Cryptocurrency Trading & Investing: Beginners Guide To Trading & Investing In Bitcoin, Alt Coins & ICOs 2017

Summary:

• Cryptocurrency Trading & Investing: Beginners Guide To Trading & Investing In Bitcoin, Alt Coins & ICOs by Ava F. Trade is a comprehensive guide to trading and investing in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple and other alt coins. The book provides an overview of the cryptocurrency market and its history before delving into the basics of trading and investing in digital currencies. It covers topics such as setting up a wallet, understanding blockchain technology, researching different coins and tokens, analyzing price charts for profitable trades, managing risk when trading or investing in crypto assets.

  The book also explains how to use various exchanges to buy or sell cryptocurrencies with fiat money (USD/EUR etc.) or other cryptos like Bitcoin. It discusses strategies for both short-term traders looking to make quick profits from volatile markets as well as long-term investors who are seeking more stable returns over time. Additionally it looks at Initial Coin Offerings (ICOs) which have become increasingly popular ways of raising funds for new projects.

  The author also provides advice on how to protect your investments from hackers and scammers while providing tips on tax implications that may arise from trading activities. Finally the book includes case studies featuring real life examples of successful traders who have made significant profits through their investments in cryptocurrency markets.

  Overall this book is an invaluable resource for anyone interested in learning about cryptocurrency trading or investing whether they are just starting out or already experienced traders looking for new insights into this rapidly evolving field.

Main ideas:

• #1.     Understand the Basics of Cryptocurrency: Cryptocurrency is a digital asset that uses cryptography to secure and verify transactions. It is decentralized, meaning it is not controlled by any government or central bank. Understanding the basics of cryptocurrency is essential for successful trading and investing.
  
  

  Cryptocurrency is a digital asset that uses cryptography to secure and verify transactions. It is decentralized, meaning it is not controlled by any government or central bank. Understanding the basics of cryptocurrency is essential for successful trading and investing.

  The most important concept to understand when dealing with cryptocurrencies is blockchain technology. Blockchain technology allows users to securely store data in an immutable ledger, which can be used for various applications such as payments, smart contracts, and more. This technology also enables users to transfer funds without the need for a third-party intermediary.

  Another key concept related to cryptocurrency trading and investing are tokens. Tokens are digital assets that represent ownership of something on the blockchain network (e.g., stocks, bonds). They can be traded on exchanges just like regular currencies but have different characteristics than traditional currencies.

  Finally, understanding how cryptocurrency works requires knowledge about mining operations. Mining involves using powerful computers to solve complex mathematical problems in order to create new blocks on the blockchain network and earn rewards in the form of newly created coins or tokens.

• #2.     Learn the Different Types of Cryptocurrency: There are many different types of cryptocurrency, including Bitcoin, Ethereum, Litecoin, Ripple, and more. Each type has its own unique features and benefits, so it is important to understand the differences between them.
  
  

  Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. It is an emerging form of currency that has been gaining popularity in recent years due to its decentralized nature and potential for high returns on investment.

  There are many different types of cryptocurrency available today, each with their own unique features and benefits. Bitcoin is the most well-known type, but there are also other popular options such as Ethereum, Litecoin, Ripple, Dash and more. Each type has its own advantages and disadvantages depending on what you’re looking for in terms of security or speed when making transactions.

  It’s important to understand the differences between these various types before investing in any one particular coin. For example, Bitcoin offers greater anonymity than some other coins while Ethereum provides faster transaction speeds than others. Additionally, it’s important to research each coin thoroughly before investing so you can make sure it meets your needs.

• #3.     Research the Market: Before investing in any cryptocurrency, it is important to research the market and understand the current trends. This will help you make informed decisions and maximize your profits.
  
  

  Researching the market is an essential step for any investor looking to get involved in cryptocurrency trading and investing. By researching the current trends, investors can make informed decisions that will help them maximize their profits. This research should include studying the different types of cryptocurrencies available, understanding how they work, and analyzing their performance over time. Additionally, it is important to stay up-to-date on news related to cryptocurrency markets so you can be aware of any changes or developments that may affect your investments.

