Every so often, technology or innovation comes along that completely revolutionizes the market, disrupts finance, and brings to light a new way of doing things.
There was once even a time where traders charted price action with pencil and paper, and ran numbers using other basic tools. There wasn’t detailed charting software, technical analysis indicators, or otherwise. There were no social media to gauge sentiment and stay on top of breaking news.
Technology has ways of changing things forevermore once it takes hold. We’re taking a look at many of the revolutionary trading technologies that have been created over the years, leading up to the domination of the Covesting copy trading module.
Trading Origins, The Past On Futures, And More
Trade, either through the exchange of one medium for another, or the buying and selling of assets is as old as time. Even the debut of trading contracts is older than you would imagine. Such contracts date back as far as the 17th century when the Dutch guilder was the global reserve currency and Holland was the most prosperous country.
The Dutch created futures contracts based on flowers, which eventually led to the first-ever recorded speculative bubble and bubble bursting with what is referred to as tulip mania.
Technology didn’t change until the creation of stock market indices, and the later emergence of online trading desks and brokers. Online trading, the internet, and the power of computers have changed trading forever, introducing things like algorithmic trading, charting software, and has created a situation where there is better statistical analysis.
The advent of such technologies has made markets even more challenging to navigate, as those with the most data or the best computers can potentially crush other market participants with relative ease. That’s why often institutional traders are in a league of their own and don’t trade where retail traders trade. It is also why certain investor accreditation must be considered in many cases.
Cryptocurrencies, Blockchain, And The Tokenization of Everything
Another new way technology has forced further evolution of trading tools, is through the emergence of cryptocurrencies. When Bitcoin was created, it gave birth to an entire industry of altcoins and blockchain technology.
Today, there are decentralized trading platforms that exist via smart contracts, automated market-making platforms where users provide liquidity, and much more. The underlying blockchain technology is so valuable and efficient, stocks and other securities are starting to be tokenized on Ethereum for easier sending, faster access to liquidity, and added benefits like fractionalization
Cryptocurrencies also make ideal collateral for margin accounts and other financial services. In DeFi, users put up assets for collateral to gain access to permissionless lending or borrowing, while BTC, ETH, USDT, and USDC are used as a base currency on CFDs at the award-winning margin trading platform PrimeXBT.
The platform offers crypto-based CFDs on oil trading, stock indices, forex currencies, metals, and other traditional assets in addition to Bitcoin, Ethereum, Litecoin, and other cryptocurrencies. Long and short positions can be managed further with stop loss or take profit levels, and there are built-in technical analysis tools from TradingView to offer an all-in-one package.
Copy Trading And Combining Followers With Strategy Managers
PrimeXBT is also the home of another revolutionary trading tool that’s shaking up the industry and is the focal point of this article: Covesting.
Covesting is the name of the licensed and regulated European developer that created the tool, as well as the name of the copy trading module itself. The Covesting copy trading module connects followers with strategy managers who both profit alongside one another.
Followers must choose from a massive list of more than 400 different strategy managers all vying for followers’ capital to bolster their earnings. Strategy managers must trade to impress with total profits that allow them to rise the ranks of the Covesting leaderboards. With a higher rank and more total profits, strategy managers will gain greater visibility with potential followers and can lead to greater capital growth.
Rather than have to navigate markets on their own, followers can sit back, follow, and profit when strategy managers do with copy trading. Copy trading isn’t like social trading which involves following another trader’s trades shared via social media. Traders on social media can doctor screenshots, delete posts, and shouldn’t be trusted. The strategy managers on Covesting, however, have transparent metrics to back up any claims they may make.
Getting The Most Out Of Covesting With COV Tokens
Followers can build a diverse portfolio across several strategy managers to reduce risk and ensure you don’t miss out on a potential hot streak in one trader. Followers can also manage positions with stop losses and take profit features.
Both sides of the trade can benefit further from unlocking Advanced, Premium, and Elite memberships through COV token staking. The COV token is the native crypto token to the Covesting ecosystem, which allows users to get the most out of the module and its features.
Followers get to increase following limits, increase profit shares, and eliminate new following entry fees. Strategy managers get a trading fee discount ranging from 10% to 30% off to maximize the profits that they’re able to make. Staking can be started and stopped at any given time or upgraded should a user desire.
COV token staking will also unlock up to a 2x APY boost when the Covesting Yield Account system debuts later this year in Q3 2021. Covesting Yield Accounts is another way Covesting copy traders can make money. Whether you are a follower, strategy manager, or neither, you can access the best variable APY rates right from within the PrimeXBT dashboard under the Covesting tab.
Summing Up The Covesting Revolution
The innovative tool will go down in history as among the most revolutionary tools of this century, combining the best benefits of social media with experienced strategy managers who regularly show success in the Covesting leaderboards. Accessing the peer-to-peer copy trading community itself is free, and requires only a small minimum deposit to get started as a follower or strategy manager.