Dash 101: Should I Trade This Crypto Right Now?

Bitcoin is not the only cryptocurrency out there, even if it is the most famous one. There are many other currencies that all promise to improve on aspects of Bitcoin, mostly doing with security and privacy of transactions. One of these is Dash, which rates among the best in terms of giving its users privacy.

What is Dash?

This is a cryptocurrency – this means that it makes use of cryptography to regulate its management instead of relying on central banks for regulation. Originally released as XCoin (XCO) in 2014, its name changed to Darkcoin shortly after and then in 2015, changed to Dash (Digital Cash).

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

The creator and leading developer was Evan Duffield. Interestingly, the creation of this coin was a by-result of Litecoin, where one of the codes forked out and created Dash. In the first two days, the approximate value of mined coins was 2 million, amounting to about 10% of total supply.

This problem was resolved, but the community did not approve the idea of launching the coin, and this caused the start-up distribution to stop. In the course of subsequent months, the coins traded at very low rates on cryptocurrency exchanges.

In 2017, the coin traded at a value of $100 million daily while its capitalization exceeds $4.8 billion. This makes the coin to be the most active alternative currency on BitcoinTalk. The currency focuses on achieving mass adoption by users of different markets through sustainable infrastructure.

Why is Dash different?

The coin has several features that distinguish it from other currencies, which we have stated.

  • PrivateSend – based on CoinJoin, this is a coin-mixing service but with modifications to its structure. For instance, instead of using one website, it uses masternodes. It also chains through mixing multiple masternodes and reduces the mix to specific denominations and amounts. This feature provides users with high privacy levels through combination of similar input from many users into one transaction that has several outputs.

  • InstantSend – this gives the user immediate transactions, while it rejects conflicting blocks and transactions.

  • Masternode – dash uses two-tier networks to mine coins, unlike Bitcoin, which uses a single-tier network. This means miners handle creation of blocks, while masternodes handle PrivateSend, governance and InstantSend functions.

 

Alternative coins to use

Dash is a trendsetter indeed – with the massive growth it has great potential to succeed greatly among cryptocurrencies, even Bitcoin. However, other coins work equally as well if not better, and we have compiled a list of several of them.

  • Ethereum/ETH – a very recent one from 2013, it enables distribution of applications and running of smart contracts without interference from third parties. It has a fast rate of processing transactions because it uses programming codes of decentralized applications, unlike Bitcoin and Dash that focus on blockchain technology.

  • Ripple/XRP – this currency is among the largest in the market, and it offers you friction-less, immediate and affordable international payments. Another distinguishing feature is that you do not need to mine it, and therefore reduces computing power. It is also gaining popularity among financial institutions because it allows them to process their customers’ payments immediately.

  • Verge (XVG) – this currency is also a recent one, improving on the Bitcoin and Dash blockchains. Its main aim is to provide both businesses and individuals with a faster, decentralized and efficient manner of direct transactions while they maintain their privacy. Among its features is an anonymity-centric network including 12P and Tor, and results in transactions becoming untraceable.

  • Zcash/ZEC – a 2016 product, which offers users additional privacy and optional transparency in transactions. The blockchain design is unique from Dash because it only shows you that transactions occurred without revealing the identities of the individuals or the cash involved. It is open source in nature – because of this; the Zcash Company has no control over it.

  • Monero/XMR – 2014 was the launch year for this currency and its development is unique – it uses donations as well as the power of the community to improve its features. It allows for complete privacy as well through a technique called “ring signatures”.

 

Technology behind Dash

The community that controls the currency is decentralized. Referred as DGBB (Decentralized Governance by Blockchain), it acts as a ‘treasury system’, where a consensus must be reached before any changes to the network as well as the Dash ecosystem funding.

10% of all block rewards go towards the treasury to pay for projects that add value to the currency. In fact, the funds from this treasury find and hire employees as well as developers, in addition to funding conference attendance and integration with API providers and major exchange platforms.

