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DeFi, Covesting, and the COV Token: The Hottest Trend in Crypto

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Covesting

Last month, the Covesting copy trading platform was officially launched to the global public on PrimeXBT. Already users are talking about how it has the potential to be the next catalyst for further explosive growth in the decentralised finance space.

Here’s why, along with a brief breakdown of what exactly DeFi, Covesting, the COV token are, and what they have to offer the crypto community.

What Is Covesting? The Complete Copy Trading Platform Now Live PrimeXBT

The Covesting copy trading module is an innovative trading tool developed by a DLT-licensed software developer by the same name. The concept is simple: inexperienced traders or those who can’t afford to put forth the time and effort into technical analysis or formulating a proper trading strategy can copy more experienced traders’ trades.

These skilled traders can create strategies for others to follow. Followers add capital to these strategies and copy their trades, profiting from the years of experience, learning, and natural talent of some of the greatest the global trading community has to offer.

Followers get to generate the substantial income that trading can provide, but passively and without doing the footwork themselves. That’s not to say no work or risk is involved at all. These new traders are still tasked with employing proper risk management in case even the most successful strategy manager has a bad day.

Cov Token

What Is DeFi, And How Does Covesting Fit Into the Blossoming Trend?

According to a detailed report by ConsenSys, a blockchain technology solutions firm founded by Ethereum co-founder Joseph Lubin, the definition of DeFi is wide-sweeping. The DeFi industry now has a record $9 billion USD locked up in decentralised finance applications. And it’s only set to grow further.

In a nutshell, DeFi is a decentralised, peer-to-peer alternative to traditional financial services offered by banks and other payment providers. Rather than work through third-parties or intermediaries, tokens built on the Ethereum blockchain can include smart-contracts that can be coded to do several things autonomously.

The report claims that everything from DAOs, to data and analytics, to lending, marketplaces, exchanges, and wallets, all fit under the DeFi spectrum. Covesting is one of those peer-to-peer platforms, connecting a wide range of traders from around the globe. And at the core of Covesting is the Ethereum-based ERC-20 COV token.

The Covesting token (COV) is the native cryptocurrency token of the Covesting copy trading platform on PrimeXBT. The token unlocks previously untapped potential in the decentralised finance space by connecting traders together in a synergistic solution.

The COV token not only powers this platform but provides additional utility through a variety of powerful benefits. For example, holding COV tokens will unlock the ability to allow even more followers, expanding any strategy manager’s potential earnings. Followers can even earn a larger portion of success fees by holding COV tokens.

The flexibility in DeFi and ERC-20 based tokens like COV allows even more utility to be added over time. Covesting says that there will be core COV features that all of its copy trading modules will offer, along with unique secondary features that will vary from partner to partner.

This sort of flexibility, utility, and freedom is what has been driving the DeFi trend to enormous profitably as of late.

DeFi

How Covesting Connects Traders For Synergistic Profitability

The next most important feature of the Covesting copy trading platform after the COV token is the public rating system. The moment a strategy is created, all success and risk metrics are recorded in real-time from there on out and added to the rating system for full transparency.

This methodology keeps traders honest, risk in check, and allows followers to get a good, hard look at the strategies they consider copying. It also brings a layer of competition that isn’t found elsewhere. All these successful traders are vying for the same followers, so paying extra attention to performance is critical.

The strategy managers who earn themselves followers will generate a profit from a percentage of follower’s success fees—followers profit from picking the right strategy to follow and making a profit based on their ROI. The COV token can unlock even further earnings potential, highlighting its benefits as an up and coming DeFi token.

PrimeXBT

What This Means For Decentralised Finance And Trading

The decentralised finance explosion is primarily due to two crucial factors. In general, decentralised networks have become commonplace even outside of crypto, using Uber or Airbnb as examples. By eliminating third-parties, peer-to-peer networks thrive in today’s digital world. The second factor is that the DeFi space is currently generating profits for all participants, only further fueling the trend.

