A guide for complete beginners, written for people who want to understand what they are doing before they do it. 46 short chapters, 35 diagrams, and one thread all the way through: know what you actually own, how to protect it, and how to report it to the IRS.
Who is it for?
- You have never bought any crypto and want to start without getting scammed on your first move.
- You already have a few dollars in an app and are not sure where your crypto actually lives.
- You sell once in a while and Form 8949 gives you a headache before you even open it.
If you are looking for trading strategies or a list of cryptos to buy, this book is not for you: it gives none.
What you will be able to do
01
Understand
Blockchain, Bitcoin, Ethereum, stablecoins: the ideas, without the jargon.
02
Buy
Choose a properly registered platform, make a first purchase, set up dollar-cost averaging.
03
Secure
Address, private key, seed phrase: what you actually own, and how to keep it.
04
Protect yourself
The playbook behind almost every scam, and the exact steps if the worst happens.
05
Sell
Sell, cash out to dollars, and understand the fees that quietly add up.
06
Report
Form 8949 explained with a worked example, FIFO versus specific identification, Schedule D.
Included with the book
The tracking spreadsheet
Every reader gets a tracking spreadsheet: one row per transaction, to log what you bought, sold or traded and keep the record you will need at tax time. The access code is printed in the book.
Go to the bonus pageFrequently asked questions
Is trading one crypto for another taxable in the U.S.?
Yes. Unlike some other countries, exchanging one crypto for another, even into a stablecoin, is a taxable disposition. The IRS treats it exactly like a sale, reported on Form 8949.
Is there a tax-free threshold, like in some other countries?
No. There is no minimum threshold for crypto gains in the U.S.: any capital gain is, in principle, taxable and reportable, even a single dollar.
What is the tax rate on crypto capital gains?
It depends on how long you held the asset. One year or less, the gain is taxed as ordinary income, up to 37%. More than one year, a preferential rate of 0%, 15% or 20% applies, depending on your total income.
Do I need to report anything if I have not sold?
No capital gain is taxable without a sale, trade or other disposal. Simply holding crypto, or moving it to a wallet you control, is not reportable. Only a sale, trade or crypto payment triggers the digital asset question on Form 1040.
How do I check that a crypto platform is properly registered?
Cross-check it on the FinCEN MSB Registrant Search (msb.fincen.gov) and NMLS Consumer Access (nmlsconsumeraccess.org); in New York specifically, look for a BitLicense from the NYDFS. Being listed is not a guarantee, but its absence is a red flag.
Where should I store my seed phrase?
Offline, never as a photo, never in the cloud, never shared with anyone. Paper is enough to learn with small amounts; beyond that, a metal plate survives fire and water.
The author
Léo Maraval explains crypto the way someone should have explained it to you on day one: clearly, calmly, with nothing to sell.
Next in the series
BOOK 2
The Other Cryptos
Families, use cases and narratives: how to read a project before you put a dollar into it.
BOOK 3
Putting Your Crypto to Work
DeFi: lending, providing liquidity, earning yield, and the risks that come with it.