Cryptocurrency investing for dummies

Table of content
Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here



Part 1: Getting Started with Cryptocurrency Investing

Chapter 1: What Is a Cryptocurrency?

Beginning with the Basics of Cryptocurrencies
The definition of money
Some cryptocurrency history
Key crypto benefits
Common crypto and blockchain myths
Risks
Gearing Up to Make Transactions
Wallets
Exchanges
Communities
Making a Plan Before You Jump In
Select your cryptos
Analyze, invest, and profit


Chapter 2: Why Invest in Cryptocurrencies?

Diversifying from Traditional Investments
Stocks
Bonds
Forex
Precious metals
Gaining Capital Appreciation
Historical returns
Huge growth potential
Increasing Income Potential
A bit about traditional dividends
The basics on crypto dividends
Fueling Ideological Empowerment
The economy of the future
Freedom from government control of currency
Help for the unbanked and underbanked


Chapter 3: Recognizing the Risks of Cryptocurrencies

Reviewing Cryptocurrency Returns
Capital gains (or losses)
Income
Risk: Flipping the Other Side of the Coin
Glimpsing Cryptocurrencies' Reward versus Risk
Digging into Different Kinds of Risk
Crypto hype risk
Security risk
Volatility risk
Liquidity risk
Vanishing risk
Regulation risk
Tax risk
Exploring Risk Management Methods
Build your emergency fund first
Be patient
Diversify outside and inside your cryptocurrency portfolio


Chapter 4: Looking Under the Hood: Blockchain Technology

Breaking Down Blockchain Technology Basics
What is a blockchain, and how does it work?
How does a blockchain secure itself?
Why is blockchain revolutionary?
Perusing Problems with Blockchain
Scalability problems
Environmental problems
Fraud problems
Political problems
What Can Blockchain Be Used for?
Payments
Voting
Supply chain monitoring
Identity verification
Legal ownership of stuff
Healthcare
Entertainment
Energy
Internet of Things (IoT)


Chapter 5: How Cryptocurrencies Work

Explaining Basic Terms in the Cryptocurrency Process
Cryptography
Nodes
Mining
Proof-of-work
Proof-of-stake
Proof-of-importance
Transactions: Putting it all together
Cruising through Other Important Crypto Concepts
Adaptive scaling
Decentralization
Harvesting
Open source
Public ledger
Smart contracts
Stick a Fork in It: Digging into Cryptocurrency Forks
What is a fork, and why do forks happen?
Hard forks and soft forks
Free money on forks


Part 2: The Fundamentals of Investing In Cryptos

Chapter 6: Cryptocurrency Exchanges and Brokers

Distinguishing Crypto Exchanges
Centralized exchanges
Decentralized exchanges
Hybrid exchanges
How to choose an exchange
Considering Brokers
How brokers work
The pros and cons of using a broker
How to choose a broker
Looking at Other Methods for Buying Cryptos
Funds
Credit card
PayPal
Cash
Cryptocurrency ATMs


Chapter 7: Using Cryptocurrency Wallets

Defining Cryptocurrency Wallets
A few important terms
How a wallet works
Looking at Different Types of Wallets
Online wallet
Mobile wallet
Desktop wallet
Hardware wallet
Paper wallet
Choosing a Crypto Wallet
Based on security
Based on your crypto ownership
Based on transaction fees
Based on anonymity
Keeping Your Wallet Secure
Back up your wallet
Have multiple wallets
Add more security levels
Update your software
Remember where you hide it!


Chapter 8: Different Types of Cryptocurrencies

Celebrating Celebrity Cryptocurrencies by Market Cap
Bitcoin
Ethereum
Ripple
Litecoin
Other top ten major cryptos
Top 100 major cryptos
Cryptocurrencies by Category
Payment cryptos
Privacy cryptos
Platform cryptos
Exchange-specific cryptos
Finance/fintech cryptos
Legal and property cryptos


Chapter 9: Identifying Top Performing Cryptocurrencies

Introducing the Invest Diva Diamond Analysis
Using Fundamental Analysis to Pick Cryptocurrencies
Go with what you know
Choose the right categories
Check out cryptos' websites
Choosing Cryptos with Sentimental Analysis
Key sentimental elements
Stuff to check in the news
Trying Technical Analysis to Select Cryptos


Chapter 10: Diversification in Cryptocurrencies

Breaking Down Some Basics on Diversification
What is traditional diversification?
How does diversification reduce risk?
Using Cryptocurrencies in Long-Term Diversification
Diversifying with non-cryptocurrencies
Diversifying among cryptocurrencies
Tackling Diversification in Short-Term Trades


Part 3: Alternatives to Cryptos

Chapter 11: Getting Ahead of the Crowd: Investing in ICOs

Understanding the Basics of Initial Coin Offerings
How an ICO works and how to start one
ICOs versus IPOs
Investing in an ICO
Finding ICO listings
Analyzing an ICO listing
Outlining the ICO investment process
Holding your tokens after your purchase
So You Want to Start an ICO: Launching an ICO Yourself
Understanding the challenges
Taking a few steps before the launch


Chapter 12: Cryptocurrency Mining

Understanding How Mining Works in a Nutshell
Discovering What You Need to Mine
Before you begin: The mining profitability of different cryptos
Mining hardware
Mining software
Mining pools
A mining setup example
Diving in and making sure mining is worth your time


