Contributor, Benzinga
August 13, 2021

Pooling resources and learning from other, more experienced traders and investors is a fantastic way of navigating and learning about the financial markets. 

Covesting is a company that provides its customers with various trading tools such as the first cryptocurrency copy trader platform as well as yielding services. The Gibraltar-based company works with both retail and institutional customers in the cryptocurrency space. 

In this article, Benzinga will take you through the positives and negatives of Covesting’s technology and how you can use it. 

Disclosure: eToro supports the following currencies: BTC, ADA, DASH, DOGE, EOS, ETH, LTC, NEO, XLM, XTZ, TRX, ZEC. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. T&Cs apply. *The bonus is available to Benzinga readers in the US for open states only. Served by eToro USA LLC.

What is Covesting?

Covesting describes itself as a fully licensed Distributed Ledger Technology (DLT) services provider and software development company. 

As mentioned previously, the company develops trading tools to service both retail and institutional customers, working with companies such as PrimeXBT. Some of the trading tools it has created are its peer-2-peer platform (the 1st crypto copy trading platform), its Covesting yield product and its crypto intelligence portal.

The copy trader platform is one of its most prominent products, as it is excellent for new traders wishing to learn how to trade and invest in the crypto market. 

What is Mirror Trading?

Mirror trading is a method where one trader can copy the trading strategy of another trader with the trades mirrored into their own account.

Instead of working with someone else, you are copying an expert, but it is still an excellent way to learn and grow for both new traders and the person they are learning from. Mirror trading is typically used by new and inexperienced traders or those who don’t have sufficient time to spend watching the markets. 

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Source: Covesting.io

One of the benefits of mirror trading is that by picking the correct strategy and trader to mirror, you have the ability to profit while learning. For example, traders unfamiliar with the markets can choose to copy Trader A’s strategy. Inexperienced traders can then review Trader A’s trades at the end of the week and look at why they entered and exited a position, learning and noting down details of their strategy and how they can improve their own trading. 

Who Should try Covesting?

While retail traders can no longer directly open an account with Covesting, they are still able to use their trading tools via other platforms, such as the aforementioned PrimeXBT.

If you are new to trading or investing, then using Covesting tools will be great for you to learn from someone more experienced and — if you pick the right strategy and trader — make some money.

Experienced traders or investors also should try Covesting’s copy trading tool. If you are profitable in the markets but want to boost your income, then mirror trading can be a fantastic way to do so. 

People who want to earn money from the cryptocurrency markets but don’t have the time to monitor or research can use Covesting tools. As mentioned, you can use the mirror trading platform. However, if you already hold cryptocurrency assets, you can use the company’s Covesting Yield product to earn a yield on them. 

Benefits of Covesting

Covesting provides a ton of great tools for its partners that retail traders can use. For example, its peer-2-peer platform allows inexperienced traders to make money by investing in strategies executed by experienced traders. In addition, the mirror trading platform has more than 70 assets available, including forex (FX) and contract for differences (CFDs), with experienced traders making up to 20% of all profits earned from their followers. 

Its Covesting Yield product allows people who already hold digital assets to earn a yield on them while Covesting takes care of the decentralized finance (DeFi) staking process. DeFi staking is an increasingly popular part of the crypto industry and is considered one of the best ways to generate passive income by holding cryptocurrency assets. 

All of its tools can be white labeled, meaning another company using them can put its branding and logo onto them. The company also says its systems operate with more than 99% uptime. 

In addition, the Covesting COV token, which is an ERC-20 token built on the Ethereum blockchain, is designed to be used with Covesting products and correlates with the demand for its tools. So, the more users and demand for Covesting products, the more attractive the COV token will be.

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Source: Coinbase.com

Disadvantages of Covesting

A disadvantage of Covesting is that it no longer provides exchange services to retail customers. It discontinued this service June 11 to focus on B2B partnerships. 

Another disadvantage is the lack of other partnerships. As mentioned, the demand for its products is correlated with the COV token, so more awareness of the company and what it offers will provide an added benefit for COV token holders. 

PrimeXBT partnered with Covesting in 2019 with the companies working together to bring Covesting’s copy trading tool to XBT customers. PrimeXBT describes itself as the No. 1 bitcoin trading platform and has an average daily volume of $545 million. 

The COV token is available on PrimeXBT and other exchanges such as KuCoin. 

Assets Not Available on Covesting’s Copy Trader Platform

While Covesting is mainly focused on the cryptocurrency market, it does offer other assets. PrimeXBT markets it primarily as a crypto and more specifically a bitcoin, copy trading platform. 

However, Covesting does allow market participants to trade other assets such as forex and CFDs, which are unavailable in the U.S.

Unfortunately, asset classes such as metals, stocks and options are not available on the Covesting platform. 

Covesting Tools are a Great way to Profit

Covesting provides a number of fantastic tools that traders can use to profit in the markets. For example, if you don’t have a lot of time or have so far been a losing trader, you can use the copy trader tool via PrimeXBT to mirror a profitable trader’s strategy into your own account. 

The same is true if you are a new trader wanting to learn or if you are holding crypto assets and want to earn money from them. 

And if you love what they are doing, you can even potentially profit from the company’s success by investing in the COV token. 

So whatever you are looking for, Covesting is a platform that should be able to provide you with the tools you need.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

Frequently Asked Questions

Q

What are COV tokens?

A

COV token is Covesting’s cryptocurrency asset that members use within the Covesting ecosystem. The tokens are used to receive multiple benefits and discounts, so demand correlates with the activity on Covesting-supported platforms. 

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