Crypto glossary for Switzerland

Crypto comes with its own vocabulary, and Switzerland adds a layer on top. Buy your first bitcoin here and you will meet spread and slippage, be asked to write down a seed phrase and, come tax season, need a “tax value” for your wallet – plus a wealth tax that most newcomers have never heard of. This glossary explains 60 terms in plain English, grouped by topic. Where it helps, we add the Swiss angle: which threshold applies, which authority is in charge, what a Swiss provider charges.

The entries are deliberately short. For the bigger topics – tax, wallets, staking, ETPs, regulation – each one links to our detailed guide.

The basics

Blockchain

A public ledger kept on thousands of computers at once. New entries are bundled into blocks and chained cryptographically to the previous ones, so nobody can quietly rewrite history. Switzerland amended its laws in 2021 to accommodate the technology (see DLT Act).

Bitcoin (BTC)

The first and largest cryptocurrency, launched in 2009. Supply is capped at 21 million BTC, and new coins only come from mining. In Switzerland you can buy it from banks, apps, exchanges and machines – our guide to buying bitcoin in Switzerland compares the routes.

Ethereum (ETH)

The second-largest blockchain, which runs programs known as smart contracts. Ether is the currency used to pay fees on it. Since 2022 Ethereum has used proof of stake instead of mining. Where to get it: buy Ethereum in Switzerland.

Altcoin

A catch-all for every cryptocurrency other than bitcoin, from ether and Solana to memecoins such as Dogecoin. Choice varies hugely by provider: PostFinance offers 22 coins, SwissBorg around 400. An overview: top cryptocurrencies.

Token

A digital asset that runs on an existing blockchain rather than its own, such as USDT on Ethereum. The Swiss Federal Tax Administration (ESTV) splits tokens into payment, investment and utility tokens and taxes them differently.

Stablecoin

A token whose price is pegged to a currency, usually the US dollar (USDT, USDC). Swiss-franc stablecoins also exist, such as ZCHF (Frankencoin), available from Geneva-based Mt Pelerin. FINMA requires Swiss issuers to identify every holder. More on the biggest one: buy USDT in Switzerland.

Smart contract

A program on a blockchain that executes automatically once its conditions are met, with no bank or notary in between. Smart contracts underpin DeFi, NFTs and stablecoins. Bugs in the code are very hard to fix after the fact.

NFT

Non-fungible token: a unique digital item with a traceable owner. A Swiss example is the Swiss Post crypto stamp, a real postage stamp with a digital twin on the Polygon blockchain.

DeFi

Decentralised finance: exchanges, loans and yield products run by smart contracts instead of companies. There is no customer service and no deposit protection; a bug or a hack can wipe out the whole balance.

Market capitalisation

Price multiplied by the number of coins in circulation. It measures the size of a project, not its quality. A coin costing a fraction of a franc can still be worth billions because of its enormous supply – a low unit price does not mean “cheap”.

Volatility

How much a price swings. Crypto moves far more than equity indices such as the SMI; ten per cent in a day is not unusual. That is why providers and FINMA alike warn about the risk of heavy losses.

Halving

Every 210’000 blocks, roughly every four years, the reward paid to bitcoin miners is cut in half. Since the last halving in April 2024 it has been 3.125 BTC per block. The schedule is written into the code and steadily reduces the issuance of new bitcoin.

Mining

Creating new bitcoin: specialised machines solve computations to confirm blocks and earn new coins plus transaction fees. For Swiss tax purposes, mining proceeds are income – and self-employment income if done on a larger scale.

Buying and trading

Exchange

A platform where buyers and sellers trade with each other through an order book. On Kraken Pro, a trade costs 0.40% (maker) or 0.80% (taker) at the lowest tier; in the simpler Kraken app it is 1–1.5% plus the spread. What is available: crypto apps in Switzerland.

Broker

A provider that sells you coins at a set price instead of matching you with other traders. Examples include PostFinance at 0.95% per trade or Relai at a 1% service fee plus a small spread. With a broker, part of the cost often sits inside the price.

OTC

Over the counter: large trades arranged directly with a trading desk rather than on the order book, so the price does not run away. Relai Private starts at CHF 100’000; Bitcoin Suisse does not publish minimums. More: crypto OTC trading in Switzerland.

Order book

The list of all open buy and sell orders for a trading pair, sorted by price. The deeper the order book, the narrower the gap between the best buy and sell prices and the less a large order moves the market.

Market order

An order filled immediately at the best available price. Fine for small amounts in major coins; risky for large sums or thin markets, because your average price can end up well away from the quoted one (see slippage).

Limit order

An order with a price cap: a maximum when buying, a minimum when selling. It only fills at that price or better. If the market never reaches your limit, nothing happens – you may miss the trade, but you never overpay.

