The rapid emergence of Dogecoin (DOGE) as one of the largest cryptocurrencies by market capitalisation has compelled investors from across the financial sector to view DOGE as an asset with immense future potential.
However, buying Dogecoin can be overwhelming without a comprehensive understanding of all the options, their benefits, and the associated costs. This guide will tell you everything you need to know before investing in Dogecoin in Switzerland.
Switzerland is one of the most prominent crypto-friendly countries globally, with the nation’s Zug canton often nicknamed “Crypto Valley.” The country is home to several crypto and blockchain-based companies.
It also supports a number of brokers and exchanges that facilitate the crypto revolution in the country by allowing investors to buy using local currency and trade or hold based on the investor’s requirements. The table below lists some of the top platforms that offer security, convenience and cost-effectiveness while transacting Dogecoin in Switzerland.
Crypto brokers act as a financial intermediary for persons who want to buy, sell, or trade Dogecoin. They support various payment methods, offer additional services, including the safekeeping of cryptocurrencies for their clients, and are suitable for beginners. The following section explains the step-by-step process of trading DOGE through a broker in Switzerland.
The credentials of the broker you choose must include a state-of-the-art security system in place, and the brokerage service must be in compliance with the current regulatory measures for financial services providers. To register, you can visit the trading platform’s website or mobile application and start by completing a form that requires you to enter basic details, including name, email ID, address and contact number.
Completion of the Know Your Customer or KYC process is a mandatory legal requirement to start trading using your account in Switzerland. You may submit any government-issued documentation, including passports and driving licences to verify your name and address. The objective of the KYC process is to prevent fraudulent entities from owning a crypto account and also to assess customer risk.
Many investors prefer brokers for the ease of use that brokerage services offer them, especially with regard to depositing and withdrawing funds. Most brokers support all popular modes of facilitating a payment, including direct bank transfers, third-party payment processors, and credit/debit cards. Local brokers might be more likely to facilitate a transaction directly through Swiss Francs.
Once you deposit the funds into your account, you are ready to start trading by either entering a long position or a short position. You are encouraged to go long on a cryptocurrency like DOGE if you want to own the cryptocurrency and believe that its value will increase over time. Shorting Dogecoin refers to speculating that the price of DOGE will decrease over time. This can be done via derivative products such as futures and CFDs, meaning you won’t need to own actual DOGE tokens.
Crypto platform eToro enables traders to open a short position that will increase in value if a financial instrument’s price goes down through CFDs (Contract for Difference). It also allows users to open a long position by investing in the underlying asset directly without any leverage. Investors can make a profit once the price of DOGE either falls or rises to their target price, after which they will close the position.
With the volatility of the crypto market, traders must use mechanisms like stop-loss orders, market orders, trailing stop-loss orders, and other advanced tools for risk management. These mechanisms allow the trader to exit the position once the market price hits the target price or minimise the loss if the market price moves further away from the target price.
Traders must close their long or short position to nullify the trade after the desired target is achieved. You can close your position manually by trading the asset or CFD using the sell button on the broker’s platform.
You can also use advanced features offered by the platform that will enable you to automatically close your position once you achieve the target price. The automatic route can be useful in making a trade at a certain price without having to constantly monitor the markets. Stop-loss orders and take-profit orders can also be used to close your position as appropriate.
Cryptocurrency exchanges are equipped with advanced features and multi-levelled security and are dedicated to allowing buyers and sellers to transact at the current market price. While brokers are aimed at facilitating new traders to invest in the market, exchanges are targeted at seasoned professionals who have prior trading experience.
This can make operating an account through an exchange challenging at first. The steps below can act as a starting point towards research into transacting through a crypto exchange in Switzerland.
A cryptocurrency wallet is essentially a digital wallet to manage the cryptocurrency you own in both the short and the long run. You can use its public key to send and receive cryptocurrency and the private key to validate transactions. There are different types of crypto wallets:
Software Wallets: Software wallets are an in-between between web and hardware wallets. Dogecoin can be stored on the software installed onto your device, offering a convenient, secure, and offline option.
Web or Exchange Wallets: Web wallets are often built into broker or exchange platforms and are accessible via the internet anywhere, at any time. However, they are more prone to cyber threats and are not suitable for long term storage.
Hardware wallets: The cryptocurrency is stored in a physical device, making hardware wallets the most secure and suitable for long term storage. This is also the most expensive type of crypto wallet.
Choosing a reliable and secure exchange that caters to your needs, is a registered legal entity in your city, and is convenient to work with is the next step towards purchasing DOGE. You can choose a local crypto exchange to ensure a seamless transaction using Swiss Francs or exchange your Francs for Euros or USD and trade with a global exchange. Once you have decided on the exchange, you can simply create an account through the platform and complete the verification process.
