Cryptocurrencies are taking the world by storm, presenting unique investment opportunities and opportunities to participate in ambitious blockchain projects. Switzerland has adopted a more progressive stance towards virtual currencies which explains its thriving cryptocurrency industry.
The Swiss Federal Tax Administration categorizes virtual currencies as assets which means they are subject to Swiss wealth, income, and capital gains taxes. The forward regulation means any person can own cryptocurrencies for whatever reason, be it speculation or staking. Are you looking to buy cryptocurrencies in Switzerland? If so, then you have come to the right place.
Cryptocurrencies purchases in Switzerland can be done either through an exchange or a broker. Exchanges are the best when looking to purchase real virtual currencies for staking or holding as a long-term investment. With this option, one can buy and then transfer to a private cryptocurrency wallet.
On the other hand, brokers are suited for purchasing cryptocurrencies for speculation purposes and not holding as a long-term investment. With brokerage accounts, people speculate on the prices of various cryptocurrencies using financial instruments such as Contracts for Difference and futures contracts.
While buying through exchanges, it is important to first set upon cryptocurrency wallets for safe storage of bought cryptocurrencies. However, while buying via brokerage accounts, a wallet is not needed as one does not assume ownership of the actual coins but essentially tries to profit from price changes.
Being on the cutting edge of banking and finance, Switzerland also provides one of the easiest frameworks for buying and owning cryptocurrencies. Thus it is not surprising that virtual currencies are widely available to the general public.
Contrary to perception, purchasing cryptocurrencies in Switzerland is not complicated. We have broken down the process.
Signing up for a cryptocurrency exchange or brokerage account is the first step to buying cryptocurrencies in Switzerland. While selecting an exchange, it is important to settle on one that allows withdrawals of virtual currencies for safe storage in wallets.
The best exchange should also adhere to the best industry standards for securing people’s holdings and personal data. The exchange should also be readily available within Switzerland and boast of an impeccable track record in the nascent industry.
Additionally, it is important to settle on an exchange that comes with a big pool of cryptocurrencies that one can buy. However, with a brokerage account, one does not need storage, given the ultimate goal is to profit from price changes.
Once an exchange is selected, the next step entails creating an account with an exchange or broker. As part of the signup process, you will need an email address or a phone number. Some exchanges and brokerage accounts accept social media accounts for the signup process.
Once you have created an account, you might have to verify your identity as part of the Know Your customer policy. The process entails submitting a photo ID such as a passport and proof of address. The process is designed to keep fraudsters at bay from using the platforms to launder money.
The setup should be carried out using safe internet practices. For starters, one should consider using two-factor authentication and using a password that is unique and long.
Once the signup process is complete and the cryptocurrency exchange account verified, connecting the account to a payment option should follow suit. The process entails connecting a bank account directly or through the use of a debit or credit card.
The interconnection enables easy transfer of money from a bank account to the exchange, which is consequently used to buy the cryptocurrency of choice. While connecting payment options, it is important to consider the varying fees of deposits via a bank account.
It is important to research the fees associated with each payment option to settle on an option that ensures cryptocurrencies purchases at the lowest cost.
Once you have chosen an exchange, set up an account, and connected it to a payment option, you can move to the actual business of buying cryptocurrency in Switzerland. Most cryptocurrency exchanges offer similar platforms to stock brokerage accounts that enable the easy buying of cryptocurrencies.
Additionally, they offer several order types that can be used to buy preferred altcoins at desired price points. In addition to market and limit orders, some do offer stop-loss orders.
When it comes to buying, you can simply enter the ticker symbol of the cryptocurrency, say BTC, and indicate the amount of coins you wish to buy. Some exchanges have provisions that allow people to buy fractional shares of altcoins.
On the other hand, brokers offer an opportunity to speculate on the prices of various cryptocurrencies. In this case, one can enter long positions to profit on prices increasing or short positions to profit from token prices tanking. Brokers allow traders to enter short and long positions with the help of contracts for difference and futures products.
Given that most cryptocurrency exchanges don’t come with heightened security measures, they don’t offer safe storage for bought altcoins. With most cryptocurrency exchanges, you could lose your investment if you forget or lose the codes to access your account.
Therefore, once you buy cryptocurrencies via an exchange, it would be wise to transfer them to a hot or cold wallet for safe storage. Having cryptocurrencies stored outside cryptocurrency exchange on hot or cold wallets is a sure way of ensuring their security.
