Crypto on a broker or an exchange: what's the difference

Two platforms can show the same bitcoin chart and be selling completely different things. The question that tells them apart is short: at the end of the trade, is there a coin that belongs to you?

Exchange with custody

You buy the coin and it is recorded in your account. You can transfer it to a wallet only you control. The main risk is the platform failing or being hacked while the coin sits there — which is why anyone holding a meaningful amount usually withdraws it to their own wallet.

Contract for difference

You do not buy the coin: you enter a contract whose result tracks the price movement. No transfer is possible, because there is no coin. That is not fraud — it is a different, common and legitimate product in various markets. The problem is when marketing material uses the words "buy bitcoin" to describe something that delivers no bitcoin at all.

• Does it let you withdraw crypto to an external wallet? Then there is probably custody.
• Does only fiat money go in and out? Then you are trading a price, not an asset.
• Does "leverage" show up on the buy screen? That's a derivative, not a spot purchase.

Checking on Duotide

Duotide lists cryptocurrencies among its available assets, but the type of product needs to be confirmed in the contract, not inferred from the marketing. Ask support, in writing, whether crypto withdrawals to an external wallet are available. The answer defines what you are actually buying.

Frequently asked questions