of the huge growth of covesting over the past couple of years, the recent introduction of a range of new COV token utilities, and in general the fact that COV is still largely undervalued at this point in time.
There are a range of different platforms online that can be used in order to secure COV, with such as Uniswap, KuCoin, and PrimeXBT being the top three platforms for this purpose.
If you would like to learn more about COV, the way that covesting can assist in improving your trading outcomes, and the Covesting module in general, check out PrimeXBT’s Covesting module.