Wallets ensure that you are the only one in control, given the use of private keys to secure holdings. On the other hand derivative, traders may want to open positions to hedge on their long or short positions while trading
Additionally, it is possible to buy some cryptocurrencies such as Bitcoin in Switzerland through Automated Teller machines. There are hundreds of ATMs and ticket vending machines across the country that dispense BTC. However, while it is the most convenient and simple process of buying cryptocurrencies it is not recommended given the high costs involved.
Contrary to perception, there is nothing like the “best” payment option for buying cryptocurrency in Switzerland. The payment option that anyone settles on will always come down to the speed of transaction, the security measures put in place, and the fees charged to transfer money from a bank account to an exchange or brokerage account.
Switzerland is home to several payment options that people can use to finance cryptocurrency payment operations as a financial hub. In addition to credit/debit cards, some platforms accept payments via wire transfers. Others have added support to electronic payment systems such as PayPal
Conversely, you can:
Buy cryptocurrency with Cash – an option made possible via peer-to-peer exchanges
Buy cryptocurrency with Credit Card – secure and fast, but comes with high fees
Buy cryptocurrency with Bank Transfer – safe, secure, and very low-cost can be time-consuming
Buy cryptocurrency with PayPal – Very convenient in platforms supported
Buy cryptocurrency with Bitcoin – many exchanges will allow you to buy other cryptocurrencies using BTC
Cryptocurrencies have seen remarkable growth in recent years spurred by their increased use cases in the global financial system. In addition to significant price appreciation, chatter about mainstream adoption is already gaining traction.
Most people are increasingly buying cryptocurrencies impressed by the underlying blockchain technology that powers the assets. The technology is billed as the next game-changer for a number of industries, from shipping to banking and healthcare. Conversely, investing in cryptocurrencies is seen as a way of gaining exposure to the game-changing technology that is already having a ripple effect in various industries.
Cryptocurrencies should also excite anyone looking for a reliable long-term store of value. Unlike fiat currencies, some cryptocurrencies have a limited supply. The limited supply means a central authority cannot manipulate its value through inflation.
Additionally, the cryptographic nature of cryptocurrencies makes it impossible for authorities to confiscate one’s crypto holdings. The limited supply and lack of central authority make them ideal for storing value.
Buying cryptocurrencies for speculative purposes is gaining traction in the mainstream financial systems. The blockchain-powered instrument has made it possible for people to generate a fortune in betting on price fluctuations.
For anyone looking to profit from increased volatility and liquidity, buying and selling cryptocurrencies is the way to go. Cryptocurrency exchange and brokerage firms have made it possible for people to invest a small amount of capital, take advantage of leverage, and profit on price fluctuations in the cryptocurrency sector.
Switzerland is one of the countries where cryptocurrencies’ buying, selling, and mining is legal. The government‘s attitude towards the emerging asset class is positive. The federal government and the Swiss Financial Market have already acknowledged the potential of blockchain technology and cryptocurrency in the financial services industry.
In 2020, the country’s parliament legislated the Blockchain act. The act defines the legalities of exchanging virtual currencies and running of exchanges specialising in handling digital assets. The legal frameworks stipulate compliance with local ICO AML and CTF requirements.
The Country has already imposed a registration process for cryptocurrency exchanges aimed at regulating the industry. Platforms and brokers looking to facilitate the buying and selling of cryptocurrencies must obtain licenses from the Swiss Financial Market Supervisory Authority.
The government has already affirmed its commitment to working towards a regulatory framework that is friendly to cryptocurrencies. In 2018 the country’s economics minister made it clear of plans to make Switzerland a cryptocurrency nation all but affirming cryptocurrency legality as a means of payment. To learn more about taxation and legislation, read more on our Switzerland tax guide.
The number of merchants accepting cryptocurrency payments in Switzerland is rising thanks to the friendly regulatory framework. Over 100 merchants and service providers allow people to use their cryptocurrency holdings to pay for goods and services rendered.
Cryptocurrency payments are widely accepted online, whereby they are used for paying for subscriptions or buying video games and items. Additionally, there are charity organizations that accept donations in the form of cryptocurrencies. You can also pay for a hotel or book a flight using cryptocurrency holdings.
We’ve gone through a lengthy review process of how and why one needs to buy cryptocurrencies. Below is our choice for the most reliable, convenient, and cost-effective way to buy cryptocurrencies in Switzerland.