What are the Advantages of Covesting Over Normal Trading?

Earlier this year, news broke that crypto social trading market leader, Covesting.io, had entered into a partnership with the world's leading multi-asset margin trading platform, PrimeXBT, in order to develop any modules that would bring social trading to the platform for the first time.

The news of this partnership and its implications have many traders curious to find out what the advantages of covesting are compared to normal solo trading, and whether it is worth covesting on PrimeXBT in the search for higher profits and reduced risk.

This guide breaks down exactly what the partnership between Covesting.io and PrimeXBT means for traders, the advantages and benefits of covesting instead of normal trading, and how to get involved with covesting on PrimeXBT.

What is Covesting?

For the first time in cryptocurrency industry, traders and investors have access to the ability to collaboratively social trade together, which is something that has been widely available in the traditional asset market for almost 15 years, with the same only being true and the crypto space over the last 3 or 4 with the launch of the Covesting.io.

Covesting is a form of social trading where experienced traders can create peer-to-peer investment funds and secure investment in a flexible and seamless way, with this structure providing a range of benefits for both investors and investment fund managers.

The investment funds used in covesting are attached to a specific strategy, with potential investors being able to scan through a list of different strategies to see data including the historic ROI of each strategy, as well as the kind of strategy that is being implemented by a fund.

Where is Covesting Available?

Covesting was originally created in 2017 with the launch of the social trading market leader, Covesting.io, and over the past 3 or 4 years the number of total users who are covesting has grown exponentially, creating a new sub-sector within the cryptocurrency market in the process.

In early 2020, it was announced that a partnership between Covesting.io and the world’s leading multi-asset margin trading platform, PrimeXBT, was underway and that a module would be developed and integrated into PrimeXBT to allow for its users to access crypto social trading for the first time

The ability to social trade cryptocurrency is unique and only found at Covesting.io and PrimeXBT’s Covesting module, with this powerful partnership leading to a huge growth in crypto social training over the past 3 or 4 years, and one that looks to continue well into the future as well.

What are the Advantages of Covesting Over Normal Trading?

New Traders Can Reduce Their Risk By Partnering With Experts

The most risk-filled period of time in the career of any cryptocurrency traders is the first few months as they enter the market and have to trade whilst having relatively limited knowledge and experience in order to make decisions with.

Typically this leads to a prolonged period of time where the new traders will generate more losses than profits, and often if the size of the losses or the volume is large enough, this will lead to the exit of the trader from the cryptocurrency market.

Covesting on PrimeXBT allows for new traders to be able to take a shortcut to profitability even if their experience level is not high enough to be able to reliably generate profit, and this is achieved by leveraging the market knowledge of veteran traders that have been in the market for years and understand how to create profitable strategies.

Capital Can Be Pooled with Many Other Traders

Another major benefit of PrimeXBT’s Covesting module is the ability for many different crypto investors to be able to pool their investment funds together, and to use their capital in order to maximize their individual profits within the cryptocurrency space.

When multiple crypto investors become followers of a strategy manager’s fund, the profit that the strategy manager generates in the form of a 20% success fee is a significant incentive for them to develop strategies that will maximize the profit that those followers receive.

In return for this investment, strategy managers give new traders the opportunity to use their capital along with the capital of other followers in the fund to achieve ROI’s of up to 1800% over the course of a few months, as was seen in the beta phase of PrimeXBT’s Covesting module that launched in April and is now concluded.

Traders Can Earn Profit without Having to Trade

One of the biggest negatives of trading cryptocurrency is the significant amount of time and focus that needs to be given to managing trades and watching trading charts, with this not only eating up a lot of time but also generating a lot of stress as well.

Not only are followers on PrimeXBT’s Covesting module able to access higher return on investments than they would be able to achieve on their own, but they can do so in a way where they can free up all of their time without the need to have to monitor charts anymore, and to be able to do other things while they earn money.

This makes covesting on PrimeXBT a hassle-free and hands-off way of accessing some of the highest profits available in the cryptocurrency market, and allows investors to even be able to make profit in their sleep, instead of being sleep deprived while they watch crypto charts.

Experts Can Access a Large Capital Pool

A major advantage for traders that are able to reliably generate successful strategies in the cryptocurrency market is the ability to quickly and easily access investment capital from a wide range of investors, something which is typically difficult.

Strategy managers only need to develop strategies that perform well in order to attract the attention of thousands of investors that use the Covesting module, and are actively looking for the best investment opportunities.

The need for strategy managers to outreach in order to gain investment is completely removed, with that leaving more time for strategy managers to focus on generating possible trades, and less time on securing investment.

In Conclusion

With the announcement of the partnership between Covesting.io and PrimeXBT, and recent announcements of the successful 4-month beta phase where more than $1 million worth of equity provided by followers to investment funds on the Covesting module, many have seen this as a very positive sign for the future of crypto social trading.

There are a wide range of advantages to both strategy managers and followers that use PrimeXBT’s Covesting module, with these typically being related to the ability to increase profit, or the ability to reduce risk in the market.

Learn more about PrimeXBT’s Covesting module and how to get involved with covesting in general, check out this link.