The Master Token: How to Make 5 to 10 Times Your Money on the Coming Crypto Boom | Crypto Capital - Stansberry

Research 21/11/2019 07(34

CRYPTO CAPITAL

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DGB

The Master Token: How to Make 5 to 10

Times Your Money on the Coming
Crypto Boom
November 19th, 2019 Special Reports

A new crypto boom is coming...

And it all starts in May 2020.

That's when the supply of new bitcoin will be cut in half. And it will send the price of
bitcoin – and smaller coins – soaring.

Let me explain...

Unlike fiat currencies, bitcoin is finite. There will only ever be 21 million bitcoin.
(Right now, there are around 18 million.)

New bitcoin are awarded to the computers (or "miners") that help the bitcoin network
operate. In the early days, miners were rewarded with lots of bitcoin. That incentivized
new miners to participate in the network. But now that bitcoin's value has risen, it
doesn't take as much bitcoin to entice people to set up miners.

To slow down the rate of new bitcoin, its mysterious creator, Satoshi Nakamoto,
designed the network so that the mining rewards get cut in half every four years.

In effect, these payouts are bitcoin's inflation rate. Today, that inflation rate is roughly

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The Master Token: How to Make 5 to 10 Times Your Money on the Coming Crypto Boom | Crypto Capital - Stansberry Research 21/11/2019 07(34

3.7%. After May 2020, it will fall to 1.79%. We've seen this type of halving event twice
before. And both times, bitcoin soared.

The first halving happened on November 28, 2012. Bitcoin was trading at $12.31.
Almost immediately, bitcoin prices began climbing. And they kept climbing for the
next 369 days. They peaked at $994.21 on December 2, 2013. That was a gain of nearly
8,000%.

The second halving happened on July 9, 2016. Bitcoin was trading at $650.63. By
December 2017, bitcoin peaked at $19,535.70 for a gain of 2,903%.

In May, we'll see another halving. And it'll send the prices of smaller cryptos even
higher – including the "master token" I'm going to tell you about today. Its price could
go up by five or 10 times.

But before we get to that, let me explain why 2020 could be the biggest year for cryptos
yet...

Mass Adoption
Over the past year, I've said that bitcoin is nearing a tipping point. At some point, it
will go from the roughly 50 million users we have today to hundreds of millions – and
even billions – of users.

We could see that in 2020. I expect to see more crypto products designed for mass
adoption launched next year than in all the years of the previous decade combined.
China, for example, is working on its own government-issued digital currency. It could
be available to nearly 1.4 billion citizens and potentially foreigners, too.

Meanwhile, Bakkt, the bitcoin exchange from the operators of the New York Stock
Exchange, plans to launch a crypto payments network. Its first retailer will be
Starbucks (SBUX). That means you'll soon be able to buy your coffee with bitcoin at
more than 28,000 Starbucks locations.

Facebook (FB) also hopes to spearhead the launch of Libra, a crypto stablecoin (a
crypto designed to hold a relatively stable value). The company is expected to make it
available to more than 2 billion users.

The opportunity before us is unparalleled. People often compare crypto to the advent
of the Internet, but I think crypto is bigger than that. With the Internet, information

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The Master Token: How to Make 5 to 10 Times Your Money on the Coming Crypto Boom | Crypto Capital - Stansberry Research 21/11/2019 07(34

was digitized. With crypto, value is being digitized. That means the tiny crypto market
will go from being worth a few hundred billion dollars to trillions of dollars.

To profit, you just need to be in the right cryptos...

Our Investment Process

In Crypto Capital, my goal is to deliver one or two moneymaking opportunities every
month. Sometimes these will be long-term trades that we hold for several weeks or
months... And other times, these will be fast-moving, short-term trades.

In both cases, I apply my strict seven-point system to vet opportunities before I

recommend them. This way, you can rest assured that every crypto trade I share with
you has been thoroughly researched and analyzed.

My proprietary system is based around a set of seven criteria. In my experience as an

early crypto miner, angel investor, and experienced crypto trader, these seven
indicators are the most critical elements of any investment decision for a crypto trade.