  When researching a particular cryptocurrency, it is important to look at its historical price movements as well as its current market capitalization. It is also helpful to read reviews from other investors who have experience with the currency in order to gain insight into potential risks and rewards associated with investing in it. Finally, it is wise to compare different currencies against each other before making a decision about which one might be best suited for your investment goals.

• #4.     Choose a Trading Platform: There are many different trading platforms available, so it is important to choose one that is reliable and secure. Make sure to read reviews and compare fees before making a decision.
  
  

  Choosing a trading platform is an important decision for any cryptocurrency trader. It is essential to select one that is reliable, secure and cost-effective. Before making a decision, it is important to read reviews from other traders and compare fees between different platforms. Additionally, look into the features offered by each platform such as charting tools, order types and customer service.

  It can also be beneficial to research the reputation of the company behind the trading platform. Make sure they have been in business for some time and are well established in the industry. Also check if they offer support services such as tutorials or live chat so you can get help when needed.

  Finally, make sure your chosen trading platform has adequate security measures in place to protect your funds from hackers or malicious actors. Look for two-factor authentication options as well as encryption protocols that ensure your data remains safe.

• #5.     Set a Trading Strategy: Developing a trading strategy is essential for successful trading. This should include setting goals, understanding risk management, and creating a plan for when to buy and sell.
  
  

  Setting a trading strategy is an important step for any trader. It involves setting goals, understanding risk management, and creating a plan for when to buy and sell. Goals should be realistic and achievable, taking into account the current market conditions. Risk management should include strategies such as stop-loss orders or limit orders to protect against losses in volatile markets. A plan for when to buy and sell should also be created based on technical analysis of price movements or fundamental analysis of news events.

  Traders must also consider their own personal preferences when developing a trading strategy. This includes factors such as how much time they have available to trade, what type of assets they are comfortable with investing in, and what level of risk they are willing to take on.

  Finally, traders need to ensure that their trading strategy is flexible enough so that it can adapt quickly if the market changes unexpectedly. By having a well thought out trading strategy in place before entering the market, traders will be better prepared for success.

• #6.     Understand the Risks: Cryptocurrency trading and investing is risky, so it is important to understand the risks before getting started. This includes understanding the volatility of the market, the potential for fraud, and the possibility of losing money.
  
  

  Cryptocurrency trading and investing is a high-risk activity, so it is essential to understand the risks before getting started. Volatility in the market can lead to significant losses if not managed properly. Additionally, there is always the potential for fraud when dealing with digital currencies, as well as the possibility of losing money due to technical issues or other unforeseen circumstances. It is important to research any cryptocurrency you are considering investing in thoroughly and be aware of all associated risks.

  Its also wise to diversify your investments across different cryptocurrencies and exchanges, rather than putting all your eggs in one basket. This will help reduce risk by spreading out potential losses over multiple assets instead of just one. Finally, make sure you have an emergency fund set aside that can cover any unexpected losses from trading or investing.

• #7.     Use Technical Analysis: Technical analysis is a method of analyzing the market and predicting future price movements. It can be used to identify trends and make informed trading decisions.
  
  

  Technical analysis is a powerful tool for traders and investors to use when making decisions in the cryptocurrency market. It involves analyzing past price movements, chart patterns, volume data, and other indicators to identify trends and predict future price movements. Technical analysis can be used to determine entry points into trades as well as exit points from them. By using technical analysis, traders can make more informed trading decisions that are based on facts rather than emotions.

  The most common tools used in technical analysis include trend lines, support/resistance levels, moving averages (MA), relative strength index (RSI), stochastic oscillator (SO) and Bollinger bands (BB). These tools help traders identify potential buying or selling opportunities by providing an indication of where prices may move next. For example, if a trader notices that the RSI has moved above 70 then they may decide to enter a buy position since this could indicate that the asset is overbought.

  In addition to these tools there are also various strategies which involve combining different indicators together such as momentum trading or mean reversion strategies. By combining multiple indicators together it allows traders to gain further insight into what direction prices may move in the near future.

  Overall technical analysis provides valuable insights into how markets behave which can be used by both novice and experienced traders alike when making their trading decisions.

• #8.     Use Fundamental Analysis: Fundamental analysis is a method of analyzing the underlying factors that affect the price of a cryptocurrency. This includes understanding the technology, the team behind the project, and the potential for adoption.
  
