MY DIGITAL MONEY

CRYPTO
IS NOT
FOR
EVERYONE.
Cryptocurrency is not for everyone. It’s also inevitable.

Change is an omnipresent, constant force in financial markets. Just as beleaguered economies around the
world are opening up after confronting the coronavirus pandemic which claimed thousands of lives, a new
layer of change is driving innovation within global finance and the means by which they operate — money,
currency, or as we know it in the U.S., dollars.

This new financial reality is in the exciting world of cryptocurrencies, driven in no small part by the most
famous of them all - Bitcoin - but it’s by no means exclusively about Bitcoin. More than 5,000 ‘altcoins’ have
utility and use that makes them valuable as investments and as digital currency.

Crypto overall is an international, new-age phenomenon that is disrupting if not fully obliterating global
finance as we know it. Its promise is literally to democratize money and pave the way for a global financial
democracy.

But all that promise of a better future is exactly that, the future.

Now, cryptocurrency is volatile. Just this year, Bitcoin hit a record high of over $60,000 only to plunge down
to less than half in a matter of months.

In this guide, I aim to provide the full spectrum of this new financial reality, which will enable individuals to
attain freedom from financial institutions that they and their parents and their predecessors had no choice
but to participate in. However, it may also cause a great deal of anxiety.

The journey to the future cryptocurrency promises is proving to be beyond tough. This guide aims to provide
you with the foundation of understanding and appreciation of the technology in the hope that you will
eventually determine whether it’s worth investing in.
 CRYPTOCURRENCY
FUNDAMENTALS
Cryptography is the science of protecting information by transforming it into a secure format. It is widely used
today. A simple example is encrypted messages. When someone sends an encrypted email that needs a password, or
software to be viewed, that’s cryptography.

Banks use cryptography. Whenever you access your bank online, all transactions you do there are sent to the bank
via an encrypted system. This whole process of secure transmission is defined as cryptography.

On the other hand, currency is a system of money used in a particular country. The U.S. has the dollar, Mexico has
the peso, Japan has the yen, and so on.

Cryptocurrency is, therefore, a digital or electronic system of

money created and transacted through cryptography.

Is it like gold? Stocks? Bonds?

There are many types of cryptocurrencies; Bitcoin,

Ethereum, LiteCoin, and over 12,000 others.

Of all these cryptocurrencies, Bitcoin is the one being

compared to gold for two main reasons.

First, like gold, Bitcoin is finite. There will only ever be

21 million bitcoins in the world. The creator of Bitcoin,
known by the name of Satoshi Nakamoto, put a cap on BITCOIN ETHEREUM NEO
it. It is this scarcity that’s making it so valuable - just like
gold.

Next, like gold, Bitcoin and other cryptocurrencies are

not connected to a federally controlled payment system.

The Fed can’t print gold. The Fed can’t print Bitcoin. No
one can. Bitcoin and gold live outside anyone’s control.

The major similarities just about end there, though.

ETHEREUM RIPPLE LITECOIN
CLASSIC
For one, gold is physical, while cryptocurrency—is
digital.
MY DIGITAL MONEY
Gold also has history on its side. Through all past economic crashes, gold has proven to have held its value.
Cryptocurrency is new. It hasn’t yet established a track record. The value of cryptocurrencies is fluid – like stocks –
and they will establish a market price over time.

Cryptocurrencies are in their infancy.

Think of it this way: You’re buying into a startup. You will be buying a financial instrument which is only starting to
find its way to the market and creating its very own niche. If you believe in the technology it is worth investing in for
reasons we’ll be explaining.

Unlike stocks, you don’t own shares – and you will never have the opportunity to vote on future plans. What you have
is the product of a startup. A product whose existence is dependent on the existence of the company. And please
know, like any startup, there is a possibility it will fail. This is true for any company you invest in.

So, what is cryptocurrency exactly?

The best way to view cryptocurrency is as a sort of commodity. It’s a new type, and constantly evolving.
Although it has similarities to gold and other assets, it is drastically different.

It was created with the intent to disturb the global financial system - and with the intent to replace money
- but it is in its early stages. We have never seen a new type of commodity like digital currency in its early
stages before. Gold was a form of currency before it became a commodity. Oil, in its infancy, immediately
fitted into a specific industry and is traded almost as a currency – a proxy for the dollar.

Crypto is a totally new concept that will evolve, and when it does, it will affect the entire global financial
system.

Just understand that, for now, it is more like a commodity. There are very few who are using it globally, but
as more and more businesses start accepting cryptocurrencies, this will change.
The most important use cases
for cryptocurrency
Digital currencies can now be used for more than merely paying for goods and services. Here are five use cases
for crypto assets that demonstrate the extent of the “fintech revolution” taking place.

01 Digital Cash
Quite simply, cryptos are used to pay for goods, the same way you would pay for
goods using the dollar. But instead of a central bank controlled-dollar, you pay with
cryptocurrency. The most popular digital cash, at the moment, is Bitcoin.

02 Programmable Money
Programmable money is money with constraints. An analogy is food stamps, where
recipients are given coupons, the equivalent of money, which can be spent only on food
— not on alcohol, betting on horses, lottery tickets or anything else.

In a modern guise, these ‘food stamps’ are digitized tokens transacted on a blockchain
platform with smart contracts.

Smart contracts predate Bitcoin, having been conceived by Nick Szabo. Szabo is also
suspected of being Satoshi Nakamoto, the creator of Bitcoin.

Smart contracts are simply a blockchain-based executable code that actions a

particular outcome provided certain conditions have been met. Although synonymous
with Ethereum, most crypto networks have a degree of smart contract functionality,
including Bitcoin itself.

03 Collateral
Lending has become one of the most important applications of the burgeoning
decentralized finance (DeFi) movement, enabling individuals to collateralize loans of
fiat currency against cryptocurrency, and vice-versa.

On the Ethereum network, lending services like Maker, Compound, and Instadapp have
flourished, with hundreds of millions of dollars’ worth of assets now locked up in lending
protocols.

There’s also the option for hodlers (those who keep their digital currency, and do not
sell it) to earn annualized interest by locking their cryptocurrency into these lending
protocols.
MY DIGITAL MONEY

04 Governance
This probably won’t be as relevant to you as the other use cases unless you are
a node. But since we are here to provide you with as much information as we
can, we feel it is still important for you to know.

Governance tokens are tokens that developers create to allow token holders to
help shape the future of a protocol.

For example, if someone proposes to develop a certain protocol, it will be

vetted and then voted on through on-chain governance accessed by using
governance tokens.

These tokens are applied automatically through smart contracts. In other

cases, the team maintaining the project is tasked with applying the changes or
hiring someone who will.

Proponents of systems that use governance tokens believe that they allow
for user control, which holds true to the original cryptocurrency ideals of
decentralization and democratization.

In most cases, organizations that let users control the development of their
systems are called decentralized autonomous organizations or DAOs.

05 Collectibles
Non-fungible tokens or NFTs represent unique digital assets.

These typically comprise in-game collectibles such as skins or characters, or in

virtual reality games can represent digital land or property.

This makes it possible to trade the assets to fellow collectors or players and
ensures full ownership of the collectible.

Their value still depends on a central authority, say Cryptokitties, a blockchain

game which hosts the image associated with each token and controls the
virtual world it operates in.

Nevertheless, collectibles represent a growing vertical within the cryptosphere.

It will become deeply embedded into esports and virtual reality in the years to
come.
What is a blockchain?
Simply put, blockchain is a digital ledger. It can record anything, from
financial data, to commercial transactions, to medical records, to votes.
It can be used by different individuals, companies, institutions, and
organizations.

But since we are talking about cryptocurrency, let’s focus on blockchain’s

functionality in cryptocurrency.

It is a special kind of database. It records every transaction using

cryptocurrency. It is visible to everyone who is on the blockchain being
used for the transaction. There are many companies creating blockchains
- but the idea is for all of it to be connected and the information to be
shared. This visibility establishes trust, accountability, and transparency. A
transaction that happened 10 years ago that is recorded in the blockchain
will be visible to everyone and can be verified instantly. Each transaction
also affects succeeding transactions which makes tampering with a
completed or pending transaction virtually impossible.