I've nicknamed my system "UPDRAFT," because each letter in the word represents one
of my special criteria. And when applying my system, I assign a numerical score to each
indicator for a total of 100 possible points. Take a look...

The score allows me to easily identify strengths and weaknesses of a particular coin or
token project. But keep in mind: There aren't strict "pass/fail" or "buy/sell" scores. I'll
never recommend buying or selling a crypto based on a score alone. But generally, low-
scoring coins won't mesh with our trading or investment thesis, so I won't be
recommending them.

My UPDRAFT system ensures that the research and analysis behind every

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The Master Token: How to Make 5 to 10 Times Your Money on the Coming Crypto Boom | Crypto Capital - Stansberry Research 21/11/2019 07(34

recommendation are thorough and complete. You can learn the full details of how it
works right here.

Now, once we find recommendations, we have to protect our capital...

Protecting Our Capital

In Crypto Capital, we use default 35% hard stop losses as warning signals.

If you invest in stocks, you're likely familiar with stop losses. A stop loss is the price at
which you'll sell your position to lock in profits – or prevent big losses. Stop losses
protect you from bad positions.

But cryptos are less liquid and more volatile than stocks. So we treat our stop losses as
warning signals to re-evaluate our cryptos. And we never enter them in the market.

You see, while stops are an important protection tool, they can also push us out of a
crypto too early. We see frequent, fast sell-offs – and rallies – in cryptos. Cryptos also
have the added complication of trading in pairs against other volatile cryptos, such as
bitcoin (BTC) and Ethereum (ETH).

This all means that a crypto could be down 40% one day, but up 60% the next. So we
closely watch our stops... and if we hit one, we re-evaluate whether we believe there is
more risk of being out of the crypto when the next rally comes than riding out the
volatility.

In short, we respond to major changes in our cryptos, but we don't let the day-to-day
price action whipsaw us out of positions. At Crypto Capital, we'll always alert you when
we've hit a stop and it's time to sell.

And when an investment has tripled in value, we generally take our initial investment
out.

This strategy preserves our capital while letting us profit from any further upside. For
cryptos that are up 50% or 100%, I may adjust the stop loss to reflect market
conditions. Now 35% is my default stop loss for cryptos, but there have been times that
I lowered my stop losses to 20%, 10%, or even 5%.

For an example of how this works, take a look at the chart below. It's a 12-month price
chart of Substratum (SUB), a cryptocurrency that works on technology capable of

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The Master Token: How to Make 5 to 10 Times Your Money on the Coming Crypto Boom | Crypto Capital - Stansberry Research 21/11/2019 07(34

decentralizing the Internet.

In September 2017, I personally invested in SUB during its initial coin offering ("ICO").
When the price started to soar in November, I sold a third of my position for a three
times gain. I did this by placing a very tight 10% stop loss on one-third of my position
of that crypto. The market sold off a little, the stop loss was triggered, and I took my
initial investment out.

I implemented a trailing stop loss on the remaining position to protect my gains. As

you can see, the market was moving so fast that I had to keep adjusting my trailing
stop higher and higher. For the remaining two-thirds position, I was using a 20%
trailing stop for this crypto.

When my stop was triggered as the broad crypto market sold off, I sold the balance of
my position for a 22 times gain. So using stop losses let me preserve my initial capital
and capture the additional upside of the coin.

Now that I've shown you how I find opportunities – and how we protect our capital...
there's one more thing you need to know before we get to the "master token" – the
difference between a coin and a token.

Coins vs. Tokens

Most people don't understand the difference between a coin and a token. And unless
you understand that difference, you're going to completely miss the next crypto boom.

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To put it simply, a coin is a form of currency. It's something you could viably use as
cash. In other words, you PAY for stuff with a coin. But a token is different.

A token performs more of a function than anything else. You do things with a token.

Here's an example... Suppose you're a small-business owner. Let's say you own a
pizzeria. You need to keep an eye on your sales, supplies, employees, maintenance,
insurance, advertising, and so on. It can be so complex you'd need an accountant and a
manager to track it all.

