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FINANCIALLY AESTHETIC · GUIDE 34/37
BUYING & STORING CRYPTO: EXCHANGES, WALLETS & KEYS
FA-7.2 · Crypto & Digital Assets
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RISK FRAME
Buying is easy. Knowing who controls the keys - and how access can fail - is the real ownership question.
How to Acquire Crypto and Through Which Intermediaries
Investing in crypto-assets - often referred to as “cryptocurrencies” in everyday language - can involve numerous parties offering a variety of services: buying/selling, trading platforms, portfolio management, etc.
As of July 1, 2026, professionals wishing to offer services related to crypto-assets must hold the status of crypto-asset service provider (PSCA). Companies that previously held only the former French status of digital asset service provider (PSAN) are no longer authorized to offer their services to investors. They must cease their activities and inform their clients about the future of their crypto-assets. Companies that continue to offer their services without authorization are likely to be blacklisted by the AMF and subject to penalties.
Created under the European “MiCA” (Markets in Crypto-Assets) framework, the status of digital asset service provider (PSCA) applies to companies whose business consists of providing one or more investment services related to crypto-assets:
- the custody and administration of crypto-assets on behalf of clients;
- operating a crypto-asset trading platform;
- the exchange of crypto-assets for legal tender or other crypto-assets;
- executing orders involving crypto-assets on behalf of clients;
- the investment in crypto-assets;
- receiving and transmitting orders for crypto-assets on behalf of clients;
- providing advice on crypto-assets;
- providing crypto-asset portfolio management services;
- providing crypto-asset transfer services on behalf of clients.
A PSCA must be authorized by the competent authority in its country of origin. In France, this is the Autorité des marchés financiers (AMF). This authorization allows it to offer its services in France, as well as in other European Union countries if it so requests.
As an investor, you can therefore use the services of a PSCA authorized in France or in another European Union country that appears on the whitelist. Note: In addition to these entities specializing in crypto-assets, traditional banks and online brokers may also offer crypto investment services. They must be registered with Regafi.
Investing through a crypto-asset service provider (PSCA) ensures that investors can be confident that certain due diligence checks have been conducted regarding the company, its executives, and its processes. However, investing in “cryptocurrencies” carries risks, including the risk of falling victim to scams. Also keep in mind that the Deposit Guarantee and Resolution Fund (FGDR) does not cover crypto-assets in the event of a platform’s bankruptcy, unlike “traditional” financial investments. Platforms that do not hold PSCA status are not authorized to offer crypto-asset services and may be blacklisted by the AMF and/or ESMA (the European Securities and Markets Authority).
You can consult the Register of Authorized Entities and Individuals by entering the name of the platform on which or with which you wish to trade. A list of registered crypto trading platforms is also available on the AMF’s website, in the “Records” section.
Obligations of Centralized Platforms Toward Investors
By using a crypto-asset service provider (PSCA), you benefit from certain additional protections. Like other financial professionals, a PSCA must act honestly, fairly, and in the best interests of its clients. In particular, it must:
- provide investors with clear and non-misleading information, particularly regarding its marketing materials;
- disclose the risks associated with crypto-asset investments;
- if the PSCA provides crypto-asset advisory services and/or crypto portfolio management, it must ask you questions and assess your knowledge and experience with crypto-asset investments, your investment objectives and risk tolerance, as well as your financial situation and ability to withstand losses. These questions enable the PSCA to provide you with advice tailored to your profile and needs. If you do not respond, the PSCA is not permitted to provide you with advice on your investments;
- Outside of any crypto-asset advisory or portfolio management situation, the PSCA is not required to ensure that the proposed investments match your investor profile;
- to be transparent about fees;
- provide you with information regarding the main negative impacts of crypto creation on the climate and the environment;
- provide white papers or documents detailing the crypto-asset projects it offers, so that you can better understand the nature of these investments.
When you use the services of a PSCA, you have a 14-day cooling-off period. PSCA providers must also implement strict measures to secure your investments against the risks of hacking and theft by establishing appropriate cybersecurity protocols.
Only companies with the status of crypto-asset service provider (PSCA) are authorized to solicit you. If you receive a phone call or email, or if you click on an advertisement online or on social networks, check the whitelist to verify that the company is authorized by the AMF or by a regulatory authority in another European Union country. If it is not listed, the company is not authorized to solicit you to offer its services: be wary, as this is most often a scam.
Similarly, if you invest through a company you found yourself by searching online, and that company does not have PSCA status, you run the risk of not being protected as an investor - or even falling victim to a scam! If a problem arises, your only recourse will be to turn to the appropriate judicial authorities.
Counterparty risk: what happens if there’s a problem with a platform
If you encounter a problem with a PSCA authorized in France by the AMF, you can contact the AMF mediator to help you resolve the dispute amicably.
