Cryptocurrency Investing For Dummies (For Dummies (Business & Personal Finance))

Title Page
Copyright Page
Table of Contents
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
			Foreign exchange (forex)
			Precious metals
				Getting a little background
				Comparing precious metals to cryptocurrencies
		Gaining Capital Appreciation
			Knowing it’s a wild ride
			Playing “coulda woulda shoulda”
			Knowing that history doesn’t always repeat itself
		Increasing Income Potential
			A bit about traditional dividends
			The basics on crypto dividends
		Fueling Ideological Empowerment
			The economy of the future
			Potential hedge against inflation
			Help for the unbanked and underbanked
	Chapter 3 Recognizing the Risks of Cryptocurrencies
		Reviewing Cryptocurrency Returns
			Capital gains (or losses)
			Income
			Compounding
		Risk: Flipping the Other Side of the Coin
		Glimpsing Cryptocurrencies’ Reward versus Risk
		Digging into Different Kinds of Risk
			Crypto hype risk
			Security risk
				Safety check #1: Bitcoin investing schemes
				Safety check #2: The cryptocurrency itself
				Safety check #3: The exchange
				Safety check #4: Your wallet
			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?
				Blockchain may eliminate data tampering because of the way it tracks and stores data
				Blockchain creates trust in the data
				Centralized third parties aren’t necessary
		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 (PoW)
			Proof-of-stake (PoS)
			Delegated proof-of-stake (DPoS)
			Proof-of-authority (PoA)
			Proof-of-history (PoH)
			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 they happen?
			Hard forks and soft forks
			Free money on forks
Part 2 The Fundamentals of Investing in Cryptos
	Chapter 6 How to Buy Cryptocurrencies
		Overviewing the Steps in Buying Cryptocurrencies
		Distinguishing Crypto Exchanges
			Centralized exchanges
			Decentralized exchanges
				Potential problems
				Popular decentralized exchanges
			Hybrid exchanges
			How to choose an exchange
				Security
				Supported currencies (crypto and otherwise)
				Liquidity
				Fees
				Ease of use
				Location
				Method of payment
				Customer support
				Trading options
				Transaction limits
		Understanding Crypto Brokers
			How brokers work
			The pros and cons of using a broker
				Pro or con: You can take advantage of a down market
				Pro or con: You can trade on leverage
			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
		Different Types of Cryptocurrency
			Coins
			Altcoins
			Tokens
		Celebrating Celebrity Cryptocurrencies by Market Cap
			Bitcoin
				A bit of Bitcoin background
				Bitcoin characteristics
			Ethereum
				Brief Ethereum background
				Ethereum versus Bitcoin
				Ethereum characteristics
			Ripple
				Some Ripple background
				Ripple versus Bitcoin
				Ripple characteristics
			Cardano
				Cardano versus Ethereum 2.0
				Cardano characteristics
			Other top ten major cryptos
			Top 100 major cryptos
		Cryptocurrencies by Category
			Decentralized Finance (DeFi) cryptos
			Utility cryptos
			Exchange-specific cryptos
			Payment cryptos
			Privacy cryptos
			Stablecoin cryptos
			Platform cryptos
			Finance and fintech cryptos
			Legal and property cryptos
			NFTs and collectibles cryptos
			Metaverse cryptos
			Gaming cryptos
			Other crypto categories
	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
				Flip through their white papers
				Identify their teams
				Browse their partnerships
				Familiarize yourself with their technology
				Check out their contribution to society
				Analyze their road maps
				Get to know their community
				Get involved
		Trying Technical Analysis to Select Cryptos
		Choosing Cryptos with Sentimental Analysis
			Key sentimental elements
				The crypto community
				Exchanges that carry the crypto
				Volume
				Coin market capitalization
				Circulating supply
				Total supply
			Stuff to check in the news
				Recent coverage
				Upcoming events
				Negative press
	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
				Some background on trading fiat currencies
				Quote currency versus base currency
				Trading cryptos versus fiat currencies
			Diversifying among cryptocurrencies
		Tackling Diversification in Short-Term Trades
	Chapter 11 The Role of Cryptocurrency in the Metaverse
		Looking into the Future: How the Metaverse Will Change Our Lives
			Education
			Communication
			Business
			Entertainment
			Gaming
			Travel
			Real estate
		Understanding the Role of Blockchain in the Metaverse
			Application of NFTs
			Security and privacy
			Payments and financial transactions
		Getting Your Business Started in the Metaverse
		Using Cryptocurrencies in the Metaverse
			How will crypto be used in the metaverse?