For us to understand that better, let us look into the two important
elements of a blockchain.

01 BLOCK + CHAIN
Blockchain stores information in batches called blocks. These blocks are
linked together in a sequential way to form a continuous line.

A chain of blocks. A blockchain.

Think of a block as a page of a ledger or a record book. Each block has 3

main elements - Data, Hash, and the Hash of a previous block.

• Data of any cryptocurrency transaction will contain sender, receiver,

number of coins, date, together with other pertinent information.

• Hash is something like a fingerprint, or signature, or unique identifier.

It identifies a block and all its content.

• Hash of the previous block: This piece is precisely what makes a

blockchain secure. Each block carries the information of the previous
block.

So what happens if someone tries to change something in one block?

Interfering with any block on the blockchain is almost impossible to do.

Tampering with a block within a blockchain causes the hash of the block
to change. Changing a single block then makes all the following blocks
invalid.
MY DIGITAL MONEY

02 PoW and P2P

Changing all the blocks isn’t as easy as it looks.

A proof-of-work (PoW) is a mechanism that slows down the creation of the

blocks.

In Bitcoin’s case, for example, it takes about ten minutes to calculate the
required PoW and add a new block to the chain. A blockchain like Bitcoin
contains hundreds of thousands of blocks, so to implement the change all
throughout the blockchain would take literally a decade.

Blockchains also use a peer-to-peer network or P2P. There is no central entity

to manage the chain. Anyone is allowed to join. When someone does join, they
become a validator, or a node. When someone joins the network, she gets the
full copy of the blockchain. This way, the node can verify that everything is still
in order.

Let’s say you join the network and you create a new block, here’s what happens
when someone creates a new block in the network:

The new block is sent to everyone in the network.

Each node then verifies the block

and makes sure it hasn’t been tampered with.

If everything checks out, each node adds this

new block to his or her own blockchain.

All the nodes in this process create a consensus.

They agree about which blocks are valid and
which ones aren’t.

The other nodes in the network reject blocks

that are tampered with.

So to successfully mess with a block on a blockchain, you’d need to tamper

with all the blocks on the chain, redo the proof-of-work for each block, and
take control of the peer-to-peer network.
 Why is blockchain revolutionary?
Now that we know how the concept and workflow of blockchain make it
almost unhackable, let’s understand why it is a revolutionary technology.

Three things
make blockchains
a game-changer:
Level of Extensive Integral
Transparency record-keeping connection

A single block in a blockchain is equivalent to a page of a ledger. In a traditional ledger, you can change one entry
and succeeding entries won’t get affected. That doesn’t happen in a blockchain. Each block contains records of the
previous blocks. You can’t erase or change a transaction recorded in a block without altering succeeding blocks.

Another layer of security is transparency. Anyone can join a blockchain. When you join, you get a copy of the whole
blockchain. You can then verify that everything is still in order. Once everything is checked and verified, you can then
create your own block and you officially become a node.

Blockchain Now, before you go in and join a blockchain to create your own block, you
need to know more than just WordPress or basic HTML codes.
creates You need a computer powerful enough to solve a cryptographic puzzle.
trust in The computer that solves the puzzle shares the solution with all the other
computers in the network. This solution is called the proof-of-work or
the data. PoW.

Imagine your work getting verified by thousands of nodes who all had to
solve a cryptographic puzzle to be one. That’s as reliable as you can get.
You can’t cheat your way into this.

Verification If 51% of the network testifies that the PoW was correct, the new block is
added to the chain.
of the PoW. The combination of these complex math puzzles and verification by many
computers ensures that users can trust each and every block in the chain
is correct.
MY DIGITAL MONEY

Blockchain Is Not Perfect

Blockchain sounds grand and superior but it’s not perfect. And because My
Digital Money is here to provide you balanced and complete information,
we will tell you about it. We believe that you need to see the complete
picture to make an informed decision.

Here are some of the issues and barriers that blockchain has to overcome.

01 Scalability Problems
Blockchain transactions are slow and expensive. For example, the Bitcoin
network is capable of processing a maximum of seven transactions per second
— for millions of users worldwide.

02 Fraud Problems
In 2018, Nasdaq delisted one blockchain company because of concerns that the
company made “public statements designed to mislead investors and to take
advantage of general investor interest in bitcoin and blockchain technology.”

And the Securities and Exchange Commission has taken action against
companies that have made false and misleading statements about blockchain
technology in an effort to pump up the price of a stock.

Not that it’s a new thing.

Many companies, not just cryptocurrency companies, changed their direction

midstream to take advantage of a trend, or specific market need, that just
sprouted.

They make baseless claims to attract new investors to pump up the price of
it. They then dump the stock by selling it before this artificial price falls. In
addition, some have attempted to capitalize on the mystery and excitement
around the term “blockchain” to target investors. Again, that’s nothing new.

Scammers have posted false information on legitimate websites by targeting

users that provide services to cryptocurrency customers.

So, no, blockchain is not perfect. But for now, this is better than any system we
are using.
 Why are people investing in
cryptocurrencies?
People invest in cryptocurrency for different reasons. Let’s go through
some of the more important ones.

DIVERSIFICATION

“
“Don’t put all your eggs in one basket”. That’s what diversification
is all about. You want your assets distributed in different ways
for two reasons.

One, you don’t want all your assets gone if something happens
to that one basket.

Don’t put
Two, different investments have different advantages. You
want to benefit from all of the pluses - and reduce the minuses.

all your
You can diversify with different financial assets, like stocks,
bonds, foreign exchange, and so on.

You can also diversify based on industries, like technology,

healthcare, and entertainment.

Adding cryptocurrencies to your investment portfolio is one

eggs in one
basket.
way of balancing a portfolio. Especially as the cryptocurrency
industry is vastly different from traditional ones.

Crypto diversification may increase the potential of maximizing

your portfolio’s growth.

APPRECIATION
Capital appreciation is the increase in the price or value of your cryptocurrencies.

Take Bitcoin for example. When it was created in 2009 it was worth a few cents a Bitcoin. As of writing, it was
hovering just below $40,000.

Ethereum, also cents when released (the second-largest cryptocurrency platform by market capitalization, after
Bitcoin) is now hovering around $4,000.
MY DIGITAL MONEY

HUGE GROWTH POTENTIAL

Bitcoin and other cryptocurrencies were the biggest investment story of 2017. People becoming millionaires,
practically overnight, hit primetime news. But by January 2018, the price of Bitcoin had fallen by 63%. The media was
quick to declare the industry done. Billionaires were bashing crypto.

J.P. Morgan CEO Jamie Dimon was one of them. He called Bitcoin a fraud and said any J.P. Morgan traders caught
trading Bitcoin would be fired. The price of Bitcoin fell as much as 24% in the few days that followed. Right in that
period, J.P. Morgan and Morgan Stanley started buying crypto for their clients at low prices. Billionaire George Soros
is another. He slammed Bitcoin at the World Economic Forum in January 2018. After that, he gave the green light to
his $26 billion family office to begin buying cryptocurrencies.

Since the industry is so young, there is huge growth potential. And it’s the billionaires who see this more than anyone
else. That’s why they are billionaires.

DIVIDENDS
You can generate regular, passive income in the crypto market in several ways.

First is HODLing: It stands for “Hold On for Dear Life.” Some cryptocurrencies pay out the HODLers, who simply
purchase and carry the digital coins in their wallets.

Second is Proof-of-stake or PoS. Staking cryptocurrency means that you are holding cryptocurrency to verify
transactions and support the network. In exchange for holding the crypto and strengthening the network, you will
receive a reward. This is a type of interest payment on your deposit. With staking you can generate a passive income
by holding coins. You also receive a reward in the form of extra tokens, and can earn even more when the coin
increases in value. Annual returns for staking vary between 1% and 10+%, depending on the coin.

DECENTRALIZATION OF MONEY
The US Dollar is controlled by the Federal Reserve Bank – or “The Fed.” This is the Central Bank of the United States.
Every currency of every country is also controlled by that country’s government. The treatment of each country’s
money is decided by that specific government using their own Central Bank to facilitate their monetary policies.

