November 14 2025
Bitcoin has become one of the most talked about financial assets since its launch in 2009. Many investors and traders want to profit from Bitcoin’s price movements, but not everyone has the ability or knowledge to buy and store the cryptocurrency itself. Fortunately, there are several ways to gain exposure to Bitcoin without actually owning it.
In this article, I will discuss four effective methods to trade Bitcoin without taking ownership of the underlying asset. I will analyze the advantages and disadvantages of each method, with a special focus on why Bitcoin CFDs are an attractive option for both novice and experienced traders.
Buying and managing Bitcoin directly comes with a number of challenges:
For these reasons, many traders opt for indirect methods of trading Bitcoin. These approaches offer the necessary flexibility, lower the technical hurdles, and sometimes offer additional trading opportunities, such as short selling or leveraging.
With a CFD I can speculate on the price movement of Bitcoin without actually owning it. Instead of a physical purchase, I enter into a contract with a broker, where the price difference between opening and closing the position is settled.
When trading Bitcoin via CFDs, I have the freedom to quickly respond to price movements. If I expect the Bitcoin price to rise, I can take a long position. If it rises, I receive the difference in value as profit, while I suffer a loss if it falls. If I anticipate a price drop, I start a short position, which means that I profit from a falling market.
Also with leverage I can quadruple my investments. With a leverage of 1:10 I can control a position of €1.000 with a deposit of €10.000, which magnifies both my profits and losses.
CFDs are available through brokers and offer access to real-time prices, stop-loss orders and other risk management tools, making them ideal for both active day traders and strategic investors.
Bitcoin CFDs are ideal for traders who want to quickly capitalize on market movements, have no technical knowledge of blockchain and want to use advanced trading strategies such as hedging.
Bitcoin futures are standardized derivative contracts in which two parties agree to buy or sell Bitcoin at a set price on a future date. These contracts trade on regulated exchanges, such as the CME or Binance Futures, which ensures transparency and liquidity.
When entering into a long contract, the buyer commits to buying Bitcoin at the agreed price on the expiration date, hoping that the market price will be higher at that time. With a short contract, the opposite applies; the seller delivers Bitcoin at the agreed price, which is advantageous in the event of an expected price drop.
Futures also offer margin trading, which allows me to control a larger position with a relatively small stake. This greatly increases the profit potential and risks, and requires careful risk management.
Futures are most useful for professional traders looking to take advantage of arbitrage opportunities and for institutional investors looking to hedge their exposure.
A Bitcoin ETF is an exchange-traded fund that tracks the Bitcoin price. Instead of buying Bitcoin myself, I invest in a fund that does this on behalf of the investor, such as the VanEck Bitcoin Trust or the ProShares Bitcoin Strategy ETF.
Bitcoin ETFs are ideal for long-term investors who want simple exposure and for traditional investors who want to trade through their bank or broker.
| Method | Suitable for | Risks |
|---|---|---|
| Bitcoin CFDs | Short term traders, leverage | High risk due to leverage |
| Futures | Professional traders | Expiry date, complexity |
| ETF's | Long-term investors | Management costs, tracking error |
Bitcoin CFDs offer the most flexibility for active traders, while ETFs are more suitable for passive investors. Futures are more complex but useful for institutional investors. Stocks offer an indirect way to gain exposure.
What are the benefits of trading Bitcoin CFDs?
Bitcoin CFDs offer the opportunity to profit from both rising and falling markets without the need for a digital wallet, and they are tradable 24/7.
Why should traders choose Bitcoin futures?
Futures are suitable for professional traders who want to take advantage of arbitrage and leverage, which increases their profit opportunities.
What are the risks of Bitcoin ETFs?
Bitcoin ETFs may incur annual fees and may have futures roll fee variances, which may make them less attractive to some investors.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
