Relai: The Mechanics of Non-Custodial Bitcoin Saving in Detail

The Swiss Bitcoin app Relai allows investors to purchase crypto assets up to a volume of 1,000 euros per day without having to undergo a traditional identity verification (KYC) with video identification. This regulatory leeway is based on the exemptions of the Swiss Financial Market Supervisory Authority (FINMA) for financial intermediaries for transactions below defined thresholds. For private investors looking to utilize the cost-average effect (DCA) through automated savings plans, this approach significantly lowers the entry barriers to the crypto market. However, behind the simple user interface lies a complex architecture of non-custodial custody, spread calculations, and tax-related pitfalls that every investor must understand before capital allocation.

The Mechanics of Non-Custodial Architecture

Unlike centralized crypto exchanges (CEX), where the company holds customers’ private keys, this provider operates on a non-custodial model. This means the app generates a wallet locally on the user’s smartphone. The associated twelve-word seed phrase – the cryptographic backup of the wallet – remains solely in the possession of the investor. If the provider fails or is compromised, the assets on the blockchain remain untouched, as access can be restored through any standardized Bitcoin wallet (such as Electrum or BlueWallet).

Cryptographic Self-Custody vs. Counterparty Risk

By forgoing the custody of customer funds, the classic counterparty risk that leads to total losses in the event of exchange insolvencies is eliminated. However, this requires strict discipline on the part of the investor. Anyone who loses the seed phrase irrevocably loses access to their deposits. In the practice of private wealth management, this necessitates the implementation of robust backup strategies, such as physically securing the phrase on metal plates (Steel Wallets) to protect it from elemental damage like fire or water. Digital storage locations such as cloud drives or password managers must be categorically excluded due to malware attack vectors.

Fee Structure and Optimization of Savings Plans

The profitability of automated micro-purchases largely depends on the analysis of transaction costs. The base fee for a one-time purchase is 2.5 percent of the transaction volume. For institutional investors, this would be unacceptably high; however, in the retail segment of non-custodial brokers, it is common, as network fees (miner fees) for direct on-chain transfers to the wallet often need to be cross-subsidized. However, the structure can be reduced to as low as 1.0 percent by strategically setting parameters.

The Spread as a Hidden Cost Factor

In addition to the transparent order fee, investors must evaluate the spread – the difference between the buying and selling price. Since the platform processes liquidity through a broker partner (Bity), a market markup occurs. During extremely volatile market phases, this spread can widen. A conscious investor therefore compares not only the percentage fee but also the actual execution price with the global spot price (for example, on reference markets like Kraken or Coinbase). While the spread effect smooths out over time with long-term savings plans (DCA), it should be precisely calculated for larger one-time investments (lump-sum).

Regulatory Framework under Swiss Money Laundering Law

The classification as a non-KYC platform for amounts up to 1,000 CHF/EUR daily is not a legal vacuum but a strict interpretation of the Swiss Money Laundering Ordinance (GwV). The company operates as a regulated financial intermediary and is a member of the Association for Quality Assurance in Financial Services (VQF), a self-regulatory organization (SRO) recognized by FINMA. This means that as soon as the transaction volume exceeds 100,000 CHF per year or anomalies occur according to GwG, immediate reporting obligations and KYC escalation levels (Proof of Source of Funds) come into effect.

Money Laundering Guidelines and Bank Transfers

User identification occurs indirectly through the fiat payment channel. A purchase is only possible via SEPA transfer from a bank account that must be in the name of the wallet holder. Payments from third parties or corporate accounts (unless explicitly registered as a corporate account) are automatically rejected by the broker gateway. This linking of IBAN and wallet address ensures that the origin of the fiat funds remains traceable within the framework of anti-money laundering guidelines (AML) without the need to store biometric data of the user.

Tax Implications for Crypto Savings Plans in the DACH Region

The automation of purchases brings a massive tax documentation obligation. In Germany, Bitcoin is considered a private sale transaction under the Income Tax Act (EStG § 23). Profits are tax-free after a holding period of one year. However, those who buy through a weekly savings plan generate 52 tranches per year, each with individual acquisition costs and holding periods.

The First-In-First-Out (FIFO) Method in Practice

When selling the coins later, the tax office typically applies the FIFO principle. The coins purchased first are considered sold first. Investors must therefore maintain complete transaction histories. The direct export of CSV files from the app to tax software solutions (such as Cointracking or Blockpit) is essential to reliably demonstrate the exact acquisition data and compliance with the one-year speculation period during an audit by the tax authorities. Manual tracking via Excel is highly error-prone in DCA strategies due to the multitude of micro-transactions.

Integration into a Diversified Portfolio

A savings plan based solely on Bitcoin should never be viewed in isolation but rather as a risk component within a holistic asset allocation. While we at Tagesgeld-Konto.net traditionally focus on planned, deposit-protected returns, Bitcoin represents the exact opposite: a highly volatile, uncorrelated asset without ongoing cash flow (interest or dividends). A strategic allocation of 1 to 5 percent of liquid net assets can improve the risk-return profile of a portfolio but requires the psychological resilience to endure drawdowns of over 60 percent without panicking and stopping the savings plans.

Conclusion & Action Steps for Investors

To efficiently leverage the benefits of a non-custodial savings plan and avoid unnecessary costs and security risks, investors should consistently implement the following steps:

• Maximize fee structure: Set up the savings plan for amounts over 100 euros and use a referral code to reduce the order fee from 2.5% to 1.0%.
• Physically isolate seed phrase: Write down the 12 words exclusively on paper or engrave them in titanium/steel. Never take screenshots and do not type the words into any digital notes.
• Automate tax tracking: Export the transaction CSV after each quarter and import it into a dedicated crypto tax tool to document the FIFO method cleanly for the tax office.
• Check hardware wallet integration: Once the accumulated value exceeds a significant amount (e.g., one month’s salary), transfer the UTXOs (Unspent Transaction Outputs) from the smartphone app to a dedicated hardware wallet (such as BitBox02 or Trezor).

Note: The information in this article does not constitute investment advice or a purchase recommendation. Crypto assets are highly volatile and unregulated. The total loss of invested capital is currently possible. Please consult a certified tax advisor for tax-related questions, as the interpretation of § 23 EStG by tax courts may change.