Bitstamp review

Most exchanges or brokers offer the purchase and sale of 'real' cryptocurrencies where you own the underlying asset and can transfer it to your wallet. However, some providers only offer derivatives (CFDs) or exchange-traded products (ETPs) that merely track the price. In these cases, you don't own the underlying asset and cannot withdraw it to external wallets.

Self-custody of cryptocurrencies is important for many users who want to manage their cryptocurrencies and thus their private keys themselves. Most exchanges offer the option to transfer purchased cryptocurrencies directly from the platform to any personal wallet.

Beyond cryptocurrencies, some exchanges also let you trade traditional securities such as real stocks and ETFs. "Real" means that you actually own the securities, rather than merely gaining exposure to their price movements through a derivative (CFD). For many users this is an advantage, as it lets them combine their crypto investments and traditional investing in stocks or ETFs on a single platform, without needing a separate brokerage account with a conventional broker.

Automatic purchase of cryptocurrencies at set intervals (e.g., monthly) for a predetermined amount. The savings plan feature is well known from traditional finance apps and is often used for regular purchases of stocks or ETFs to achieve a cost averaging effect.

Staking means locking up cryptocurrency in a network for a set period to help validate transactions. In return, participants earn staking rewards, typically expressed as an annual percentage yield (APY). Staking is a feature of blockchains that use a proof-of-stake consensus mechanism.