 

Trading Dash currency

In the instance, you are not interested in mining Dash blocks; you can choose to trade them by using another currency such as Bitcoin. You do this at website, also known as exchanges.

Wallets

Similar to other cryptocurrencies, you should store Dash in a digital wallet. These wallets can vary from software wallets, which reside in your computer, to web-hosted wallets hosted by third parties.

Some wallets are better than others are, so it is good to consider the capability of the wallet itself. For example, Electrum Dash Wallet may not have Intrasend features. Here are some steps to follow when trading in the currency (after you acquire a wallet).

Trading the currency – steps

Before you start trading in the currency, it (along with all other cryptocurrencies currencies) is very volatile, and prices are subject to very quick changes.

Its value is not from an industrialized economic base, but from the work your computer performs – this means you can trade it just like normal items. Many risks come with trading the currency, but as long as you understand them, you can become a player in the market.

How to buy Dash

You can use Bitcoins, PayPal and Credit/debit cards to buy Dash, though the process is similar in all three. This will cover using Bitcoin to buy the currency.

  1. Set up your wallet. Note that you cannot buy Dash currency directly, but you will need to buy Bitcoin first and exchange it later.

  2. Using the Bitcoins, the best exchange provider for alt-coins is Changelly. It gives a wide variety of alternative coins that you can purchase using Bitcoin.

  3. Exchange the Bitcoin for Dash. The process is easy – select BTC for what you have, and Dash for what you want. Once you enter the Bitcoins you want to exchange, the application will calculate the exchange fees and rates for you immediately.

  4. Select next, and enter your Dash address.

  5. Confirm your data and finish the payment.

Trading Dash currency

A popular platform that offers the service is AVATRADE, and to trade in the coin, you must sign up as a broker. Luckily, it is a very easy process.

  1. On the website AVATRADE, enter your personal information.

  2. All the currencies available will come up on the site, so it will ask you your experience level in order to gauge the support you require.

  3. The trading platform you should choose is Floating Spread account – this is because it allows you to work with other currencies.

  4. You can then deposit funds in your account and start trading Dash currency.

Dash prices and trading history

The currency is newer than most, so it does not have an extensive history of data in price changes. However, it has set itself as a potentially leading cryptocurrency, as evidenced by its increasing adoption by businesses of various types and individuals. However, it is important to remember that all cryptocurrencies are volatile in nature, and price changes may be very significant.

The price of Dash has maintained stability for the most part of its history, but by the end of 2017, the value of Dash saw a sharp increase, with its value increasing from $20 mark and peaking at $57.89. This has led to Dash becoming the best currency in terms of market capitalization, even more than Bitcoin and Ripple.

Is it worth trading in the coin?

This is a complicated question, because several authorities do not approve of investing in cryptocurrency in general. The reasons they usually give range from the highly volatile nature of these currencies, and the fact that their value is unpredictable. Another problem is the low trading volume of the coin, and the name of the currency itself, which is not associated with cryptocurrency. Because of this, they point to Dash as having too many danger signs.

Other voices point out the increasing value of Dash investments – and that if you do not take a chance now, you will regret missed opportunities in the future. We have compiled a list of various facts that make this currency so exciting in potential:

  • It recognizes economic incentives, integrating them into its platform and making adequate infrastructure.

  • Immediate payments – due to InstantX technology, transactions take a maximum of four seconds in processing.

  • Low costs – even lower than banks or credit cards.

  • Privacy – Dash recognizes financial privacy as a user’s right, and this is why it offers its users real privacy.

  • The two-tier network – being the first currency to introduce masternodes, the servers are secure all the time, and are good at providing different network services.

The risks are great, for example the uncertainty in value as well as lack of liquidity. However, if you are prepared to shoulder losses as a probable cost, then you can invest in it.

 

Conclusion

The rise of Dash is synonymous with the rise of digital cash. People want to spend money faster without reliance on institutions like banks that require long protocols and time to approve transactions. The potential benefits are immense if you invest well, but it is best to be careful and not rely on it too much.

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