06.08.2026
For many investors, Bitcoin and other cryptocurrencies are now a potential addition to a broadly diversified portfolio. Few asset classes are as varied and dynamic. If you want to invest in cryptocurrencies, you shouldn’t just look out for potential returns. It’s just as important to have a basic understanding of blockchain technology, the differences between Bitcoin and other cryptocurrencies and the potential risks. The choice of provider also plays a role: there can be significant differences in the selection, security, fees and custody arrangements depending on the bank, broker or crypto exchange.
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Cryptocurrencies are digital assets that are secured by means of cryptographic processes. Unlike traditional currencies, they aren’t usually issued by a central bank. Instead, transactions are stored in a digital register called the blockchain. A network of independent participants checks these transactions.
The blockchain can be described in simple terms as a digital cash book. Each transaction is saved permanently and subsequent changes are practically impossible. This creates traceability without a central entity managing all the data.
Not all cryptocurrencies work the same way. Bitcoin uses the proof of work procedure, whereas many newer projects rely on proof of stake or other consensus mechanisms, which tend to require less energy.
All digital assets are often grouped under the term “cryptocurrencies”, but individual projects can differ considerably.
Bitcoin was developed as decentralized digital money. However, many other cryptocurrencies pursue different goals, such as the operation of smart contracts, decentralized finance applications (DeFi), stablecoins or digital infrastructures. The network is operated by thousands of independent participants worldwide. There is no central organization as such that manages transactions or issues new coins.
Many other cryptocurrencies – often referred to as altcoins – are designed for specific use cases. Some enable smart contracts and decentralized applications, while others are used as stablecoins or tokens within individual platforms As a result, decentralization, governance and risks can vary considerably depending on the project.
For investors, this means that cryptocurrencies can’t be regarded as a single asset class. Before investing, we recommend that you check the relevant use case and the technical and economic basis of a project.
There are currently several thousand cryptocurrencies. Some of the better-known ones include:
Not every cryptocurrency is equally suitable as a long-term investment. In addition to market capitalization, it’s generally worth taking a look at the specific use case, the developer community and the technical development of a project.
There are four common options.
Crypto exchanges enable the direct purchase and sale of Bitcoin and other cryptocurrencies. Investors directly own the coins they purchase and can transfer them to their own wallet. This option usually offers a wide range of cryptocurrencies and comparatively low trading costs, but it also requires some technical understanding.
Brokers simplify the purchasing process and are primarily aimed at newcomers. The user interfaces are often designed to be simpler than those of traditional exchanges. Higher fees may sometimes be charged for this, and the provider itself often handles custody of the cryptocurrencies.
More and more Swiss banks are offering trading and custody of selected cryptocurrencies. Custody accounts, payment transactions and asset management can be bundled in one place. Unlike third-party providers, these crypto services are directly supervised by the Swiss Financial Market Supervisory Authority (FINMA), which ensures the highest possible level of security and stability. The range of available cryptocurrencies is usually smaller than with specialized providers, and the fees may be higher as a result. These services are particularly convenient because there’s no need for a third-party account and purchases can be made directly from the customer’s own bank account. There’s also no need to open a new account with a third-party crypto provider. Crypto trading is carried out directly via normal online banking or a banking app.
Trade cryptocurrencies independently in the secure PostFinance environment – directly in e-finance or the PostFinance App. We offer you a clear range of cryptocurrencies and hold your digital assets in Switzerland.
If you don’t want to hold cryptocurrencies directly, you can participate in the price performance via exchange-traded products or certificates. The issuer takes care of custody of the coins. This option can generally be handled via an existing securities custody account.
When buying cryptocurrencies, potential price opportunities aren’t the only consideration. The fees incurred also play a role.
Depending on the provider, the following costs may be incurred:
Even small differences can add up over the long term with regular investments. It’s therefore worth comparing the total costs.
Anyone who owns cryptocurrencies directly usually needs a wallet. This is a digital wallet that can be used to manage private keys for managing cryptocurrencies.
There are two variants:
If the private keys are lost or fall into the wrong hands, access to the cryptocurrencies can be permanently lost.
Cryptocurrencies are one of the more volatile asset classes. Significant price fluctuations within a short period are common. Find out why there’s more to these fluctuations than just the thrill in the blog post “Understanding volatility in cryptocurrencies”.
Other risks may include:
In light of this, cryptocurrencies should generally only make up part of a broadly diversified portfolio. Only invest capital if you can afford to lose it.
Cryptocurrencies open up new opportunities for digital payments, decentralized applications and alternative investment types. Bitcoin and other cryptocurrencies can differ significantly in terms of both technology and risk. As a rule, an investment is therefore only worthwhile once you’ve carefully considered how the blockchain works, the investment options, the costs incurred and the custody arrangements.
Whether it’s best for you to buy via a crypto exchange, a broker, a bank or exchange-traded products depends on your personal investment goals, the desired functions and your own risk appetite.