But thanks to smart contracts, you can automatically log, track, and update all the
things you need as a business owner. One example of a token in our portfolio is
Chainlink. It's a way of connecting your small business to crypto technology. But it's
not a method of payment, so it's not a coin.

There are tokens for almost anything you can think of – pro basketball, music festivals,
and even movies. As the world becomes "tokenized" in the coming years, we'll have as
many tokens as we have stocks or bonds.

In the past, we needed money as a way to swap forms of value back and forth. With
tokens, we can leave money behind altogether.

That's why the "master token" could soon be so widespread. It's like a bitcoin-in-2010
opportunity.

Profiting from the 'Master Token'

The master token I've been describing is called DigiByte (DGB). With its speed,
security, and cutting-edge features, DigiByte is enabling the rise of a new token
economy thanks to what it calls "DigiAssets." But before I describe DigiAssets, let's
look at the bigger picture...

DigiByte's goal is to give everyone on the planet the ability to use it for banking,
exchanging value between one another, and for transactions.

With 15-second block times, DGB currently has the fastest block speed of any public
UTXO blockchain available. (UTXO is the "unspent transactions" tracking system that
DGB and bitcoin have in common.)

Those fast block times help DigiByte process 560 transactions per second ("TPS"). It

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The Master Token: How to Make 5 to 10 Times Your Money on the Coming Crypto Boom | Crypto Capital - Stansberry Research 21/11/2019 07(34

currently lags behind mainstream payment methods like Visa (2,000 TPS). However,
DigiByte expects to reach 2,000 TPS by 2020, and to be up to 280,000 TPS by 2035.

Altogether, DigiByte functions as three separate technology layers...

The first is the core protocol layer. This is the computer code (the program) that runs
DigiByte and serves as the infrastructure of the whole system.

Next is the digital asset and public ledger layer. The code that makes up this layer
provides the security for everything that happens on the DigiByte network.

The code, or program, that runs on top of all of this is the applications layer.
Applications ("apps") that run on DigiByte can carry out tasks like communicating
between users, transferring coins and assets, and virtually anything else an app
developer wants to use the network for.

DigiByte is the best of bitcoin, Ethereum, and EOS in one token. It transfers money in
virtually an instant. It has low-cost transactions (one-thousandth of a penny).
Developers can build apps on it. And while many cryptos require specialized mining
equipment, it's still mineable, even from home. That's thanks to some unique security
features.

Best-in-Class Security
The very first block of DGB was mined in 2014, and it carried a secret message in its
code. It was a headline from USA Today's January 10, 2014 edition: "Target: Data stolen
from up to 110M customers."

The quote was a jab at corporations and their inability to protect consumer data.
Target is just one of many retailers targeted by hackers. Consumers' private data are
breached constantly. DigiByte wants to use its network to give everyone, everywhere,
the ability to opt out of the financial systems that hackers are attacking every day.

One way it does that is by securing its network (and releasing new DigiByte tokens)
with five different "mining algorithms." DigiByte calls this "MultiShield." In effect,
using five different algorithms means that mining or securing the DigiByte network is
five times more secure than a crypto network with one mining algorithm, like bitcoin.

And DigiByte is actively capitalizing on its network's security by creating an entirely

new way to log into websites.

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Introducing Digi-ID
When you log into a website, you typically do it with a username or e-mail address and
a password. DigiByte envisions a different future... one where you log into websites
with your DigiByte wallet. It calls this Digi-ID.

Here's how it works... First, a website can add the feature to allow users to log in with
Digi-ID. Users who visit that site can then scan a QR code (a type of barcode) with the
DigiByte wallet and verify that they're the owner of that wallet. After doing that,
they're automatically logged in. There's no username or password required. And since
it's all based on a wallet's private key, only the holder of that private key can access
your account.

The best part is, everything is protected by top-notch security and one of the longest
(oldest) blockchains of its kind. It's a great new innovation that could keep our
personal data safe from hackers. Think of Digi-ID as an un-hackable ID.

