By Nigel Salvador
Cryptocurrency trading can be lucrative if one can time the price movements well, thanks to huge market volatility. Unlike any other asset class, it is not surprising to see a coin make a 20% move within a short period. The only problem lies in making the correct predictions, which requires a bit of education, or you can pay some gurus who offer crypto signals and follow their lead. But, before you spend all you have saved up for some tips, you are better off doing some due diligence and finding out what those who have tried the strategy before have to say.
The Problem With Paid Groups
Crypto trading can be overwhelming, especially if you have no background in finance, trading, etc. That’s why the idea of following someone’s lead is so comforting. But there are a few things you need to understand before paying for crypto signals on Telegram or Twitter. Most paid crypto signal groups target new and inexperienced traders who are likely to pay a monthly fee for guidance. You are likely to be oversold on the dream of massive profits, which can be very luring. Since they are after your money, the fishy groups will not even bother to teach you how to trade; otherwise, why will you need them? And they cost a lot of money for monthly subscriptions. There are tales of suicidal people after burning through their savings following fishy gurus. Others will pump and dump; that is, find a low cap token, hype it, and once the price rises as followers buy-in, dump it for profit. Additionally, some will steal signals from other groups, and most alarmingly, they can manipulate their performance record.
Covesting Copy Trading Solution
It’s for this reason that leading trading platform PrimeXBT in partnership with Covesting, a European-based software developing company, introduced the Covesting copy trading module that would bring transparency, simplicity, and a level of competition. Now after a few months of beta testing, feature updates, and overall improvements, the public launch of the first-ever copy trading platform for cryptocurrencies is here.
With the new platform, PrimeXBT sought to make it easy for inexperienced traders to profit from trading cryptocurrencies by following more successful traders and copying their trading styles. There are numerous cases of “crypto expert traders” getting caught lying as they boast of their higher ROI through PnL screenshots while promoting their paid signal groups to masses who end up burnt if they take the bait.
Covesting seeks to address such issues by displaying such individuals’ actual performance in a manner that information can’t be deleted, and it’s available for everyone to see. This is done through a robust rating system.
The truly successful traders can become strategy managers with every part of their trading recorded and displayed openly for their followers to see; thus, they can make money by following the gurus.
The peer to peer trading solution will allow strategy managers and their followers to profit together. According to the company blog, $1 million in follower equity was added during the beta phase, and the ROI went as high as 1800% for some managers, which is quite impressive.
Dmitrij Pruglo, CEO at Covesting, says that the copy trading platform offers both traders and followers something unique like eBay did to buyers and sellers or what Uber did to drivers and passengers. Like its predecessors, the platform’s offering is innovative and different from anything else offered in the market so far.
If you are an existing PrimeXBT user, you can access the copy trading platform from your account’s dashboard. And for new users that could be interested in learning about Covesting, they can sign up and do it for free on the platform.
After years of exploiting unsuspecting less-experienced traders, it seems the days of photoshopped PnL screenshots that lure people to paid social media groups are coming to an end. The transparency of the Covesting copy trading platform is likely to open up a world of opportunity for both followers and traders alike. Followers can now tap into the expertise of experienced traders without a worry.