What a crypto CFD is and how it differs from owning coins
A crypto CFD is an agreement with the broker to exchange the difference in a cryptocurrency's price between the time you open and close the contract. You never hold the coin, you have no wallet, and you cannot transfer the asset off the platform. The contract is a bilateral exposure to the broker, which introduces counterparty considerations that do not exist with direct coin ownership. Some brokers offer both direct crypto purchases and crypto derivatives, and the two products can carry very different fees, leverage rules and legal protections. When researching eToro, your first job is to establish which product you would actually be trading in your jurisdiction, because product classification affects everything else on this page.
- CFDs track price only; you gain no ownership, staking rights or transfer ability.
- Leverage can be applied to CFDs, which magnifies both gains and losses.
- Product classification varies by regulator, so the same broker may offer different crypto products in different countries.
- Counterparty exposure to the broker is inherent in any CFD position.


