There are two common ways to get exposure to cryptocurrencies such as Bitcoin: buying the coins themselves, or trading a contract for difference (CFD) on their price. They behave very differently.
Ownership
When you buy crypto on an exchange, you own the coins and need somewhere to keep them — an exchange account or a wallet. With a CFD you never own the underlying coins. You hold a contract with a broker whose value follows the price.
Going long or short
A CFD lets you take a position on prices rising (long) or falling (short). Owning coins only benefits from rising prices, unless you use other products.
Leverage
CFDs are traded on margin, so you put down a fraction of the position's value. Leverage magnifies both gains and losses, and crypto prices can move sharply. Use the margin calculator to see how much margin a position needs.
Costs
- Spread: the difference between buy and sell prices.
- Overnight financing (swap): charged or credited on positions held past the daily cut-off.
- Exchange and network fees apply when you buy, sell or move coins you own — not to CFDs.
Risks to understand
Crypto markets are volatile and can gap. With leverage, losses can exceed what you expected, which is why stop losses and sensible position sizes matter. Owning coins carries its own risks, such as losing access to a wallet.
Neither route is right for everyone. Understanding the differences comes before choosing one.
This article is general information and education, not investment advice. CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage.
