I’ve been a lurker so far but have already learned a lot from reading this forum. I’m currently 100% invested in VTI+VXUS at IB. I’m considering putting a small percentage of my net worth into BTC as a hedge against galloping inflation.
I’m wondering what in people’s experience is the best option for buying BTC as a Swiss resident with a CHF income. I assume that we’re looking to “invest” a few thousands to tens of thousands into BTC. Some options I’ve considered:
The easy, Swiss option: Swissquote. Fees are 1% up to 10k, and 0.75% up to 50k. Also, you can only trade BTC with a USD or EUR account, not with a CHF account. I didn’t quickly find the costs of currency conversion at Swissquote, so presumably they are high, and the costs will approximately double.
Binance is praised as a popular, low-cost crypto exchange. Indeed, crypto-to-crypto transactions cost at most 0.1%. But buying BTC with fiat currency apparently costs at least 2.5% (?!) (see https://www.binance.com/en/buy-sell-crypto), and that’s before paying my credit card provider’s CHF-to-USD fees.
At IB, I can convert CHF into USD for ridiculously low fees of 0.2bp (yes, that’s 0.002%). I was hoping to convert at IB, then use the USD to fund my account at some crypto exchange, but it’s not clear to me whether that works. When I try to start a cash withdrawal at IB and indicate that the funds will not go to my private bank account (but to the crypto exchange), I learn that this needs to get approved, and I don’t know how much of a hassle this will be.
At Coinbase, the largest crypto exchange, I can apparently directly use CHF to buy BTC, allowing me to save the FX fees (not 100% sure whether that’s true). The trading fees are 1.49% for customers from “Europe” (who knows whether that includes Switzerland), so surprisingly higher than at Swissquote.
I’ve neglected spread costs because I don’t know how they compare between the different exchanges.
So, what’s the Mustachian way of using CHF to buy BTC in 2019?