Bitcoin came to set the average person free. It offers us freedom over our finances and privacy at a time when government censorship is way too common. This is empowering even to the average person who doesn’t have to rely on established financial institutions to have an account or access credit. Not only is Bitcoin offering people control over their money but also helping them create wealth in a manner not seen before.
Are you looking to buy Bitcoin in Switzerland? This guide will teach you how to achieve this goal.
Quick Guide to Buy Bitcoin in Switzerland Today
The first step is identifying a platform that offers Bitcoin. Sign up by entering your personal details. Then proceed to verify your account by submitting the necessary personal documents. Most platforms have to abide by AML and KYC procedures; therefore, verifying your account is the only way you will be allowed to buy/trade. Ensure you offer the correct information while going through the sign-up process to save yourself from having your account declined.
Fund your account:
Once the account is verified, it’s time to fund it so that you can make your purchase. Most platforms will offer several ways to send funds to your account including bank transfer, credit/debit card and third-party payment options. Send the amount you intend to use to make your purchase, and once the funds reflect in your account, it’s time to buy.
This is a straightforward process. Most reputable platforms offer simple user interfaces that aren’t intimidating for new users as everything is clearly marked. To buy, you have to access the buy tab, which will mostly appear on the top bar. Click on the tab, and it will lead you to a page where you will have to select the coin you would like to buy and then enter the amount you would like to spend.
Where to Buy Bitcoin in Switzerland in 2021
With Switzerland being quite pro-crypto, its citizens have three options when it comes to buying Bitcoin. The first option is using exchanges. Most of these are centralised platforms that serve as intermediaries between the buyer and the seller. They use order books with makers and takers and then match the orders.
The other option is brokers who will allow you to access the Bitcoin market using various financial instruments. Unlike exchanges, brokers don’t offer access to the actual asset but allow you to trade derivatives attached to Bitcoin. Derivatives are financial instruments that can be traded with leverage with potentially higher profits compared to spot trading. They are suitable for users who don’t want to deal with the actual asset and the headache of acquiring and safekeeping the asset. Always use regulated platforms to ensure the safety of funds.
We have shortlisted the best broker and exchange platforms to buy BTC and these are listed below.
Step by Step Guide – How to Buy Bitcoin in Switzerland
Now that you understand where to buy Bitcoin let’s look at the necessary steps you need to take in more detail.
Step 1: Find an Appropriate Platform to Buy Bitcoin
The first thing is to identify a platform that will allow you to buy Bitcoin. Various exchanges and brokers will allow you to do this online. If you wish to hodl for a long time, consider getting a crypto wallet. If you wish to trade using brokers, a wallet is not required. Consider the pros and cons of each platform and settle on one. Now it’s time to sign up.
Step 2: Registration / Create a New Account
The second step is to register an account by visiting the platform’s official website, entering your email/phone number, and setting a strong password. A link will be sent to the email inbox that you have to click to access the account. Then you will have to verify your account by uploading a photo of your ID/passport and a selfie. Some platforms may request a video call to confirm if the details submitted belong to the individual that is on the screen. Also, you will have to submit a utility bill to verify your address to increase your buying and trading limits. It can be a bank statement; however, the document shouldn’t be more than 6 months old.
Step 3: Deposit Funds
After your account is verified, it’s time to fund the account using any of the modes supported by the platform. The most common modes you are likely to come across include the use of bank transfers, credit/debit cards and third-party payment options. Choose the mode that you feel the most comfortable with and send funds to your account.
Step 4: Start Trading or Buying Bitcoin
Once funds reflect in your account, it’s time to begin buying/trading. As mentioned earlier, exchanges will offer access to the actual asset and spot trading with a few exceptions. For example, Binance will allow you to Buy BTC, trade it on the spot, and trade derivatives. On the other hand, brokers will allow you to trade BTC CFDs with leverage with a few exceptions. eToro will offer you access to Bitcoin CFDs as well as access to the actual asset.
Step 5: Optional Steps
Once you sign up on any platform, ensure you set a strong password and activate the two-factor authentication (2FA) to boost your account security.
If you intend to invest in BTC for the long term to ensure you don’t miss out on its incredible ROI, ensure you move your coins to a safe, private wallet. That way, even if the platform is breached, your investment will be safe.
If you opt to exploit the volatile price of BTC using derivatives offered by brokers, ensure you hedge your investment to minimise chances of incurring losses. Also, educate yourself on trading to make the most of the opportunity brokers offer.
What is the Best Payment Method for Buying Bitcoin in Switzerland?
Now that you understand the process you need to undergo to buy Bitcoin in this European nation, let’s look at some of the payment options available to you in detail.
Buy Bitcoin with Cash – This is possible using Bitcoin ATMs or peer-to-peer exchanges where you meet up with the seller, make payment, and transfer the coins to your wallet. However, this can be risky since you are dealing with strangers. You need to take some precautions and consider using escrow services.