				Method 1: Payments
				Method 2: Crypto coins and tokens
				Method 3: NFTs and digital assets
			Shopping in the metaverse
			Investing using the metaverse
				Investing in metaverse cryptos
				Investing in metaverse NFTs and real estate
				Investing in metaverse stocks
Part 3 Alternatives to Cryptos
	Chapter 12 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
				Who’s behind the ICO?
				What’s the cryptocurrency for?
				Does the team have a prototype or a code?
				Does the team have a blockchain?
				What’s the plan to drive prices higher after the ICO?
				Does the team have a wide, supportive community?
			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
				Create a product that needs an ICO
				Get legal advice
				Create a token
				Write a white paper
				Create a launch buzz
				Get your token listed on exchanges
	Chapter 13 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
			Making sure mining is worth your time
	Chapter 14 Investing in NFTs
		Understanding What an NFT Is
		Knowing How NFTs Work
		Investing in NFTs
			Finding NFTs
			Working out which NFTs to invest in
			Investing in NFT-related cryptocurrencies
			Investing in NFT-related stocks
		Making and Selling Your Own NFTs
			Step 1: Create and design your NFT artwork
			Step 2: Choose and set up a digital wallet
			Step 3: Tokenize your artwork
			Step 4: List your NFT on the marketplace
	Chapter 15 Stocks and Exchange Traded Funds with Cryptocurrency Exposure
		Looking for Stocks with Exposure to Cryptos
			Fundamentals
				Crypto mining exposure
				Crypto payment exposure
				Crypto trading exposure
			Market sentiment factors
			Other considerations
		Considering Cryptocurrency and Blockchain ETFs
	Chapter 16 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 17 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 18 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 19 Short-Term Trading Strategies
		Distinguishing Three Short-Term Time Frames
			Profiting within hours
				Define crypto trading sessions
				Know that day trading cryptos is different from day trading other assets
				Set a time aside
				Start small
				Don’t take too much risk
				Secure your crypto wallet
				Stay away from scalping
			Profiting within days
			Profiting within weeks
		Trying Short-Term Analysis Methods
			Deciphering chart patterns
				A 30-minute chart
				An hourly chart
				A four-hour chart
			Using indicators
			Avoiding illegal pump-and-dump stuff
		Managing Short-Term Trading Risk
	Chapter 20 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 21 Minimizing Losses and Maximizing Gains
		Keeping the Losses Down
			Measuring returns
			Monitoring exchange fees
			Understanding the art of getting out
				Don’t be greedy
				Take partial profits
				Let go of bad investments
		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 22 Using Ichimoku and Fibonacci Techniques
		Getting a Handle on Ichimoku Kinko Hyo
			The components of Ichimoku Kinko Hyo
			Ichimoku interpretations
				Buy signals
				Sell signals
				Other common interpretations
		Introducing Fibonacci Retracement Levels
			Some background on Fibonacci
			How to insert Fibonacci retracement levels into your chart
		Combining Ichimoku and Fibonacci Techniques
	Chapter 23 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 24 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 25 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 26 Ten Challenges and Opportunities for Crypto Investors
		New Cryptos on the Block
		Finding Real 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
		Exploring Top Cryptocurrencies
			Top 100 cryptos by market cap
			Cryptos ranking 101 to 200
		Cryptocurrency Information Websites
			Cryptocurrency news
			Cryptocurrency investment analysis
			Crypto-related stock news
			Cryptocurrency live market data
			Comparison tools
		Cryptocurrency Marketplaces and Wallets
			Crypto exchanges
			Brokers
			Other services
			Cryptocurrency wallets
		Charting and Tax Resources
	Appendix B Resources for Personal Portfolio Management
		Making Your Money Work for You
		Getting Away from Your Computer Screen While Still Making Money
		Creating Your Unique Investing Strategy
		Building More Wealth
		Taking a Look at Textual Investment Resources
			Stock Investing For Dummies
			Investment Psychology Explained
			Ichimoku Secrets
			Million Dollar Family Secrets
Index
EULA