In 2025, cryptocurrencies continue to attract both individual and institutional investors.
Yet despite their growing popularity, crypto investments remain speculative assets — their value can fluctuate sharply, and the regulatory framework is still evolving.
Before allocating a portion of your savings, it’s essential to understand how these digital assets work, the risks they carry, and the legal and tax obligations that apply to investors.
Article Summary
By 2025, the cryptocurrency market has become more structured and professional, supported by the European MiCA framework and the entry of major institutional players.
Investors now view it as a new source of diversification and yield, but crypto assets remain volatile and speculative by nature.
A crypto investment should be considered a complementary asset, not a substitute for corporate cash or secure savings.
Success depends on choosing regulated platforms, managing technical risks, and understanding the evolving fiscal and compliance landscape.
The future of the sector lies at the intersection of technological innovation, greater transparency, and progressive financial regulation — bringing digital assets closer to traditional finance, while maintaining the caution they still demand.
What Is a Crypto Investment?
A cryptocurrency is a digital currency based on a decentralized technology called blockchain.
This system records, transfers, and secures transactions between users without a banking intermediary.
A crypto investment consists of buying, holding, or generating yield from these digital assets with an investment objective.
However, not all cryptocurrencies carry the same level of risk or regulatory oversight:
- Volatile cryptos like Bitcoin or Ethereum fluctuate freely with market supply and demand, often showing sharp price swings.
- Regulated digital assets — such as stablecoins or MiCA-supervised tokens — aim to offer greater stability, transparency, and compliance, following principles similar to active digital investment.
💡 Key takeaway:
A crypto investment is not a guaranteed savings product.
It remains a high-risk investment, exposed to market volatility and an evolving regulatory environment.
Why Some Investors Are Interested
Despite their volatility and relatively young regulatory framework, cryptocurrencies continue to attract a growing share of investors.
They offer several advantages when integrated into a diversified portfolio strategy:
- Diversification: Crypto assets can complement a portfolio made up of equities, bonds, or money-market instruments.
- Yield potential: Some cryptocurrencies can deliver strong short-term performance — though such gains always come with substantial risk.
- Wider adoption: More companies, financial institutions, and even governments are beginning to incorporate digital assets into their operations or reserves.
- Technological innovation: Blockchain enables near-instant, traceable, and secure transfers without intermediaries — paving the way for decentralized finance (DeFi), which automates many of these mechanisms.
⚖️ Example:
In 2024, the launch of the first Bitcoin ETFs by BlackRock and Fidelity marked a key milestone in the institutionalization of the crypto market — making digital asset investments more accessible to traditional investors.
Risks to Understand Before Investing in Crypto
Investing in crypto assets remains one of the riskiest markets today.
Before committing funds, it’s essential to understand the key risks involved:
- Extreme volatility: Prices can fluctuate by ±30% within days, often disconnected from fundamental economic trends.
- No capital guarantee: The value of your investment depends entirely on market conditions.
- Technical risks: Platform hacks, loss of private keys, or irreversible transaction errors.
- Regulatory risks: Some jurisdictions may restrict or ban certain tokens or trading platforms.
- Fraud and scams: Unregistered platforms frequently promise unrealistic returns or misappropriate deposited funds.
⚠️ Important:
The AMF (French Financial Markets Authority) regularly issues warnings about unregistered platforms.
Before making any transaction, always verify that your provider appears on the official PSAN / PSCA whitelist published by the AMF.
The European Regulatory Framework (MiCA and PSCA)
Since 2024, the MiCA Regulation (Markets in Crypto-Assets) has officially governed the issuance, management, and custody of crypto assets across the European Union.
Its purpose is to protect investors and standardize market practices across member states.
It also introduces a unified status for providers: the PSCA (Crypto-Asset Service Provider).
Any company offering crypto-related services — custody, buying, selling, or advisory — must now obtain this authorization.
The PSCA status is gradually replacing the previous PSAN (Digital Asset Service Provider) framework, with full transition expected by June 2026.
✅ Good to know:
Only MiCA- or PSCA-authorized providers are legally allowed to issue, manage, or safeguard crypto assets within the European Union.