The next step after creating your account is to deposit funds into it in order to facilitate your first transaction. Choosing the right payment methods not only offers convenience and speed but also determines the fee that will be charged for depositing each time. You can choose from a direct bank transfer, debit/credit cards, and third-party payment processors, as these are offered by most exchanges. It is also crucial to determine what fiat currencies are offered and decide if you will be transacting using Francs or Euro/USD.
Once the initial amount has been deposited, and an appropriate fiat pair has been identified, Dogecoin can be brought either immediately at the market price, or you can use a limit order to purchase the currency automatically when the market rate reaches your desired price. Dogecoin’s fast transactions coupled with the exchange’s robust mechanisms should ensure that this process is hassle-free.
The purchased Dogecoin will be stored in your built-in web wallet with the exchange but must be moved for safekeeping as web wallets are vulnerable to threats. To withdraw the coins, enter the address of your crypto wallet and validate the transaction. Hardware wallets are the safest way to store crypto assets as it uses “cold” (offline) storage, though software and web wallets are cheaper.
You can buy Dogecoin using Swiss Francs either by trading with a local investor in person, signing up for a peer-to-peer exchange or through crypto ATMs. Transacting with an individual might open you up to fraud and is not recommended. Peer-to-peer (P2P) exchanges with the ability to verify the transaction and manage an escrow account is a safer bet to allow you to transact in cash despite the long wait time.
Cryptocurrency ATMs have risen in popularity due to the convenience and flexibility they offer. Switzerland has more than 122 crypto ATMs, and although none of these allows direct DOGE purchases, you can use them to buy other cryptos which can then be traded for DOGE on an exchange or P2P platform.
While cryptocurrencies and payment via cryptocurrencies are currently legal in all cities in Switzerland, the European nation lacks a comprehensive regulatory mechanism targeted at virtual assets. However, Switzerland legally views crypto trading platforms as equivalent to local financial institutions forcing such platforms to abide by AML/CTF and consumer protection obligations.
While Dogecoin’s dramatic rise over the last few months sparked major investor interest in the cryptocurrency, it is important to remember that trading cryptocurrencies involves more than just buying and selling a coin that is trending. Here are a few tips to keep in mind before you decide to make your first purchase.
It’s recommended to only invest in things that you understand. The volatility of the crypto market coupled with DOGE’s pros and cons make research into the crypto coin essential before investing. Not only will this help you analyse and predict the price movement of Dogecoin and thus choose an appropriate time to invest, but it will also help you be aware of the risks involved in investing.
With the numerous options available to buy Dogecoin, choosing the most cost-efficient one can be a good strategy in the long run. Most platforms offer DOGE at the same market price, but the total costs vary based on addons like brokerage fees, transaction fees, withdrawal fees, and commission. If you are proceeding to invest in a global platform that does not support the Swiss Francs, then you must also consider the charges for changing your CHF into an accepted currency.
Multi-level security features embedded into your trading platform are necessary to protect your personal data and investments from hackers and other cyber threats. Choosing the appropriate wallet that can keep your funds safe and enabling second layer safety mechanisms like two-factor authentication can also be beneficial in the long run.
Some brokerage services that are not native to Switzerland may not accept payment in the local currency and insist on payments in USD or Euro, while other platforms may enable you to pay using Swiss Francs and charge a foreign exchange fee.
Most local crypto platforms accept payment directly through Swiss Francs. If you choose to go through an exchange or broker that does not support the CHF/DOGE fiat pair, you will need to pay a small additional fee to convert EUR, USD, or another currency with a DOGE pair.
Here are the other options you have to purchase Dogecoin other than the traditional methods offered by exchanges and brokers.
Use a Dogecoin ATM to Buy DOGE: Crypto ATMs make buying DOGE using cash accessible and are a fast and convenient option for most traders. With teller machines being spread across the country, investors in Switzerland can walk up to the nearest ATM and pay using the local currency and buy Bitcoin while protecting their privacy. They can then buy DOGE with the Bitcoin they have purchased.
Other Ways to Get Dogecoin: There are other ways to obtain Dogecoin that are not as reliable as buying through a broker. One of them is through mining Dogecoin. Despite being an expensive process requiring specific equipment to succeed, mining Dogecoin is more rewarding than other prominent cryptocurrencies as mining rewards are substantially higher. You can also sign up for a peer-to-peer exchange and trade directly with investors from across the world. The DOGE community also tips small amounts of the coin on websites like Reddit and Facebook to content creators.
Switzerland’s remarkably progressive stance towards cryptocurrency regulations coupled with Dogecoin’s progress towards minimising transaction costs and upping transaction speeds make this an optimal time to invest in cryptocurrency. However, sufficient research into the appropriate trading platform and analysis of the price movement of cryptocurrencies is necessary to maximise gains and capitalise on the coin’s volatility.