Over the last few weeks, the stock market has seen its worst selloff of 2021, and Bitcoin and the rest of cryptocurrencies experienced a sizable risk-off event as the world braced for the impact of a frightening macro storm that may come from a potential default looming of Chinese real estate firm Evergrande.

The fear in the market has brought about substantial volatility, with most of it released to the downside due the massive derisking globally. This article will fill you in on what’s going on, and show you how Covesting strategy managers can help anyone weather any storm that is to come.

Evergrande Situation Explained In A Nutshell

Chinese real estate giant Evergrande is in a pickle of a situation. They cannot pay their interest payments on their loans, and are essentially at risk of default on their enormous debt more than three times the size of their peak market cap. They also took out more debts to pay other debts, worsening the situation.

Evergrande’s stock shares have fallen by more than 80% since the start of the year, but the woes are only the tip of the iceberg that could sink the entire economy and it is being called China’s Lehman Brothers moment.

The reference is a nod to the Great Recession and the subprime mortgage crisis that caused the Lehman Brothers to end more than 150 years of operation. It also dealt a dangerous blow to the economy that’s never quite healed.

The quantitative easing and money injected into central banks has never slowed, and there is no plan to pay back the debts governments have accumulated as a result. Inflation is now out of control, and the economy is on thin ice. With a situation like Evergrande brewing that could cause defaults far and wide, a debt crisis is again looming proving that those in control still have never learned.

Macro Mayhem Ensues In Fear Of China’s Lehman Brothers Moment

The situation has caused markets to go haywire, with no assets aside from the safe haven of the dollar to flee to. The normally strong stock market fell in fear of what could come, and so-called safe haven assets like Bitcoin and other cryptocurrencies have failed to prove they serve such a purpose. Metals have also fallen, along with commodities and the energy sector, suggesting that no market has been safe lately from potential collapse.

Initial volatility due to fear is normal, and the announcement of a multi-billion dollar capital injection into Chinese central banks has already picked markets up and started a bounce. If global markets can recover, the bearish sentiment and fear will have been used to shake out investors and traders, before another leg up.

If not, and the sentiment is just the start of a bigger bearish wave, a global bear market could keep asset prices at bay for several years to come. But there is no telling what is to happen, so many are simply sidelined and sitting and waiting in fear. If that sounds like you, what is someone to do?

Let Professionals Trade For You With Covesting Copy Trading

When in doubt yourself, there is always the Covesting copy trading module to fall back on. Covesting strategy managers know how to trade crude oil at PrimeXBT along with other markets like forex, metals, crypto, stock indices and more, no matter the conditions. These skilled traders who regularly show success through the Covesting leaderboards can survive anything, bullish or bearish, and come out the other side profitable.

Covesting strategy managers understand how to protect capital when markets become highly volatile, and also know how to extract the most profits possible by switching up trading styles on the fly. Few traders can respond so well to turbulence tactfully and with emotional control, that it becomes very clear by the leaderboards which strategy managers are worth the follow or not.

Followers on the platform can pick and choose any number of strategies to follow, to diversify one’s risk and capital further for even greater chances of success. Followers can also protect themselves further with stop loss and take profit features added to each following. These allow followers to limit unwanted drawdowns and book profits without losing a spot with one’s favorite follower.

Weighing Out The Risk And Reward Of Following Top Traders

The Covesting copy trading module comes complete with success and risk metrics for followers to examine in order to stay successful themselves. A five-star rating system pays close attention to the specifics that matter the most, such as margin allocation, win to loss ratio, trading turnover, and more.

In the future, Covesting will debut a low-risk tool that focuses not on copy trading, but generating an APY on idle crypto assets. The tool is set for launch in several weeks, and is called Covesting Yield Accounts. It can offer up to a 35% APY back in crypto rewards for staking assets. And by staking the COV utility token, up to a 2x APY boost is possible.

The COV token is also the key to unlocking trading discounts and more within the Covesting copy trading module on PrimeXBT. With reduced fees or a bigger cut for followers, users can book even more profits than before.

Covesting Strategy Managers Access World’s Best Trading Tools At PrimeXBT

PrimeXBT also offers award-winning trading tools such as long and short positions, built-in technical analysis software, stop loss protection, and much more, to all strategy managers so they can stay at the top of their game – and at the top of the Covesting global leaderboards.

The leaderboards are currently packed with more than 400 strategy managers all vying for a piece of follower’s capital, and a sea of followers who are seeking profits. No matter the change in tide or the trend, Covesting strategy managers are ready to survive whatever the macro storm. Followers can find safe haven, possibly not in Bitcoin or gold trading, but in following others who have been through such selloffs, survived, and come out the other side profitable.