  

  Fundamental analysis is a method of analyzing the underlying factors that affect the price of a cryptocurrency. This involves looking at the technology, team, and potential for adoption behind each project. By understanding these elements, investors can make more informed decisions about which cryptocurrencies to invest in.

  When it comes to technology, fundamental analysis looks at how secure and reliable the blockchain network is. It also examines whether or not there are any scalability issues with the platform. Additionally, it evaluates if there are any innovative features that could give an edge over competitors.

  The team behind a project is another important factor when conducting fundamental analysis. Investors should look into who is leading development efforts and what their experience level is like. They should also consider if there are any partnerships or collaborations with other projects that could help drive adoption.

  Finally, fundamental analysis takes into account potential for adoption by examining market trends and user feedback on social media platforms such as Reddit and Twitter. If users seem excited about a particular coin or token then this could be indicative of future growth potential.

• #9.     Diversify Your Portfolio: Diversifying your portfolio is important for reducing risk and maximizing returns. This includes investing in different types of cryptocurrency, as well as different types of assets.
  
  

  Diversifying your portfolio is an important step in reducing risk and maximizing returns. This means investing in different types of cryptocurrency, as well as different types of assets. For example, you could invest in Bitcoin, Ethereum, Litecoin and other altcoins to diversify your crypto holdings. You can also diversify by investing in stocks, bonds, mutual funds or real estate.

  When it comes to cryptocurrency trading and investing there are a variety of strategies that can be employed depending on the investor’s goals. These include day trading (buying and selling within a 24-hour period), swing trading (holding positions for several days or weeks) and long-term investments (holding positions for months or years). By using these strategies investors can spread their risk across multiple asset classes while still taking advantage of potential gains.

  It is also important to remember that no investment strategy is foolproof; even with diversification there will always be some level of risk involved. Therefore it is essential to do research before making any decisions about which cryptocurrencies or assets to invest in. Additionally, investors should keep track of market trends so they know when it may be time to buy or sell certain coins.

• #10.     Understand Tax Implications: Cryptocurrency trading and investing is subject to taxation, so it is important to understand the tax implications before getting started. This includes understanding capital gains tax and other applicable taxes.
  
  

  When trading or investing in cryptocurrency, it is important to understand the tax implications. Cryptocurrency transactions are subject to capital gains taxes and other applicable taxes, so it is essential for traders and investors to be aware of these before getting started. For example, if you buy a cryptocurrency at one price and then sell it later at a higher price, you will need to pay capital gains tax on the difference between the two prices.

  It is also important to keep track of all your trades and investments as this information can be used when filing your taxes. Keeping accurate records of all your transactions will help ensure that you are paying the correct amount of tax each year.

  Finally, make sure that you consult with an accountant or financial advisor who has experience dealing with cryptocurrencies in order to get advice tailored specifically for your situation. This way, you can ensure that you are taking advantage of any available deductions or credits while still complying with all applicable laws.

• #11.     Use Stop Loss Orders: Stop loss orders are used to limit losses by automatically selling a cryptocurrency when it reaches a certain price. This can help protect your investments and minimize losses.
  
  

  Stop loss orders are a great tool for investors to protect their investments and minimize losses. By setting a stop loss order, you can automatically sell your cryptocurrency when it reaches a certain price. This helps ensure that you dont lose too much money if the market suddenly drops or if there is an unexpected event that affects the value of your cryptocurrency.

  When setting up a stop loss order, its important to consider how much risk youre willing to take on. You should also think about what kind of return you expect from your investment and set the stop loss accordingly. For example, if youre expecting a 10% return but only want to risk 5%, then set the stop loss at 5%.

  Its also important to remember that while using stop-loss orders can help limit losses, they wont guarantee profits. The market is unpredictable and prices can still go down even with this protection in place.

• #12.     Use Limit Orders: Limit orders are used to buy or sell a cryptocurrency at a specific price. This can help you take advantage of market movements and maximize profits.
  
  

  Limit orders are a great way to take advantage of market movements and maximize profits when trading cryptocurrencies. By setting a limit order, you can specify the exact price at which you want to buy or sell your cryptocurrency. This allows you to capitalize on any sudden changes in the market that may be beneficial for your position. For example, if the price of Bitcoin suddenly drops, you could set a limit order to purchase it at that lower price.

