Copy trading is a relatively new tool in the crypto trader and investor’s arsenal, but one that is already catching a lot of attention. Copy trading has become even more significant over the last several months as the crypto market has corrected, and extracting a profit from what little volatility there is has become much more challenging.
When the dust settled on the more than 50% market collapse across crypto and the community checked for casualties, out of the ashes of liquidations and losses, were a handful of strategy managers on Covesting in high profits. These weren’t just strategies holding onto a handful of ROI, but instead these traders amassed more than 20,000% profits in less than one month’s time.
The visibility of the situation has brought even more hype to the copy trading module, and made many of the pros of using the tool a lot more apparent. If it isn’t completely clear just yet, we’re going to break down all of the various pros of copy trading and why it is the next big thing in trading.
Remembering The Recent Crypto Market Rug Pull
Cryptocurrencies experienced a brief phase of glamour and glitz in late 2017, as Bitcoin exploded to $20,000. But the asset class as a whole never reached a trillion in total market cap, and fell short of becoming a respectable technology that was taken seriously by Wall Street or high wealth investors.
The prices of cryptocurrencies fell and investing in the likes of Bitcoin, Ethereum, and Litecoin became a losing sum game. Trading then took over, letting investors instead go short on each bounce and look for more profitable support levels to go long.
Eventually, the enormous drop and volatility was forgotten about, as Bitcoin entered a new bull market and prices rose dramatically in a year’s time. Bitcoin price climbed from under $4,000 to more than $64,000 at the high. Investors were once again making money as prices went “only up.”
Eventually, exuberance was blinding enough to leave the market susceptible to a surprise reversal, and whales took the opportunity for a rug pull. The rug pull caused billions of dollars worth of liquidations across the crypto market and many who got in toward the top sold at a loss and capitulated completely – leaving the market. But those feeling similar frustrations can hold out hope that there’s a solution out there.
How Copy Trading Protected Capital During The Crypto Crash
The crypto market sharply sank, and so many were wiped out by the carnage. But there’s always two sides to every trade, and when so many are on the losing side of the situation, those who took a contrarian stance and were correct, end up with a lot more profits as a result.
This is evident in the total profits generated by top strategy managers in the Covesting copy trading community. The Covesting module has a fully-transparent global leaderboard system that ranks strategy managers by total profits, and shares regularly updated risk and success metrics. A strategy manager is a trader that opens a specific type of account within the Covesting module that allows others to follow them and copy their trades.
Followers within the community can use the data to choose which strategy managers best suit their needs or that they’re most comfortable with. Followers then can follow that strategy – if there’s available space – and copy the trades of this more skilled strategy manager with the stats to back that up.
The benefits of the global leaderboard system allows trader success to speak for itself, and removes the snake oil salesmen situations many new investors are confronted with. There’s no risk of being shown photoshopped PnL screenshots and potentially being duped into taking losing positions that the trader then countertrades.
Strategy managers also have no reason to countertrade or pump and dump on their followers, because they make money when their followers do. Strategy managers earn a cut of the profit share from successful copied trades, keeping them honest and with skin in the game at all times.
How Strategy Managers Brought Success To Followers During Downtrend
Select strategy managers were able to turn the violent move that hurt most into a more than 20,000% winning streak in just one month. They were able to do this with the help of their follower’s capital. The more follower’s equity behind them, the faster their profits can grow creating a snowball effect of success.
And the more successful each strategy manager, the better off their followers are. Both strategy managers and followers can also improve the copy trading conditions significantly in their favor thanks to the COV utility token.
By staking COV utility tokens within the My COV section of the Covesting copy trading module, a variety of account level utilities can be unlocked. The utilities improve with each of the three levels over standard accounts. Staking can be stopped at any time and the account restored to the standard level.
COV staking membership levels include Advanced, Premium, and Elite tiers that each provide an increasingly better set of benefits. Benefits include an increase in the profit share for followers, trading fee discounts for strategy managers, and much more.
All of the staking memberships enhance the overall performance of all associated activity within the Covesting ecosystem, and in the future will also enable an APY boost when Covesting Yield Accounts debut in the third quarter of 2021.
Take The Guesswork Out Of Trading With Covesting On PrimeXBT
With copy trading, followers can take a lot of the guesswork and frustration out of the early days of learning the ropes of markets. Rather than learning the hard way and stacking up losses until you can finally get ahead, followers can take their time learning while copying the trades of more successful strategy managers who are ranked transparently on the Covesting leaderboards.
Covesting copy trading is available exclusively at the award-winning secure Bitcoin trading platform, PrimeXBT.