Right now, the US Fed is printing money like never before. As a result, the dollar is losing value. Most cryptocurrencies
will never be controlled by the government. No one can ‘overprint’ any of the cryptocurrencies because they operate
under a controlled supply from the time of their introduction. This means networks limit the supply of tokens
even when the demand is high. For example, Bitcoin’s supply will decrease in time and will reach its final number
somewhere around the year 2140.

All cryptocurrencies control the supply of the tokens by a schedule written in the code. The lack of government
control over cryptocurrencies can also help to lower inflation risk. History has shown, over and over again, that
when a particular government applies bad policies, becomes corrupt, or is faced with a crisis, the country’s individual
currency suffers. But without the government controlling cryptocurrency, who will secure it? What if one crazy
brilliant hacker gets into the system and starts creating cryptocurrencies?

This is where blockchain comes in.

 Why are people not investing in
cryptocurrency?
MyDigitalMoney takes pride in putting our clients above everything else. And that means giving you complete
and balanced information. We’ve gone through the reasons people invest in Crypto. So, let’s go through some
of the biggest crypto criticisms.

NO STORE OF VALUE
Crypto naysayers complain that crypto has no store of value. This means that if something goes wrong with blockchain,
the cryptocurrencies you own would become worthless or unusable.

Assets like gold can stand on their own. Cryptocurrencies are dependent on a blockchain and internet connection,
which are both ‘destructible’. Strictly speaking, there is a possibility that the world can lose all types of digital
connections. That may require an apocalypse but, well, I guess an apocalypse is possible. If countries decide to
destroy and bomb each other with weapons of mass destruction, then all digital records, including all cryptocurrency
transactions, will be lost.

Another scenario is a huge, and I mean enormous group of really good hackers who decide to take down the internet
and all digital connections or maybe just hack cryptocurrencies. The hacker scenario is “possible” - but not probable.
Not only are crypto creators great programmers and hackers themselves, but the blockchain is fully transparent and
supported by thousands of nodes.

One alteration in a block is exposed to everyone in the chain, and there are thousands and thousands of them. As
previously discussed, tampering with one block requires tampering with all.

$20,000 TO $1 OVERNIGHT
The volatility can be staggering.

Imagine this…

You bought 1,000 bitcoins in January 2017 for $800 per

Bitcoin. By December, Bitcoin was worth $19,783. By
January of 2018, the price of Bitcoin fell 65%. This decline,
in percentage terms, is larger than the bursting of the Dot-
Com bubble in 2002.

That’s the type of volatility you must expect before stepping

into this market. Yes, you can be a millionaire in a matter
of months - but you can also lose all of it in a matter of
weeks.

This example uses Bitcoin, which is among the most stable

of all cryptocurrencies. It becomes crazier if you try to
step into altcoins. Altcoins are cryptocurrencies that
aren’t Bitcoin.
MY DIGITAL MONEY

SECURITY RISKS CRYPTO HYPE RISK

Scams. Hacking. Theft. These issues have been The main reason cryptos have a lot of hype is the
common themes in the cryptocurrency market since mystery that surrounds them. There are very few who
Bitcoin’s inception in 2009. And with each scandal, the understand what cryptocurrency really is.
cryptocurrencies’ values are compromised as well.
It isn’t really a mystery.
The latest of these scandals, and arguably the biggest
of them all, is the SEC suing Ripple. SEC claimed that People just don’t make enough effort to research.
Ripple is a security - but didn’t list itself as such with Instead of looking more closely, they just go with the
them. Ripple’s market valuation dropped more than crowd.
90% overnight. Some of the biggest trading platforms
also delisted Ripple. The danger is when the dust settles. If expectations
aren’t met, those that made a bet based on hype could
Yes, Ripple is only one of the many cryptocurrencies cash out. This may result in a price crash.
out there. But the scandal of one is the scandal of all.
DIFFERENT
CRYPTOCURRENCIES.

There are 3 major cryptocurrency categories:

Bitcoin | Altcoins | Stablecoins
MY DIGITAL MONEY
Why is each Bitcoin valued so
much more than a USD?
The price of bitcoin shot up because it is scarce. But also
because it was new.

BITCOIN It is, however, volatile due to market forces and various

actions by sellers. For instance, miners could sell a bunch
of bitcoins after they mine them, which in turn pulls the
price down.
In 2009, a white paper written by Satoshi Nakamoto
introduced the concept of Bitcoin and blockchain, the Why the fixation on Bitcoin
technology that makes it all happen.
… What about other
The idea of Bitcoin was simple … create a fixed supply of cryptocurrencies?
digital coins, minted by “miners”.
Because it was the first. It set the standards. It was the
The operative words: fixed supply. fulfillment of several years of concepts inspired by a
financial ideology.
Nakamoto created a total of 21 million Bitcoins. Once
Bitcoin miners have unlocked all the bitcoins, the planet’s It is also the only cryptocurrency that has a low circulation
supply will be tapped out. limit.

Currently, around 18.5 million Bitcoins have been mined. Yes, the code may be changed if the person or group that
This leaves less than three million that have yet to be created it is willing to change it for the sake of releasing
introduced into circulation. it to the market.

And if you go back to the basics of supply and demand, The chances are low because the value is most likely
less supply and high demand equals an increase in value. going to go higher once they reach the cap. It is more
beneficial to keep the supply limited.
What are governments doing Why is it considered digital
about it? gold?
Governments aren’t the most innovative of entities and It is limited, like gold.
structures known to man.
That’s the simple explanation.
When the Bitcoin protocol surfaced, the early adopters
hailed it as a concept that would supplant and shake up Unlike fiat money, you can’t print gold, you can’t print
fiat money structures. Bitcoin either.

Naturally, governments have taken notice. Even if we go through another pandemic, we can’t force
Mother Earth to produce more gold, the same way we
In the U.S., the Internal Revenue Service in 2014 classified can’t create a code to replicate Bitcoin. We can, however,
bitcoin as taxable property. print more money, which is what we are doing now.

However, it’s not like the IRS can mandate businesses and The fact that crypto is new has also attracted a lot of
individuals to not use bitcoin as a medium of exchange market capitalization.
– which is exactly what it has become, separate from a
speculative investment opportunity. Remember when Tesla was still the new kid on the
automotive block? With huge upside, people plopped
State governments, like Wyoming, have enacted laws to down deposits on electric sedans that they wouldn’t take
protect Bitcoin owners - and countries, including Russia delivery of for months?
and Germany, have laws on the books that recognize
Bitcoin and crypto. The Tesla craze paved the way for the California company
to go public, and realize a market capitalization north of
$374 billion, as of Sept. 14.

This same analogy is exactly what’s playing out with

Bitcoin. It’s a white-hot digital asset that has soared
in value - and crashed, only to soar again - since its
introduction just 11 years back.
MY DIGITAL MONEY

ALTCOINS
There’s Bitcoin and then there’s everyone else.

That’s the basic premise and definition of “altcoins”. It’s

all other cryptocurrencies that are not bitcoin.

You may be asking why such drastic demarcation exists,

and the answer is simple. Bitcoin is the oldest crypto and
its blockchain is set up so that only a fixed amount of
coins will ever be produced. This makes it scarce, like
gold.

Altcoins offer a different value proposition, both in

their application and investment potential. Some are
Stablecoins, such as Tether, and pegged to the U.S.
dollar in value. Tether was created and is managed by a
centralized entity. That makes it the complete opposite
of Bitcoin.

Bitcoin’s decentralized and peer-to-peer qualities make

it distinct and signal a new approach to the thinking
behind global finance. Popular altcoins like Ripple, and
Stellar lumens, are also overseen by an organization. To
some crypto purists, this lessens their appeal.

These altcoins differ amongst each other but still offer

sizable market caps. This bodes well for the altcoins’
future. With sustained investor interest that hasn’t
shown any signs of abatement, altcoins are here to stay.
Do altcoins actually have a How have altcoins fared
purpose? historically?
Altcoins also have different uses and applications. This means Altcoins have chipped away at Bitcoin’s dominance over the
some of them do more than just store value. last decade.

