When, by 2024, 43% of the Portuguese declared it to be crypto, almost double the European average of 22%, it was clear that this market has conquered investors. Many of them took the first steps with Bitcoin or Ethereum, but currently there are many other options, as there are already over 25,000 tokens listed.
Established coins vs new cryptocurrencies
Bitcoin, Ethereum, and the main stablecoins concentrate about two thirds of global market value. This dominance translates into greater liquidity, lower slippage in purchase or sale and a long-term tested narrative.
In addition, the new European Cryp-Active Markets (MICA) regulation requires specific licenses for those providing Crypto-Active Services in the European Union (EU), reinforcing scrutiny over large platforms. For the investor who privileges operational and custody safety, these coins offer the most mature ecosystem.
At the opposite extreme are the tokens that come on networks defi, “Play-to-Earn” or memecoins games. EBA and ESMA’s latest joint report has concluded that, although the total immobilized value in Defi represents only 4% of the world market, the rhythm of experimentation exceeds the observed in the traditional sectors.
There is no doubt that they have a lot to offer. Those who enter a successful project early see, in theory, multiply capital. But those who make mistakes can lose all the investment. The daily volatility of these assets usually exceeds 15%, which is why risk management is so important.
Low price does not equal the opportunity by itself. To separate noise signal, it is necessary to analyze the goal, that is, if the project plans to solve a concrete problem or if it is mere marketing. The team is also important: whether it is anonymous or has a history of technology or finance.
Finally, the liquidity level available on the bags in which it is listed should be considered. If, after this sieve, the currency continues to make sense, a phased entry strategy helps to soften the oscillations.
Risk, mica and the role of Banco de Portugal
Banco de Portugal recalls that transparency in stablecoins reserves and more rigorous governance rules for broadcasters and brokerages. This means that even for popular tokens, it may be detrimental if the issuer does not meet solvability requirements.
For the investor, the great advantage is the addition of information, but it is necessary to, for example, keep the private keys to their own equipment when the amount is high. It is also necessary to evaluate the overall exposure of the portfolio and resort to reliable sources whenever a new “promising” asset arises.
Conclusion
Starting to invest in cryptocurrencies in 2025 implies pondering two possibilities. The first is to trust the proven robustness of the established currencies. The second is to accept a higher risk, as well as the potential for appreciation, of the new currency.
For many Portuguese, the solution is. Maintain a security core in Bitcoin or Ethereum and allocate a lower portion to projects that, after analysis, reveal foundation and capitalization contained. Above all, it is the discipline of updating information that distinguishes a sustainable course from a purely speculative bet.
