Updated on 22 August 2026. We checked the tax treatment of cryptocurrencies held as private assets, wealth tax and valuation, and the distinction from professional trading. One key statement has changed since first publication: the article stated that gains from trading cryptocurrencies were subject to income tax. In fact, price gains on private assets are tax-free under Art. 16 para. 3 DBG. They only become subject to income tax in the case of professional trading, based on the criteria of Circular No. 36 of the Swiss Federal Tax Administration (ESTV). Newly added: wealth tax at market value as of the end of the tax period, valuation based on the ESTV price list, and income tax liability for mining rewards and airdrops. Still valid without change: the description of how blockchain and wallets work, and the classification of cryptocurrencies as assets.
What are cryptocurrencies and how do they work?
Cryptocurrencies, or crypto for short, are digital currencies based on cryptographic techniques that operate in a decentralized network. They enable secure and fast transactions without the need for a central authority such as a bank.
The heart 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, which makes manipulation almost impossible.
Cryptocurrencies are held in so-called wallets. These are digital purses consisting of a public and a private key. The public key serves as an address to which cryptocurrencies can be sent. The private key signs transactions and ensures that only the owner has access to the cryptocurrencies.
Bitcoin was the first cryptocurrency, launched in 2009, and remains the best known. Besides 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 also involve risks such as high volatility and regulatory uncertainty.
The best-known cryptocurrencies on the market
The cryptocurrency market is diverse and dynamic, with many different digital currencies that offer different applications and technologies. The best-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 build decentralized applications on its blockchain. Ripple, on the other hand, aims to enable fast and low-cost international transfers and has built strong partnerships with financial institutions.
Besides these big names, there are many other cryptocurrencies that also deserve attention. Litecoin is often called the “silver” to Bitcoin’s “gold” and offers faster transaction times. Altcoins such as Cardano and Polkadot bring innovative concepts and technologies to the crypto world.
Tether is a stable cryptocurrency pegged to the US dollar and known as a “stablecoin.” Binance Coin is used on the popular crypto exchange Binance and offers users benefits such as reduced trading fees.
The variety of cryptocurrencies allows investors and users to choose the digital currency that suits them best, whether for investment, trading or everyday use.
Cryptocurrency overview
- Bitcoin (BTC): First cryptocurrency, highest market capitalization, best-known digital currency
- Ethereum (ETH): Smart contract functionality, platform for decentralized applications (dApps)
- Ripple (XRP): Fast and low-cost international transfers, partnerships with financial institutions
- Litecoin (LTC): Faster transaction times than Bitcoin, often called 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 you buy and trade cryptocurrencies?
Cryptocurrencies can be bought and traded on various platforms, with cryptocurrency exchanges being the most popular places to go. These exchanges offer a wide range of digital currencies such as Bitcoin, Ethereum, Ripple and many altcoins.
The best-known and most trusted crypto exchanges include 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.
Besides crypto exchanges, there are also peer-to-peer platforms such as LocalBitcoins and brokers such as eToro. The security and trustworthiness of the platforms are crucial, which is why many offer additional security measures such as two-factor authentication and cold storage.
Cryptocurrency prices and how they work
Cryptocurrency prices are dynamic and subject to constant fluctuations. Bitcoin often shows strong price movements that affect the entire market. Ethereum and other altcoins frequently follow these trends.
For the tax return, what counts is not the daily prices on trading platforms but the tax values published by the ESTV as of year-end (price list on ictax.admin.ch).
Factors that influence prices
Supply and demand, market capitalization, market news, regulatory developments and the legal framework have a significant influence on how cryptocurrency prices develop.
