Cryptocurrencies explained by professionals

Cryptocurrencies are digital currencies based on decentralized technologies that enable secure transactions without a central authority.

19.07.2024 von Rodolfo Intaglietta EN

Letzte Aktualisierung: 09.03.2026

informations

Entry‑Level

Crypto Currency, Private Tax

11 Min

Inhalt

KeyFacts Basics Most known Overview Coins Buy / Trade Opportunities / Risks FAQ Key Takeaways

Ein kompetenter Steuerberater steht in einem modern eingerichteten Treuhand-Büro, bereit für mandantenorientierte Beratung.

Rodolfo Intaglietta EN

Managing Director | CEO

Rodolfo Intaglietta is the founder and managing director of ONE! Treuhand GmbH. As a Treuhänder mit eidg. Fachausweis (Swiss federally certified trustee) and a Diplomierter Experte in Rechnungslegung und Controlling (certified expert in accounting and controlling), he supports entrepreneurs across Switzerland with clear financial insights, digital processes, and personal, hands-on advisory services.

The qualification “eidg. diplomierter Experte in Rechnungslegung und Controlling” corresponds to NQF level 8, the highest level of formal education in Switzerland, and is comparable to a doctoral degree in terms of depth of expertise and level of responsibility.

Summary

Cryptocurrencies are digital currencies secured by cryptographic methods and based on blockchain technology. They enable decentralized transactions and are managed via digital wallets. In addition to opportunities such as innovation and high returns, there are also risks such as volatility and regulatory uncertainty.

What you will learn:

What cryptocurrencies are and how they work
Which cryptocurrencies are among the most well-known
Where cryptocurrencies can be bought and traded
How cryptocurrency prices are formed
Which factors influence prices
What opportunities and risks cryptocurrencies offer
The role of accountants and tax advisors in cryptocurrencies

Required skilllevel

Basics

Required Tools

Cryptocurrency wallets
Cryptocurrency exchanges
Blockchain networks
Accounting records
Tax documents

What are cryptocurrencies and how do they work?

Cryptocurrencies, or crypto for short, are digital currencies that are based on cryptographic techniques and operate in a decentralized network. They enable secure and fast transactions without the need for a central authority such as a bank.

The core of cryptocurrencies is the blockchain, a public database that stores all transactions in chronological order. Each transaction is verified by many computers in the network and stored in a block. This block is then linked to previous blocks, making manipulation virtually impossible.

Ownership of cryptocurrencies is managed through so-called wallets. These are digital wallets that consist of a public and a private key. The public key serves as an address to which cryptocurrencies can be sent, while the private key signs transactions and ensures that only the owner has access to the cryptocurrencies.

Bitcoin was the first cryptocurrency, introduced in 2009, and remains the best known. In addition to Bitcoin, there are many other cryptocurrencies, often referred to as altcoins.

Cryptocurrencies offer numerous advantages such as low transaction costs and increased security, but they are also associated with risks such as high volatility and regulatory uncertainty.

The most well-known cryptocurrencies on the market

The cryptocurrency market is diverse and dynamic, with many different digital currencies offering different applications and technologies. The most well-known cryptocurrencies are Bitcoin, Ethereum, and Ripple, all of which have significant market capitalization and broad acceptance.

Bitcoin was the first cryptocurrency and remains the best known and most valuable digital currency. Ethereum is known for its smart contract functionality, which allows developers to create decentralized applications on its blockchain. Ripple, on the other hand, aims to enable fast and cost-effective international transfers and has built strong partnerships with financial institutions.

In addition to these major names, there are many other cryptocurrencies that also deserve attention. Litecoin is often referred to as the “silver” to Bitcoin’s “gold” and offers faster transaction times. Altcoins such as Cardano and Polkadot introduce innovative concepts and technologies into the crypto world.

Tether is a stable cryptocurrency pegged to the US dollar and is known as a “stablecoin.” Binance Coin is used on the popular crypto exchange Binance and offers users benefits such as reduced trading fees.

