Cryptocurrency investing
Book - 2019
There's money to be made in the cryptocurrency market, but it's important to know what you're doing. This hands-on guide gives you just what you need to make wise decisions. It explains how cryptocurrencies work, covers the rewards and risks, explores the top 100 digital currencies, and discusses diversification. You'll determine the right platform for investing, find out how to use a cryptocurrency wallet, and see how to develop smart short-term and long-term investment strategies. With this book, you can be a part of the future economy.
Saved in:
- Subjects
- Published
-
Hoboken, NJ :
For Dummies, a Wiley brand
[2019]
- Language
- English
- Main Author
- Physical Description
- xv, 326 pages : illustrations ; 24 cm
- Bibliography
- Includes index.
- ISBN
- 9781119533030
- 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 Crypto currency and Blockchain ETFs
- Getting an overview of biockchain 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 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