For example, San Francisco-based Ripple aims to make large In 2013, Bitcoin comprised 96.59% of the total crypto market
international payments easier and more cost-effective. cap. XRP eked out a 1.3% slice. ‘Other’ altcoins comprised just
Stellar wants its crypto, called lumens, to be adopted widely 2.11% of the market. By 2016, Bitcoin’s market cap decreased
as mobile payments, essentially building on what companies to 91.48%, Ethereum had 1.03%. Tether was at .02%, XRP
such as PayPal and CashApp have on the market. inched up to 2.71% and ‘others’ accounted for 4.77%. As
of September 20, Bitcoin accounted for 58% of the crypto
market cap. Ethereum now has 12%, Tether 4.4%, XRP 3.22%
Does it make sense to invest , Bitcoin Cash 1.21%.
in altcoins? The “other” cryptos accounted for just over 16% of the total
From an investment standpoint, altcoins offer the same market cap.
opportunity as Bitcoin in their early years.

Naturally, Bitcoin’s success has opened the door for other How many Altcoins are there?
cryptos. Bitcoin was first to market. its disruptive properties,
and the rates of return it has achieved have made it attractive There are 12,000 cryptos in the world as of writing.
to millions of people.
That number was 6,530 just in August. Bitcoin reigns supreme,
This competition is fierce in the crypto market. But even if the commanding roughly 57% of the market share of the estimated
market is oversaturated, there are going to be duds, and there $350 billion global crypto marketplace as of writing.
will be diamonds in the rough, just like all other investments.

STABLECOINS

A “stablecoin” is a type of cryptocurrency whose value is Diem, formerly known as Libra, is a Stablecoin created by
tied to an outside asset, such as the U.S. dollar or gold. The Facebook. It hasn’t been released but Facebook said it will be
company that created the crypto will have a reserve that backed by a “basket” of currencies, including the U.S. dollar
matches the number of units they have in circulation. and the euro. However, there have been some controversies
caused the delay of its launch.
It’s like collateral. You should be able to exchange one unit of
a Stablecoin for one unit of the asset that backs it. Tether, for Tether is probably the oldest stablecoin in the market now. It
example, is pegged against the US Dollar. This means that no was created to allow the moving of money quickly between
matter what happens, 1 Tether is worth 1 dollar. exchanges. Since there are discrepancies between exchanges,
traders can make money on these discrepancies by moving
Fundamentally, this goes against the very principle of their assets quicker.
cryptocurrencies. Bitcoin, in particular, was created to bring
the control of currencies back to the public instead of the So, what’s the disadvantage of stablecoins?
government.
Well, it’s only as stable as the asset it is pegged against. The
So, why were stablecoins created? US Dollar, for example, is also unstable. With the double-digit
inflation rate? Your $1 last December isn’t as valuable now.
For stability. Bitcoin and altcoins’ values are pegged against
themselves. This causes their volatility. The volatility makes There is also the issue of security. Where are the assets
them hard for everyday people to use. Generally, people want stored? What if those get lost or stolen. And the most
guarantees and predictability. They want to know that their important question, how does the company prove they really
dollar will still be worth the same in about a year. have the assets equivalent to the number of units they have
in circulation?
Cryptos can crash in minutes.
The stablecoin is pegged against something cryptocurrencies
Recently, Tether released their financial statement and were created to fight, controlled by a centralized entity.
revealed that they also have other assets such as real estate,
ETFs, and others. Some popular stablecoins are Diem, Tether, In the meantime, you can consider these things before
Dai, and USD Coin. investing in crypto.
MY DIGITAL MONEY

TOP ALTCOINS
 Ethereum is often called Bitcoin’s closest rival.
But it is dramatically different and supposed to be
complementary.

Yes, Ethereum was created as a companion of Bitcoin.

Why does Ethereum exist and what purpose does it

serve?

Ethereum is a multi-use software network that features

its own tokens, called ether... like the gas.

Ethereum enables developers to create and bring to

market smart contract applications. Smart contracts
can potentially revolutionize how transactions are done
in various industries.

Think DocuSign for HR paperwork but each transaction

ETHEREUM is in blockchain. You also pay to use the platform using

Ether.

This ability to push innovation forward is the reason

that investors and tech entrepreneurs are trading in
Ethereum or creating businesses utilizing its network.

What is Ethereum’s value and does it offer more

potential than Bitcoin?

If you are tired of the comparison between Bitcoin and

Ethereum, don’t worry, there’s more.

Bitcoin was created as an alternative to national

currencies and thus aspires to be a medium of exchange
and a store of value.

Ethereum, on the other hand, was intended as a platform

to facilitate immutable, programmatic contracts, and
applications via its own currency.

Just to be clear, Bitcoin and Ethereum are both digital

currencies. But the primary purpose of ether is to
facilitate and monetize the operation of the Ethereum
smart contract and decentralized application or dapp
platform without any downtime, fraud, control or
interference from a third party.

Ethereum was created to complement Bitcoin but

its popularity has made it the competitor of every
cryptocurrency out there.

Although Ethereum remains second to Bitcoin,

Ethereum creator, Vitalik Buterin, said he plans to
continually improve Ethereum to enable it to be in the
conversation as one of the top blockchain networks.
MY DIGITAL MONEY

In the beginning, there was one Ethereum.

Until one fateful day in June 2016, the blockchain was

hacked and $50 million worth of funds were stolen

Some wanted the stolen funds returned and some felt that
that would go against the very principle of immutability.

So, those who wanted to go with the original Ethereum

went with Ethereum classic. Those who wanted funds
returned and the reason for the hack fixed, went with
Ethereum.

Ethereum Classic has since gone through a lot of

upgrades but scalability is still the problem. It can only
handle 15 transactions per second, but that number is far
less than payment networks such as Visa, which handles

ETHEREUM more than one thousand transactions per second.

Also, security is likely to remain an issue with smart

CLASSIC contracts, particularly since Ethereum Classic has already

experienced a hack and theft of millions of dollars. These
concerns could potentially prevent smart contracts via
Ethereum Classic from being used in major financial and
Ethereum Classic does the same thing Ethereum does. real estate transactions.

It facilitates running smart contracts by offering the Ethereum is set to release some upgrades including
benefit of decentralized governance. You don’t need a moving from proof-of-work to proof-of-stake.
third party involved, like a bank.
Ethereum classic will remain in proof-of-work.
It’s an “if-then” scenario.
This will further differentiate the two.
If the actions required within the contract have been
fulfilled, then the responding contract parameters would Again, before you invest in a crypto, you need to
be completed. understand what the crypto stands for and see whether
this is consistent with your belief. Are you a purist? Or
If the contract parameters have not been fulfilled, then do you want refinement in the system?
the agreed penalty will be brought into play.
Market capitalization is another thing to consider.
For example, if you buy a Tesla for $30,000, and the
contract requires you have a credit score of 700, a ETC has 116.3 million coins in circulation with a market
deposit of $10,000, and comprehensive insurance, all capitalization of $3.9 billion while ETH has approximately
these requirements must be put on the blockchain. 115.6 million in circulation and a market cap of more than
$304.9 billion.
The smart contract will validate on the given date. If
everything is in order, your TESLA will roll itself to your Purpose is another main difference.
front porch at 10:48 in the morning as stated in the
contract. Ethereum Classic is headed towards becoming a global
payment network using smart contracts that can function
Ok, the last part may be an exaggeration, but I am sure without centralized governance.
you get what it means.
It will also most likely become a digital store of value,
So, why is there an Ethereum classic if it does the same meaning it can be saved and exchanged while retaining
thing as Ethereum? its value. The digital store of value for a crypto includes
its purchasing power that can be quickly turned into
Here is some history. cash or used to buy another asset, similar to money.
 It claims that these are possible because Bitcoin SV has
a bigger block size.

Why did it create a bigger block size? Because of the

demand.

During Bitcoin’s early stages of development, the

network was more than capable of managing the
transaction load of a small niche community, primarily
composed of developers and cryptography enthusiasts.

