Covesting Module Review
PrimeXBT is a leverage trading platform that adds innovative instruments to its portfolio quite frequently. From Turbo, a binary options trading product on multiple markets, to Covesting a module on which you are able to follow the strategies of different traders.
Pros / Cons
- High Leverage
- Comprehensive Performance Metrics
- Missing Orderbooks
- Users from US and Canada not allowed
- Few deposit options
|Markets||Crypto, Commodities, Forex, Stock indices|
|Supported countries||Worldwide, USA and Canada not allowed|
|Deposits||BTC and debit/credit cards|
|Min. Deposit||0.001 BTC|
|Max. Withdrawal Limit||None|
|Support||live chat, e-mail|
What is the Covesting module?
The Covesting Module offers traders the opportunity to set up a public trading strategy that can be followed by other PrimeXBT users via the module. By following a strategy you let the trader indirectly trade with your funds while you retain full control as you can stop following a fund manager at any time.
Covesting Module User Interface
Covesting Rating Page
The Covesting module is seamlessly integrated into the PrimeXBT user interface while retaining the design logic of the platform. The first thing you’ll see when you click on the Covesting tab is the rating list from which you select the traders in order to review their performance and trading strategy.
You can make a quick selection by checking a list of indicators for quick view:
- Total Profit
- Today’s Profit
- Active Days
- Followers Equity
You can access more detailed information for the strategy by clicking on the fund name which will take you to a dedicated page.
The dedicated strategy page shows a detailed view of the Profit, Manager Equity, Followers Equity, and the used margin. At the bottom of the page, you will find the offer with the set percentage of profit allocation and additional indicators like profitability, maximum drawdown, and win ratio. From this page, you can invest in the strategy by entering the amount on the right and clicking “Follow” with the minimum for following a strategy being 0.001 BTC.Visit PrimeXBT
On the portfolio page, you can follow the performance of the followed strategies/fund managers. From this page, you can evaluate in a quick manner the overall profit and loss from all of the past followed and currently followed strategies.
Creating a strategy
Creating a strategy is a simple process. You input the name, describe the strategy in a few words, and input how much you want to start trading with on this strategy. The minimum amount for starting a strategy is 0.01 BTC.
On the right, you will see the available offers for-profit allocation between the manager, the investors, and the platform.
|Amount in BTC||Follower||Platform||Manager|
|0.001 – 0.3||60%||20%||20%|
|0.3 – 0.5||65%||15%||20%|
|0.5 – 1||70%||10%||20%|
|More than 1 BTC||75%||5%||20%|
Covesting Utility Token on PrimeXBT
COV utility will be implemented after Phase 1 is successfully completed. There are going to be two parts for the utility overall. The first one being core token utilities being mandatory for every module integration and secondary token utilities which will be decided depending on the B2B partnerships.
Core COV token utilities:
Trading fee reduction
The token will make it possible to reduce the fees from 10% to 100% depending on the number of COV tokens. The exact amounts that will be required have yet to be determined.
Improving Success Fee Percentage
You will be able to improve the success fee by staking COV. The exact requirements for the number of COV tokens needed are yet to be determined.
Increase the following limits
Again, you can increase account limits by using COV, which means more followers can follow a trader and possibly more capital can be invested in a strategy.
Part of the fees generated by the Covesting module will be used to burn the token. It is planned to burn the token regularly – once a month to quarterly.
Who is Covesting for?
Covesting is suitable for retail investors who have neither the time nor the knowledge to trade by themselves. Of course, the Covesting module is also suitable for experienced traders to follow one another and thus diversify their own capital into different strategies.
What are the fees on the Covesting Module (Profit Distribution)?
- Investor – 60%
- Manager – 20%
- Platform – 20%
What can I trade on the Covesting Module as a strategy manager?
On the Covesting module, a trader who creates a strategy is able to trade all of the listed markets on PrimeXBT on his Strategy trading account (that is created upon strategy creating), ranging from stock indices, forex to commodities, and of course cryptocurrencies.
Can I trade independently from the strategy account on the same PrimeXBT account?
Yes, the Strategy Trading Account and the Regular Trading Account are internally separated on PrimeXBT.
The Covesting Module is a unique offering in the crypto market, as there are not many trading platforms like PrimeXBT that offer copy trading with high leverage on multiple markets. The module offers retail investors in the crypto market who have no trading experience the opportunity to invest in a trader who potentially has the experience and discipline to be profitable in one of the most volatile markets around.
Trading by yourself takes a lot of time, and by copy-trading, i.e. following a strategy, you don’t have to invest much of your precious time. Of course, copy trading involves many risks, as a trader can be liquidated at any time and can cause large losses if he/she is not careful and does not use a stop loss. Expect that many inexperienced traders will set up a fund, achieve high percentage returns and lose everything in the course of a day because they do not use stop loss, take profit, and manage properly their margin.