The diversity of cryptocurrencies allows investors and users to choose the digital currency best suited to them, whether for investment, trading, or daily use.

Cryptocurrency overview

Bitcoin (BTC): First cryptocurrency, highest market capitalization, most well-known digital currency
Ethereum (ETH): Smart contract functionality, platform for decentralized applications (dApps)
Ripple (XRP): Fast and cost-effective international transfers, partnerships with financial institutions
Litecoin (LTC): Faster transaction times than Bitcoin, often referred to as the “silver” to Bitcoin’s “gold”
Cardano (ADA): Innovative blockchain technology, focus on security and scalability
Polkadot (DOT): Interoperability between different blockchains, promotes decentralized applications
Tether (USDT): Stable cryptocurrency (stablecoin), pegged to the US dollar
Binance Coin (BNB): Used on the Binance exchange, reduced trading fees for users

Where can cryptocurrencies be bought and traded?

Cryptocurrencies can be bought and traded on various platforms, with cryptocurrency exchanges being the most popular destinations. These exchanges offer a wide range of digital currencies such as Bitcoin, Ethereum, Ripple, and many altcoins.

Among the best-known and most trustworthy crypto exchanges are Binance, Coinbase, and Kraken. Binance is particularly popular for trading Binance Coin and offers reduced trading fees. Coinbase is known for its user-friendly interface. Kraken offers a robust security architecture and a wide selection of cryptocurrencies.

In addition to crypto exchanges, there are also peer-to-peer platforms such as LocalBitcoins and brokers such as eToro. The security and reliability of platforms are crucial, which is why many offer additional security measures such as two-factor authentication and cold storage.

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Cryptocurrency prices and how they work

Cryptocurrency prices are dynamic and subject to constant fluctuations. Bitcoin often shows strong price movements that can influence the entire market. Ethereum and other altcoins often follow these trends.

Platforms such as CoinMarketCap and CoinGecko provide real-time information on prices, market capitalizations, and trading volumes. Crypto exchanges also offer integrated price tracking tools.

Factors influencing prices

Supply and demand, market capitalization, market news, regulatory developments, and legal frameworks significantly influence the price development of cryptocurrencies.

Opportunities and risks of cryptocurrencies

Cryptocurrencies offer opportunities such as high returns, decentralization, access to new markets, technological innovation, and portfolio diversification.

At the same time, there are risks such as high volatility, regulatory uncertainty, security risks, technological complexity, market manipulation, and environmental impact due to energy-intensive mining.

Cryptocurrencies and accountants

In Switzerland, cryptocurrencies are treated as assets. Profits from trading must be taxed. Accountants assist with the proper documentation of purchases, sales, exchanges, and mining.

Tax advisors ensure that cryptocurrencies are correctly declared in the tax return. Profits from trading Bitcoin, Ethereum, and other cryptocurrencies are subject to income tax. Professional support helps optimize the tax burden while complying with legal requirements.

FAQ

How do cryptocurrencies work?

Cryptocurrencies are based on blockchain technology, a decentralized and public database in which transactions are stored chronologically and secured using cryptographic methods.

Which are the largest cryptocurrencies?

The largest cryptocurrencies by market capitalization are Bitcoin, Ethereum, Ripple, Tether, and Binance Coin.

What are good cryptocurrencies?

Good cryptocurrencies are characterized by technological innovation, high market capitalization, and broad acceptance, including Bitcoin, Ethereum, Cardano, Polkadot, and Litecoin.

Key Takeaways

Cryptocurrencies are based on blockchain technology.
Bitcoin was the first and best-known cryptocurrency.
The crypto market is diverse and dynamic.
Cryptocurrencies offer both opportunities and risks.
Tax and accounting aspects must be considered.

Cryptocurrencies have developed into a significant digital financial innovation. They enable secure, decentralized transactions and offer diverse investment opportunities.

Alongside opportunities such as innovation and financial independence, there are also risks that require sound knowledge, careful planning, and support from accountants and tax advisors.

Rodolfo Intaglietta EN