After a devastating second quarter in the crypto market – one that set the record for the worst in history – investors and traders could use some good news, and perhaps even a way to earn back some of the money that was lost in the Q2 crash.
Starting Q3 off on a much brighter note, is the promise of a new yield generating service from Covesting, the licensed DLT developer behind the popular copy trading module on PrimeXBT. The same level of care, quality, and commitment to bringing market participants profits should also be there when the new service is launched later in the quarter.
Here’s more information on Covesting Yield Accounts coming this quarter, and what they have to offer token holders and users of PrimeXBT.
A Brief History Of Covesting
Covesting first became a well known name in the crypto market when they debuted their utility token as part of an initial coin offering in 2017. Token holders bought up the token supply in a fury, expecting to some day take advantage of the utility within an ecosystem Covesting set out to build.
Four years later, that ecosystem is now flourishing with the Covesting copy trading module live more than one full year now on PrimeXBT. Since its full release, the platform and module both have been upgraded numerous times, and the two companies are always working to improve the software and user experience.
The Covesting copy trading module at this point has a massive list of strategy managers for followers to choose from. The software connects followers and strategy managers across a peer to peer community focused on copy trading. Followers pick a strategy manager to follow based on leaderboard rankings based on total profits and other risk and success metrics.
Once a follower is satisfied with the information available, they can begin to follow a strategy manager and copy each trade they make. When trades are successful, they also book profits to their account. The strategy manager gets a cut of any success fees generated by the follower’s capital, for a win-win situation.
When a strategy manager is profitable, so is their entire following. As their following grows, so does the capital they can use to trade with, and the total profits they generate will increase. Top Covesting strategy managers currently have more than 25,000% ROI to show for it.
The Partnership With PrimeXBT
Strategy managers have access to the full slate of PrimeXBT trading tools, which includes long and short positions, technical analysis software to build a cryptocurrency trading strategy, stop loss and take profit orders, and much more. There is also a unique way to get positioned in the market called Turbo, and one of the best referral programs around. The company blog is also packed with knowledge and tips on how to trade at the top of your game.
But that is what already exists today as a result of the ongoing business partnership between Covesting and PrimeXBT, but there is more on the way soon. Announced earlier in 2021, Covesting and PrimeXBT will expand the partnership with a new service called Covesting Yield Accounts.
How Covesting Yield Accounts Will Replace DeFi
Covesting Yield Accounts are an easy way to access DeFi services and protocols that are popular today for accessing a high rate of APY. APY stands for annual percentage yield and is the variable interest rate paid in crypto rewards in exchange for staking or locking up tokens in liquidity provisioning.
With centralized exchanges, liquidity is provided to users of the platform so that there are always orders on the books to fill. Maker and taker fees are paid to the centralized trading platform in exchange for using the service. This is how the company’s business model works and generates revenue.
But DeFi has come along recently and completely disrupted the traditional ways of doing things. It first started strong with replacing lending and borrowing with permissionless flash loans, but later expanded to replace centralized exchanges with decentralized exchanges and automated market making platforms.
The way these systems work is by allowing users to provide liquidity by locking up crypto tokens like COV or ETH. The two tokens are offered as a trading pair, and rather than the fees generated going to the platform, the protocol distributes the rewards to those providing liquidity.
These rewards are paid out as a variable interest rate called an APY. Crypto token holders can earn up to 35% APY when demand is highest, but there is a huge catch. The catch is that there is a potential for loss due to a lack of technical expertise. Accessing DeFi protocols requires the user to connect their self custody Ethereum wallet to a decentralized application. If that alone sounds confusing to you, don’t worry, you are not alone.
Covesting Yield Accounts Are Coming Soon
Covesting is once again aiming to make it easier for newer market participants while also catering to professionals who are looking for a streamlined experience. The Covesting Yield Account system will be released within this quarter, and is set to change things up extensively for those that want to use DeFi but are deterred by all that comes along with it.
With Covesting Yield Accounts, there is no risk of a rug pull, as it allows for simple connection directly to top safe DeFi protocols like Uniswap and PancakeSwap. Using idle crypto tokens stored in a secure PrimeXBT account, using the same dashboard users utilize for Covesting copy trading and other products, they can connect to DeFi protocols in only a few clicks.
This greatly reduces the risk, and anxiety related with DeFi products and services, while still allowing users to take advantage of the APYs offered. And with Covesting, by staking the COV token users can unlock up to another 2x APY boost across the board. There is also a waitlist within the PrimeXBT dashboard to sign up for the Covesting Yield Account feature when it goes live this quarter. Those who sign up, get another 1% APY boost.
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