Cryptocurrencies: how to invest without making mistakes

Mid-May, bitcoin is dropped below $30,000a far cry from its November 2021 highs, where the most famous of cryptoassets exceeded $67,000. It is an understatement to say that the universe of cryptos is unstable! Since the crash in early May – in the space of a week, bitcoin lost $12,000 – observers have been getting angry. Some see in this brutal fall the announcement of the end of a speculative bubble in crypto-assets, while others believe that the situation offers a good entry point into this market. One thing is certain: investing in these products cannot be improvised.

The decline observed in recent weeks provides an opportunity, after a prosperous period conducive to excesses, to recall a few basic instructions. Given the youth of this industry, its weak regulation and the many uncertainties about its development, savers must venture into it with the greatest caution.

This results in limited bets. “You should only invest the money that you are ready to lose in full,” warns Pierre-Yves Dittlot, founder of Ledgity, a new digital platform for investing in cryptoassets. According to wealth management professionals, cryptos should not exceed 2% of wealth, or even 2% of financial wealth (excluding real estate) at most. The amounts can therefore vary depending on each person’s assets, but also on their personal education on the subject. “You have to invest according to your intellectual education and your degree of knowledge of the ecosystem”, recommends Karl Toussaint du Wast, wealth management advisor and co-founder of Netinvestment.

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Progressive investment

Another advice: to get started, you have to rely on a progressive investment strategy. In a very changing market, it is better to avoid investing everything at once. “Some players, such as StackinSat and Paymium for example, offer services for making regular purchases every day, every week or every month”, notes Louis Alexandre de Froissard, manager and partner of the firm Montaigne Conseil & Patrimoine. StackinSat thus offers a Bitcoin savings plan, accessible from 10 euros per month. All you have to do is set up an automatic transfer. Once the tool has been configured, there is nothing more to do.

Finally, of course, adopt a long-term strategy. If cryptos are the realm of speculators, they brag more about their gains than their losses! In addition, “to have a short-term strategy you have to be an informed trader, warns Karl Toussaint du Wast. You have to be behind the screen of your computer twenty-four hours a day, it’s a high sport. level.” Like investing in the stock market, this approach is reserved for very well-informed investors. Others will rely on safer methods. As a result, there is no need to scrutinize specialized sites all day long. “The trap is to watch prices constantly and let your emotions take over, underlines Karl Toussaint du Wast. Better to opt for a five-to-ten-year target and stay the course without giving in to market movements. ”

A reliable provider

These recommendations made, it is still necessary to pass to the practice. The first thing to do is to find a reliable provider to buy your cryptos. Indeed, there are many scams. The Financial Markets Authority (AMF) also keeps a blacklist of banned sites operating on the Internet, containing more than… 200 names! Since December 2019, platforms offering services to French individuals must adopt the status of digital asset service provider (PSAN) established by the Pacte law. To do so, they must be registered with the AMF. The names of PSAN players can easily be found on the AMF website. Among the first players to get started are Coinhouse, Bitpanda, StackinSat, Comptoir des cybermoines, etc.

The list has grown over the years, including now the Chinese giant Binance, the latter having obtained its registration on May 4th. “The PSAN status is a guarantee of confidence, assures Paul Bourceret, director of commercial operations at Coinhouse. The accounts are audited and the platform cannot refuse a withdrawal request. And the manager is not at risk of leaving with the fund!” In addition, in the event of a dispute with the intermediary, the AMF mediator is competent to intervene only if the offending financial intermediaries are registered. This precaution taken, it is then necessary to navigate on the different platforms and gauge their ease of use, check if the services offered correspond to expectations…

The 50 largest caps

All that remains is to take action! “It’s not easy to invest in this new world, notes Michael Sfez, partner at the wealth management firm Kermony Office. There are more than 17,000 different cryptos and more are disappearing every week.” The easiest way to get started is to focus on bitcoin. It is the biggest and oldest crypto. Its capitalization currently represents more than 40% of the market. It is then possible to expand to the second most important crypto: ether. These two tokens are essential.

To diversify further, you have to be careful. For security reasons, it is better to limit yourself to the top 50 of the largest capitalisations. Beyond you will find food and drink. “We offer 45 cryptos at Coinhouse corresponding to distinct blockchains and each project is different”, relates Paul Bourceret. We must therefore study it and see if we agree or not. It’s a job quite similar to that of a stock market investor. “If you want to diversify your portfolio, you will keep 70 to 80% on flagship tokens like bitcoin and ether,” continues Paul Bourceret. For the balance, Solana and Cardano cryptos are among the most popular.

Of course, a brand new crypto will offer much higher performance potential, but the risk comes with it. According to Louis Alexandre de Froissard, it is possible to hope to earn 5 to 15% per year on average over the long term by limiting yourself to well-established tokens. “The more mature the market, the rarer three-digit performances are,” agrees Paul Bourceret.

One option is to turn to turnkey wallets. Coinhouse, for example, offers a management service managed according to three levels of risk. Of course, this has a cost. Count 1.2% entry and exit fees, and 2% annual management fees as well as a performance fee if the portfolio beats its objectives.

Custody of cryptos

There is still one point that should not be overlooked: safekeeping of your assets. In a universe advocating decentralization, logic encourages you to keep your cryptos yourself. To do this, you must open an online wallet (hot wallet) or buy a cold storage tool (cold wallet). The Ledger company is the champion in this field. The object is a sort of encrypted USB key that is not connected to the Internet. This is the safest way to protect against theft and other hacking attempts.

These tools work with, on the one hand, a public key, which allows the platform to identify you and deposit your freshly acquired cryptos, and, on the other hand, a private key. The latter is your password to access your capital in cryptos. “Not everyone is aware of what this implies in terms of responsibility, warns Faustine Fleuret, president of Adan, which brings together players in the cryptoactive and blockchain sector. your password, your cryptos are permanently lost.” Indeed, there is no security. It is estimated that the number of bitcoins lost represents 10-15% of the market. “You have to write down your private key on paper and store it in at least three different places”, recommends Louis Alexandre de Froissard.

If this scares you, be aware that most platforms offer a custody service. In this case, it is these intermediaries who manage the private keys. If purists are reluctant to this method, believing that then you do not really own your cryptos, this solution has the merit of simplicity for dazed savers.


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As long as your bitcoins and ether remain in your wallet (or that of your broker), you will not incur any taxation. Same thing if you are exchanging bitcoins for another crypto. “For a natural person, it is only when you sell your cryptos for euros or when you provide them as collateral for a loan, that you are obliged to declare the capital gain”, indicates Louis Alexandre de Froissard. In this case, you will be subject to the single flat-rate levy of 30%, comprising 12.8% income tax and 17.2% social security contributions. Capital gains are, however, exempt from tax if sales do not exceed 305 euros per year.


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Cryptocurrencies: how to invest without making mistakes


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