But as Bitcoin’s popularity grew, the network started

to get bogged down with an increasing volume of
transactions, eventually resulting in a drastic impact on
processing times.

Many became concerned that eventually, Bitcoin

transactions might take days or weeks to clear if nothing

BITCOIN SV was done to address the issue.

The Bitcoin Cash community wanted the block size

to remain at 32 MB while the Bitcoin SV camp wanted
it to increase to 132 MB. These differences proved
irreconcilable. That’s why Bitcoin SV broke away from
Bitcoin.
Bitcoin SV stands for Bitcoin Satoshi Vision. It is a
breakoff of Bitcoin Cash, a diehard “cult following” of Supporters of Bitcoin SV believe that the original Bitcoin
Craig Wright. protocol has too many errors and restrictions to a point
where they don’t see the point of continuing with its
Craig Wright claims to be Satoshi Nakamoto, the true blockchain.
inventor of Bitcoin. Investing in Bitcoin SV is placing
a bet that Craig Wright really did invent Bitcoin, and However, they also believe that the implementation of
will one day offer the proof, which is to spend Satoshi upgrades SegWit, the Lightning Network, and other
Nakamoto’s Bitcoins. modifications represent a threat to the stability and
validity of the original Bitcoin protocol.
If this is true, the value could skyrocket. But so far Craig
Wright has refused to offer the proof, even in court. Bitcoin SV supporters claim that Satoshi’s only intended
scalability-oriented change to Bitcoin’s original protocol
Its aim is to fulfill the supposed real vision of Satoshi was to increase block sizes.
Nakamoto, which is to create one blockchain for the
world. And that’s exactly what they did. They increased the
block size.
That blockchain will be capable of doing three things:
However, many believe that investing in Bitcoin SV is
1- allow developers to use script, a simpler way to essentially an expression of the belief that Wright is, in
code, for designing and executing smart fact, Nakamoto.
contracts
2- allow businesses to charge customers as little Like you, I am dying of curiosity to know who Nakomoto
as a fraction of a cent in real-time is. If Wright wants to prove he is Nakomoto, the only
3- provide all merchant services that could be set way to do it is by spending Nakamoto’s Bitcoins.
up in minutes
Until then, proceed with caution. Stick to the technology.
If you believe in it and the capability of the developers,
including Wright, invest in it.

If not, don’t.
MY DIGITAL MONEY
Litecoin was created in 2011 by former Google engineer
and MIT graduate Charlie Lee. As an alternative coin, or
otherwise known as altcoin, it arrived two years after
Bitcoin.

Litecoin also uses the decentralized ledger that

powers bitcoin, blockchain, but it varies significantly in
availability, network rules and the speed of transactions.

What is Litecoin’s value and what is its upside?

Because LTC is among the older cryptos, it has stood the

test of time for its utility and potential.

Mining cryptocurrency at a rate worthwhile to the

miners requires ungodly processing power, courtesy of
specialized hardware.

LITECOIN To mine most cryptocurrencies, the central processing

unit in your Dell Inspiron isn’t anywhere near fast enough
to complete the task.

This brings us to another point of differentiation for

Litecoins. They can’t be mined with ordinary off-the-
shelf computers - more so than other cryptocurrencies
can.

Although the greater a machine’s capacity for mining,

the better the chance it’ll earn something of value for a
miner.

Litecoin vs. other cryptos

Litecoin by function is digital cash to Bitcoin’s digital

gold.

Litecoin will also have 84 million in circulation. That’s

more than the 21 Million of Bitcoin and less than the
infinite supply of Ethereum.

Whereas Bitcoin transactions can take anywhere from

10-20 minutes to settle, Litecoin achieves that in under
3 minutes.

But Litecoin’s value proposition boils down to speed and

smaller transaction fees.

Bitcoin transaction fees are roughly $1.77 per transaction,

while Litecoin fees average $0.025.
 How was Stellar formed?

Stellar was founded by entrepreneur and former Ripple

employee Jed McCaleb and attorney Joyce Kim in 2013.
The two were disenchanted with Ripple and wanted to
create different crypto, more in line with their vision.

How is Stellar different?

Stellar isn’t trying to displace fiat money. It is simply

attempting to create a financial system where
international payments can be made both faster and for
less.

If you’ve ever used PayPal or other remittance services

such as Western Union, you’ll know they charge very
high fees.

STELLAR High transaction fees also plague Bitcoin and Ethereum

blockchains, driven up in part due to their increasing
popularity.

Stellar set out to standardize transaction costs, as any

way lumens are sent or received, the cost is 0.000001
XLM. Keeping transaction costs at mere cents on the
Stellar cryptocurrency tokens are called lumens. dollar equivalent is how Stellar hopes to achieve mass
adoption.
Introduced in 2014, Stellar wanted to reach the world’s
population that didn’t have access to banks. As it Is there a fixed supply of Stellar coins?
evolved, Stellar adjusted lumens to a different niche,
and with a different purpose. They now aim to allow The basic tenet of economics, supply and demand, are
financial companies to store money and move it quickly important to all crypto valuations, and Stellar is no
and inexpensively. different.
Stellar’s objective remains to disrupt the global payment There were 100 billion lumens available at the 2015
system. Its blockchain makes moving lumens from launch of the Stellar network. The supply was reduced
institutions and people easy and cheaper than similar by half by the Stellar Development Foundation, also
services from other payment firms. known as SDF, and currently, there are 20.7 billion XLM
in circulation.

The SDF last year announced it would ‘burn’ half of the

supply. By holding back the supply, they are increasing
the value.

How secure is the Stellar Network?

I don’t want to get too technical. Let’s just say it’s nearly
impossible for a single node, or computer, running the
protocol to overrule a transaction. Each transaction
must be verified by the majority of the nodes.

That means it’s nearly impossible to hack.

MY DIGITAL MONEY
Fungibility refers to the ease with which one commodity
can be substituted for another. Money–whether it is gold
or a fiat currency like the U.S. dollar–is fungible because
you can trade it for anything else.

Because fungible instruments are susceptible to fraud

and theft, gold is kept in underground vaults and fiat
currencies require constant surveillance by treasuries
and central banks.

Bitcoin’s solution to fraud and theft was to make all

transactions totally transparent and 100% traceable.

Unfortunately, Bitcoin’s deprecation of privacy is also a

flaw that it has sought to solve. Some of Bitcoin’s original
users mistakenly believed that because wallet addresses
were pseudonymous, that using Bitcoin was anonymous.

ZCASH However, legal action against darknet sites like the

Silk Road proved that all it takes is a small amount of
information in order to reveal the true identity behind a
Bitcoin wallet.

Zcash innovated by adopting Bitcoin’s open ledger

system and then encrypting the information about the
ZCash is a cryptocurrency with a decentralized ledger’s users.
blockchain that seeks to provide anonymity for its users
and their transactions. This means that even though all ZCash transactions are
recorded on a blockchain, the transactions are secret,
Like Bitcoin, ZCash also has an including its open-source and can only be viewed by users that have been given
code, but its major differences lie in the level of privacy access to them.
and fungibility that each provides.
ZCash employs a cryptographic tool called zk-SNARKs,
ZCash was founded by Zooko Wilcox-O’Hearn in October which stands for Zero-Knowledge Proofs. This tool allows
2016 in response to Internet users’ demands for an open two users to engage in transactions without either party
financial system with added privacy features. revealing their payment addresses to each other.

ZCash seeks to maintain the same structure as Bitcoin This tool also makes ZCash transactions untraceable
but with privacy and fungibility as added features. on ZCash’s blockchain by obfuscating the payment
addresses of both parties and the amount involved in
each transaction.

It’s not all peachy, of course.

Like Monero and other highly anonymized

cryptocurrencies, ZCash is criticized for potentially
providing a secure haven for illegal transactions.

However, there are a number of legitimate reasons why

a user would opt for anonymous cryptocurrencies, like
purchasing medicine. We need some things to be private.
Businesses might want to protect their business secrets.

And if the Zcash current value, $160 as of writing, is to go

by, I say people appreciate and need that.
 However, Cardano is staying a step ahead by working
with regulations in mind, instead of trying to thwart
global regulators.

