That would depend if you’re trading them as real cryptoassets or contract for difference (CFD).
When you trade Bitcoin, Ethereum or any other available crypto via their platform as real assets, that means eToro will buy these tokens and these will be under your name via a segregated account. Now let’s say you decide to close an open position. At this point, eToro will then sell these specific tokens and the profit or loss you incurred by closing the position are then going to be reflected under your account as real money.
It’s important to remember:
- If your account us under eToro AUS Capital Pty Ltd, you can only trade Bitcoin and other cryptocurrencies as CFDs or contract for difference due to regulatory compliance so clients are not allowed to trade real cryptoassets. You will see a “CFD” label on the trading window so you’ll know that this is not a real cryptoasset.
- If your account is under eToro (Europe) Ltd, your Buy crypto trades are for real tokens while Sell crypto trades are for CFDs.
- If your account is under eToro (UK) Ltd or eToro (Europe) Ltd but you’re a resident of the UK then your Buy crypto trades are for real tokens. Sell crypto trades on the other hand are not allowed as per the regulatory guidelines of the FCA (Financial Conduct Authority) with regards to selling of derivatives.
You can read more about it here.