  Similarly, if the price of Ethereum rises quickly due to news or speculation about its future potential, then you could set a limit order to sell it at that higher rate. Limit orders also allow traders more control over their trades as they can decide exactly how much they want to pay or receive for each transaction.

  Using limit orders is an effective way for traders and investors alike to make sure they get the best possible deal when buying or selling cryptocurrencies. It also helps them protect themselves from large losses by limiting their exposure in volatile markets.

• #13.     Use Margin Trading: Margin trading is a type of trading that allows you to borrow money to increase your buying power. This can be a risky strategy, so it is important to understand the risks before getting started.
  
  

  Margin trading is a powerful tool that can be used to increase your buying power and potentially maximize profits. By borrowing money, you are able to purchase more of an asset than you would otherwise be able to afford. This strategy carries with it the potential for greater returns, but also comes with increased risk. It is important to understand the risks associated with margin trading before getting started.

  When using margin trading, it is essential to have a clear understanding of how much leverage you are taking on and what kind of return you expect from your investment. You should also consider setting stop-loss orders in order to limit losses if the market moves against your position. Additionally, it is important to monitor your positions closely as they can quickly become unprofitable if not managed properly.

  Overall, margin trading can be a great way for investors looking for higher returns or those who want access to larger amounts of capital without having all their funds tied up in one asset class. However, due diligence must be done beforehand in order to ensure that any potential losses are minimized and that gains are maximized.

• #14.     Use Leverage: Leverage is a type of trading that allows you to increase your buying power by borrowing money. This can be a risky strategy, so it is important to understand the risks before getting started.
  
  

  Leverage is a powerful tool that can be used to increase your buying power when trading cryptocurrencies. By borrowing money, you are able to purchase more cryptocurrency than you would otherwise be able to afford. This strategy can help maximize profits and minimize losses, but it also carries with it the risk of increased losses if the market moves against you.

  Before using leverage in your trading strategies, it is important to understand how it works and the risks associated with it. Leverage magnifies both gains and losses so even small movements in price can have a large impact on your portfolio. It is also important to remember that leverage increases exposure which means that any changes in market conditions will affect your position more significantly.

  It is essential for traders who use leverage to manage their positions carefully by setting stop-loss orders or other risk management techniques such as diversification across different assets or markets. With careful planning and an understanding of the risks involved, leveraging can be a great way to increase returns while minimizing risk.

• #15.     Use Automated Trading: Automated trading is a type of trading that uses computer algorithms to make trading decisions. This can be a useful tool for experienced traders, but it is important to understand the risks before getting started.
  
  

  Automated trading is a powerful tool for experienced traders, as it can help to reduce the amount of time and effort required to make successful trades. By using computer algorithms, automated trading systems are able to analyze market data quickly and accurately, allowing them to identify potential opportunities in the markets. This can be especially useful when trying to capitalize on short-term price movements or take advantage of arbitrage opportunities.

  However, there are some risks associated with automated trading that should be considered before getting started. Automated systems may not always make the best decisions due to their lack of human intuition and experience. Additionally, they may not always be able to react quickly enough if market conditions change suddenly or unexpectedly.

  For these reasons, it is important for traders who use automated trading systems to understand how they work and monitor their performance closely. It is also important for traders who use these systems to have an understanding of technical analysis so that they can better interpret the signals generated by the system.

• #16.     Understand Security: Cryptocurrency trading and investing is subject to security risks, so it is important to understand the security measures that are in place. This includes understanding the security of the trading platform, the security of the wallet, and the security of the exchange.
  
  

  Cryptocurrency trading and investing is subject to security risks, so it is important to understand the security measures that are in place. This includes understanding the security of the trading platform, which should include features such as two-factor authentication, encryption technology, and secure storage of funds. It also involves understanding the security of the wallet used for storing cryptocurrencies; this should include a strong password and other protective measures such as multi-signature authorization or hardware wallets. Finally, it is important to understand the security protocols employed by exchanges when handling customer funds; these can range from cold storage solutions to advanced monitoring systems.

