Business

How Covesting Yield Accounts Compare To The Competition

This quarter, PrimeXBT and Covesting debuted the new Covesting yield account module on the award-winning crypto trading platform for the very first time after much buzz from users who had joined a waitlist.

The new tool has been out in the wild now for a few weeks, allowing us enough time to go through the entire experience and give it a proper review. We’ve also taken a look at the competition to explain how the new yield generating accounts from Covesting stack up to the other services out there across the crypto industry today.

DeFi Protocols Become The Rage In Crypto

One of the biggest factors that sparked the cryptocurrency bull market, was the emergence of decentralized finance. The DeFi explosion caused a domino effect that helped propel Ethereum back into stardom, and completely redefined the way the industry worked.

It began with users farming for the highest yield across a number of DeFi protocols, with the earliest rates reaching astronomical figures as the nascent technology began to take off. The earliest adopters were awarded the most gains for their risk, but over time the rates came down and risk was reduced.

More and more ways to access an APY were made available. Crypto token holders can now access permissionless lending and borrowing services, or provide their tokens as liquidity for decentralized exchanges and automated market making platforms.

Using Uniswap As An Example Of DeFi Competitors

Take Uniswap for example. Unlike a centralized exchange, there is no third-party involved to take fees from trading activity. However, fees are generated, but instead are rewarded back to the users who are providing liquidity as crypto rewards. Since the trading activity and market conditions like demand and volume determine how much in rewards are generated, this rate is variable.

Uniswap became extremely popular over the course of the bull market for offering access to trading pairs on ERC-20 tokens, while also allowing users to lock up ERC-20 tokens to provide liquidity for those same trading pairs. Because all ERC-20 token transactions require ETH for gas fees, the demand for ETH also soared.

But the user experience at Uniswap isn’t always what it is cracked up to be. For one, the platform has started to allow regulators to influence its decisions, which isn’t ideal for a so-called “decentralized” platform. It also takes connecting to the DeFi protocol using the dapp browser within a compatible Ethereum wallet like Metamask. The APY rates also are no longer as high as they once were.

The challenging technical requirements, knowledge about the blockchain, has made other solutions more attractive as of late.

CeFi Solutions Aren’t Ideal For Crypto Holders

Several CeFi solutions exist where users can work with a more traditional third-party, who manages assets in such a way that provides an APY return for investors and token holders. This is typically done by lending out the assets to a margin trading platform for leveraged positions, which pay an interest rate to keep open.

This interest rate is split between the token holder and the third-party. The reason users would connect to a CeFi platform over a DeFi platform is because it is a lot easier since the third-party does the difficult and technical stuff for you. But it means you have to trust the CeFi platform with your funds.

CeFi platforms are known to have high fees that make the interest rates they promise less than what is net out at the end once the tokens are taken off the platform.

Covesting Yield Accounts Brings The Best Of Both Worlds

Covesting yield accounts are the solution to the pitfalls of both DeFi and CeFi platforms, by being a hybrid of both and so much more. Covesting yield accounts connect to the DeFi protocols that provide the most reliable APYs of up to 10%, but without the need for technical expertise as it is all done right from the easy-to-use PrimeXBT account dashboard.

Unlike CeFi platforms, PrimeXBT and Covesting are enabling a connection directly to DeFi protocols without the need for a Metamask wallet or other program. PrimeXBT isn’t lending your funds out, tokens are being staked in exchange for a variable APY reward. This also means you can stop staking at any given moment and aren’t bound to terms like CeFi platforms can require.

The new yield account tool connects directly to protocols like Uniswap, Curve, Compound, and more, and the two companies behind the tool plan to also add more DeFi protocols in the future, as well as access to CeFi platforms to provide users with the most options and best rates.

Covesting Copy Trading Is included

Covesting yield accounts are part of the Covesting universe of products, which also includes the Covesting copy trading module. This incredible tool can give followers access to copy the trades of strategy managers who have made more than 100,000% total profits in a matter of mere months.

The peer-to-peer trading community is massive and always growing, with pages and pages full of strategy managers who regularly show success in an online leaderboard system. Followers must review performance metrics to ensure they pick the right act to follow and are armed with stop loss and take profit tools to keep drawdowns limited and profits booked,

Staking the COV token can churn out even more from the Covesting ecosystem of products. Yield account users can get up to a 2x APY boost, while copy traders get trading fee discounts, increased following limits, and much more.

There Is No Comparison To PrimeXBT And Covesting

All Covesting users also get full access to the rest of the PrimeXBT trading platform, which includes a lineup of trading instruments such as crypto, forex, commodities, and stock indices all from a single account. A dedicated account manager offers fully personalized services, and customer support is available 24/7.

Compared to the rest of the APY-generating tools out there, what else comes with Covesting yield accounts makes the competition look weak in contrast to what PrimeXBT and Covesting offer the trading community at large.

Tags

About the author

Jike Eric

Jike Eric has completed his degree program in Chemical Engineering. Jike covers Business and Tech news on Insider Paper.




Daily Newsletter