Cardano looks to solve many of the blockchain industry’s

current problems, including:

1. The use of mathematics to secure their

blockchain that is less prone to attacks
2. Separation of accounting layers
3. Creation of a secure voting mechanism for
token holders
4. An infinitely scalable consensus mechanism

In mere mortal speak, they are creating something

functional, scalable, and very, very secure. This next
part is important if you want to understand what sets
Cardano apart from other cryptocurrencies.

CARDANO Cardano’s blockchain has two layers:

The Cardano Settlement Layer or CSL is where token

holders can send and receive ADA instantaneously with
minimal transaction fees.
Cardano has become one of the fastest-growing
The Cardano Computational Layer or CCL helps run
blockchain assets in the entire cryptocurrency industry.
smart contracts. It also ensures security and compliance
Its internal cryptocurrency is called ADA. It was created
and allows for other advanced functionality, such as
by Charles Hoskinson, a mathematician. He partnered
blacklisting and identity recognition.
with Jeremy Wood, a former co-worker at Ethereum.
They both wanted to create blockchains in more
The Cardano open-source code is written using Haskell.
scientific ways.
It is known as a secure programming language.
ADA has been a top-10 cryptocurrency by market
Cardano works on a specially designed proof-of-
capitalization since it was released in 2015. Its technology
stake (PoS) blockchain protocol for consensus called
is advancing at rapid speed and looks to take on the
Ouroboros. The biggest benefit of Ouroboros is
likes of Ethereum in building a massive blockchain
its mathematical security in choosing blockchain
ecosystem.
validators. Many other blockchains claim they choose
block validators at random. Rarely anyone proves it.
What does Caradano do?
Ouroboros offers a verifiable way to randomly select a
ADA – Cardano is a digital coin that can be used
validator and ensure all token holders who stake ADA to
to store value or send and receive funds. The ADA
the cardano blockchain have a fair chance of mining a
cryptocurrency runs on the Cardano blockchain, a
block and receiving the associated reward.
first-of-its-kind decentralized network. It is based
completely on scientific and mathematical principles
Uses for ADA cardano
and designed by experts in the fields of cryptography
and engineering.
The cardano coin can be used in so many different ways:
The cardano blockchain can be used to build smart
1. As a transfer of value in a similar way that cash
contracts, and in turn, create decentralized applications
is currently used
and protocols. Additionally, the ability to send and
2. To help stake pool operators successfully verify
receive funds instantly through, for minimal fees, has
transactions on the blockchain
many applications in the world of business and finance.
3. ADA will also be used for smart contracts
I know what you’re thinking, Ethereum and Ripple and
As of press time, Cardano is worth a little more than
in one.
a dollar. Some experts are predicting it will thread
towards a hundred.
MY DIGITAL MONEY
party being directly involved. You don’t have to rely on
someone else to hold up their end of the bargain because
the blockchain will force them to do so.

This is the smart economy.

The system is a combination of digital assets, digital

identity, and smart contracts. When these three things
work together, they form just that: a smart economy.

Neo wants to promote the transfer of traditional assets

into digital assets. These assets will be decentralized,
and the process of transfer will be handled through a
Smart Contract.

A digital identity is an electronic label for either

individuals or companies to which the assets can then
be assigned.

NEO A smart contract is a piece of code that becomes active

when certain criteria are met. They are critical to
distributing digital assets because they eliminate the
need for a third party or intermediary. Smart Contracts
can be used to create decentralized transactions.

NEO is widely considered to be China’s answer to In other words, there is no need for an element of trust
Ethereum. Both cryptocurrencies use smart contracts in the transaction because the Smart Contract always
but NEO takes advantage of its unique blockchain in transfers the assets correctly once its conditions are
order to improve Ethereum’s network. met.

NEO has defined itself as the distributed network Neo’s idea of a smart economy is, therefore, the synthesis
for the smart economy. By smart economy, we mean of these three concepts, allowing the digital identities
digital assets with a digital identity, supported by smart of ordinary people and businesses to interact and
contracts. exchange digital assets through secure and protected
Smart Contracts.
In short, NEO is a cryptocurrency that uses easily
programmable smart contracts in order to facilitate The Neo network has two tokens. The first, NEO, is
trustless trades of real-world assets through the the token you can actually buy. It is indivisible. This
blockchain. means the smallest unit is always 1, unlike some other
cryptocurrencies. There is 100 million NEO, and no more
How does Neo work? are created. NEO creates the second token, GAS.

NEO builds on Ethereum’s design to create the economy GAS tokens are separate and are used to pay for
of the future. transactions on the network and to operate dApps.
GAS tokens are divisible and are generated by a decay
In the modern economy, one of the key problems is trust. algorithm.
After all, how can you do business with someone you
don’t trust? Both NEO and Ethereum have attempted to The problem?
solve this problem through smart contracts.
NEO really doesn’t make much sense outside the Neo
If users wish to make an exchange, they first digitize their Network. It can be exchanged for other cryptocurrencies,
assets, turning them into NEO. Then, they create a smart but beyond that, it is best used in the Neo network.
contract that is stored on the decentralized blockchain.
Then, the trade is executed to the exact specifications of Because of its properties, it is much more than just
the contract. “money.” It can generate GAS tokens, which are crucial
for developers who create and run dApps in the Neo
This means that the entire trade is done without either network.
What are the advantages of NEO?

The smart economy — This is one of the biggest

advantages of NEO. By digitizing traditional assets,
you can give them all the benefits and the security of a
typical digital asset that the blockchain offers.

They can encode in most languages — creating a smart

contract through NEO does not require the developer to
learn a new programming language. NEO is compatible
with most programming languages. This makes the
NEO network more desirable to developers, increasing
its potential for adoption and growth.

Fast transactions — NEO can handle more than 10,000

transactions per second compared to one of its rivals,
Ethereum, which only manages about 15. This makes
NEO incredibly competitive in terms of speed compared
to its rivals.

Support — Neo has the support of both the Chinese

government and large companies such as Alibaba. While
this may affect its supposed sovereignty, in reality, it
has helped make it extremely popular in China, as
government support has had a legitimizing effect.

Is the NEO worth an investment?

This question is tricky to answer as it depends almost

exclusively on your own financial situation and your
own goals.

But think about this.

NEO was worth 18 cents when it was launched back in

2016.

As of press time, it is worth north of $40.

That means a $10,000 investment 5 years ago, would

now be worth $2.2 million.

Is it volatile? Yes. As with every other cryptocurrency

out there.

So make sure you believe in the NEO network, its dApps,

and its future potential, before buying in.
MY DIGITAL MONEY

TOP STABLECOINS
Tether’s trading symbol is USDT.

Hong Kong-located Tether, was launched in 2014. The

aim was to peg it to the U.S. dollar. It means its value
would be backed by a dollar reserve equal to the amount
of USDT.

Tether was originally called Realcoin when launched by

a trio of serial entrepreneurs. The token’s development
has ensured its full compatibility with a number of
blockchains, including Ethereum, EOS, Tron and
Algorand, SLP and OMG.

Tether was invented to function as a digital currency

that bridges cryptocurrencies and traditional currency,
or fiat money.

Because its value is pegged to the U.S. dollar, the Tether

TETHER tokens are meant to store value in a similar way and

avoid wild volatility that is characteristic of Bitcoin due
to investor speculation.

Since its volatility is low, Tether’s return on investment

is also minimal. It’s a substitute for cash, in other words.
How’s Tether different from other stablecoins? What’s the amount of USDT currently in
circulation?
The key selling – or buying – point that makes USDT is
that it’s tethered to the USD. Tether’s circulation is correlated to the cash and
securities under the control of the private company
Whenever new USDT tokens are minted, at least in that backs it.
theory, the parent organization has the corresponding
amount of cash or securities that can be converted into According to the website CoinMarketCap, $68B billion
cash. USDT tokens were circulating globally as of writing.

