Investing in Cryptocurrency For Dummies

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book
	Foolish Assumptions
	Icons Used in This Book
	Where to Go from Here
Part 1 Getting Started with Cryptocurrencies
	Chapter 1 Introducing the World of Cryptocurrencies
		Beginning with the Basics of Cryptocurrencies
			The definition of money
			Some cryptocurrency history
			Key crypto benefits
				Reducing corruption
				Eliminating extreme money printing
				Giving people charge of their own money
				Cutting out intermediaries
				Serving the unbanked
			Common crypto and blockchain myths
			Risks to know about
		Gearing Up to Make Transactions
			Wallets
			Exchanges
			Communities
		Making a Plan Before You Jump In
			Select your cryptos
			Analyze, invest, and profit
	Chapter 2 Checking Out the Benefits of Cryptocurrency Investing
		Diversifying from Traditional Investments
			Stocks
			Bonds
			Foreign exchange
			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 Knowing 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 at 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
		Discovering What Blockchain Can Be Used For
			Payments
			Voting
			Supply chain monitoring
			Identity verification
			Legal ownership of stuff
			Health care
			Entertainment
			Energy
			Internet of Things
	Chapter 5 Understanding How Cryptocurrencies Work
		Explaining Basic Terms in the Cryptocurrency Process
			Cryptography
			Nodes
			Mining
			Proof of work
			Proof of stake
			Delegated proof of stake
			Proof of authority
			Proof of history
			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 Crypto-Investing Fundamentals
	Chapter 6 Buying 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 Putting Cryptocurrency Wallets to Use
		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 Surveying Different Types of Cryptocurrencies
		Distinguishing Coins, Altcoins, and Tokens
			Coins
			Altcoins
			Tokens
		Celebrating Celebrity Cryptocurrencies by Market Cap
			Bitcoin
				A bit of Bitcoin background
				Bitcoin characteristics
			Ethereum
				A brief background of Ethereum
				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 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 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 Using 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
Part 3 Essential Cryptocurrency Strategies and Tactics
	Chapter 11 Short-Term Crypto-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 12 Long-Term Crypto-Investing Strategies
		On Time: 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 Orders and Stop-Loss Orders
			Limit orders
			Stop-loss orders
	Chapter 13 Minimizing Your Losses and Maximizing Your 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 14 Cryptocurrencies and Taxes
		Distinguishing Three Types of Crypto Taxes
			Income taxes
			Long-term capital gains taxes
			Short-term capital gains taxes
		Minimizing Your Crypto Taxes
			Lowering your mining income tax
			Reducing your trading tax
			Bringing down your capital gains 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 4 The Part of Tens
	Chapter 15 Ten Considerations Before Getting Started with Cryptos
		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 16 Ten Potential Moves When Your Crypto Portfolio Is Down
		Do Nothing
		Reevaluate Your Risk Tolerance
		Look at the Bigger 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
Index
EULA