Fortunately for the purpose of this article, we’ve got the perfect example as to why newcomers can find safety in the hands of a strategy manager who regularly shows success within the Covesting leaderboards. Unfortunately for those newcomers, they learned the hard way that markets aren’t for everyone, and sometimes investing and trading is better left to the pros.
Here is more about what copy trading is, where to access this tool, and how it protects newcomers from all kinds of disasters while still allowing them to stay exposed to crypto markets.
Social Trading And All The Things Copy Trading Isn’t
Before we tell you all about copy trading, we’ll first explain all the things it is not. Copy trading is not social trading, which involves following people on social media and attempting to trade based on their signals. This is a very dangerous practice and we’ll explain why.
Social trading has no transparency and social media is filled with so called influencers who are really crooks looking to monetize an audience and nothing more. They don’t care about your capital, and they don’t care about integrity. They’ll be the first to delete an incorrect call on Twitter, and continue to retweet and share the one call out of twenty that they made that was any bit accurate.
They carefully curate their audiences by eliminating anyone who tries to burst their bubble and call them out on their inconsistencies or ineffectiveness. In even worse cases, social media followers are duped into buying a coin, then dumped on, or are countertraded against. There’s even been cases of paid group subscriptions being taken, yet no services or signals provided for months on end.
The truth is they don’t care about you, only their bottom line and you need to be careful with anyone you follow blindly. But that’s why copy trading and Covesting is so different from social trading and why the confusion needed to be cleared up.
Copy trading also isn’t an easy get rich scheme, and does take some work on the follower’s part, despite the general safety net that the service itself provides, and the proven skills of the strategy managers that are ranked in the leaderboards as we’ll explain.
What Copy Trading Is And Why You Should Use It
With Covesting, there is always full transparency which is nothing like the shady characters hiding behind accounts on social media. Each strategy manager on Covesting is someone who has to put their own capital on the line, and must prove they are worthy of a follow by rising the ranks of the leaderboards.
Leaderboards provide fully transparent success and risk metrics for followers to glean over and make the right decision on who to follow for them. Followers can then place capital behind each strategy manager, or even several at a time, and copy their trades and earn when they do.
Strategy managers have all the tools they need to get the job done thanks to Covesting copy trading living on the PrimeXBT margin trading platform. The award winning platform is known for its long and short positions, CFDs, built intechnical analysis software, and much more. Covesting strategy managers utilize these tools and the COV utility token to get the most profits possible out of the experience.
Followers can not only make sure that the total profits are high, but can seek out traders with up to five stars that call out safety, margin allocation, and other factors. In addition, followers can set a stop loss to set a max drawdown level as well as a level in which they can take profit. Followers can also stop following at any time with no penalty.
How Covesting Copy Trading Protects Capital
These followers don’t need to spend time on technical analysis, manage positions themselves, or all the other things that come along with highly volatile markets. And that is where the real proof of how Covesting copy trading can protect capital for newcomers comes into play. The way this was done, was through providing followers with more than 20,000% profits during a downtrend and sideways action.
While most of the market has bled out during this difficult period in the crypto market, Covesting copy traders are setting new records for total profits by leveraging the short positions offered by PrimeXBT. Recent updates to the award winning trading platform enabled ETH, USDT, and USDC margin accounts in addition to BTC, and since that happened even more users have been attracted to the Covesting copy trading module.
Rather than getting chopped up or crushed in the carnage across crypto, these skilled strategy managers – and their followers – were able to make and hold onto a fortune while everyone else failed. As the peer to peer community grows risk reduces further by having more talent in which followers can choose from.
The platform itself and community naturally grows via word of mouth, and by way of all the screenshots of epic PnLs on social media. Although we know we warned about trusting what you see on social media, if the screenshot is from the Covesting leaderboards or metrics system, you can rest assured it is legit.
Metrics are regularly updated which adds to the risk reduction for newcomers to crypto. The only thing they need to stay on top of, is who to follow, if they’re having a losing streak, and if you want to get out or take profit. The module does the rest.
Users can also get even more from the experience with the COV utility token, which can improve the profits for strategy managers and followers. The COV token increases the profit share for followers, and lowers trading fees for strategy managers, and much more.
These utilities are unlocked by staking COV tokens within the Covesting dashboard on PrimeXBT. COV staking can be disabled or upgraded at any time, and is the key to getting the most profits overall from the Covesting ecosystem of products and services. All such services are available exclusively at PrimeXBT.