This benchmarking serves to reassure and empower Tether is not limiting USDT to a hard cap similar to
investors, who can exchange their stablecoins such that of Bitcoin, but the company also doesn’t provide
as USDT for more volatile cryptos when they want to advance notice for issuing additional tokens.
actively trade.
In lieu of that, Tether does issue daily transparency
Tether offers a convenient and practical way for crypto reports that amount to their balance sheet, with asset
investors to convert their crypto holdings without a reserve and liabilities.
USD cash-out.

USDT is one of a handful of stablecoins pegged to fiat

money, others pegged to commodities.

The Unique Selling Proposition of Tether

The ultimate use of USDT is to move money around

fast within many blockchain transactions without the
money losing its value.

Transactions are quick from one country to another,

on the same continent or around the world, easy and
convenient.

In doing this, Tether gives users an alternative to

banks and financial service companies. It’s all about
competition and innovation at the end of the day.

Are there any downsides to Tether?

A number of parties, such as state financial regulators

and courts in the U.S., have tried to validate the Tether-
to-dollar peg because Tether’s reserves haven’t been
examined by an independent third-party audit to verify
its claims.

Because of the perceived difference in reserves, USDT’s

price dropped to a low of $0.88 per token at one point.

It was revealed as part of the U.S. court proceeding

that Tether was backed 74% by cash and short-term
securities, but legal counsel for Tether made attempts
to justify the discrepancy.
MY DIGITAL MONEY

INVESTMENT
FOUNDATION
 Different Ways to Invest in Crypto
There are many different ways you can invest in crypto.

1- through a CryptoIRA
2- trading in cash
3- directly investing in a company developing cryptocurrencies
4- Blockchain ETFs

Let’s go through each of them.

CryptoIRA
A CryptoIRA is a common term used when you want to put cryptocurrencies in your self-directed Individual
Retirement Account or SDIRA.

Yes, you do need to open a SDIRA first. Not all IRA companies provide SDIRA services. Our partner, Equity Trust, is
one of the few reputable firms and one of the biggest IRA providers in the US. In a SDIRA, you manage your assets
yourself, hence the name SDIRA. There are different assets you can put there including cryptocurrencies.

A SDIRA is ideally suited to people who want to hold cryptos for a long time because of the tax benefits. With a
traditional SDIRA, you can defer the payment of taxes. That means you pay nothing now. Just keep on investing - and
let it grow.

With a ROTH SDIRA, you pay taxes now and nothing when you cash it out upon retirement. That means you don’t pay
any tax on your capital gain. So, let’s assume you buy 1 bitcoin now at $35,000. You need to pay taxes for that now. If
after, say, 10-years, you turn 50 ½ and want to cash out, and your Bitcoin is worth $100,000—that’s $65,000 in gains
that you don’t pay tax on.

You can see that a CryptoIRA is obviously meant for people who want to grow their wealth for retirement.
MY DIGITAL MONEY

Trading in Cash
It’s like stocks - but you trade crypto, instead of shares.

Many platforms allow you to trade crypto but you just have to be careful. Not every platform was made the same way.

With Robinhood, for example, you can’t take crypto out of their system. That means, if you want to take physical
possession of your crypto, in the form of private keys, you can’t. The only way you can take your investments out of
Robinhood is by liquidating it. They also sell your data and they are very honest about that.

My Digital Money, won’t sell your data. We’re to help you invest. Plain and simple. You can also invest in companies
developing crypto. Developers usually go to investors to fund their projects. And no, you don’t have to have millions
to be able to invest in a company.

You can be an angel investor. Usually, you need to invest hundreds of thousands of dollars but crowdfunding platforms
like FundersClube.com or WeFunder.com allow you to invest for as little as $100.

Needless to say, the risks are higher. You are investing in companies that are just starting up. So, be very, very careful.
Consult other angel investors and do a lot of research. Even if you are just investing $100, that’s still $100 you will
never get back if things don’t work out.

Blockchain ETFs
Blockchain exchange-traded funds (ETFs) own stocks in companies that have business operations in blockchain
technology or in some way profit from it.

There are two types of blockchain ETFs: Passively managed and actively managed.

In a passively managed ETF, a fund manager buys a basket of blockchain-related stocks that makes up a broad index.
Through one of these investments, you gain exposure to the entire index. This process eliminates the need for fund
managers to select individual companies at their discretion.

Contrary to index funds, active investing depends on a fund manager’s ability to pick securities and provide above-
average returns. As a result, these investments often come with higher fees and greater volatility than passively
managed ETFs.

Blockchain ETFs don’t hold cryptocurrency investments. Instead, these funds only own stocks of regulated companies,
of which many are blue-chip technology names like Visa (V) and Oracle (ORCL).

For you to determine how you can best invest in a crypto, I recommend you consult a financial advisor, do your own
research, and if you feel a CryptoIRA or trading in cash are two strategies you want to use, call us.

My Digital Money offers both services in one platform. There is no need to open an account on multiple platforms.
You can do it all in one place.
 The Importance
of Knowing the
Developers &
Investors
With stories of people becoming millionaires overnight startups that they’ve already developed, proving a
after investing in a cryptocurrency, it’s important for track record of success.
me to hold myself back from getting too infatuated with
crypto and invest like crazy. I want to see both types of leaders within these
companies—since both areas of the business have
I make sure that every investment I make—especially in some major technological and business milestones to
new coins—is based on the right foundation. reach before they find long-term success.

1- I evaluate whether or not there’s a technological Then, there are the influencers—those who are
need for the blockchain component or coin. prominent investors and thinkers in the space. They
help shape the future of the coin through their ability
2- I try to find out as much as I can about management. to conceptualize what’s yet to come and what might
influence policies down the road.
Do they come from a background of creating cryptos?
Have they demonstrated technical superiority over their Knowing where they invest—or understanding where
peers? For example, the creators of Polkadot helped build they’re looking next—can provide clues on how the
Ethereum, giving this newer altcoin greater legitimacy. cryptocurrency market is moving in the future. The
Winklevoss twins are an example of this.
If I trust the person, there’s a better chance I will trust
the technology. Now, what happens if I believe in the technology
and what it stands for but I don’t like the influencers
That doesn’t mean that some important technology won’t behind it or some people in the management? What
come from some unknowns—after all, almost everyone if I find out if people I trust don’t respect them or like
was an unknown at some point. To this day, no one knows them?
who Satoshi Nakamoto is.
They drop down to my waitlist.
If I like a coin developed by someone who doesn’t have a
long track record in the industry, then I require a higher If I find a coin that ticks all the items on my list, I go
bar for the technology. for that. There are a lot of coins being developed out
there and I would rather bet my cash on the ones I
3- I differentiate the face of the company from the truly believe in. Is it possible that the ones I passed
developers. on eventually find success? Yes, but that is true in any
investment. Even in the market. There are stocks I
When looking at an altcoin that has the blockchain passed on that eventually became a big player.
company behind it, I expect different things from those
on the business side than I would from the developers. But I have never bet on a coin that has failed. As you
Some leaders concentrate on the technology that they go deeper into crypto, you will come up with your
have their hands on, leaving others to build the business. own standards, your own process.

For other leaders, they focus on growing the company. I hope that what I shared will help you fine-tune yours.
When considering this group, it’s about looking at the
MY DIGITAL MONEY

Fees and Charges

Regardless of what you’re investing in, whether it is stocks in Robinhood or Fidelity or ETF, for as long as you
are using a third party there will be fees and charges. The tricky part is getting these parties to disclose every
fee and charge. Below are fees and charges you should watch out for.

01 NETWORK FEES 02 EXCHANGE FEES

Dealing with platform fees is nothing new. For a cryptocurrency exchange to make money, it needs
Cryptocurrency brokers are working with businesses to attach to some of the financial momentum flowing
and paying for the services they provide is to be through it. In most cases, that means assessing fees for
expected. However, your stake is starting to shrink common transactions, such as:
even before reaching them. Due to the decentralized monthly maintenance fee, trading, deposits made when
nature of cryptocurrencies, you have to pay the moving crypto to online storage spaces, like digital
standard network fee for using the blockchain, known wallets, withdrawals and liquidations, and loans.
as the transaction fee paid to the miners.

