Markets

Crypto ETPs, spot crypto and crypto CFDs: three different risks

Exposure to the same coin can mean owning it, owning a note, or holding a contract. The risks are not the same.

The same headline price can reach you through several routes. Each has a different legal structure and set of risks.

Spot crypto

You own the coin or a claim on it. Custody and security matter, and so does whether you can withdraw.

Exchange-traded products

You hold a security that tracks the price, traded on a regulated market. You get familiar protections but pay management fees, and you cannot move the coin to a wallet.

Crypto CFDs

You hold a leveraged contract with your broker. You never own the coin, and financing costs and margin calls apply. In many regions CFDs are restricted for retail clients.

Before buying exposure by any route, decide whether you need ownership, simplicity or leverage.

Risk warning: Trading forex and CFDs involves a high level of risk and may not be suitable for all investors. You may lose more than your initial investment.
Topicscryptoetpcfd

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