Cryptoassets such as bitcoin and ether trade on hundreds of venues worldwide, seven days a week. Prices are set by supply and demand on those venues rather than by a central exchange, and they can differ from one platform to another.
Why prices move so much
Crypto markets are young, speculative and heavily driven by sentiment. Daily moves of 5-10% are common even for the largest coins, and smaller tokens can lose most of their value in hours. Leverage on crypto derivatives magnifies those swings further, which is why many regulators restrict or ban leveraged crypto products for retail clients.
Owning coins vs. trading a contract
- Buying the asset on an exchange means you (or the exchange on your behalf) hold the coins.
- Crypto CFDs or futures only track the price; you never own a coin, and leverage applies.
Custody: who holds the keys
Coins are controlled by private keys. When an exchange holds them for you, you depend on its security and its solvency: exchange failures and hacks have left customers waiting years for partial repayment. Holding your own keys removes that dependency but makes you fully responsible for backups - a lost key means lost coins.
Protections you usually do not have
In most countries crypto holdings are not covered by deposit-guarantee or investor-compensation schemes, and many crypto firms are only registered for anti-money-laundering purposes rather than authorised as investment firms. Transfers on a blockchain are irreversible: if you send coins to a fraudster, there is no bank to call them back.
Common pattern in complaints. A "platform" asks for deposits in bitcoin, shows rising balances on a dashboard, and then demands a "tax", "commission" or "unlock fee" before any withdrawal. Genuine providers deduct fees from the balance; they do not ask for fresh money to release your own. See spotting investment scams.
A sensible checklist
- Only use venues that are authorised or registered in your country - and verify that on the regulator's own website.
- Start by withdrawing a small amount to confirm withdrawals work.
- Never let anyone install remote-access software on your computer "to help you trade".
- Assume any amount you put into crypto could fall sharply in value.
This guide is general education, not personal advice. Rules differ by country; check your regulator's website for the requirements that apply to you.