But while DeFi investors put money into projects with no real merit, those who have found the right trader on Covesting are instead taking in over 1800% ROI, according to data from the Covesting beta that came to a close just ahead of the full public release last month. And while others throw capital at useless Uniswap tokens, smart money knows that the COV token offers real-world utility that most DeFi tokens cannot match.

Covesting is now available to all on the award-winning Bitcoin margin trading platform PrimeXBT. The advanced trading platform lets traders build long and short positions across crypto, forex, stock indices, commodities, and more, or take advantage of innovative tools like copy trading and the COV token.

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Best Practices for Ethereum Smart Contracts Security

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Ethereum Smart Contracts Security

Smart contracts are digitally stored contracts that are automatically executed upon meeting pre-set terms and conditions. They’re used to automate contract execution to immediately assure all participants of the outcome without a third-party involvement or time wastage. Smart contracts are prone to vulnerabilities, and attacks such as reentrancy, front running, ETH send a rejection, and integer overflow or underflow. However, smart contracts are fast, efficient, and accurate, and they promote trust and transparency. Since they are encrypted, they’re hard to hack, ensuring security. Here are best practices for Ethereum smart contracts security.

1. Conduct smart contract audits

A smart contract audit is a security check conducted on smart contract on-chain code to ensure it is free of bugs and other security vulnerabilities. The audit process is done to identify issues, errors, and security concerns in the code to recommend improvements and fix them. Audits increase a business’s credibility and help win user experience. To mitigate any risks, involve the auditors from the early stages of contract designing. This helps ensure your code’s security and the safety of clients’ investments.

2. Ensure careful rollouts

Being attentive and careful will help identify and fix bugs before they can cause long-term complications in a smart contract’s functionality. To ensure intelligent contracts are free from bugs before release, comprehensively test the arrangements to identify any bugs better. If you don’t succeed at finding the bugs, look for a professional bug bounty hunter to help with the effective rolling of your smart contract. Consider rolling out your smart contract to simplify the identification of vulnerabilities.

3. Stay up to date

Keeping track of the latest developments helps improve an intelligent contract’s design to identify bugs quickly. To successfully track new developments, carefully check your contracts to identify any new bugs. Staying up to date with the latest security advancements helps to identify bugs quickly. Consider adopting new security techniques that seem productive as a smart contract best practice. Additionally, upgrading any tool or library helps with bug fixes and security updates that strengthen your smart contract’s security.

4. Keep the contracts simple

Complex smart contracts may lead to increased errors and vulnerabilities. To ensure contract simplicity, choose clarity over performance and simple contract logic. Where possible, use an already written code and modularize it to keep functions and contracts small. If parts of your system need decentralization, only use blockchain.

5. Pay attention to blockchain properties

Some of the blockchain properties to beware of include external contract calls that may perform malicious code, alter control flow, and remember gas costs and the block gas limit. Don’t forget that public functions can maliciously be called in any order and that anyone can view intelligent contracts. Beware that timestamp isn’t precise on a blockchain, but miners can impact a transaction’s execution time with a very short margin.

6. Be prepared for failure

Since non-retrieval contracts may have errors, ensure that your code can respond to bugs and vulnerabilities by managing the amount of money at risk, pausing a contract in case of any issues, and having an upgrade plan for improvements and bug fixes.

Due to various contract vulnerabilities, smart contract developers should pay attention to intelligent contracts security best practices. This ensures the system’s security and the safety of all financial investments.

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Africa is Undergoing a Crypto Renaissance – Here’s Why

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Buy Bitcoin in Namibia

Africa’s crypto adoption is growing at an unstoppable rate, and several recent studies point to the continent’s transformation into one of the largest cryptocurrency hubs in the past years.

