Cryptocurrency has been a major opportunity for millions of people around the world who have joined the industry over the last 12 years of its existence. Not only did it offer a way to make instant payments at a low cost, but also brought about networks that enabled dApps. Ethereum network is one such blockchain that has shifted the attention towards blockchain technology as a development platform. The network is powered by a native currency called Ether (ETH).
If you want to learn how to buy Ethereum in Switzerland, this guide will help you in your investment journey.
As we have seen, buying Ethereum is pretty simple. When it comes to buying Ethereum, you have two choices. You can either go for:
Crypto exchanges are platforms that allow you to buy coins directly. They are very simple to use, although each platform offers its own price for the coin, has its own trading pairs, and some don’t support buying crypto with traditional currencies, but are only crypto-to-crypto, so keep an eye out for that. Assuming that you can deposit fiat currencies on their platform, you should also note that each supports different payment methods, so check if your preferred payment method is supported before you select a platform.
Your second option is a broker, which is better for trading, rather than investing. Brokers are good for trading because they are connected to many different platforms. Brokers also have the advantage of offering CFDs, options and futures — derivatives that allow you to bet on which way Ethereum’s price is going to go. In this situation, you never have to buy the coins themselves, so you also don’t have to worry about storing them. Since all you are doing is betting on the direction the price might take, you also get to earn money even if the price is dropping. You can’t do this on exchanges, and if the price drops after you have already bought ETH coins, all you can experience are losses.
To help you out, we have created a list of the best brokers and exchanges that you can use to buy Ethereum in Switzerland.
Buying ETH in Switzerland is as easy as explained, and to help you out even further, we have prepared a step-by-step guide where we explain every part of the process.
The first step is to find the right platform to buy Ethereum. However, we should point out that there is no right or wrong way to do this. All that matters is that you find a platform that supports your preferred payment method, has Ethereum listed as an asset, and has the lowest fees that you can find. That’s really it. Of course, you should always go for a regulated platform, whether you choose a broker for trading or exchange for investing, as they have proper security, meeting the high standard that the regulators have set. Regulated platforms are not scams, so you can trust them with your information, as well as your money. Long term holders should transfer their coins into a wallet but if you are a trader, then using a broker does not require a crypto wallet.
After identifying the platform you wish to use, it is time to register for an account. This is simple enough to do, and it is no more complicated than creating an email address or a Facebook account. In fact, it is likely even easier. Some platforms even let you log in with your Facebook or Google account, so you don’t even have to create a new account from scratch.
But, whether you log in with an existing account or you opt to create a new one, you will have to go through the KYC procedure, which is short for Know Your Customer. It is a simple procedure where you will have to prove your identity by providing an official government-issued ID, proof of address, your photo, and similar things that will ensure that you are who you say you are.
Once your account is verified, you can proceed to deposit some money. As mentioned before, this will be the initial investment that you can use to increase your wealth through trading or investing. Keep in mind that profit is not guaranteed. There is still a lot of risk involved due to high volatility, so you shouldn’t risk the money you can’t afford to lose.
With that said, you can deposit funds by going to the deposit page of the exchange/broker of your choosing, connecting your preferred payment method with the platform, and sending the amount you wish to use.
Once the deposit arrives in your account, you are ready to start trading or buying Ethereum. Earlier, we stressed that exchanges are for buying coins, while brokers are best for trading derivatives such as CFDs, futures, and options. However, note that there are some platforms that allow you to do both things.
eToro, for example, is primarily a broker, but it does let you buy coins on its platform. Meanwhile, Binance is primarily a crypto exchange, but it also offers futures and options, so you can get both on the same platform if you decide to implement one investment strategy as your main approach, but also experiment with the other for a bit.
Lastly, there are a few optional steps worth considering. For example, if you wish to invest in ETH coins, you should create a private wallet to which you can withdraw your coins and keep them safe. And, if you wish to trade derivatives, you should consider opening complementary positions to hedge your main investment.
Also, given that Ethereum is about to switch to the Proof of Stake consensus algorithm, you will be able to stake ETH coins and receive passive income, essentially making your investment earn you even more money while you wait for the price to rise.
Not all platforms support all payment methods. Your choice of a platform may very well depend on what payment method it offers. With that said, here are some of the most common methods to buy Etheruem.
Buy Ethereum with Cash — Switzerland is one of the crypto-friendliest countries out there, so it has a lot of crypto ATMs, which are used to buy Ethereum with cash. A lot of its cities have it, such as Basel, Bern, Biel/Bienne, Chur, Geneve, Lausanne, Lugano, Luzern, Mustair, Nauchatel, Saint Margrethen, Zug, Zurich, and many others.
Buy Ethereum with Credit Card — Credit card purchases are a popular way to buy crypto, but keep in mind that they are also among the most expensive methods.
Buy Ethereum with bank transfers — Bank transfers are just as popular because they are cheap, but the downside here is that they can take up to several days to deliver the money.
Buy Ethereum with PayPal — PayPal has still not enabled buying Ethereum on its platform outside of the US, but it can be used on P2P exchanges, where you can find ETH sellers, send them money from your PayPal to theirs, and receive crypto via the platform from them
Buy Ethereum with Bitcoin — Lastly, you can buy Ethereum with Bitcoin on almost any exchange, as the two are almost always paired.
Ethereum is probably one of the most important crypto projects ever to be developed. While Bitcoin started the crypto industry, Ethereum was the one that expanded the use of blockchain technology. Furthermore, the project is about to make a massive shift by switching to a different consensus algorithm. This will make it more scalable and with cheaper transactions, it will also bring staking. Some analysts have even suggested that it might overtake Bitcoin and become the new largest cryptocurrency.
Whether or not this can happen remains to be seen, but there is no denying that Ethereum is one of the most important coins in the history of cryptocurrencies.
Yes, Switzerland is very crypto-friendly, and it is even a country where the ‘Crypto Valley’ is located. The country has experimented with cryptocurrencies in the past, such as allowing the possibility of paying taxes with cryptocurrencies in the Swiss canton of Zug. With that said, buying Ethereum in Switzerland is not an issue.
As mentioned, some parts of Switzerland allow the use of crypto even when it comes to paying taxes. Investing and trading are obvious options, and there are many crypto ATMs throughout the country, allowing you to buy and sell Ethereum with cash directly.
Other than that, you might find some merchants willing to accept Ethereum payments, or you can use it for engaging with dApps, creating smart contracts, and by earning passive income by purchasing and staking Ethereum-based DeFi tokens.