COV token staking unlocks the full potential of the Covesting copy trading module and other Covesting innovations soon to come, that much is clear. But this guide will go into great depths regarding COV token staking, and all it has to offer both the user and the token economy.
Here are all the reasons why followers should consider COV token staking along with more information on what it enables for users of the Covesting copy trading module.
What Is Covesting?
Covesting is a regulated, Europe-based DLT software developer who has developed an innovative peer-to-peer trading community where followers can connect with strategy managers. Strategy managers do battle with one another, competing for who can earn the most total profits and rise to the top of the Covesting leaderboards.
The Covesting leaderboards are vital to the entire copy trading experience, as this is where the fully transparent risk and success metrics are located. In addition to total profits, data like margin allocation, initial followers’ equity, days active, total followers and more can all be viewed. Based on this intel, followers can make informed decisions about which strategy managers to follow.
What Is A Follower?
Anyone looking for information on how to copy trade should fall under this designation. It suggests that either the individual is new to markets or still a novice; recently ran into frustration or suffered losses, but aren’t yet ready to give up; or perhaps the individual simply doesn’t have the time or skills required to trade and would prefer for someone more experienced to do it for them.
Followers are still responsible for their own capital, so some time and effort is still required to research which strategy manager to follow, and to monitor any strategy managers being followed for ongoing performance. Followers can rely on stop loss and take profit tools that help to hold onto profits or protect against losses.
What Is COV Token And COV Staking?
The Covesting (COV) token is the native utility token to the Covesting ecosystem. It was launched as an ICO on the Ethereum blockchain using the ERC-20 token standard. The Covesting developers have since released a bridge to Binance Smart Chain, enabling the BEP-20 token standard also. The two assets are interchangeable using the bridge.
COV token staking unlocks the token’s utility and the full power of the Covesting copy trading module. By staking COV tokens, users can activate three additional enhanced membership levels ranging from Advanced, Premium, and Elite memberships.
What Are The Membership Levels And Utilities?
Each of the Advanced, Premium and Elite memberships offer an increasing level of benefits the more COV tokens are staked. Starting at $3,000 in COV, Advanced accounts eliminate the initial follower entry fee, give a 2% profit share increase, and provide a 2x increase in max the following limit.
At $10,000 in COV, the profit share increases to 3% for Premium memberships and the max following limit increases to 3x. Initial follower entry fees are also eliminated at this level and at Elite. Elite brings the most benefits of all with unlimited followings and a 5% profit share increase.
Note: Strategy managers also unlock exclusive benefits, however, this guide is designed for followers specifically. Strategy managers unlock a 10%, 20%, and 30% trading fee discount with Advanced, Premium, and Elite memberships respectively.
Why Should Followers Stake COV Tokens?
The benefits are obvious from the math alone, but how they add up over time might not be as clear, as we’ll explain. Because the new following entry fee of 1% is eliminated, followers can better take advantage of the increase in following limits. Otherwise, the second benefit would be limited by the fees the follower was willing to take on.
By eliminating new following entry fees this way, Covesting and followers alike are promoting a more active community with less risk due to portfolio diversification. In a sense, the more strategy managers the follower begins to follow, the greater the reward and the lower the risk. Even the profit share increase begins to add up that much further when more and more strategy managers are followed and fees are reduced so significantly.
How Does COV Token Staking Impact Supply?
Another way COV token staking benefits the greater Covesting ecosystem is through taking more coins out of any supply living on exchanges or actively being sold into the market. With a large portion of the limited and scarce COV supply locked up for COV token staking, the less of it there is to go around or be sold.
Combined with systematic token burns by the Covesting team, the supply is starting to diminish rapidly. Nearly one million coins have been burned by developers and counting, and with a supply less than Bitcoin’s to begin with, there might not be enough COV to go around soon enough.
How To Get COV Tokens?
Buying COV tokens used to be a lot more challenging and would require additional steps such as a visit to Kucoin or Uniswap, where users could exchange ETH or BTC for COV tokens. However, because the Covesting copy trading module lives on PrimeXBT, the award-winning trading platform recently introduced the ability to purchase COV tokens through the Exchange tool within the platform’s wallet system.
Users can simply visit the PrimeXBT account dashboard, exchange BTC or ETH for COV, and then from the same COV wallet begin staking COV tokens right within the My COV section of Covesting on PrimeXBT.
Summary: Which Membership Level Is Right For You?
COV token staking might not be for everyone, but everyone can take advantage of it should they choose. Strategy managers have plenty of reason to stake COV tokens and unlock additional membership levels, but it is followers that truly have the most to gain by activating COV token staking memberships.
The only decision that remains, is which level – Advanced, Premium, and Elite – best suits your needs. That, and which strategy manager is the right act to follow. To find out, be sure to use the data in the leaderboards to guide your decision.