For example, the 2020 Geography of Cryptocurrency Report conducted by Chainalysis revealed that Africa’s cryptocurrency sector is now one of the top 10 in the world, growing from 67% to 78%. Kenya and Nigeria stood out as the countries with the highest crypto usage. This is consistent with the findings of a Yahoo Finance report, which found that Nigeria was the country that used cryptocurrencies the most. According to the report, 32% of Nigerians have used or owned at least one cryptocurrency in 2020 – that’s much more than some countries in Europe and the Americas.

Another report,  The State of Crypto in Africaconducted by Arcane Research, revealed that Africa is one of the most promising continents for crypto, despite recession concerns and lack of banking infrastructure.

So, what factors have favoured Africa’s rise to power, and what threats will it have to overcome to secure its position as the world’s top crypto economy? 

Africa’s rise to power as a Fintech hub

Africa’s skyrocketing crypto adoption is inextricably linked to the continent’s booming Fintech sector. Favoured by foreign investments, growing mobile usage, and the completion of the African Continental Free Trade Agreement (AfCFTA), Fintech is maturing in Africa. As more and more countries are embracing digital transformation, VC funding is on the rise.

Despite predictions from the World Economic Forum that the economies of African countries will shrink considerably in 2021, reports show that VC funding for African Fintech startups has grown by 51%. South Africa attracted the most investments, followed by Nigeria, Kenya, and Egypt. More and more people are interacting with digital finance services in all their forms.  The popularity of crypto Forex brokers is on the rise, consumers now rely on apps and web services to save money, trade stocks, and manage their portfolio, and online loans are emerging as a simpler alternative to bank loans.

Cash Out Bitcoin to Naira

Remittances from diaspora

Remittances from the diaspora are another important factor behind Africa’s rise as a cryptocurrency power.  According to the World Bank, remittances to Africa continue to be an essential source of income, despite the drops caused by the pandemic. In 2019, sub-Saharan countries reached $48 billion in 2019, and nearly half of this amount was sent to Nigeria. The average expat sends around 6.8% of their income to their home country.

Meanwhile, for African expats, this rate is at 8.9%. What does this have to do with crypto? Well, most people who send money home don’t do this using traditional means because bank transfer rates are prohibitively expensive. Africa is currently the most expensive country to save money to, with transfer fees going as high as 8.3%. Instead, they choose cryptocurrency transfers (bitcoin being the most popular cryptocurrency), which are instant and have no transfer fees.

According to Reuters data, there were over 601,000 cryptocurrency transfers in June 2020, accounting for approximately $316.1 million. However, the actual size of remittances is believed to be much higher than official reports.

Rising inflation rate

While Africa has a Fintech environment that favours innovation and attracts foreign investment, crypto adoption wouldn’t have been the same without the rising inflation rate. Last year, most African economies were hit hard by the recession. As a result, inflation has skyrocketed, and many national currencies, which were already plummeting before the pandemic), continued to devalue.

For example, South Sudan had a whopping 102% inflation rate between 2016 and 2017. In 2020, the Nigerian Naira suffered a 24% devaluation. As the fate of national currencies remained uncertain, cryptocurrency rapidly became a tempting alternative. Despite the sceptics’ lack of trust in crypto, Bitcoin did not crash because of the pandemic. In fact, it even peaked at $64,000 in April, convincing many that crypto really is here to stay. Other cryptocurrencies, like Ethereum, Stellar, and Binance Coin, have also had a favourable evolution.

Lack of banking infrastructure

Numerous times, Africa has been dubbed “the unbanked continent” due to its lack of banking infrastructure. In 2014, 66% of African consumers did not have a bank account. While this percentage has increased in the past few years, African banks continue to rely on traditional, outdated methods, and their services remain unreachable for people with low income.

There is also a general distrust for banks, which pushed people to choose Mobile Network Operators instead, which are a type of alternative financial services providers. Crypto transfers work in a similar way to MNOs, which convinced many Africans to give them a try.