Buy Bitcoin with Credit Card – Another popular mode supported by most platforms. It’s easy to use and reasonably fast but might charge higher fees than some other modes listed here.
Buy Bitcoin with Bank Transfer – Most platforms will have this option to fund your account. It’s pretty cheap but takes longer before you can access the funds. Bank transfers can take 3 to 5 business days.
Buy Bitcoin with PayPal – Another popular option you will find supported by most platforms. Third-party payment options such as PayPal can be fast and convenient when it comes to buying Bitcoin.
Buy Bitcoin with other cryptos – Another option you will have when it comes to buying BTC. Most platforms offering plenty of coins will allow you to buy various tokens using others. The only problem with this mode is that you need to have crypto with you before executing the swap or trade.
Why Buy Bitcoin?
Despite being the first-ever cryptocurrency launched over 12 years ago, Bitcoin remains the standard in the crypto industry. Many imitations have been launched without much success. Some protocols have tried to improve on its shortcomings, such as lack of scalability, with others even introducing additional features such as smart contracts. While most of these projects have gained some following within the crypto community, no particular project has managed to oust BTC as the top cryptocurrency. This goes to tell how highly regarded this project is within the space.
Bitcoin came about in the aftermath of the 2008 financial meltdown that saw many people lose their houses, investments, savings and employment. The anonymous creator Satoshi Nakamoto is believed to be one of the individuals affected by the financial crisis. Having seen how the economy could crash under faulty government policies, he sought to introduce a currency that would offer people freedom over their finances and privacy.The project is designed to have only 21 million coins that will ever exist. Based on laws of demand and supply, as the number of coins available reduces, their value keeps growing. Scarcity creates value, just like it’s the case with gold which is naturally scarce. Therefore, over the years, it has been seen as a safe store of value. And thanks to its properties, scarcity, and decentralisation, Bitcoin is considered as digital gold.
Even though BTC was designed to facilitate peer-to-peer transactions, users have opted to store their wealth in the coin. This hoarding of coins and increased demand as more people join the market has pushed its price to the roof. Just three months ago, the coin achieved its all-time high of $64,000.
Many proponents of BTC believe that the coin is just getting started. As more people get aware of this digital phenomenon and join its network, expect its price to grow more in the future as estimated by various veteran investors.
Is it Legal to Buy Bitcoin in Switzerland?
Yes. Switzerland is very open to cryptocurrencies. You are free to make crypto purchases as you like without being in fear of being summoned by authorities. But income from handling crypto might be taxed, and you have to be ready for that.
Where Can I Use Bitcoin in Switzerland?
Switzerland being a pro-crypto nation, you are sure to find a few merchants and service providers that will accept payment for goods and services using BTC. Also, for those that don’t openly accept the coin, you can make arrangements with an individual or business and pay for goods or services using it. Also, you can convert your BTC to fiat and spend it as you like. This is possible using Bitcoin ATMs that allow one to buy and sell about 11 cryptocurrencies, with BTC being one of them. Currently, there are 125 such machines located in various cities and towns such as Zurich 38, Basel 13, Lausanne 18, Genève 17, Bern 11 and many others.
Our Recommended Best Way to Buy Bitcoin in Switzerland
We researched many exchanges and brokers that are easily accessible in Switzerland and can be used to buy BTC with ease. The best option to buy BTC in Switzerland as per our research is given below.
Frequently Asked Questions
Yes. This can easily be done using the over 125 Bitcoin ATMs located in various cities in the country. Also, it can be done via peer-to-peer platforms where you arrange to meet with the seller. Once you make the payment, they transfer the coins to your wallet. Be careful, though, since you will be dealing with strangers.
There is no limit on how much you can spend on buying BTC in Switzerland. Currently, at the time of writing, one coin goes for over $32,000, which can be too much for most people. However, you can buy fractions for as little as $10 on most exchanges. As for brokers, you will have to fund your account with about $100 to $250.
Yes. Cryptocurrencies are considered as wealth assets; therefore, they can attract capital gain tax. This means you need to keep a detailed record of all your trades to avoid running into issues with the taxman.
There are two ways to secure your funds. When you sign up on an exchange or broker platform, set a strong password and activate the two-factor authentication (2FA). If you opt to deal with the actual asset, then ensure you move your coins to a secure private hardware wallet once you buy them from an exchange.
Brokers will offer you the best chances to profit from trading BTC while in Switzerland since you get to trade with leverage. Also, unlike exchanges, you will not be dealing with the actual asset, so no stress of acquiring and safekeeping it. Ensure you educate yourself on how to trade CFDs by using the freely available learning resources offered by Brokers and the demo account to understand how to set strategies.