What is Dash?
Formerly known as Darkcoin and Xcoin, Dash is an open source peer-to-peer cryptocurrency that has followed Bitcoin’s steps in the world of cryptocurrencies.
Walkthrough Video that Explains How to Buy Dash Online
It has the same features as Bitcoin, including advanced capabilities such as private transactions and instant transactions.
Dash is also self-funded and self-governed. What this means is that anyone can present their idea to Dash. And also, Dash network finances its own development process.
What makes Dash Unique to other Cryptocurrencies?
What makes Dash unique is its automatic self-mutating capability created with Cryptonote Technology. This means that the network code experiences close to 0% minimal error and minimal developer cost.
Dash was originally released in January 2014. It was first released as XCoin and then changed to Darkcoin. By 2015, it was rebranded as Dash or a shortened version of “Digital Cash”. During its first two days, 1.9 million coins were mined, which was a quarter of Dash’s supply that time.
Where Did It Start?
The creator and lead developer of Dash is Evan Duffield. Dash was one of the few surviving cryptocurrencies that have dwindled down during the time it was released. Dash has been able to prove its worth by being able to solve problems including slow confirmation times, block size increases, decentralised governance, and even limited manpower.
Based on information from CoinMarketCap, Dash’s daily trade volume was approximately $100 million per day and its market capitalization had exceeded $1.6 billion. For these reasons, it has become one of the most active altcoin communities on Bitcoin Talk.
There are only 22 million Dash coins. It has been considered as the third most valuable digital asset in terms of market capitalization.
One of the most innovative solutions brought by Dash is the use of a Darksend system which makes transactions untraceable. Combine it with designated computer Masternodes and transactions become untraceable- nobody knows where the coins came from and where they are going.
This makes Dash the most privacy-conscious cryptocurrency today.
Should I Buy or Trade Dash Online?
Is Dash a good investment? Given the number of other altcoins in the market today, what exactly makes it a good option to hold for the next years? In reality, there are a number of reasons you should buy Dash:
- It has instant transactions (Instasend). It makes sending and receiving Dash coins a breeze. For a lot of cryptocurrency investors, this anonymity is a major reason to hold their Dash coins. Dash developers are not stopping there. They are even planning to include IP obfuscation to further improve the anonymity of using Dash.
- Dash makes use of its X11 hashing algorithm. Most of the virtual currencies today use either Scrypt or SHA-256. What makes X11 a great alternative is the fact that it has been designed for less powerful hardware to verify transactions. This means that miners don’t need to spend so much on their hardware in order to mine Dash coins. In fact, X11 is 30% more efficient than a Scrypt algorithm.
- To give you a concrete idea, it takes hours for transactions to confirm using Bitcoin. On the other hand, you can have Dash coin transactions verified in just a few minutes.
- Also, you have to take a closer look at the cost of Dash. It is still relatively cheap compared to other cryptocurrencies. This means that you don’t have to take a huge risk in order to accumulate a decent number of Dash coins.
However, there are also some things that you should be considering. For instance, the cryptocurrency market is still uncertain at this point. For instance, retailer acceptance remains low.
How to buy Dash Online - Step-by-Step Guide
Get a Wallet
You will need to have a Dash wallet. A wallet is basically an equivalent of your bank account. This allows you to receive the virtual currency in order for you to store it and send it to others.
Basically, there are two types of wallets to choose from. You have the software wallet and you have the web/hosted wallet. The software wallet lets you install it on your own computer and mobile device.
You’d be in control of your coins but it can be a bit tricky to install and maintain in some situations.
Next, you have the web wallet. You make use of a third party, which is often times easier to use. However, always make sure that you’ve checked the security provided by the third party.
Also, you may want to consider the capability of the wallet that you are choosing. Electrum Dash Wallet, for instance, which is a desktop wallet, may not have features such as Instasend.
If you already own other virtual currencies, it is possible to trade these virtual currencies in buying Dash.
- Once you have your Dash Wallet set up, you can begin buying your Dash, but this will have to be done with Bitcoin.
- Using your Bitcoins, go to a website called Changelly, essentially a foreign Exchange for altcoins where you can buy an array of altcoins with Bitcoin and send them back to your wallet.
- Exchange your BTC for Dash. Choose BTC for what YOU HAVE. Choose Dash for what YOU GET. Enter the amount of BTC that you bought on Coinbase that you want to exchange for Dash. The application will automatically calculate your exchange rate and fee. Select Next.
- Enter your Dash address. Select Next.
- Confirm your details. Select Confirm and Make Payment.
- In Coinbase, make a payment for the amount of BTC you entered in the exchange for the Dash to the address provided. In this case, you would send 0.01 BTC to 1LXPCjgxwNEzynjWM8jEju3yo7GosKGVa3.
It is also possible to buy Dash using cash in different ways. One of the easiest options is to buy Dash coins on Dash ATMs. US has three locations where users can buy Dash directly from ATM. Oregon, Florida, and New York has this.
How to buy Dash With a Credit Card
What if you don’t have the money now, but can’t help but invest on Dash today? The good news is that you can now buy Dash using your credit card. There are a few sites that are offering this option to investors.