But there's another reason we're excited about DigiByte – DigiAssets.

DigiByte Could Catapult Us Into the Future

If we're moving toward a world with millions of tokens, we'll need a platform that
makes it cheap and easy to issue new tokens. DigiAssets does exactly that.

Developers can issue their own DigiAssets by setting up a server and publishing a
single transaction to the DigiByte blockchain. And the cost is the same as any other
transaction on the DigiByte blockchain... one-thousandth of a penny.

That means that for about $10, a developer could launch over 1 million different
tokens. And each token could have its own supply of, say, 10 million tokens.

Ethereum offers similar functionality, but its network already faces serious congestion
problems. While Ethereum lumbers slowly toward a solution, DigiByte already has one.
That's why I expect it to begin capturing pieces of not just the ICO market, but other
types of tokens, too... which could be bonds, securities, or digital goods like virtual
baseball cards, gift cards, and more.

In short, DigiByte could catapult us into that future where tokens are as common as
websites.

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Using Volatility to Our Advantage

The one thing DigiByte is not is scarce. There are currently over 12 billion DGB in
circulation. The total maximum supply will reach 21 billion after another decade of
mining. With potentially a thousand times more tokens available than bitcoin, what
would draw me to DigiByte?

As I said, DigiByte wants to provide security and banking for everyone. And to make
sure everyone means everyone, there has to be enough DigiByte to go around. Sure,
people can subdivide their bitcoin down into ever-smaller decimal places, but it's
difficult to deal with those fractions. DigiByte solves that by simply increasing the total
supply of tokens.

And for a crypto that trades for less than a penny, DigiByte has become known for
some of the biggest rallies in crypto...

For example:
In 2014, DigiByte posted gains of 80%, 77% (twice), 188%, and 106%.

In 2015, DigiByte investors saw a 616% rally, a 1,000% rally, and a 150% rally.

In 2016, DigiByte saw one huge 350% rally that lasted four months.

In 2017, while bitcoin rallied 2,000%... DigiByte had 1,300% and 7,000% rallies.

In 2018, DigiByte rallied 100%, 183%, and 145%.

From February 2019 to May 2019, DigiByte investors saw a 200% rally and, most
recently, an 80% rally in three weeks.

Naturally, between most of those rallies were huge sell-offs. In short, DigiByte can be
extremely volatile. But we're at the end of a sell-off, so DigiByte could be gearing up for
another rally. That's why now is the time to accumulate DGB – while its cheap. And
with DGB offering banking and security for everyone, I expect it to rise dramatically
during the next crypto rally. Now, here's how DigiByte scores on our UPDRAFT seven-
point system for analyzing cryptos:

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In short, while other smart contract platforms are struggling to develop scaling
solutions, DigiByte has been successfully running since 2014. It's blazingly fast, at 560
TPS. It's also virtually unmatched in security. And it's evolving with Digi-ID and
DigiAssets. These could be game changers for DigiByte.

I believe 2020 could be the year crypto goes mainstream. We'll see leading cryptos like
bitcoin and Ethereum soar. But smaller cryptos like DigiByte will climb even higher. It
could surge as much as five to 10 times in the coming year. So now is the time to buy.

ACTION TO TAKE

Buy DigiByte (DGB) up to $0.03

Complexity Rating: 2

Exchanges: ShapeShift, Voyager (in 49 U.S. states only), Uphold, Abra,

KuCoin

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Wallets: Exodus, Coinomi, Ledger, Trezor, KeepKey, or the native wallet

We'll be using a 35% stop loss. We'll track this and let you know when to
sell.

Quick Start: If you've never bought a crypto before, you'll need to open an
exchange account, which usually takes just a few minutes. There are
hundreds of options available, but for new investors, we recommend
Uphold, Voyager, or Kucoin. These exchanges will walk you through the
steps of verifying your identity and adding funds.

Accessibility to these services and exchanges will vary by geography. Some

uses may need to buy bitcoin first, then exchange it for DGB.

Note: Most new investors also consider opening an account with Coinbase,
but Coinbase doesn't yet offer DGB.

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