The Covesting ICO pre sale has recently started with good discounts currently on offer.

What is Covesting?

The new platform aims to bring professional traders together with investors by offering a decentralized copy trading platform. The platform will be similar to how the popular platform etoro works but for the cryptocurrency market instead of stock market.

The market

The cryptocurrency market has exploded during 2017 with the total market cap now at over $170 billion. However there's still single companies who are bigger than the entire crypto market which shows that there's still massive room for growth.
This quick rise has brought a lot of newbie investors into the market who are trying to learn how to trade, these users can benefit from the covesting platform which allows them to copy professional traders trades rather than having to learn everything for themselves.

Copy trading

Copy trading gained popularity in the last decade. Etoro is one of the most well known companies, they even sponsor a premier league football team. Copy trading allows users to copy another users trades without ever losing access to their funds.

Problems for newbies to the trading the market

Cryptocurrency is still much more complicated than using fiat currency, those new to the area are greeted with dozens of different exchanges to choose from which tend to charge high fees, 100s of people trying to sell them their 'get rich quick' schemes and a choice of 100s (soon to be 1000s) of different tokens to trade.
The learning curve for crypto is huge which is further complicated with a lot of bad information being out there.

Problems for traders

Despite the huge rise of cryptocurrency there's still a lack of traders who are managing to raise extra funds to trade with. It's hard for them to gain trust in a market that's become famous for the benefits of anonymity and due to it still being such a new market.

How will Covesting work?

The new platform aims to bring these 2 types of users together and offer benefits for them both, just some of the benefits available are listed below.

Benefits for investors

• Users will be able to search the platform for different traders, view their previous trading statistics and pick a winning strategy that suits them.
• They'll have the option of copying the trades of up to 20 traders at one time, this will spread their risk.
• Investors remain in total control of their funds and can cancel following a certain trader at any point.

Benefits for professional traders

• Model managers will be rewarded with 18% of the profit that they manage to make for those users that are copying their trades.
• The new platform will create a competitive environment where traders can compete to become viewed as the best trader on the platform with the best trading history.
• Option of creating their own blog to gain more exposure.

How will the platform work?

Model managers will first need to provide proof that they have history of making successful trades, once approved their profile will be listed on the website. The first prototype of the platform is scheduled for release between the 20th and 24th of November.

• Users can then join the platform and deposit into their account using a variety of currencies.
• Users are able to browse different traders profile and choose which ones they'd like to copy trades from.
• Once you've found successful traders you'll have the option of subscribing to their trades and then you can select a percentage of your funds that you'd wish to copy their trades with.
• You can now view the results from your dashboard and remain in control, you'll be free to copy new traders or unsubscribe if you're unhappy with any.
• Investors will keep 72% of the profit from each trade, 18% will be paid to the model manager and 10% will be charged by the new platform.

How will the platform make money?

The new platform states in their whitepaper that they plan to have 2 main revenue streams:

• A 2% commission charged on all deposits made on to the platform.
• A 10% fee charged on the profit from each successful trade that an investor makes.

Due to regulations the platform won't be able to offer token holders dividends, they plan to buyback tokens and burn them with 50% of their profits instead, this should therefore increase the price of the COV token.

ICO Details

• Price: 1 ETH=200 COV, currently a 50% bonus is available during the pre sale.
• ICO start date: November 24th, currently the pre sale is active.
• Hardcap: 100,000 ETH

Conclusion

Copy trading seems like the perfect concept to introduce into the crypto world, there's so many newbie investors compared to other markets, with more and more joining. The 18% charge on profits will be sure to entice professional traders on to the platform as their current own profits can still remain the same.
It will be interesting to see how quickly the platform can grow once it's released as they should already have a lot of interest from the marketing they've done for their token sale.
The team behind the project looks solid with the 2 co founders having previously worked for global banks and a strong team behind them.

Website: https://covesting.io
Whitepaper: https://covesting.io/Covesting_White_Paper.pdf