“Dash it; I’m ready to invest in Dash.” Investing in cryptocurrencies is exciting, educational, and potentially lucrative. Before you make a dash for it, it would pay dividends to have a deeper understanding of this altcoin – what is Dash, how does it compare to other cryptocurrencies, and what future does it hold?
Buying Dash is a relatively straightforward process, but there are certain trading types with which you may want to familiarize yourself. Some useful trading tools will help you form price predictions now and through the course of your trading career. Don’t just rely on (potentially biased) advice you read on blogs, forums, and social networks. Finally, finding the right place to carry out all your trades is essential.
What Is Dash?
“Dash” is a portmanteau of the words “digital cash.” It was launched in January 2014, two years after the release of Litecoin. Litecoin was the first significant Bitcoin fork, improving upon perceived flaws in Bitcoin. The concept of Dash was born in a similar vein: to go one step better than both Bitcoin and Litecoin, who remain Dash’s closest allies and biggest competition. Dash still has a lot in common with both of these cryptocurrencies. First and foremost, Dash shares the same philosophy and goal to provide a fast and free payment system and currency owned and controlled by its users. Dash is open-source and decentralized. The users can manage the network, and changes can be proposed and voted on by “nodes” (individual computers on this net). Decisions are ratified by the DAO (Decentralized Autonomous Organization), however.
Dash has differentiated itself in many ways. The supply of “DASH” (the currency of Dash) is limited to 18.9 million, which compares to Bitcoin’s maximum supply of 21 million and Litecoin’s 84 million. Having fewer coins will make the coins scarcer and increase their value. It uses a combination of proof-of-work and proof-of-stake as its consensus mechanism (Bitcoin only uses proof-of-work). Dash is much faster at processing transactions as a result of implementing “InstantSend.” Mining DASH has a different payout structure. 45% is awarded to the user, 45% to “Masternodes” (users with 1000 or more DASH), and 10% for network maintenance. Masternodes also have a greater influence on changes to the network.
Privacy is a big divider between these cryptocurrencies. Dash has opted to increase privacy for its users by using “PrivateSend.” Its coins are “fungible,” which makes them nearly impossible to trace as they are indistinguishable from one another. Dash faces some of the same problems as Monero and Zcash by being so private, such as increased criminal usage. It will also make Dash a target of the financial regulatory services. Finally, the transaction fees are much cheaper with Dash. While Dash is lower down on the market cap table, proof of its concept can be seen by the large following it has amassed and its enormous price rise. Its price began at 0.32 cents, and it is currently around $132 with an all-time high of a massive $1550.85.
How Does Dash Work?
As mentioned above, mining is one of the most significant technological differences between Dash and Bitcoin. By introducing the concept of “Masternodes,” transaction speeds are increased, and miners working hard on the network are fairly rewarded. Not only that but introducing qualification criteria for becoming a Masternode of 1000 DASH gives users a vested interest in the company making insider attacks on the network less likely. It may not be a full-proof system on an individual level, but when this incentivized loyalty is applied on mass, it ensures the majority will be acting with the best intentions for Dash’s network. Masternodes also make it possible for the network to use InstantSend and PrivateSend. Dash was the first cryptocurrency to use Masternodes, and many other cryptos have since followed suit.
InstantSend is the technology used on Dash’s network to enable its users to send DASH at high speed anywhere in the world. The same payment cannot be sent twice thanks to “transaction locking,” and Masternodes check and authorize payments when enough confirmations are visible. After the Masternodes have reached a consensus, the transaction cannot be undone. If an agreement cannot be reached, then InstantSend will reassess the transaction. InstantSend adds nothing to transaction fees. PrivateSend, as the name implies, is a means of sending DASH privately, without any identifying traces relating to the sender throughout the process. It achieves this by mixing transactions with 8 to 16 groups of transactions. Think of it like shuffling a deck of cards repeatedly.
