How do I start investing in Bitcoin in Switzerland?
Bitcoin has remained the world’s most popular cryptocurrency for many years. More and more Swiss residents are deciding to buy their first BTC as a long-term investment or a way to diversify their portfolio. However, before you make your first purchase, it’s important to understand a few basic principles.
The most important thing is to know what you’re actually buying. In practice, you can own actual Bitcoin, invest in a financial product that tracks its price, or simply speculate on price movements. These are three completely different approaches.
Do you have to buy a whole Bitcoin?
No. Bitcoin is divisible to eight decimal places, so you can buy a small fraction of it. Many people start with a few dozen or a few hundred Swiss francs to learn how the market works without committing a large amount of capital.
How can you buy Bitcoin?
There are currently several ways to buy BTC in Switzerland.
Cryptocurrency Exchanges
The most popular option for people who invest regularly. Exchanges allow you to buy many cryptocurrencies, manage your portfolio, and trade around the clock.
Brokers and Banks
Some financial institutions offer the option to invest in products linked to the price of Bitcoin. However, this does not always mean owning actual BTC.
Bitcoin ATM
A Bitcoin ATM lets you buy Bitcoin with cash and send it directly to your own cryptocurrency wallet. For many people, this is one of the easiest ways to get started with cryptocurrencies.
Bitcoin or an investment product?
Before making a purchase, it's a good idea to check what type of investment you're choosing.
Real Bitcoin (BTC)
You're buying real Bitcoin, which you can store in your own wallet and send to other users.
ETP, ETN, or ETC products
They allow you to track the price of Bitcoin, but they usually don't let you withdraw the cryptocurrency to your own address.
CFDs
They are used solely for speculating on price movements. You do not become the owner of Bitcoin, and, in addition, leverage is often used, which significantly increases the risk.
How can you start investing wisely?
There is no perfect time to buy Bitcoin. It is much more important to be properly prepared.
Before making your first investment, it’s a good idea to:
- define the purpose of the investment
- set a budget
- select a purchase method
- set up a cryptocurrency wallet
- check all fees
- secure your account and login information
How much money should I set aside for my first investment?
Bitcoin is characterized by high price volatility. For this reason, it is good practice to invest only funds that, if lost, would not affect your day-to-day finances.
It's not a good idea to finance the purchase with a loan or to use money set aside for everyday expenses.
Where should I store Bitcoin?
After purchasing BTC, you can leave it with the service provider or transfer it to your own wallet.
Mobile Wallet
Perfect for beginners. It lets you quickly receive and send cryptocurrencies using your phone.
Hardware wallet
The best solution for storing larger amounts. Private keys remain offline, which significantly increases security.
Online Wallet
It's the most convenient option, but it requires a greater degree of trust in the service provider.
Is a Bitcoin ATM a good choice?
A Bitcoin ATM is an interesting alternative to traditional exchanges.
With it, you can buy real Bitcoin with cash and send it directly to your own wallet. In Switzerland, these machines are located in many cities, such as Zurich, Geneva, Basel, Lausanne, and Lucerne.
Before making a transaction, it's a good idea to check:
- Bitcoin ATM status
- cash availability
- current limits
- supported cryptocurrencies
- applicable fees
A one-time purchase or regular investing?
Many investors opt for a strategy of making regular purchases, known as DCA (Dollar Cost Averaging).
It involves buying Bitcoin for a fixed amount at regular intervals, such as once a month. This makes investment decisions less dependent on current emotions and short-term price fluctuations.
This does not eliminate the risk, but it does allow for greater discipline.
The Most Common Mistakes Made by Beginners
People who are new to investing often make similar mistakes.
The most common ones are:
- emotional buying
- use of leverage
- no backup of the seed phrase
- keeping large amounts of cryptocurrency on an exchange
- failure to account for fees
- investing the money needed for daily expenses
What should you keep in mind before buying BTC?
Before making your first transaction, ask yourself a few questions:
- Am I buying real Bitcoin?
- Do I know all the transaction costs?
- Can I withdraw BTC to my own wallet?
- Do I have 2FA enabled?
- Do I know how to store my seed phrase securely?
- Am I investing only funds that I can afford to lose?
Summary
Getting started with Bitcoin investing doesn't require a lot of capital or specialized knowledge. The most important thing is to make informed decisions, understand the risks, and choose the right method of purchase.
If you want to own real Bitcoin, it’s a good idea to use services that allow you to transfer funds to your own wallet. In Switzerland, one of the most convenient ways to buy Bitcoin is through Bitcoin ATMs, which let you quickly buy BTC with cash and retain full control over your cryptocurrencies.
Frequently asked questions
Yes. You don't have to buy a whole Bitcoin. You can start investing with a small amount and gradually increase your investment as you gain experience.
It depends on the purpose of the investment. Buying actual BTC allows you to hold the cryptocurrency in your own wallet, while investment products only provide exposure to changes in Bitcoin’s price.
The safest option is to use your own cryptocurrency wallet. When dealing with larger amounts, many investors opt for hardware wallets, which store private keys offline.
Yes. A Bitcoin ATM lets you buy real Bitcoin with cash and send it directly to your own cryptocurrency wallet.
It's best to start with an amount that, if lost, won't affect your financial situation. Beginners are advised to avoid investing all their savings in a single cryptocurrency.
Yes. The price of Bitcoin can fluctuate significantly over a short period of time. Before buying, it’s a good idea to familiarize yourself with the investment risks and the guidelines for securely storing cryptocurrencies.
