Cryptocurrency is an ever-evolving industry that holds the potential for exponential growth. While the return on investments (ROIs) is substantial, there is a high degree of risk associated with it. The cryptocurrency marketplace is extremely unpredictable. People who are inexperienced or don’t have enough knowledge about its precariousness often make hasty decisions and end up losing a lot of money that have a detrimental impact in their lives. Presently, people are looking for a reliable solution where they can trade with assistance and acquire profitable returns.
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The Emergence of Unswerving Solution
Identifying these fundamental complexities of the cryptocurrency domain, CoTrader is a platform that offers the effective solution common masses have been looking for. It is developing the world’s first decentralized and trustless platform that allows users to invest in and manage fund onchain. Investors deposit their funds on Smart Funds which is managed by fund managers who trade on their behalf on decentralized exchanges (DEXs). Fund managers in return, get a predetermined percentage of the profits they make for their respective investors. While the fund managers are the ones who manage Smart Funds, investors still remain in control of their deposited assets.
Smart Funds- The Fundamental Element of CoTrader Network
Smart Funds are basically an Ethereum smart contract that entails investors and fund managers, and shares for them to trade in. When investors invest in the fund, they are accorded with a specific number of shares that represent their total fund ownership. The fund managers then trade the assets with an aim to make profit.
Smart Funds integrates the ERC20 token interface which allows smart fund shares to be traded on various exchanges as it happens in the ERC20 token. Anyone can invest in Smart Funds by investing in CoTrader (COT) tokens.
Being a Fund Manager in CoTrader Platform
Similar to investors, anyone can be a fund manager through the CoTrader registry smart contract. The network only asks for a one-time gas fee for the transaction which is paid to the Ethereum miners. Typically, fund managers begin by trading their own funds to build up a strong portfolio and ROI history. It further develops a credible proof-of-work for investors to rely on.
The Investment Process
Each smart fund encompasses shares that represent the ownership percentage of the fund members. When a user invests in a smart fund, new shares are minted that represents his fund holding based on the overall amount invested and the present value of the fund’s holding. Additionally, when investors withdraw fund, the shares are burnt and the total number of shares is decreased. When funds are withdrawn, investors get their share minus the performance fee for the profit their fund managers have made for them. As these Smart Funds are similar to ERC20 tokens they can be transferred between accounts like other cryptos. When funds are transferred like this, neither new shares are issued nor they are burnt.
With a decentralized and trustless cryptocurrency platform, creators aim to bring investors closer to the field’s experts. By providing expert assistance at the same time ensuring users with full control over their assets, it is evident that CoTrader is gradually transforming the way funds are used in the digital landscape.