03 SPREAD
The market spread is the gap between the highest bid
offer and the lowest ask offer on the order book. The gap
is essentially the difference between the price at which
people are willing to sell an asset and the price that other
people are willing to buy an asset.

Simplifying it even further, imagine you are negotiating

a deal to buy Bitcoin from someone. You might tell the
other person you are willing to buy one Bitcoin for $5,000.
However, the other person might respond to your offer
by saying they think it’s worth more than $5,000, so they
are willing to sell it for $7,000. The difference between
your bid to buy Bitcoin for $5,000 and the other person’s
‘ask’ to sell Bitcoin for $7,000 is the spread.

Extrapolating this situation to a cryptocurrency exchange,

the order book is essentially hundreds or even thousands
of people saying what price they are willing to buy or sell
an asset (like Bitcoin). The people with the lowest asking
price and the highest bid price are on either side of the
market spread.
 Storing Your Crypto:
Hot Wallet vs Cold Wallet
HOT WALLETS COLD WALLETS
Hot wallets are the most common types of crypto wallets Cold wallets are considered the more secure cryptocurrency
because they are simple to set up and easy to use. When storage solution as they are not connected to the internet.
you create an account on an exchange, download a mobile You only connect your cold wallet to the internet when you
wallet, or download a desktop wallet on your laptop, you want to make a transaction.
are creating a hot wallet.
Hardware wallets and paper wallets are both cold wallet
Hot wallets are meant for everyday cryptocurrency users. options. However, hardware wallets are more popular as
they are easier to use and come with customer support
If you regularly trade crypto on an exchange or spend provided by the manufacturer.
crypto to make everyday purchases, you want to store your
digital currency in a hot wallet. Hardware wallets use a physical medium — typically in the
shape of a USB stick — to store the wallet’s private keys,
As hot wallets are connected to the internet, you can making them de facto unreachable to hackers or other
seamlessly make crypto transactions with a few clicks on malicious parties. To store crypto in your hardware wallet,
your phone or computer. you send it from a hot wallet to your hardware wallet’s
public address. Conversely, if you want to send crypto from
Exchange wallets are typically hot wallets. your hardware wallet to a friend or an exchange address,
you connect your hardware wallet to the internet via the
However, several leading exchanges have opted to store the wallet’s dedicated software and then sign the transaction
lion’s share of their users’ funds in cold storage to increase with your private key.
fund security. Standard web-based or mobile-based hot
wallets do not offer this feature. Paper wallets function in a similar manner as hardware
wallets. However, instead of a physical USB-like device,
While hot wallets stand out for their ease of use, they paper wallets are pieces of paper that contain a public
have one major drawback: security. wallet address and a private key. Therefore, they have to be
kept securely in a safe or somewhere where they cannot be
Storing a large amount of digital assets in a hot wallet, such easily found to avoid theft of your cryptocurrency. To send
as a web wallet or a mobile wallet, is not advisable as it coins from a paper wallet, the wallet has to be imported
leaves your funds exposed to potential security threats, into a hot wallet via a scan of the private keys so the coins
such as cyber theft. therein can be spent.

Therefore, you should only hold a small amount of crypto While cold wallets provide a superior storage solution
in hot wallets and your long-term investment in so-called in terms of security, the main drawback is that they
“cold storage” in a cold wallet. are impractical for everyday crypto usage as it is more
cumbersome to send crypto from a cold wallet.

Choosing a Wallet

Choosing which crypto wallet to use is entirely up to you and your needs as a user. If you plan to buy and
“HODL” Bitcoin, for example, you are better off putting your digital currency into cold storage, i.e., into a
cold wallet.

Conversely, if you are a regular crypto spender, you are probably better off holding some of your cryptos on
a mobile wallet.

However, whichever wallet you choose, make sure that it is a non-custodial wallet where only you hold the
wallet’s private keys. That way, you have complete control over your funds at all times.
MY DIGITAL MONEY

WHY
INVEST WITH
MY DIGITAL
MONEY?
Everyone wants to invest in cryptocurrencies but getting started seems as
complicated as the technology behind it. That’s why I created My Digital Money.
It is an easy to use, US-based self-trading CryptoIRA platform with concierge
level customer service.

Yes, we are here to answer your calls and help you.

I have always said that even if we offer cryptocurrency investment, our primary
product is service. That’s why we are here to answer your calls for any help you
may need. Whether it’s a forgotten password, help in submitting documents,
more information about coins, we are here for you. Just dial 833-MDM-2008.

I also made sure that it will be easy for you to start investing. With MDM, it will
take you no more than 5 minutes to get going.
How to Open an Account

STEP 01.
Just go to our website, www.mydigitalmoney.com.

STEP 02.
Click sign up and enter your name, email, and
valid phone number.

STEP 03.
You will receive a verification code, and this is for
your security. We want to make sure you are, in fact,
the one using your phone.

STEP 04. Enter the verification code.

You can open a play money account if you are
unsure about investing in crypto or just want to get
familiar with our platform. You can start investing
in crypto using a market simulation without risking
your real money.

If you are sure you want to start investing, just open

an account. Just follow the prompt.

For as low as $1000, you can start a cryptoIRA.

MY DIGITAL MONEY

Military-Grade
Security
When you open an account, I know that security is a
big concern.
Self-Trading
With that said, we guarantee that you are secure
with us. Your data is secure. Unlike platforms like
Platform
Robinhood, who may be offering no-fee transactions
but sell your data, MDM will always keep you secure. MDM is a self trading platform. You don’t need a broker
to buy or sell cryptos. With the markets moving so
We are in partnership with Equity Trust, a leader fast, one minute of delay can lose you an opportunity
in Self-Directed IRA with over $20 Billion in assets. to gain thousands, or even millions.
This arrangement comes with the highest levels of
security. With MDM, you have full control over your investment.
You can sell or buy your cryptos anytime.
I am going to be honest. Our platform comes with
fees, and these are all visible on the website and in
the documents sent to you. We guarantee, that in
exchange for that small fee, you have peace of mind,
we will never, ever, sell your data.

MDM also has features to make investment decisions

easy for you.

Trigger
Order
A trigger order means you can set parameters that
MDM allow you to sell or buy automatically. For example,
you can set it up so that when a crypto you own
Media goes up or down by either x% or $x (you decide the
amount) it is bought or sold automatically.
MDM will continue to provide you with educational
This minimizes your losses and guarantees
materials, tips, and news updates on the latest
opportunities for gains without having to be on your
developments in the crypto ndustry.
computer all the time.
We are not financial advisors, but we can provide you
On other platforms, you need to pay for this feature.
with valuable, accurate, and timely information that
With MDM, it’s free.
you can use to make better investment decisions.
Gains and loss prompts. Unlike other platforms, your
gains and losses are fully visible all the time.

You don’t need an excel sheet or calculator or go back

to your history to determine your gains and losses.
 Play Money
Account

Do you want to get into crypto investment but are intimidated with
this seemingly complicated concept?

Have you done your crypto research and ended up with more
questions than answers?

Have you watched countless crypto videos and read crypto books
and feel like they are just making it sound or look more complicated
instead of explaining it to you in the language you will understand?

Have you tried another crypto investment platform out there but
bailed as soon as you realize you will never be able to get personalized
help and assistance because everytime you call, you get forwarded to
a machine or pushed to their email?

Well, My Digital Money gets your concerns.

This is why we are offering you a “play money” account. All you need
to provide is your name, email, and phone number. No need to put
your credit card or other information.

You can immediately start investing and trading in real marketing -

using play money.

You can test out strategies, get a feel of our platform, and more
importantly, test yourself. Is crypto for you? Can you stand the
volatility? Can you bear all this news about the crypto ban and policies
being set up to control crypto?

Research, videos and webinars about crypto can only do so much. At

some point, you need to experience it.

With MDM’s play money account, you get to do this easily and safely.

Try crypto investment now - without risking a dime.

MY DIGITAL MONEY

A crypto trading platform that offers concierge

services and military-grade security for your wallets.

Collin Plume
CEO & Founder

Guy Gotslak
President & Co-Founder
 Written by Collin Plume & Guy Gotslak
Edited by Gary Cooper
Art & Layout by Marrione Manalo

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