BitPanda, for instance, allows you to buy Dash coins using your credit card. However, this option is only open in Europe. In addition to this, you also have buying limits of 600 Euros which is relatively low.
How to buy Dash with PayPal
One of the biggest obstacles that people face is buying Dash using PayPal. In fact, a lot of investors are frustrated by the fact that they need to initially buy BTC before they can get other altcoins such as Dash.
Unfortunately, a lot of systems still don’t allow the use of PayPal and credit cards due to regulatory issues and fraudulent charge-back issues in traditional financial services.
There are ways in which you can make use of PayPal in order to purchase Dash but not directly. Keep in mind that it takes a couple of steps to complete. And for this reason, it is a turn off for a lot of users.
How to Trade Dash
Among popular Exchange houses that you can go for include Changelly, BitMex, Poloniex. Yobit, and BTC-e.
However, exchange houses are different from each other. There are exchange houses that only trade DSH and BTC, while others can turn your DSH to USD and Euros.
You have to compare the exchange fees before you start trading your Dash or other cryptocurrencies for Dash. Be sure that the exchange fees are within reasonable range. Also, you have to take into consideration that the transaction fees change over time.
Next, it is also important to consider the order book volume of the exchange house. Though not all exchange houses publish an order book, it is still a good idea to take a closer look at the buy and sell orders.
The higher volume of orders means that people rely on the exchange house, not to mention the exchange has liquidity.
In addition to this, you should also take into consideration how quickly you are getting the coins that you’ve purchased. Make sure to ask if the exchange is offering locked in pricing. This simply means that the coins that you are going to buy are at the price when you bought it even if its price fluctuated when you are about to receive the coins.
Trade Dash as a CFD
A popular trading platform that goes beyond what Coinbase can offer is AVATRADE, and just like setting yourself up with Coinbase, it is just as easy to get started on AVATRADE.
- Firstly, go to the website: www.avatrade.com and sign up by again providing basic personal information. In fact, AVATRADE makes it even easier offering you a choice to sign up with Facebook or even Google+.
- Once you reach the trading platform (below), a list of all the available Cryptocurrencies will come up, running down the left hand side of the screen. Once you are into your profile, you will need to fill in further personal information from your date of birth to your prefered choice of trading platform - something we will get to later.
- AVATRADE is more focused on being an efficient tool for actively trading digital currencies, and other assets, so it will ask your level of experience when it comes to trading. This will help you with the level of support you need from the site.
- When it comes to electing your trading platform, if you are looking to trade Dash, it is best to select Floating Spread Account with MetaTrader 4. This will give you the option to work with Dash, as well as other Cryptocurrencies.
- From here, you can fund your account, and much like with Coinbase, it is about linking a bank account to AVATRADE and making a direct deposit. Once there are funds present, you can buy Dash and start trading by clicking ‘Web Trading’.
Future of Dash Trading
Dash experienced a spike in its value over recent times. It has even reached third in terms of market capitalization. What exactly is in store for those who plan to trade Dash in the future? Is it a bubble or are we expecting Dash to keep up with other virtual currencies?
- First, let’s recap the good things about Dash. By far, Dash has adapted to the needs of the modern cryptocurrency world. It has its strongest asset which is its Masternode network. It has been able to adopt innovations that even Bitcoin couldn’t. Dash tech offers instasend and private send which is a breakthrough since not all cryptocurrencies can do this.
- Next, it is a virtual currency that is easy to mine. This means faster transactions because of the X11 hashing algorithm that is 30% more efficient than other algorithms commonly used by other virtual currencies. And in effect, you can already acquire the Dash coins in just a few minutes instead of waiting for hours.
- It also has a built-in governance. For a lot of investors, this built-in governance offers a solution for future problems that might occur in the cryptocurrency world. Also, unlike Bitcoin, Dash has a core team that includes Evan Duffield, Ryan Taylor, Andy Freer, and others.
- It is a core team that has delivered innovations. And for an altcoin, this serves as a sign of good things. But of course, let’s also address some of its problems.
- One, there is the high probability of all cryptocurrencies failing and Dash isn’t an exception.
- Next, you also have the past decisions of its business development team. They’ve had failed projects and focused on building relationships with exchanges rather than finding a concrete solution how Dash is going to be used as a currency in real life.
- And lastly, there are just not so many transactions that accept Dash at this point. You may argue that the virtual currency is in its infancy and there’s room for growth. However, this remains a risk that you should consider.
Should you consider Dash as a good investment at this point given all its strong points? Or the spike in its price is a sign that we are seeing a bubble?
Enjoyed this Dash guide? Then see our other cryptocurrency guides:
- How to buy and trade Bitcoin
- How to buy and trade Dash
- How to buy and trade Dogecoin
- How to buy and trade Ethereum
- How to buy and trade Golem
- How to buy and trade Litecoin
- How to buy and trade Monero
- How to buy and trade NEM
- How to buy and trade NEO
- How to buy and trade Peercoin
- How to buy and trade Potcoin
- How to buy and trade Ripple
- How to buy and trade Stratis
- How to buy and trade Tezos
- How to buy and trade Waves
- How to buy and trade Zcash
Disclaimer: None of this is intended as advice, these are merely my thoughts