If the PSCA is authorized by a regulatory authority in another European Union country to provide its services in France and:
- your dispute concerns marketing materials, you may also seek assistance from the AMF mediator;
- your dispute concerns the actual performance of the services provided by the PSCA, check its terms and conditions to find out what steps to take. Keep in mind that these procedures may need to be carried out in a language other than French.
If you have used the services of a company that does not have PSCA status, your only recourse in the event of a dispute will be to go through the judicial authorities in its country of origin. Please note: the procedures may need to be conducted in a language other than French. And if it turns out that you are the victim of a scam, the chances of getting your money back are very slim.
Remember: Investing in crypto-assets is highly volatile and risky. Many scammers operate online.
Risk factors to consider before purchasing crypto include, in particular, volatility risk, liquidity risk, technological and operational risk, and the risk of involvement in criminal activities.
Private Key, Public Key: What You Need to Know Before Storing Your Crypto Assets
The public key and private key are used in the process of applying an electronic signature to your transactions on the _blockchain_.
- The public key is the part visible to other users. If you lose it, you can generate a new one using your private key. It is what allows your signature to be publicly verified.
- The private key is used to generate the public key. It’s a kind of password that you should never share; it’s unique. Don’t lose it, because you won’t be able to get a new one: losing it means permanently losing all access to your crypto-assets. Often, access to your private key is managed using a mnemonic phrase to help you remember it.
Understanding _blockchain_ technology
The _blockchain_, literally “blockchain,” is a secure technology for storing and transmitting information in the form of a database. A _blockchain_ contains the history of all transactions made between its users since its creation. This technology was developed to support transactions conducted in cryptocurrencies (or crypto-assets), which do not rely on any central authority. It is based on a computer protocol for encrypted and decentralized transactions, meaning that transactions do not require the involvement of a trusted third party to be verified.
Choosing the Right Way to Hold Crypto-Assets
When you invest in crypto-assets, you can choose to store them yourself on your computer, smartphone, or in a physical wallet, or you can entrust their safekeeping to a professional. Different precautions should be taken in each case.
Self-Custody of Crypto-Assets
If you decide to store your crypto-assets yourself, it is essential to secure your devices. There are two main methods:
- Use a “hardware wallet,” which is an external device that stores your private keys. This device is not connected to the Internet and can take the form of a USB drive or a bank card. It also requires the installation of a companion app on your computer that allows you to access your crypto-assets. The main risk with this solution is, of course, losing the device or having it stolen: be sure to store it in a safe place.
- Use a “_hot wallet_”: in this case, your private key is stored in a wallet connected to the Internet, on your computer or mobile phone. Warning: Anything digital carries a risk of hacking. While the blockchain is considered tamper-proof, your computer is not. If you choose this option, protect yourself against the risk of hacking. Also be careful to prevent theft or damage to the device you’re using.
Entrusting the Custody of Your Crypto-Assets to a Professional
Another option is to entrust the custody of your crypto-assets and your private keys to a crypto-asset service provider (PSCA). If you wish to delegate the custody of your crypto-assets, be sure to choose a professional listed on the whitelist. This will help you avoid falling victim to a potential scam.
You should still take care to secure your access to the platform you choose by using a strong password and, if possible, two-factor authentication. Also, find out what measures the platform has taken to secure its own systems, as it too could fall victim to malicious attacks.
Deposits and Withdrawals: Be Careful with the Public Address
Be careful not to use the wrong public address
If you make a mistake in the address to which you send crypto-assets on a public _blockchain_ such as Bitcoin’s, there is no way to recover your funds. Before making a transaction or sharing your address (public key) to receive crypto-assets, make sure it is complete and accurate, as it may be impossible to recover crypto-assets sent by mistake to the wrong address.
Be very careful: if you forget or mistype even a single character in the public key you’re using, your crypto-assets could be lost.
General Precautions and Checks Before Getting Started
What are cryptos? How do you acquire them? How do you store them? Did you know that they are not legal tender in Canada? Before you get started, take the time to educate yourself. The value of cryptos can rise or fall by several thousand dollars, even within a matter of hours. While gains are possible, crypto holders also run the risk of losing a lot of money.
Investing in crypto and the astronomical returns that some people claim to earn are the stuff of dreams. However, this craze attracts fraudsters who see it as an opportunity to defraud investors. Be wary of offers that seem too good to be true. There’s no such thing as high returns that are risk-free. Investing in crypto is subject to many types of fraud, particularly through social networks.
If you have even the slightest doubt about the legitimacy of an investment platform or an advisor who is actively soliciting you, don’t hesitate to contact the AMF’s information center to verify that they are properly registered.
SURVIVAL RULE
Choose custody deliberately, secure recovery material offline and test transfers with an amount you can lose.
CURRENT-RULES CHECK
Legal protections, tax rates, reporting duties, deadlines and product rules change by country and over time. Use the jurisdiction labels in this guide and check the linked official source before acting.
- Investor.gov - Crypto-asset custody basics - United States - custody.
- FTC - Cryptocurrency scams - United States - crypto scam patterns.
