Covesting is a copy trading platform for cryptocurrency investors. The platform allows users to automatically copy the trades made by other cryptocurrency traders, some of whom are touted as being experts in the space. Investors are able to realize the same profits as traders and traders are rewarded a “success fee” for allowing others to copy their trades.
Cryptocurrency investing has the potential for high rewards. During its short existence the market has provided many investors with high returns which attracts new speculators to the market each day. However, these risks do not come without taking sufficient time and gaining specific knowledge to be successful. Many would-be investors lack the time and analytical skills to keep up with ever-changing markets and are unable to match the experience of professional traders in researching and trading the markets. This difficulty is the reason Covesting was created — to allow the average investor to leverage professional skills in order to capture the tremendous opportunities in cryptocurrency investing.
With Covesting, investors can tap into the cryptocurrency community using a peer-to-peer platform to copy the trades of other traders. Simply learn about top traders on the site while searching and comparing all of the strategies provided by model traders. From here, investors follow traders whose trading model is most suitable to them. Next investors allocate funds in order for the platform to copy all model trades. Investors can manage their portfolio by following new strategies or unfollowing any strategy at any time.
In addition to copy trading, the Covesting portal will also provide educational articles and videos; market news; blog posts from cryptocurrency traders and analysts; and message boards for community members.
It will also provide a trading terminal. Currently, there is no fully-functional platform where investors can execute trades based on quotes from multiple exchanges. Covesting wants to change that by allowing traders to access quotes from one single account.
allowing them to execute trades based on quotes from multiple exchanges.
Token Symbol: COV
Max supply of tokens: 20,000,000
Mining algorithm: token is not mined but runs on the Ethereum network.
Token standard: ERC20
Type of cryptocurrency: token
Platform and Players
The Covesting ecosystem involves 3 groups of people, all of whom stand to profit from growth of this venture: 1) investors; 2) model traders; and 3) token holders. Investors will be able to leverage the expertise of model traders as described above and thereby profit from successful trades. Model traders will also profit from successful trades since they are able to develop followers through the platform to whom them may not otherwise have access. Creating a personal fund requires technical knowledge, programming skills, legal paperwork and marketing costs that many successful traders are unwilling to organize. Token holders will benefit through the payment of fees by users, as well as by sharing profits from successful trades. Here is how the money will flow:
All investors are charged a 2% entry fee for each deposit to his/her account. This commission is put towards the value of COV tokens so that the value will rise over time.
Once an account is funded, investors can purchase COV utility tokens in order to follow model traders. Demand for tokens will correlate with the volume on the platform; the more investors and traders use the platform, the higher the value of the token.
Successful trades will result in profits to all parties. The allocation will be:
- 72% for the investor
- 18% for the model trader
- 10% to token holders
Rewarding Token Holders
Covesting will allocate at least 50% of all earnings to a Buyback and Burn program where tokens are purchased on exchanges and “burned.” “Burned” tokens are taken off the market thereby decreasing the total supply of tokens. This lower supplies should lead to a higher value of the tokens over time.
Anyone considering in participating in the Covesting ICO should consider the risks which include but are not limited to:
- Slow adoption by new investors who will need to learn both about cryptocurrency and copy trading
- Competitive offerings by other platforms including Coindashh and Etoro
- A decline or correction in the market which may result in many unsuccessful trades causing investors to lose confidence in both the market and the platform
Progress & Roadmap
As January 2018, Covesting has completed both their pre-ICO and public ICO having reached its hardcap on December 31, 2017 and raising over $15 million. Going forward the project will continue front-end and back-end development, API testing, testing of mirror-trade execution and latency testing. Covesting plans to list its token on an exchange and to release a beta version of their platform in Q1 2018. You can read more about the roadmap by clicking here.
Covesting offers a strong team with a background in trading, investment banking, blockchain, artificial intelligence, data, and fintech (Saxo Bank, SEB Bank, JP Morgan, Zurich Insurance and others.) The accumulated trading experience of the team is over 60 years.
CEO and Co-Founder Dmitrij Pruglo has over 12 years of experience dealing in various asset classes: foreign, options, futures, equity, commodities, complex OTC structured products and bonds. He has in-depth knowledge of most trading platforms available on the market today and has been involved in the development of several algorithmic trading strategies.
COO and Co-Founder Tim Voronin is an experienced equity and derivatives trader, entrepreneur and early adopter of cryptocurrency.
Covesting advisors include technologists and business leaders in the financial markets. The company will be headquartered in London.
This project certainly addresses a need in the space by providing investors an easy way to engage with cryptocurrency via copy trading. And its commission structure rewards all parties involved for the success of trades and the platform in general. The platform is poised to take advantage of the growing cryptocurrency market by providing connecting talented traders with budding investors.
This article was written to the best of our knowledge with the information available to us. We do not guarantee that every bit of information is completely accurate or up-to-date. Please use this information as a complement to your own research. Nothing we write in any of our articles is intended as investment advice nor as an endorsement to buy/sell/hold anything. Cryptocurrency investments are inherently risky so you should never invest more than you can afford to lose.