Everywhere you look, the practice of staking coins has taken over the cryptosphere. The allure of passive income and high annual percentage yields has made staking crypto assets all the rage, and rightfully so. But what if we told you there was more to staking some cryptocurrencies than simply unlocking an APY.
And what if we went a step further and told you that even though the COV utility token is very different, and its staking feature unlocks a variety of benefits for users of the ecosystem, that one of those benefits was a variable APY of up to 35%.
We know that such variety and value sounds too good to be true, but we’re here to show you the secrets to unlocking the full potential of the Covesting platform. So get ready, get set, and get staking.
What Is Staking?
The term staking has taken on a number of meanings across cryptocurrencies, but is most commonly associated with the consensus mechanism some altcoins use to reduce the energy requirements related to Bitcoin and proof-of-work coins. These proof-of-stake coins encourage users to stake their cryptocurrency assets to help secure the network and validate transactions – essentially serving the role of Bitcoin miners.
In exchange, users are offered a variable APY back in crypto rewards. However, not all proof-of-stake protocols work this way, nor are all crypto staking alike.
Staking coins, thanks to liquidity provisioning through automated market making platforms like Uniswap, also refers to any coins locked up which generate passive income for the token holder. In exchange for providing liquidity and locking up tokens, token holders are paid a variable APY reward in crypto assets.
Finally, there is a combination of value that also unlocks various account-level memberships and benefits, through the COV token, the native utility token to the Covesting ecosystem. Currently, there is the Covesting copy trading module which connects followers with experienced strategy managers, and eventually the Covesting Yield Account system will roll out later this year.
What Is The COV Utility Token?
Although the coin should need no introduction, the COV token is the native cryptocurrency to the Covesting copy trading module, which also will soon unlock additional benefits within the Covesting Yield Account system launching in several weeks.
The COV token is an ERC-20 token on the Ethereum blockchain, although the Covesting developers – a licensed fintech software developer from Europe – have also created a bridge to work with Binance Smart Chain as a BEP-20 token. This was done as a way to alleviate the high gas fees users were experiencing with Ethereum during the peak of DeFi and NFT mania.
The COV token’s utilities are unlocked by staking the token within the My COV section of the PrimeXBT dashboard. Staking COV tokens unlocks three unique membership levels above the standard Covesting strategy manager or follower account.
What Do COV Staking Memberships Unlock?
COV tokens can be locked up and unlocked at any given time. Memberships can also be upgraded, but cannot be downgraded. Should a member want to downgrade, they must unlock their tokens, and start staking at a different membership level.
Membership levels consist of Advanced, Premium, and Elite accounts, each offering an increasingly appealing level of benefits. For example, strategy managers get a 10%, 20%, and 30% trading fee discount respectively.
Followers also get to eliminate new following fees across all three levels, while each level offers a better increase in profit share on success fees, as well as following limit increases.
What Else Is Coming To COV Token Staking And Covesting
As mentioned, Covesting Yield Accounts are coming down the pipeline in several weeks according to a company spokesperson. That means in no time at all, DeFi will finally be made a lot easier to access, as we’ll explain.
DeFi has blown up across the world of finance, largely due to the unprecedented APY these assets generate by staking. However, connecting blockchain wallets to decentralized platforms is a chore, and overly technical of an experience currently. Adoption will change this, by making DeFi more accessible to all.
Covesting Yield Accounts do just that, connecting users to top DeFi protocols like Uniswap from directly within the PrimeXBT account dashboard in the Covesting section. No longer is there technical risk or expertise required to tap into DeFi’s best rates. Covesting Yield Accounts offer as much as a 35% APY on idle crypto assets stored within a secure crypto wallet account.
COV Tokenomics Explained And Why A Supply Shock Narrative Is Brewing
Covesting and the special benefits the COV token unlocks, can only be found on the award-winning Ethereum leverage trading platform PrimeXBT. PrimeXBT is where the entire Covesting ecosystem can be found, starting with the copy trading module, and soon, will feature Covesting Yield Accounts.
Also located within the PrimeXBT dashboard, is a dedicated My COV section, complete with information on the smart contract, supply, current pricing, and more. The COV token features a supply more scarce than Bitcoin, but that is always shrinking due to systematic token burns.
Combined with taking coins out of the supply due to COV token staking and the benefits it unlocks, there is a supply shock happening on exchanges as fewer and fewer COV are available to be purchased. For those looking to purchase COV tokens, they are available on Uniswap, Kucoin, and even PrimeXBT using the exchange tool and swapping BTC or ETH for COV via select trading pairs.
Stake Your Claim To Crypto Gains With PrimeXBT And Covesting
Staking is captivating the world of crypto, and it is easy to see why. There is so much money to be made, both actively and passively by connecting to Covesting and PrimeXBT.
With top-notch trading tools, built-in technical analysis software, and a free mobile app, novices and professionals alike will instantly feel right at home. And when all else fails, users can always simply turn to Covesting copy trading, or passively make income using the upcoming Covesting Yield Account system when it releases in several weeks from now.