Maker and taker

A maker adds a new offer to the order book with a limit order; a taker hits an existing offer with an order that fills at once. Exchanges often charge makers less: at Swissquote both pay 1% at the entry tier, falling to 0.08% (maker) and 0.18% (taker) from USD 60 million in monthly volume.

Spread

The gap between the buy and sell price. Many apps advertise a low fee and earn extra on the spread – buy and sell straight away and you will see it as a loss. Always compare the final amount in francs, not just the headline fee.

Slippage

The difference between the price you expected and the price you paid, because your order ate through several levels of the order book or the market moved during execution. It mainly hits large market orders and thinly traded coins.

Liquidity

How much trading happens in a coin and how easily you can buy or sell without moving the price. Bitcoin and ether trade in very large volumes worldwide, while many small altcoins only trade on a handful of exchanges against USD or USDT.

DCA and savings plan

Dollar-cost averaging: investing a fixed amount at regular intervals instead of trying to time the market. PostFinance offers crypto savings plans from USD 50 (weekly to quarterly); Relai charges no fee on one savings-plan purchase of CHF 100 a month.

Bitcoin ATM

A machine that sells bitcoin for cash or card. According to Coin ATM Radar, as quoted by PostFinance, Switzerland has around 130; the largest operator, Värdex, alone lists more than 80. Locations, limits and costs: Bitcoin ATMs in Switzerland.

SIC and IBAN

SIC is the system for Swiss-franc payments between Swiss banks; the IBAN is your account number within it. Funding in francs via SIC avoids a currency conversion – Kraken accepts CHF free of charge via Bank Frick. More: buy crypto by bank transfer.

SEPA

Europe’s euro payment system. Some foreign exchanges only accept euros via SEPA, in which case your bank converts your francs and adds a margin to the exchange rate. Check the rate your bank applies before you send.

TWINT

Switzerland’s ubiquitous payment app. We did not find it as a funding method for crypto purchases at any of the providers we checked, including Relai, Kraken, SwissBorg, PostFinance, Yuh and Mt Pelerin. Workarounds exist via the peer-to-peer marketplace Peach or bitcoin vouchers. More: crypto and TWINT.

ETP

Exchange-traded product: a listed security that tracks the price of a coin and is usually backed by real coins. SIX Swiss Exchange lists hundreds of crypto products, many of them ETPs. More: crypto ETPs in Switzerland.

Staking

Locking up coins on a proof-of-stake blockchain to help secure the network in return for rewards. PostFinance and Swissquote each keep 20% of the rewards as their fee. Providers, lock-ups and tax: crypto staking in Switzerland.

Wallets and security

Wallet

An app or device that manages your keys – not the coins themselves, which always live on the blockchain. Whoever holds the key controls the coins. Which wallet to choose: crypto wallets in Switzerland.

Hot wallet

A wallet whose key sits on an internet-connected device, such as a phone app. Handy for small amounts and everyday payments, but exposed to malware, phishing or a lost phone without a backup.

Cold storage

Keeping keys offline, for example on a hardware wallet or on paper. Banks and exchanges hold most client assets this way, and it is the usual recommendation for larger personal holdings.

Hardware wallet

A small device that stores your private key offline and signs transactions internally. Well-known makers are Ledger, Trezor and Swiss-designed BitBox. Our reviews: BitBox, Ledger and Trezor.

Paper wallet

A key and address printed on paper. SBB ticket machines sell bitcoin and ether as paper wallets for CHF 20 to 500. If you want to use the coins, move them to a proper wallet soon. How it works: bitcoin at SBB ticket machines.

Seed phrase

A list of 12 or 24 words from which every key in a wallet can be restored. Whoever knows it owns your coins. Never photograph it, never type it into a website, never share it with a so-called support agent.

Private key

The secret key you sign transactions with, derived from your seed phrase. Lose it without a backup and the coins are gone for good – no bank or authority can recover them.

Public address

Your receiving address, comparable to an IBAN. It is safe to share. Still check the first and last characters before sending, because some malware swaps addresses copied to the clipboard.

Self-custody

Holding your coins in your own wallet instead of leaving them with an exchange or bank. It protects you against a provider’s failure but makes you solely responsible for backups and security. Zurich-based bitcoin app Relai works this way exclusively.

Phishing

Fake emails, texts or websites designed to steal your login details or seed phrase – often posing as a bank, an exchange or even the tax office. Common scams and what to do if you are hit: crypto scams in Switzerland.

Swiss law and tax

FINMA

The Swiss Financial Market Supervisory Authority in Bern. It licenses banks such as Sygnum and AMINA and recognises the self-regulatory organisations. A FINMA licence is not the same thing as SRO membership. Who may do what: FINMA crypto regulation.

