June in Review
Tags: Investing, Btc, Trading, Cryptocurrency, Crypto

Dear Community,

Throughout the month of June, the focus here at Covesting has been on the upcoming implementation of the Covesting module on PrimeXBT — the Bitcoin-based, multi-asset margin trading platform we are closely partnering with to bring the cutting edge technology to traders for the first time at scale.

In our last month in review, we shared the first ever sneak peak of the Covesting module and its features and design on PrimeXBT. As we move closer to the full launch of the Covesting module, we are ready to offer some additional insight on how the module works and dig deeper into what the tool offers to experienced traders and new investors alike.

Introducing the Covesting Module on PrimeXBT!

The Covesting module is appealing for both the most experienced traders and novice investors — offering an opportunity for the two to synergistically profit alongside one another.

The Covesting module has transformed from its initial concept and design, due to the fact it was adopted to perform best with a margin trading platform and be able to accommodate traditional financial assets as well as digital ones. To achieve this, we redeveloped the module from scratch to meet the specifications and requirements of PrimeXBT’s trading platform.

The copy-trading concept has now become a full-scale peer-to-peer asset management module, complete with all of the original benefits intended with the copy-trading module and some additional advantages pertaining to margin trading platforms.

Here is how each type of client will take advantage of the module:

Fund Managers

For top traders with large followings, or new and experienced traders seeking to make a name for themselves, the Covesting module will allow them to become fund managers. All PrimeXBT users regardless of experience level are able to create a fund, and make it available to investors who are then able to leverage the trading strategy and experience of the fund manager.

The Covesting module takes the stress out of investing for those new to markets, while those with more experience can discover exciting, new revenue streams and ways to profit.

Importantly, fund managers may not withdraw funds of its investors. Investors, however, are offered the flexibility to withdraw from the fund any any time, provided they submit an application for withdrawal one-hour ahead of the rollover time set by the fund manager.

Here’s how it works from the fund managers perspective:

First, go to the Covesting module on PrimeXBT. To create a fund, a minimum amount of funds will be required to be held in the PrimeXBT trading account. After specifying the amount to fund the account with, the trading account will convert to a fund manager account. The module will alert you if any necessary fields or information remain.

Once the fund is created, it will automatically be added into our rating system and is available to view by any client using the module. The rating system will be used to indicate to investors which funds are worth considering and will be made publicly available on PrimeXBT.

The manager will need to select a name for the fund, and create a short description of it in order to additionally entice investors to invest in the fund.

The investment system is progressive, meaning that the larger the amount of the investment the larger portion of the profit share the fund manager will receive, so properly promoting any created funds is important for fund manager to maximize their revenue opportunities. Traders seeking to maximize their earnings potential can do so by marketing their fund on social media, online forums, and elsewhere on the internet.

A successful trading strategy will bolster the public ratings of the find, which will also further encourage investors to join and invest in the fund, thus also increasing the profit potential for all parties investing in the fund. The more capital, the more profit and the progressive system in the Covesting module is designed to reward the most active traders across the community.

Down the line, we will add the ability for fund managers to differentiate between various terms to offer an edge over other fund manager’s competing for investor capital.

After setting up the fund, the account ranking becomes publicly available for investors to consider investing in. If the fund manager would like to trade privately they may create a separate account. The fund manager may also add their own capital to the fund at any point of time to further bolster the potential profit derived from trading.

Each fund manager gets a full suite of data metrics to review, which includes the amount of investors who have joined the fund, the total capital invested, performance data, rollover timing, and much more. Withdrawals can be made once per day and the manager can select any time they desire to withdraw.

Fees for successful trades are collected by investors when the follower withdraws his investment from the fund. ROI is calculated to the minute, and both investor and fund manager are able to review the information real-time online.

The investor must submit an application to withdraw funds no later than one-hour prior to the rollover time the fund manager has specified. The fund manager will be responsible for ensuring enough funds are available to protect from an automatically liquidation occurring.

If the fund manager so chooses to close their fund, it should occur within the rollover period. At that time, assets will return to all investors and the fund will be closed.

Investors

Fund managers offer investors an easy way to profit from markets. Rather than spend years of trading and losses hoping to gain enough experience to start profiting, the Covesting module allows investors to apply capital to a fund manager’s fund, and generate a portion of the profit the more experienced trader earns from their trading activity. This creates a win-win environment for traders on the platform.

Since PrimeXBT is a margin trading platform, it requires additional knowledge, trading experience, and proper risk management skills to perform at a high level. The Covesting module takes the guess work out of trading, by letting investors simply invest in the fund of a top trader.

Here’s how it works from the investors perspective:

Click on the Covesting module tab on PrimeXBT to access the tool. All investors and website visitors — not just our registered users — are able to see the ratings of each fund.

The ratings are calculated using a number of factors, including but not limited to ROI, amount of investors, fund creation date, and much more. The rating system will allow investors to get a bird’s eye view at the performance of the industry’s top traders and select the ones that best suit their trading preferences and level of comfort.

Once an investor has discovered a fund they’d like to invest in, simply click the invest button.

Investment portfolio — current holdings example

The fund is then added to the investor’s portfolio, which includes a stream of up-to-the-minute, real-time data on income generated through any investment into a managed fund. A visual graphic representing portfolio movements is included.

Each investor is able to fully withdraw any investments made, once per day, at the time selected by the fund manager. Withdrawals outside of the specified time are not permitted. Only the same value of each deposit can be withdrawn. Therefore, for example, if an investor wants to invest 1 BTC but would like to withdraw it in increments of 0.2 BTC, the investor should make five consecutive 0.2 BTC investments into the fund.

The entire investment history will be visible from the investor’s portfolio, along with other important investment data.

Covesting Module: Update on Development

As we mentioned in our last month in review, more time is needed to prepare the Covesting module for launch, however, each passing day we arrive closer to our destination.

The fund creation logic has been completed, as well as the profit and yield calculation logic. The front-end user interface is fully designed and is currently in the process of being thoroughly tested.

Following the initial release of the Covesting module, the COV utility token will be implemented. The exact mechanics how the COV token will be utilized will be revealed closer to the official launch of the Covesting module. Currently, staking, as well as offering COV holders significant discounts on success fees are among the options under consideration.

These are exciting times in the trading community. More tools than ever are being offered, and market volatility is picking up, making now an ideal time for the Covesting module to launch and arm both more experienced traders and novice investors alike an opportunity to profit from the upcoming trend.

We will provide additional updates on exact launch timing in the coming weeks. Thank you for your continued patience. As always, please check official Covesting channels for additional updates.