If you pay attention to cryptocurrencies or even traditional finance, there is no escaping the emergence of DeFi or NFTs. DeFi is short for decentralized finance and could disrupt the way traditional banks do business forever forward. DeFi is still a relatively new buzzword in crypto, which means that there is still a lot of uncertainty and confusion that needs clearing up. Adoption is still confronted with plenty of hurdles, with accessibility being one of the most significant challenges users currently face. However, Covesting Yield Accounts, due only several weeks from now, are the key to disrupting DeFi itself, which is busy disrupting traditional finance. Find out how in this helpful guide below.
Table of Contents
Remember The Beginning Of The DeFi Explosion
At the start of 2020, while everyone was focused on margin trading Ethereum and Bitcoin, a new trend began, this time around altcoins. More specifically, the DeFi sector started to boom, which then blossomed into a greater cryptocurrency bull run. And it all started with something called an APY, or annual percentage yield.
Gone are the days of the savings account, the certificate of deposit, or even the money market account. If you want to make any sort of a percentage back on money saved, it needs to be actively invested in the stock market or elsewhere where risk is involved.
Savings accounts today offer as little as 0.04% APY, which is far less than the inflation rate today. Essentially, by keeping money in a savings account, you are actually losing value. The banks are not and instead are using your funds to still make money by lending it to others in what is called fractional lending.
With DeFi, banks are entirely cut out, and users can both lend and borrow crypto assets without an intermediary, invasive credit check, or anything else. Permissionless lending and borrowing have led to an explosion in DeFi protocols, each innovating more than the next.
DeFi Kicks Into Overdrive With Emergence Of Uniswap
DeFi really began to crank into overdrive when the emergence of Uniswap and other automated market making platforms began. Such platforms are decentralized exchanges that don’t have a central party matching orders and providing liquidity.
Liquidity is provided by users instead, who then earn an APY reward on the liquidity provided. This rate varies depending on market demand and other factors. APYs have been known to reach as much as 35% in the DeFi industry, but such profits aren’t without any risks or hurdles. There is a risk of loss related to technical issues with the blockchain, especially if the users do not know how to use ERC-20 wallets.
The daunting task of connecting blockchain wallets to protocols and dapps makes DeFi difficult for some to take the plunge. Even those who are comfortable with trading and investing might feel uneasy accessing the blockchain in this manner.
Covesting Prepares Yield Accounts On PrimeXBT For Launch
Cutting out the middlemen still but providing a much easier path to DeFi protocols, is PrimeXBT and Covesting. Covesting developers are back at it again with PrimeXBT, almost ready to debut a new tool in just several weeks ahead.
Covesting Yield Accounts connect users to top DeFi protocols like Uniswap directly through the PrimeXBT user interface and account dashboard, making DeFi a lot easier to use but retains the permissionless part that makes the sector so attractive. There are still no credit checks, and anyone can participate. The only difference is that the technical expertise is left up to Covesting and PrimeXBT.
This makes staking idle crypto assets a breeze, with up to 35% variable APY possible. By staking the COV utility token, up to a 2x APY boost is also offered, as well as a 1% increase during launch month if you join an active and growing waitlist in the Covesting section on PrimeXBT.
Other Covesting Tools In Store At PrimeXBT
There, users will also discover the Covesting copy trading module, which connects followers and strategy managers together to profit synergistically. Strategy managers trade successfully as they always would, while followers can sit back and copy the trades of these more skilled traders.
By leveraging the experience of other traders who have been around the block and back, there are fewer chances for loss. Followers can also pay attention to risk and success metrics offered via the fully transparent Covesting leaderboard system.
Strategy managers with the most total profits rise to the top of the leaderboards, attracting more and more followers who will take notice. Strategy managers earn a cut of follower’s success fees, so there is plenty of reason to keep on trading.
COV Token Staking Unlocks Full Experience
Strategy managers, followers, and users of the Covesting Yield Account system can all benefit from the COV utility token. As mentioned, COV token staking can offer up to a 2x APY boost with Covesting Yield Accounts, but COV token staking also unlocks three new memberships at PrimeXBT.
Premium, Advanced, and Elite memberships increase the profit share in favor of followers, offer strategy managers a trading fee discount, and much more. COV token staking is simple and gets users the most out of the Covesting ecosystem.
COV tokens are even more scarce than Bitcoin, are regularly burned, and feature extraordinary tokenomics geared toward long-term value for token holders.
Summary: What Covesting Can Do For Traders, DeFi, And More
All of these experiences are designed by Covesting, a licensed team of software developers from Europe who have partnered with the award-winning margin trading platform PrimeXBT. PrimeXBT lets Covesting strategy managers trade over 60 different instruments with a single account, ranging from forex currencies to stock indices, commodities, crypto, and more.
The one-stop-shop offers tools for professionals and novices alike. There are built-in technical analysis tools, a help center, and 24/7 live customer support. A fully personalized experience is offered due to a dedicated account manager.
No matter what the need is, from DeFi to margin trading and everything in between, the combination of PrimeXBT and Covesting has traders covered.