SRO

Self-regulatory organisation. Many crypto firms do not need a FINMA licence but must join an SRO for anti-money-laundering supervision – in crypto, typically VQF, PolyReg, SO-FIT or ARIF. FINMA’s SRO member search shows whether a firm belongs to one.

KYC

Know Your Customer: verifying your identity with an ID document, often by video selfie. In Switzerland it is mandatory for crypto exchange transactions from CHF 1’000, with linked transactions added up over 30 days. Mt Pelerin therefore allows at most CHF 999 per 30 days without verification.

AML and AMLA

Anti-money laundering: the rules set out in the Swiss Anti-Money Laundering Act (AMLA, German GwG). They are why banks ask for proof of origin when large proceeds from crypto sales land in your account. How to prepare: cash out crypto in Switzerland.

Travel rule

When crypto moves between providers, details of sender and recipient must travel with it. Switzerland has no exemption for private wallets: Swiss institutions only send to external wallets demonstrably belonging to their own customers. That is why providers ask you to prove an address is yours.

DLT Act

A package of legal amendments in force since 1 February 2021 (in part) and 1 August 2021 (the rest). Among other things it governs ledger-based securities – securities on a blockchain – and creates a licence for DLT trading facilities. The first went to BX Digital in 2025.

MiCA

The EU’s crypto regulation. It does not apply in Switzerland: a MiCA licence in France or Ireland says nothing about Swiss authorisation. International exchanges also often serve Swiss residents through a different company from their EU clients – if you moved here from the EU, check which entity your account now sits with.

Wealth tax

Crypto counts as part of your net wealth and is taxed every year at its value at the end of the tax period. Rates and allowances are set by each canton, so the same holding costs different amounts in Zug, Zurich or Geneva. Everything you need to know: crypto tax in Switzerland.

Tax value and price list

The ESTV publishes an official year-end rate for the most common cryptocurrencies in its price list (ICTax). That tax value goes into the securities schedule of your tax return; if a coin is missing, you use the price from a leading exchange. Step by step: declare crypto on your tax return.

Capital gain

Gains from selling privately held crypto are tax-free in Switzerland, and losses are not deductible. Trade very frequently, speculate short term or use borrowed money and you risk being classed as a professional trader – then gains become taxable income.

Airdrop

Tokens handed out free of charge, for example at a project launch. The ESTV treats airdrops as taxable income at market value when allocated, much like staking rewards. Unexpected tokens in your wallet are also a favourite scam bait: do not interact with them.

CARF

An OECD standard for the automatic exchange of tax information on crypto accounts between countries. Switzerland has created the legal basis; according to the State Secretariat for International Finance (SIF), the actual exchange with other countries starts once Parliament has approved the list of participating states.

Blockchain tech

Proof of work

Bitcoin’s consensus mechanism: miners compete with computing power to write the next block. It uses a lot of electricity but makes cheating expensive, because an attacker would need more computing power than the honest rest of the network.

Proof of stake

Instead of computing power, validators lock up their own coins as collateral. Those who behave are rewarded; those who cheat or make serious mistakes lose part of their stake. Ethereum, Solana, Cardano and Polkadot work this way.

Validator

A computer that checks and proposes blocks under proof of stake. Running your own Ethereum validator requires 32 ETH; staking providers pool smaller amounts from many clients. If a validator breaks the rules, part of its stake can be destroyed – this is called slashing.

Gas fee

The fee you pay the network to process a transaction – in ETH on Ethereum, in POL on Polygon. It varies with network load. According to Swiss Post, transferring one of its crypto stamps normally costs less than a centime.

Lightning Network

A payment network built on top of Bitcoin that settles small payments almost instantly and with very low fees. In Lugano, many merchants in the Plan ₿ programme accept bitcoin via Lightning – your wallet needs to support it, though.

Layer 2

A network that sits on top of a blockchain (layer 1), bundles transactions and so cuts fees – Lightning for Bitcoin or Arbitrum for Ethereum, for example. Sender and recipient must use the same network, otherwise funds can be lost.

The Swiss scene

Crypto Valley

The nickname for the Zug region, where many blockchain firms have settled since the mid-2010s. According to the Lucerne University of Applied Sciences’ 2026 crypto study, 32% of the 399 crypto companies in Switzerland and Liechtenstein were based in the canton of Zug. More: Crypto Valley Zug.

Plan ₿

The City of Lugano’s bitcoin programme, run with Tether since 2022. Municipal fees and taxes can be paid in BTC and USDT, and more than 360 merchants accept crypto. More: bitcoin in Lugano. The canton of Zug has also accepted tax payments in BTC and ETH since 2021: pay taxes in bitcoin.