  In addition to these technical aspects of cryptocurrency security, traders must also be aware of potential scams or frauds related to digital currencies. These can take many forms including phishing attacks where malicious actors attempt to gain access to user accounts through fake websites or emails. It is therefore essential for traders and investors alike to remain vigilant when dealing with any online activity related to their cryptocurrency investments.

• #17.     Use Cold Storage: Cold storage is a type of storage that keeps your cryptocurrency offline and away from hackers. This can help protect your investments and minimize losses.
  
  

  Cold storage is a great way to protect your cryptocurrency investments from hackers. By keeping your coins offline, you can minimize the risk of them being stolen or lost due to malicious activity. Cold storage works by storing your private keys on an external device such as a USB drive, hardware wallet, or paper wallet. This means that even if someone were to gain access to your computer, they would not be able to access the funds stored in cold storage.

  When using cold storage for cryptocurrency trading and investing, it’s important to remember that you will need physical access to the device in order to move funds out of cold storage. This means that if you ever lose access or forget where you stored the device containing your private keys, then those funds may be lost forever.

  It’s also important to note that while cold storage provides excellent security against online threats like hacking and malware attacks, it does nothing against physical theft or destruction of devices containing private keys. Therefore it is always recommended that users keep multiple copies of their wallets in different locations so as not lose all their funds should one copy become compromised.

• #18.     Use a Hardware Wallet: A hardware wallet is a type of wallet that stores your cryptocurrency offline. This can help protect your investments and minimize losses.
  
  

  A hardware wallet is a great way to protect your cryptocurrency investments and minimize losses. It works by storing your cryptocurrency offline, meaning that it cannot be accessed or stolen from the internet. This makes it much more secure than other types of wallets, as hackers are unable to access your funds even if they gain access to your computer or device.

  Hardware wallets also provide an extra layer of security in case you lose access to your account due to forgetting passwords or losing devices. With a hardware wallet, you can easily recover any lost funds with just the recovery seed phrase provided when setting up the wallet.

  Using a hardware wallet is one of the best ways for investors and traders alike to keep their cryptocurrencies safe and secure. Not only does it provide added protection against theft, but it also allows users peace of mind knowing that their investments are protected no matter what happens.

• #19.     Use a Paper Wallet: A paper wallet is a type of wallet that stores your cryptocurrency offline. This can help protect your investments and minimize losses.
  
  

  A paper wallet is a great way to store your cryptocurrency investments securely and offline. It works by generating a public address and private key for each of your cryptocurrencies, which are then printed out on a piece of paper or other physical medium. This means that the only way someone can access your funds is if they have physical possession of the paper wallet.

  Using a paper wallet also helps protect you from potential losses due to online hacking or theft. Since it’s stored offline, there’s no risk of anyone being able to gain access to your funds without having direct access to the physical document itself. Additionally, since it’s not connected to any online accounts, there’s no need for you to worry about keeping track of passwords or two-factor authentication codes.

  Paper wallets are an excellent option for those who want extra security when storing their cryptocurrency investments. They provide peace of mind knowing that even if something were to happen with their online accounts, their funds would still be safe as long as they keep the paper wallet secure.

• #20.     Understand Regulations: Cryptocurrency trading and investing is subject to regulations, so it is important to understand the regulations in your jurisdiction before getting started. This includes understanding the laws and regulations that apply to cryptocurrency trading and investing.
  
  

  Cryptocurrency trading and investing is subject to regulations, so it is important to understand the regulations in your jurisdiction before getting started. This includes understanding the laws and regulations that apply to cryptocurrency trading and investing. Depending on where you live, these laws may vary significantly from country to country or even state-to-state. It is essential that you familiarize yourself with all applicable rules and regulations before engaging in any form of cryptocurrency trading or investment.

  In addition to local laws, there are also international standards for cryptocurrency regulation which must be taken into account when making trades or investments. For example, some countries have implemented anti-money laundering (AML) policies which require traders and investors to provide certain information about their activities in order to comply with AML requirements. Additionally, many exchanges now require users to verify their identity before they can begin trading.

  It is also important for traders and investors alike to stay up-to-date on any changes in the regulatory landscape as this could affect how they conduct business. By staying informed about relevant legislation, traders can ensure that they remain compliant with all applicable laws while still taking advantage of opportunities presented by the ever changing crypto markets.