To prevent the much-feared “51% blockchain attack” on the Bitcoin network, Dash has also introduced “Chainlocks.” These randomly choose 400 Masternodes to create and confirm blocks to make it harder for individuals and groups to sabotage operations. Dash has several other elements, including CoinJoin (similar to PrivateSend), Sporks, and X11 Hash Algorithm. This hashing algorithm created by Evan Duffield was made to prevent ASIC mining, which is a big problem for Bitcoin. Dash also uses Dark Gravity Wave (a difficult-adjusting algorithm to ensure mining standards), Sentinel, and Dash Evolution (the latter is supposedly going to make Dash transactions as easy as PayPal), amongst others. Dash is continually refining and adding new technologies to its inventory.
What Is The Future Of Dash?
Dash has several elements which put it in a strong position over the coming years. It is a fast and cheap payment provider with an ever-growing number of partners (which increases adoption levels). DASH is scarce, with a lower total supply than Bitcoin and Litecoin (which increases its value), and it is available on most cryptocurrency exchanges. Dash effectively combats many problems faced by Bitcoin through its hashing algorithm and implementation of Masternodes. It also offers users much more privacy, which is highly sought after through the successes of other privacy-centric coins. The question remains for Dash, as it does for Litecoin and the majority of altcoins, will Bitcoin lose its footing as the number one cryptocurrency? Also, will the cryptocurrency marketplace survive, especially with so many environmental concerns about mining taking place center stage right now?
Ultimately, there are no guarantees in any of the markets and particularly with a marketplace as volatile as cryptocurrency. That said, some signs are pointing to prosperity for Dash. Dash’s performance so far goes to show that it can profit, even while Bitcoin remains in pole position. Technologically speaking, Dash has improved upon many of the issues faced by Bitcoin, but Bitcoin’s following will be hard to budge (if even possible). However, cryptocurrency will not be a “last man standing” market as there is a vast range of applications for the underlying technology. Dash can also be modified and adapted according to changing needs, for example, to make its mining more eco-friendly.
Most pundits are optimistic about the value of Dash. Over a five-year forecast, price predictions fall roughly between $400 to $800. With the information we have at our fingertips, a Dash investment looks like a good move. You can form price predictions yourself (and it is a good idea too) by using chart indicators, such as Bollinger Band (measures volatility), MACD (elucidates trends), and volume (shows the amount of trading). There are thousands of indicators but don’t let this put you off. By just learning how to use a few of them, you will significantly improve your price forecasting abilities.
How To Invest In Dash?
If you decide that investing in Dash is the right thing to do, you have many options. The most straightforward Dash investment is to buy the associated coin (DASH). This can be done at several exchanges and trading platforms. Derivative bets are another popular trading method. CFDs (“contracts for differences”) are used to maximize possible gains by leveraging money on a trade. “Shorting” cryptocurrencies is another possibility if you believe an asset will go down in value. Be careful to check the terms of all of these contracts, and you are aware of what you may need to pay back (specifically with CFDs and short trades).
Where to Invest in Dash?
Not all trading platforms are built the same, and the brokerage you choose can massively impact your overall trading experience. Whether you are only interested in investing in Dash, or other cryptocurrencies and marketplaces, then our online trading platform, “TradeOr,” is the perfect solution. TradeOr allows its users access to several marketplaces, including the stock market, forex, indices, commodities, and cryptocurrencies. Our fees are highly competitive, and we have a whole host of features and functionality to make your trading experience everything you want it to be. There are various tools you can use, such as chart indicators and expenditure monitoring. You can also place a wide range of derivative bets. Our support team consists of both technical and expert advisers to assist you with any problem.
If you want to make a Dash investment, it’s a good idea to keep up-to-date with news about Dash, as well as the cryptocurrency market in general. There are many information hubs across the internet, with new predictions being made all the time, but it is well worth learning how to use a handful of chart indicators to see what the stats are saying for yourself. Chart indicators are just one of several tools available to our users at TradeOr. TradeOr enables trading across a broad market spectrum with many trading options, from options contracts to CFDs. We have a super support team and zero commissions Join us today.