Covesting is a popular new way for cryptocurrency users to be able to collaborate together and to open up a range of new advantages and benefits by doing so that typically lead to the reduction of risk and increase in collective revenue.

On PrimeXBT’s Covesting module, users are charged entry fees when partnering with experienced traders for the first time, with these fees amounting to 1% of the total investment, with there now being a mechanism available in order to remove the requirement to pay this entry fee.

Because of the dramatic impact on profit that this can have for investors, this guide is breaking down exactly how to use covesting with no entry fee, starting with a look at what covesting is before moving onto exactly how to use covesting with no entry fees, and then finishing off with a range of other similar new mechanisms on the platform as well.

First Up, What is Covesting and How is It Beneficial?

Covesting is the First Crypto Copy Trading

Covesting was the first form of cryptocurrency copy trading to ever be created and brought to the market, and this is a stark contrast to the fact that copy trading has been widely available in the traditional asset market for almost a decade and a half.

Covesting.io was created and launched in 2017 where there was such widespread enthusiasm for the introduction of copy trading to the crypto market that the project raised more than $18 million in that year.

While there have been other platforms since the launch of covesting that have also introduced their own form of copy trading to the cryptocurrency market, covesting is by far the largest and most popular form of crypto copy trading and the project behind the it is a pioneer in this sector of the crypto market.

Brings Together Traders and Investors

One of the major reasons for the popularity of covesting is that it brings together traders and investors in a seamless way to create mutually-beneficial situations between them.

Typically it is not a trivial task for cryptocurrency users to be able to find others to be able to partner with, however with the use of covesting this process is simple and provides a framework for the sharing of information, as well as the distribution of the profit generated by the collective activities of the group.

Particularly beneficial is the ability of covesting to bring together those that are new to the market with others that may be the top performing traders throughout the cryptocurrency space, with this dramatically boosting the likelihood of being able to generate profits with their capital.

Reduces Risk

Covesting has the ability to significantly reduce the risk that traders and investors experience when they enter the cryptocurrency market by allowing them to gain access to a large amount of data about the investment opportunities that they might make, prior to making them.

After analyzing the data on each investment opportunity, investors are then able to select the partners that they believe to be able to generate income on their behalf, with this being based on data and information, instead of simply intuition.

New traders that would typically generate a lot of losses as they learn how to interact with the market profitably are able to put their capital in the hands of experienced veterans that have years of experience of generating profits with cryptocurrency.

Increases Income

One of the most significant ways that covesting assists experienced traders is that it allows them to boost the income that they generate without also having to substantially increase the capital that they personally have exposed to the market.

This is achieved by building up a number of followers and then generating a 20% success fee on all of the profits that are generated on their behalf, with this often adding up to being a significant amount of additional income on top of the income they generate from their own capital.

This mechanism incentivizes strategy managers to perform at their best while using the Covesting module, being that the better their strategies perform, the more followers that they will gain, and therefore the more profit they will be able to generate.

Provides Data Transparency

One of the big advantages of using covesting over other forms of investment is that the Covesting module is designed to provide a wide range of detailed data about investment opportunities to potential investors ahead of time.

This obviously assists the investors in making accurate decisions on which investment opportunities suit their situation the best, and it also assists the strategy managers themselves by providing trustworthy information about the successful performance of the strategies to potential investors.

The data transparency that is persistent throughout the Covesting module is in stark contrast to a lot of other investment systems in the cryptocurrency space that are comparatively opaque and are difficult for potential investors to understand the potential risks and rewards ahead of time.

How to Use Covesting with No Entry Fees?

A 1% entry fee is applied for all investors, also known as “followers”, when they select a strategy to invest into for the first time, with this ensuring that there is additional value to remaining loyal to a strategy manager long-term.

One of the biggest advantages of the Covesting module is that there are a number of ways that using the COV Token can open up a range of advantages and ways of cutting cost and increasing revenue.

By buying and holding in amount of COV tokens on the Covesing module, followers are able to remove the obligation to pay the 1% entry fee that is commonly charged, and instead are able to keep that additional 1% for themselves.

Why is this Beneficial?

The basic equation for followers when they use the Covesting module is that we calculate the amount of capital that goes into a strategy, plus the amount of profit that will be generated from the capital. 

We then take away the fees that are paid to the strategy manager for generating profits, and then take away a 1% entry fee as well, if it is the first time they're partnered with the strategy manager.

Therefore more of the profit that is generated with their capital is able to be retained by the follow themselves if they hold an amount of COV token in order to remove the 1% entry fee.

What are the Other New COV Token Utilities?

Improved Success Fees for Followers

Whenever there is a trade that is successfully completed by a manager and their followers have funds invested in the strategy, a success fee is generated from the profits of that trade which are split between the manager, the follower, and the platform itself.

With the use of the first new COV token utility, the split between the 3 parties can be tipped in the favor of the follower, with this often representing a significant increase in the revenue that they achieve as a result of their investments.

This COV token utility effectively reduces the cost for followers to be able to place their capital in the hands of the top performing traders in the market.

Trading Fee Discount for Managers

This COV token utility is designed specifically to benefit strategy managers, with them being able to reduce their trading fees significantly with the use of the COV token.

Managers can buy the equivalent of $250, $500, or $750 of COV tokens, and they will be able to reduce the trading fees by 25%, 50%, or  75% respectively as a result of doing this.

This represents a significant cut in cost for strategy managers and is highly beneficial for those managers that execute a lot of trades in the strategies and that would like to reduce the costs significantly.

COV Token Burn Program

The last of the new COV token utilities is the COV burn program where periodically the Covesting team will be taking the fees generated on the module and will be burning an amount of them.

This new token utility will have the impact of reducing the supply of COV tokens that are in the open market and will have an upwards pressure on the value of holding COV.

As well as the increase in demand that is created by the other 3 new COV token utilities, this utility has a pronounced impact on decreasing the supply of the COV token.

In Conclusion

Covesting on PrimeXBT is one of the fastest growing new trends in the cryptocurrency market in 2021, and this has only been further increased by the introduction of a range of revolutionary new COV token utilities recently.

Now traders and investors are able to use the COV token in order to remove the requirement to pay entry fees when they first partner with a manager, with this having a dramatic impact on the profitability of the followers that use this mechanism.

If you would like to learn more about the COV token and covesting in general, check out PrimeXBT’s Covesting module.