At the moment, trading in cryptocurrencies is only profitable for those who have:
- Requisite knowledge of securities and index trading
- Skills to learn and analyze complex market structures based on media outlets and
- Requisite knowledge and experience of isolating market emotions from trading
The above-mentioned hurdles make it extremely difficult and time-consuming for novice users. Unfortunately, the majority of users who want to invest in crypto trading find the learning curve to be extremely difficult. Others do not have the time to spend on crypto-trading and end up relying on guesswork leading to loss of funds to unverified traders.
Social trading is an evolving and interesting innovation which has the potential to revolutionize trading in cryptocurrencies. Fraud is a common challenge that is prevalent in social trading. Fraud takes place in social trading because current systems are centralized with no provisions for verifications which raises credibility issues.
At present, there is no viable platform where participants and bona fide traders can benefit from the massive potentials of blockchain-based social trading service. CoVEX is implementing a social trading platform with exciting new features that will allow any participant to follow more knowledgeable and experienced traders by copying their portfolios and all the future adjustments. This platform will allow novice participants and those with inadequate time to invest their funds in the trades that promises high returns. Ultimately, the platform will benefit both leaders and followers.
Leaders:
Leaders will directly interact with their followers to trade in cryptocurrency without relying on a central server for every trade. Followers will efficiently allocate their money under the assistance of their leader in a transparent and trustless manner. This will end up saving time for every participant in the trade.
If the leader performs well over time, he/she will generate additional income in the process. Ideally, the most obvious incentive for becoming a successful leader on the CoVEX social trading platform is collecting CoVEX coin from the followers. Successful leaders will naturally create a brand for themselves with regard to crypto-trading on this Platform.
By connecting to social media platforms such as Facebook, Twitter, and LinkedIn, leaders will naturally expand their influence by displaying their real trading outputs, which will help create an even more extensive social trading following.
Even though this feature is not a primary incentive of the CoVEX Platform, successful leaders who manage to grow large following and reputation will use the weights of their followers’ money to shift the prices in favor of their preferred cryptocurrencies. This means that any trader who would like to become a leader can become a market mover with an established following and profile.
Followers:
The process will be straightforward for followers. Once they deposit their funds to CoVEX, they merely pick a leader and copy that leader’s portfolio. The assigned funds will then be used to purchase the portfolio that is presently held by the leader so that it matches his/her funds by providing risk management across each copy relationship based on real-time Profit/Loss values. The entire social trading experience is one of automated risk control system which facilitates the follower to set controls for the copy relationship.
Thereafter, any future trades that is committed by the leader will be matched at the prevailing market rates. Using CoVEX Platform, followers will rely on and trust only leaders that are more knowledgeable with experience in crypto trading. As such, the Platform will be based on ML algorithms that will differentiate knowledgeable and experienced leaders, generate and store the portfolio on a blockchain for followers to use.
With many tokens that will be available for trading and many new ones being generated and released on a daily basis, the majority of followers lack the requisite time to research and assess them. In traditional social trading, inquiring from a more experienced leader for advice is possible.
However, getting one-on-one assistance is tedious and time consuming for both participants. The CoVEX Platform will democratize social trading and allow traders to follow more experienced leaders from the public listings based on profiles that have been generated from ML.