You can verify a provider’s regulatory status on the official AMF whitelist, updated regularly.
How to Buy and Secure Your Cryptocurrencies
Investing in crypto assets requires following a rigorous process to ensure the security of your funds.
Here are the main steps to follow:
1. Choose a Regulated Platform
Before making any transaction, make sure you’re using a platform registered with the AMF (France’s Financial Markets Authority) or another recognized European regulator.
These service providers hold a PSCA license (or a transitional PSAN status), ensuring operational compliance and investor protection.
Examples of regulated platforms include Coinhouse, Meria, Bitpanda, and Paymium.
🔎 Always verify that your chosen provider appears on the official AMF whitelist, which is regularly updated.
2. Create a Verified Account (KYC)
To legally buy cryptocurrencies, you must complete an identity verification process known as KYC (“Know Your Customer”).
This step typically requires:
- A valid identity document
- Proof of residence
- Sometimes, proof of income or source of funds
KYC ensures compliance with European anti–money laundering (AML) and counter–terrorism financing (CTF) regulations.
3. Buy Using Euros or Dollars
Cryptocurrencies can be purchased directly from your bank account using wire transfer or credit/debit card.
The main purchase currencies are EUR and USD, though some platforms allow crypto-to-crypto swaps (e.g., Bitcoin → Ethereum).
4. Secure Your Assets
Once purchased, your priority should be choosing the right storage method for your digital assets:
- Hot wallet (online wallet): convenient for trading and quick transfers but more exposed to cyberattacks.
- Cold wallet (offline storage): a physical device such as Ledger or Trezor, kept offline for maximum protection.
💡 Pro tip:
Never store all your assets on a single platform.
Separate your trading wallets (active use) from your storage wallets (long-term holding) to reduce risk.
Crypto Gains and Taxation
For individuals, profits from crypto sales are subject to the flat tax (PFU) at a total rate of 30%, broken down as follows:
- 12.8% income tax
- 17.2% social contributions
Profits must be reported using Form 2086, attached to your annual income tax declaration.
Total gains or losses should also be included in your main return.
Foreign Accounts
Tax treatment depends on the type of operation performed.
Simply holding cryptocurrencies is not taxable — but selling them (converting to euros or dollars) triggers taxation.
If you hold an account on a foreign platform, you must declare it using Form 3916-bis.
This obligation applies to each foreign account, even if it is inactive.
Failing to declare such an account can result in a €750 fine per undeclared account.
🧾 Note:
Sales totaling less than €305 per year are exempt from taxation.
Beyond that threshold, all capital gains are subject to the 30% flat tax.
The Main Types of Crypto Investments
The crypto investment landscape is broad — each product type carries different levels of risk, liquidity, and regulatory oversight.
| Type of Investment | Risk Level | Liquidity | Regulatory Framework | Example |
| Direct crypto purchase | High | T+0 | Unregulated | Bitcoin, Ethereum |
| Regulated stablecoins | Moderate | T+0 | MiCA (EU) | EURCV, USDC |
| Crypto ETFs / ETPs | Moderate | T+2 | Regulated (AMF / SEC) | BlackRock iShares BTC ETF |
| Staking / Yield platforms | High | Variable | Depends on platform | Ethereum Staking, Feel Mining |
| Crypto indices or bundles | High | Flexible | Variable | Bitpanda Index, Meria Bundle |
Best Practices Before Investing in Crypto
✅ Make sure the platform is PSCA- or PSAN-licensed.
✅ Invest only what you can afford to lose.
✅ Diversify your holdings — don’t put all your funds into a single cryptocurrency.
✅ Keep purchase receipts and transaction records for compliance and audit purposes.
✅ Be cautious of investment “advice” circulating on social media.
💬 In short:
Crypto investments can fit into a diversified wealth strategy, but they do not replace regulated financial products.
In Summary
Cryptocurrencies are high-risk digital assets.
The MiCA regulation improves transparency across the sector but does not eliminate volatility.
A crypto investment should remain measured, intentional, and well-documented, aligned with your risk tolerance and investment horizon.
💡 The future of crypto investing lies at the intersection of two worlds:
technological innovation and financial regulation.
