Three weeks after the Coinbase IPO – a landmark event in the cryptocurrency industry – another piece of news is flowing into the cryptocurrency space. PrimeXBT, a leading cryptocurrency trading platform, is partnering with Covesting, a Europe-based software company, to build Covesting Yield accounts.
Covesting Yield Accounts will integrate the Covesting Copy Trading Module on PrimeXBT, allowing traders to invest in cryptocurrencies and leverage built-in charting tools and over 50 trading instruments.
Here’s an introduction to Covesting Yield accounts and why crypto traders should take care of them.
What is a Covesting Yield account and how does it work?
Consider Covesting Yield accounts that are similar to traditional bank accounts. When you put money in a savings account, you give the bank permission to use them for other financial activities, such as investing in bond markets, lending to third parties, etc. In return, you get a certain interest rate, even though the return is by no means. attractive.
Covesting Yield Accounts work the same way. By using the service, you authorize your funds to be used for various crypto-market activities and decentralized financial operations. And in return, you will receive an interest payment.
The difference, however, is that the rates of return are higher than in a savings bank account. You can choose from four plans – Standard, Advanced, Premium and Elite. The annual percentage return (APY) for the four plans is 11.48%, 14.35%, 17.22% and 20.96%, respectively. In contrast, APY in a savings account is less than 1%.
Effortless staking with Covesting Yield accounts
Bitcoin mining is a well-known way to earn cryptocurrency without putting money down for it. However, the process is resource intensive and not for everyone. Effort is a less resource-intensive alternative to bitcoin mining. Instead of solving cryptographic equations using advanced computers, all you have to do is “lock in” your existing cryptocurrencies to receive rewards.
You can either store the funds in an existing cryptocurrency wallet or a betting service, such as PrimeXBT. The funds you have are used to support the operation and security of a blockchain network. And you earn rewards in exchange for keeping your coins in your wallet or exchange.
To gain a better understanding of how effort works, you need to understand what Proof of Stake (PoS) is and how it works. We will not go into detail here, but you can learn more about staking here.
We discuss betting because Covesting Yield accounts allow you to bet your cryptocurrencies in exchange for an APY. You can get started with as low as $ 100 and earn returns to store your assets while Covesting takes care of the DeFi betting process.
Why do crypto traders need to use cover dividend accounts?
While the release of Covesting Yield accounts is still underway, many crypto traders are looking forward to the launch. Various cryptocurrencies and exchanges allow you to bet your assets, however transparency and flexibility are the main factors that make Covesting Yield Accounts the preferred choice.
To begin with, you only need a hundred dollars to get started, as discussed earlier. Instead of locking your money into long lockout periods, you can withdraw your bet amount at any time. Interest is paid daily. When you choose to withdraw, you will receive the full bet amount along with accrued interest.
You also get the flexibility to choose the cryptocurrency and the number of coins you want to bet. The platform shows the interest you have earned and how much you are likely to earn. Each cryptoactive has an individual page with in-depth information, including historical APY, stock curve, etc.
How to start earning?
When the final product launches later this year, PrimeXBT users will be able to wager their cryptocurrencies effortlessly. If you are a PrimeXBT user, you must:
How Much Money Can You Make?
One of the most important thoughts that may cross your mind is how much money you can make. Although there is no fixed amount, let’s put some numbers into play. Assume you are betting 60,000 USDC over a three month deposit period, with an average APY of 11% for the first month, 15% for the second and 12% for the third.
Therefore, you will earn (60,000 x 11%) x 31/365 = 560 in the first month, (60,000 x 15%) x 30/365 = 739 in the second month, and (60,000 × 12%) x 31/365 = 611 in the third month. In total, you will earn 1910 USDC in three months by simply leaving your cryptocurrencies in your account.
Keep in mind, however, that APY rates fluctuate according to liquidity and market conditions. Therefore, users need to monitor the rates closely and manage them on a regular basis for the best results.
Conclusion: Good effort
When Covesting Yield Accounts are released later this year, crypto investors will be able to more easily leverage DeFi. Users with limited technical knowledge of blockchain and cryptocurrencies will benefit from return-generating instruments. Furthermore, the launch of another innovative Covesting product is likely to explode the value of the COV token further.