What is Covesting: Copy-trading and Professional Asset Management

31 Jan 2018

This is a sponsored guide and does not represent investment advice from CryptoCompare. Please do your due diligence when dealing with any Initial Coin Offering and never invest more than what you can afford to lose.

People are usually enthusiastic about the opportunity to get into cryptocurrency trading. But not everyone is ready to start the journey of trading, primarily because investing in cryptocurrencies involves very high risk, as prices are extremely volatile.

In order to get involved with cryptocurrency trading on a practical level and make a profit, one needs to spend a lot of time understanding how trading actually works and explore the optimal strategies and the upcoming trends of the market. This requires a lot of time, time that most people don’t have.

What is Covesting?

Covesting has developed a new versatile trading platform, that was created to bring copy-trading and professional asset management to the cryptocurrency landscape. The platform aims to bring ordinary investors who do not have the time or knowledge to invest in cryptocurrencies, facilitating the ability to invest intelligently in a growing new market.

The Covesting platform was conceived to allow a regular investor to search and compare the performance of a huge database of proven cryptocurrency traders and mirror their trades automatically. Additionally, the Covesting platform encourages unknown talents to reveal their results, and at the same time to compete with other traders in a fair context.

The company was initially created by Dmitrij Pruglo, as well as several other ex-Saxo Bank managers who collectively boast an extensive background in FX, equity, and derivatives trading.

How it Works?

For Investors

The platform will enable any ordinary investor to examine and analyze the efficiency of a lot of established cryptocurrency traders and replicate their trading activity instantaneously and automatically. After an investor submits to the most suitable strategy the system will automatically synchronize all trading activity from the determined investing Model into their account at Covesting.

Each user can diversify their investments by following up to 20 distinct Models (traders) at the same time. Diversification enables investors to be in a position to record gains across several crypto trading strategies and to protect themselves against large losses in any particular coin. More importantly, investors are in full control and they can begin or finish the aforementioned activities whenever they feel it's appropriate.

For Traders

For traders, the platform was built in a way that helps new talent show off their trading results to the public. With Covesting, any trader can begin his career as a cryptocurrency manager and maximize his revenues by earning success fees.

Traders will be able to create Trading Models by linking an existing trading account to an external cryptocurrency exchange through via API. The whitepaper explains:

“From this moment, all trading activity will be recorded in the Model and the trader doesn’t need to do anything else – just continue trading in the comfort of his personal account. Later, the trader will be able to decide whether he wants to “list” his Model at the Covesting platform and make it available for investors instantly or keep it private for a while to build a solid track record first.”

For security purposes, Model Managers will never know how much capital is currently invested/following their strategy. Participants will be able to choose between revealing their real names or remaining anonymous by using a screen-name alias.

Profit Distribution

Trades will earn success fees on all profits made by Model-following accounts. 18% of the success fees will be awarded to the Model Manager, from all profits generated by the investors-followers. The platform will take 10% commission, while the investors get the other 72% of revenue, which is accessible for instant withdrawal or reinvesting.

All parties will benefit from the Covesting platform: money managers and traders get access to new audiences and sources of additional income, while investors get a broad range of trading

strategies to choose from with the ability to analyze historical performance in order to make the right decision.

ICO

In order to fund the development of the platform, the Covesting team has decided to do an Initial Coin Offering (ICO). The project provides the opportunity to buy Covesting Tokens prior to the beta-version launch of the platform. All the funds raised in the ICON will be used to fund the product launch, continued platform development, and user acquisition.

The ICO opens on November 24th at 13:00 GMT time, and will run for one month until December 24th. The initial rate is 200 COV per 1 ETH in the public ICO, but scales down as more ETH are contributed, and eventually will lower to 130 COV per 1 ETH.

Investors are encouraged to participate early as the rate drops after just the first 5,000 ETH is contributed. To learn more about the Covesting ICO click here.

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