Cryptocurrency trading via CFD or Wallet?

✔️ Information reviewed and updated in December 2023 by Eduardo López

One of the most important trends in the world of investments, especially those made through the internet, are cryptocurrencies. And it is that these revolutionary currencies are becoming one of the most relevant financial assets in the market.

To invest in cryptocurrencies, it is necessary to take into account different points, one of the most important being the vehicle through which you are going to make the investment. That is, the medium or platform in which you will make the exchange, purchase and sale. Here we will talk about the two most common ways to do it.


The so-called contracts for difference are one of the most common modalities when investing in assets such as conventional currencies. Today, these contracts have undergone an evolution, since they can also be used as a mechanism to invest in cryptocurrencies, taking advantage of the differences between the sale and purchase price.

Offered by regulated brokers, CFDs are one of the most effective and comprehensive ways to trade no matter what type of user you are. You have a large number of functions at your fingertips, as well as data and a market with good pairs that generally group the most important currencies.

Among the advantages offered by the CFDS is being able to use leverage to operate, being able to set low and high positions, bet on pluses or losses., etc. Best of all, you can do it directly in euros, dollars or your fiat currency.



Wallets are the best option if you really want to have the cryptocurrencies in your possession because in a CFD you are only buying the price difference. In the Wallet you really have the cryptocurrency inside your virtual wallet so you own it.

This type of wallets allow you to make the purchase, sale and also the exchange between cryptocurrencies so the operation is based directly on commercial precepts. It is as if you market a product, you buy it cheaper, you sell it more expensive and thus, you generate profit which translates into returns.

Generally, A Wallet requires more knowledge in the area, since here you are the decision maker and you do not have functions such as leverage or setting positions. That is why it becomes a bit more complex for some users, although its complexity is justified by having the cryptocurrencies yourself.

➡✨Wallet for investors, CFDs for Traders

By taking care of covering only the difference in prices, as well as being able to fixate in short periods of time, CFDs are recommended for those who trade. In fact, the bulk of its users comes from Traders who migrated from other assets such as conventional currencies.

Investors who are looking to generate greater profits in longer terms, as well as generate returns and rewards, Wallets are for them. What's more, investors generally already have more knowledge in the area which helps to improve their investments.


➡✨5 questions to choose between a CFD and a Wallet

  • Do you want to invest down?

If you are thinking of investing down, you should know that the best option to do so is through a CFD. This is because said platform allows you to invest in this way while the Wallet does not.

The advantage of a CFD is that it helps you take advantage of downtrends which allows you to fix better positions. In addition, the same operator or broker gives you the information to determine when you are in a downtrend and it is time to invest.

  • Are you worried about the lack of regulation?

Something you should know is that CFDs, due to their stock market nature, have legal regulations and a framework of operations that provides certainty by being monitored. This helps users to feel much more confident to operate on said platform.

Instead, Cryptocurrency exchange platforms or Exchange do not have a regulation or a clear operating framework. For many, this lends itself to potential risks of scam or fraud, since an unregulated exchange can disappear overnight with your money and with no one to protect you.

  • Do you want to invest only in the most popular cryptocurrencies?

We could say that at this point we have a tie. In a Wallet you can find a large number of virtual currencies, from the most common to the most alternative. This will allow you to easily invest in the ones you want.

In a CFD broker, the most common is to find only the most popular cryptocurrencies in trading such as Bitcoin, Ethereum or Litecoin. So, If you want to invest at the price difference, then this is an option that you should take into account.

  • Do you want to participate in ICO?

An ICO is the initial financing process that is launched to attract resources and investors for a cryptocurrency. In general, ICOs are attractive because you can access new cryptocurrencies at low prices, as well as receive rewards for participating as a founding partner.

The only type of platform that allows you to participate in an ICO is the Wallet, so if you want to use this investment mechanism, you must open an account in a Wallet. You can also participate for other rewards such as the so-called AirDrops, which are like an ICO, only that they seek financing but users.

  • What is the Timing of your investment?

For those who are thinking of investing in the short term, then CFDs are the best option, since this mechanism is designed for it. You can generate daily profits or returns and operate in very short periods of time.

On the other hand, if your orientation is more for the long term, with investments that take a little more time, but better returns, then the Wallet is for you. Depending on the time you want to wait to see profits, the risk and your budget is the type of platform to choose.

Eduardo Lopez

Editor and Copywriter

I am Eduardo López Martínez, I was born in Madrid, Spain and I am 48 years old. I am a journalist and I am part of the team. Do you want to know a little more about me? I invite you to read my biography.

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