Chapter 13: Stocks and Exchange Traded Funds with Cryptocurrency Exposure

Looking for Stocks with Exposure to Cryptos
Fundamentals
Market sentiment factors
Other considerations
Considering Cryptocurrency and Blockchain ETFs
Getting an overview of blockchain ETFs
Keeping an eye on other indexes


Chapter 14: Cryptocurrency Futures and Options

Focusing on the Fundamentals of Futures
Futures' features
Financial futures
Introducing the Basics of Options
Futures versus options
Puts and calls
Risks
Understanding Cryptocurrency Derivatives Trading
The advantages of crypto derivatives trading
The advantages of crypto derivatives for the industry
Trading resources


Chapter 15: Dealing with the Dollar and Other Fiat Currencies

Considering the World's Reserve Currency: The U.S Dollar
Focusing on factors that affect the U.S dollar
Looking at Bitcoin versus the U.S dollar
Examining the Euro and Other Major Currencies
The euro and the British pound
Safe havens: The Swiss franc and the Japanese yen
The Aussie, Kiwi, and Canadian dollars
Comparing the Forex Market and the Crypto Market
The similarities
The differences
Resources for forex trading


Part 4: Essential Crypto Strategies and Tactics

Chapter 16: Using Technical Analysis

Beginning with the Basics of Technical Analysis
The chart art
The time factor
The psychology factor: Trends
Spotting the Key Levels
Support levels
Resistance levels
Trends and channels
When the trend is no longer your friend
Picking Out Patterns on a Chart
Bullish reversal patterns
Bearish reversal patterns
Smoothing Charts Out with Moving Averages
Basic moving averages
Sophisticated moving averages


Chapter 17: Short-Term Trading Strategies

Distinguishing Three Short-Term Time Frames
Profiting within hours
Profiting within days
Profiting within weeks
Trying Short-Term Analysis Methods
Deciphering chart patterns
Using indicators
Avoiding illegal pump-and-dump stuff
Managing Short-Term Trading Risk


Chapter 18: Long-Term Investing Strategies

Time Is on Your Side: Getting Started with Long-Term Investing
Your personal goals and current situation
Your portfolio's objectives
Creating Long-Term Strategies
Observing psychological levels
Selling when you reach your goal
Keeping tax consequences in mind
Considering Limit and Stop-Loss Orders
Limit orders
Stop-loss orders


Chapter 19: Minimizing Losses and Maximizing Gains

Keeping the Losses Down
Measuring returns
Monitoring exchange fees
Understanding the art of getting out
Letting the Profits Rise
Buying at the bottom
Knowing that patience is a profitable virtue
Identifying the peaks
Finding peaks and bottoms with a few trading tools


Chapter 20: Using Ichimoku and Fibonacci Techniques

Getting a Handle on Ichimoku Kinko Hyo
The components of Ichimoku Kinko Hyo
Ichimoku interpretations
Introducing Fibonacci Retracement Levels
Some background on Fibonacci
How to insert Fibonacci retracement levels into your chart
Combining Ichimoku and Fibonacci Techniques


Chapter 21: Taxes and Cryptocurrencies

Distinguishing Three Types of Crypto Taxes
Income taxes
Long-term capital gain taxes
Short-term capital gain taxes
Minimizing Your Crypto Taxes
Lowering your mining income tax
Reducing your trading tax
Bringing down your capital gain taxes
Checking the rate of your state
Evaluating Taxable Income from Crypto Transactions
Tracking your crypto activity
Handling crypto forks
Reporting international crypto investments


Part 5: The Part of Tens

Chapter 22: Ten Considerations Before Getting Started with Cryptocurrencies

Don't Get Too Excited
Measure Your Risk Tolerance
Protect Your Crypto Wallet
Find the Best Crypto Exchange/Broker for You
Determine Whether You Should Invest Short Term or Long Term
Start Small
Follow the Cause
Mull Over Mining
Look into Investing in Other Assets First
Get a Support Group


Chapter 23: Ten Possible Moves When Your Crypto Portfolio Is Down

Do Nothing
Reevaluate Your Risk Tolerance
Look at the Big Picture
Research the Fundamental Reasons the Crypto Is Down
Consider Hedging
Diversify within Crypto Assets
Diversify across Other Financial Assets
Exchange with a Better Crypto
Think about Adding to Your Current Position
Contemplate Cutting Losses


Chapter 24: Ten Challenges and Opportunities for Crypto Investors

New Cryptos on the Block
Finding Economic Data
Regulations
Hackers
Bubbles
A Down Market
New Currencies and Projects
Diversification
Falling in Love with a Crypto
Using Invest Diva Diamond Analysis


Part 6: Appendixes

Appendix A: Resources for Cryptocurrency Investors

Appendix B: Resources for Personal Portfolio Management



Index

Cryptocurrency Investing For Dummies shows readers how to make money trading and investing in the top 200 digital currencies, no matter what the market sentiment. You'll find out how to navigate the new digital finance landscape and choose the right cryptocurrency for different situations--with real-world examples that show you how to maximize your cryptocurrency wallet. The cryptocurrency market has been exposed to a lot of volatility recently, and the market sentiment has played a big role in the price action. This book explores the hot topics and market moving events affecting cryptocurrency prices, and shows readers how to develop the smartest investment strategies based on your unique risk tolerance.