Potential challenges

Buy Bitcoin With Debit/Credit Card

Long-term prospects for Africa’s crypto ecosystem are generally positive. However, in order for this technology to reach its full potential, several challenges need to be addressed first.

Lack of high-speed Internet

High-speed Internet is essential for cryptocurrency transfers. However, Africa currently lacks a stable infrastructure. In 2019, Africa had the slowest data speeds, which proved quite problematic when the pandemic hit, and remote work and online learning became essential. Internet access and broadband speed greatly differ from country to country. While speeds are higher in Eastern and Southern Africa, people in West and Central Africa often have to learn and work at speeds of 0.16 Kbps. Due to the lack of competition, Internet prices are higher too.

Low financial literacy

Unfortunately, despite the rising crypto adoption, Africa still has one of the lowest financial literacy rates in the world. According to the Global Financial Literacy Survey conducted by Standard & Poor’s, financial literacy is inconsistent. Botswana ranks the highest, with 52%, but most African countries have low financial literacy (Angola 15%, Nigeria 26%, Sudan 21%, Ethiopia 32%). This will need to be addressed in order for people to use cryptocurrency safely.

Lack of regulation

Although cryptocurrency adoption seems to be unstoppable, most African countries don’t regulate it, which could lead to financial scams. Even experienced investors could be at risk here, so people with low financial literacy who don’t understand exactly how blockchain works could be even more vulnerable.

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5 Reasons Why Cryptocurrency Is So Popular

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Cryptocurrency has been one of the hottest topics of discussion for the last few years. This is why most people know what it is and are willing to invest in it right now. However, you might not know that cryptocurrency is thriving across the globe.

Especially when the COVID-19 debuted last year, many investors turned to bitcoin (and other cryptocurrencies) as an investment option. Today, there are multiple reasons why cryptocurrency is growing and is here to stay. So If you’ve been looking for the top reasons behind the massive growth of this currency, you’ve come to the right spot. 

Read on to learn five reasons why cryptocurrency is booming.

Fees Are (Typically) Negligible

One of the primary reasons behind the massive success of cryptocurrency is low fees. Bear in mind, the varying payment options on the web entail a certain deduction whenever a transaction is made. In contrast, when you deal in cryptocurrencies, the fee is typically small. Therefore, it is mindful of people to pay through cryptocurrencies and also rest assured about the safety of their payment.

Potential for Substantial Profits

Of course, another primary reason for people to put faith in crypto is for the chance to make substantial profits. Lots of people who invested a few years ago are reaping incredible profits right now and crypto trading hasn’t cooled down in the last few years.

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Cryptocurrency is Decentralized

One of the biggest reasons to put faith in cryptocurrency is because it isn’t associated with any government. Because it is a decentralized currency, it isn’t controlled by any firm or government. So people willingly invest in it without any fear of demonetization. Therefore, this currency has the power to remain stable, even if the economic situation isn’t healthy. The potential that cryptocurrency is the safest option In the future makes it even more appealing to everyone.

Security is Paramount

In today’s time, with fraudulent practices on the rise, everyone wants to rest assured about the privacy of their information on the web. Because cybersecurity has become a major concern for everyone today, people are looking for a payment method that is safe and secure. Luckily, the availability of cryptocurrency breathes life into these goals. The security provided by cryptocurrencies is what has allowed many people to trust them blindly.

It’s Easy to Get

You don’t have to be a millionaire to get cryptocurrency. Contrary to popular belief, anyone can invest in cryptocurrencies. All you have to do is, look for a reputable exchange where you can buy crypto. A few years back, people might have thought about cryptocurrency as something hard to get. Now, it is all over the place, and anyone can invest in it. If this is your first time investing in this option, you will find the process to be customer-friendly and simple. 

Disclaimer: This is a sponsored post written by a third party. Readers should do their own due diligence before taking any actions related to any company, product, or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product, or service mentioned in this post. 

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