Covesting by PrimeXBT: the New Trading Module Review

The highly anticipated release of Covesting finally took place in mid-August. Now all PrimeXBT users have access to an uncommon trading format, so let’s take a closer look at it.

PrimeXBT Brief:

• Website: https://primexbt.com
• Launch Year: 2018
• Number of assets: 59
• Average daily turnover: 545 million dollars
• Average order execution time: 7.12 ms

Description of the Covesting module

Covesting can be compared to PAMM accounts, or a kind of trust management system. In fact, this is a trading marketplace, where PrimeXBT acts as the organizer, and both parties are participants in the transaction. The first side is a manager who accepts funds for trading from the other side — the investor — for a commission.

Minimum investment amount is 0.001 BTC. The larger the investment, the higher the share of profit that the investor will take from the transaction. Accordingly, the share of the company as an organizer in the distribution of profits is reduced by the same percentage. The commissions from the profit for the manager are always the same — it’s 20%. You can see a detailed distribution of profits depending on the amount of invested capital in the table below.

In order to manage a portfolio, the minimum amount is 10 times more and it’s 0.01 BTC. For managers, Covesting is a great tool for making money because there is a direct relationship between profitability and the amount of remuneration, and a fixed commission of 20% leaves no room for manipulating portfolio volumes.

Covesting benefits for investors:

• Transparency. As in traditional fiduciary management, the manager's performance is available for Covesting as well. Just click on the stats and you can examine the historical profitability, peak profits, losses and the date of the portfolio formation;
• Time saving. It is often better for newcomers to put money under management than to learn from their own mistakes. Mostly it is usually more profitable, while taking into account the commission too.

But nothing is perfect, so there are a few drawbacks:

• As anywhere else, profitability is not guaranteed in trust management. Even if the manager makes +10% per day during a month, he can lose funds by an unfortunate accident just the next day when he or she receives a deposit from some particular investor. This will mean a complete or partial loss of money, and any investor should be prepared for this.
• Covesting has been beta-tested for about 4 months, and aggregate data for managers and their portfolios is scarce. This means that the choice is not so vivid yet. Alas, so far there are no portfolios that have been under management for a year or more, but this is a matter of time.

There are many exponential filters for choosing a manager:

• Overall profitability;
• Profitability for today;
• The number of days the manager has already been working;
• Number of investors;
• Profitability graph;
• The amount of funds under management.

The most successful manager at the moment has a profitability of 2700% in 5 days.

Simple tips for investors

Before registering on the platform and crediting funds to top managers, it is worth remembering that these are highly speculative investments that are 100% controlled by another person. It is highly desirable to allocate a small part of the money for Covesting, and consequently distribute it among several managers. And, of course, you definitely should not invest borrowed money.

If you want to know more about the tool, then read the answers to all questions in the FAQ section or you can ask them in the official PrimeXBT channels. Good luck with your investments!