Covesting Yield Accounts are expected to be released within “several weeks,” according to a PrimeXBT spokesperson speaking on the matter. This gives crypto holders a little bit more time to read up on what precisely the tool offers and prepare themselves for what is to come when the tool is eventually set live.
The APY-generating tool was announced weeks ago now, providing enough lead for us to learn all there is to know and help users get the most out of it when the release rolls around. If you want to know how to access up to 35% APY on idle crypto assets you hold anyway, then this guide is an absolute must-read.
Covesting: The Past, Present, And Future Of Finance
Before we dive into the future of the Covesting ecosystem, let’s look at the past and present. The name Covesting represents the development team from Europe, which develops fully licensed and regulated DLT software solutions for third-party business partners. The company launched the Covesting copy trading module on the award-winning margin trading platform PrimeXBT in recent years and has since grown considerably through word of mouth and network effect.
The Covesting copy trading module brings followers and strategy managers together on the same platform, connecting them through fully transparent online leaderboards. The leaderboards systematically rank the most skilled traders by total profits, but more details are available by clicking on each individual strategy manager.
The expanded section on each strategy manager details more granular risk and success metrics. For example, there is a margin allocation chart that indicates how much risk a trader is taking on at any given time. This is also a strong example of how PrimeXBT and Covesting together are constantly improving the experience and innovating with new features. The margin allocation chart just got a total makeover, complete with a color-coding scheme that shows when strategy managers are consistently in the safe zone. Staying in that safe zone for 30 days or more can lead to unlocking one of up to five total stars awarded for risk-averse behaviors.
Followers must use this information and check back on it regularly to make informed decisions about which strategy managers to follow. Markets move fast, so even if you are following a winning strategy, it is wise to make sure they stay profitable and aren’t exhibiting too risky trading techniques.
Covesting strategy managers have access to the full slate of PrimeXBT CFDs, including forex currencies, commodities, stock indices, and cryptocurrencies. A new batch of altcoins was recently added, which include Cardano (ADA), Chainlink (LINK), Dogecoin (DOGE), Polkadot (DOT), Solana (SOL), Uniswap (UNI), and XRP (XRP, also commonly referred to as Ripple). The trading tools at their disposal include long and short positions, built-in charting software, stop-loss orders, and much more. A personalized experience is offered thanks to a dedicated account manager, and 24/7 customer service is always available.
How Covesting Yield Accounts Will Disrupt DeFi Protocols
The reason for ending the last section with the latest batch of altcoins was to segue right into Covesting Yield Accounts and what they have to offer, which must start with an introduction to Uniswap.
The UNI token listed as part of PrimeXBT’s continuous innovations and new releases, is the governance token to the Uniswap automated market-making protocol. With centralized exchanges, liquidity is provided to customers, and customers are charged a fee for each transaction that goes back to the exchange to fund operations and make revenue. With no company requiring revenue, decentralized exchanges rely on liquidity provided by users and code, which then distributes the fees generated back to users as rewards – and an incentive for providing the liquidity in the first place.
The only problem with DeFi protocols of such nature is that users must connect directly to the application from their blockchain wallet, which often requires technical expertise to approve transactions. Crypto holders that lack the technical knowledge or the time to learn tend to avoid DeFi altogether as a result. But they are missing out on some of the highest APY rates and returns finance has seen in decades, if not ever.
For example, the average savings account at a traditional banking institution offers a mere 0.4%. Not even a full 1% is being provided for your fiat cash. But for crypto, users can earn as much as 35% via a variable APY rate.
But with Covesting Yield Accounts, users can access APY rates that are competitive directly from within the PrimeXBT account dashboard. The system itself connects to top DeFi protocols like Uniswap but without tinkering with the blockchain and putting assets at unnecessary risk. Liquidity provisioning in this way does carry some risk, so be sure to understand that the prices could change while each token is being staked.
COV Token Staking: The Key To Unlocking Covesting Utility
By staking tokens, users are then paid directly to a secure PrimeXBT account via crypto rewards. These rewards can be increased by as much as 2x by also staking COV tokens and unlocking the best membership levels.
COV token staking is the missing ingredient to the entire experience so far. The COV token is the native utility token to the Covesting ecosystem, unlocking Premium, Advanced, and Elite membership levels, each bolstering the benefits various Covesting solutions provide.
Strategy managers can unlock a trading fee discount to put more profits in their pocket, and followers can increase following limits, profit share, and eliminate new following entry fees. When the Covesting Yield Account system does release, COV token staking will also amplify the APY available by up to 2x. An early bird waitlist is also up on the PrimeXBT dashboard, where users can get an additional 1% boost during the first month the tool is live.
The update is due in several weeks, which sparked the creation of this guide. It is also just the latest of a string of innovative updates coming out of both Covesting and PrimeXBT, who together have unleashed some of the most exciting and profitable solutions found anywhere in finance. Stay locked on the PrimeXBT or Covesting official blogs for more info when the tool is to make its final debut.
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