What Is Dash Currency?
Dash is a unique peer-to-peer cryptocurrency that is exchanged through encrypted software. Think of Dash as digital cash that you can use to make private payments, make instant payments online, and much more.
Dash was first introduced by Kyle Hagan and Evan Duffield as XCoin and was later renamed Darkcoin. It was only in March 2015 that the name changed to Dash, and it has stuck ever since. Speaking of names, there is another cryptocurrency called “Dashcoin” that could pop up when you type “What is Dash currency?” into a search engine, so please make sure you are dealing with the right Dash.
Though Dash is based on the Bitcoin software, it has a unique two-tier network (Bitcoin is a single-tier network).
The first tier in the Dash network is composed of nodes (computers that communicate with another), which are handled by miners. This tier looks after basic network functions, such as verifying Dash transactions and creating Dash coins.
The second tier of the Dash network is represented by specialized masternodes. These are full nodes, computers that work in highly secure groups called “quorums.” Masternodes provide a whole host of decentralized services like private transactions, instant transactions, and governance. (Source: “How Dash Works,” Finder.com, November 27, 2107.)
Thanks to prompt incentivization, the Dash network has grown to 4,100 masternodes, from the time it started in 2014. This rapid adoption has helped make Dash one of the largest peer-to-peer networks in the world.
Advantages of Dash
Of the hundreds of altcoins in the cryptocurrency market, Dash is one of the most popular. Even though there is a Dash circulation limit, there are already more than 7.7 million Dash coins in circulation.
By the time the Dash max supply is reached, the market cap will be going to stratospheric levels, giving another possible reason why you should buy Dash.
Here are some more advantages of Dash.
Economic Incentive Concept: The concept was originally built into the Dash platform, and the developers continue to build adequate infrastructure to support it. Though it costs big money to set up a masternode initially, they get paid 45% of the reward on every block. Typically, every three or four days, each masternode gets paid one Dash. In addition, masternodes also earn fees whenever someone uses their services.
Low Transaction Fees: When compared to the transaction fees charged by credit cards, banks, and other services like Moneygram International Inc, The Western Union Company, or PayPal Holdings Inc, Dash transaction fees much lower. In fact, the Dash median transaction fee currently sits at about $0.07.
Instant Payments: Thanks to a unique decentralized technology called “InstantX, Dash users can get a confirmation of completed transactions in less than four seconds. Talk about instant payment.
Extreme Privacy: Dash views financial privacy as a fundamental right. That’s why Dash provides users the ability to make transactions in such a way that no one can back-link the identity of a user with a particular transaction or address.
Two-Tier Network: Dash’s masternode servers are secure, always on, and capable of delivering several network services. Masternodes also allow for new services (even services that cannot be delivered by other types of cryptocurrencies) to be introduced into the network. What this means is that Dash can constantly upgrade itself, be relevant to future needs, and remain robust.
User-friendly: Users can utilize a set of well-defined mechanisms to submit proposals to their network for improved services. This is a huge advantage for end users, as they can request what they find most important.
Personal Wallets: All the funds in Dash are controlled by personal wallets, and all money transfers are verified by the distributed network. This eliminates intermediaries and their fees.
Advanced Security: Dash operates on a decentralized network that employs advanced encryption and is, therefore, very secure. To facility the security, safety, and independence of the system, it has a source code that is open and available for viewing and vetting by anybody.
Global Transfers: Dash has global payments and infrastructure to facilitate dash wallet users to transfer money anywhere in the world, without having third parties block or track the transfers. This allows for international interactions that are independent of the local currency or location. (Source: “Dash – Best Cryptocurrency For Instant Private Payments Online?” BitcoinExchangeGuide, last accessed December 6, 2017.)
Given all these incredible advantages, it’s not surprising that investors are keen on finding out how to buy Dash currency, especially as there is very little information online on how to buy Dash with credit or debit cards.
How to Buy Dash
Like with most cryptocurrencies, buying Dash involves three basic steps:
- Get a Dash Wallet: There are different types of Dash wallets available online, and you can choose one based on your requirements. If you have a large amount of Dash, opt for a hardware wallet. For a small amount of Dash, desktop or mobile wallets will serve the purpose.
The perfect Dash mobile wallet is one that’s available for both “iOS” and “Android.” “Jaxx” is a good example. For “iPhone” users, “Coinomi” works well, and so does “Dash Wallet.”
The Dash hardware wallets are the most secure mode to store and use Dash for longer periods. The most popular hardware wallets are “Ledger Nano S,” “Trezor,” and “KeepKey.”
Dash desktop wallets are good for storing Dash, but they do not have all the features, like “private send” and “instant send.”
- Purchase Dash: If you have Bitcoin (BTC), you can trade it for Dash on U.S. cryptocurrency exchanges such as ShapeShift or Changelly. Those who don’t have Bitcoin can buy Dash with a wire transfer via Bitpanda or Kraken, or AnyCoin Direct.
The big problem with these exchanges is that you need to go through a lengthy verification process (sometimes it can take up to two days) before you can make transactions.
As for how to buy Dash with credit or debit cards, the best option is Changelly. But, since Dash buying prices are very high on Changelly, I wouldn’t think of buying Dash with credit cards, unless you have no other realistic option. (Source: “7 Best websites to buy dash cryptocurrency,” Coinsutra, July 11, 2017.)
If you are in New York, Oregon, or Florida, look out for the locations where you can purchase Dash directly from an ATM.
- Move Dash Coins to your Wallet: This is a very important step. Do not leave your Dash on any exchange, because the exchanges are public and can be hacked. The Dash is officially yours only when it is in your wallet.
After those three steps, you will be the proud owner of Dash. As Bitcoin is getting out of reach, investing in the cryptocurrencies that are vying for second spot seems like a great option. So, if you’re keen on joining the cryptocurrency bandwagon, you might want to make a Dash for it, before the price goes up.