Cryptocurrency investing for dummies
- New Delhi Wiley India Pvt. Ltd. 2019
- xv, 326 p.
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.