When you invest in Bitcoin on eToro, your ownership depends on the type of position you open. If you open real crypto positions, you own them but if you placed your investments in crypto CFDs, you do not own any them.
eToro purchases Bitcoin tokens on your behalf and registers them in a segregated account under your name.
Upon closing your position, eToro sells the coins on your behalf andd converts the invested amount plus or minus any profit or loss back into fiat currency.
You can then transfer your Bitcoin to the eToro Money crypto wallet so you can manage or hold your cryptoassets securely.
CFDs allow you to speculate on Bitcoin's price movements without owning the underlying asset. These positions are marked as 'CFD' in your portfolio.
CFD positions may involve leverage and can include both buy (long) and sell (short) positions.
In my opinion, both are good options (for those in some countries though, there might only be 1 option). You can either own actual Bitcoin through real cryptoasset positions or go for CFD trading to speculate on price movements without owning the asset. Your choice should be matched with your investment goals and preferences.
About Mike Druttman
