How To Invest In Dash - Step-by-Step Guide
Dash is a blockchain and cryptocurrency project which is open-source and aims to provide a system for a fast, decentralised and affordable international payments network. One of the primary objectives of the project is to improve upon Bitcoin by enhancing privacy and quicker transactions.
Dash has a native cryptocurrency that's referred to as DASH which, at the time of writing this article, is valued at a market capitalisation of over $1.8 billion. The maximum supply of DASH tokens is capped at 18.9 million tokens with around 10 million in circulation.
Table of Contents
Invest in Dash in 3 Steps
Get a Dash Wallet
Before putting your money in DASH coins, you need to make sure you have a way to store your tokens safely. The most ideal route is to get a Dash wallet which comes in both hardware and software variations. You should choose the wallet subject to your trading strategies as well as considering the features offered by cryptocurrency wallets such as security, portability, user-friendliness, client assistance and price.
Join a Dash Exchange
After you have acquired a Dash wallet, the next step you need to take is to register your account on a crypto platform. You will need to confirm your account for identity verification. Remember that you can't purchase DASH coins right away and you will initially need to deposit funds and once the funds reflect in your exchange wallet, you can trade them for DASH tokens.
Invest in Dash
Making an account on a crypto exchange requires you to give your personal information like name, contact, email and country. You additionally need to have a password which is preferably a mix of lower and capitalised letters including a unique character and a digit. For account confirmation, the crypto platform will request you to submit a piece of documentation that affirms your identity like your ID card or a driver's permit. This way cryptocurrency platforms keep up adherence with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
Investing in Dash Explained
It doesn't make any difference that you are putting your capital into Dash or some other blockchain-based digital currency, you first need a protected wallet. Getting a wallet needs to be an informed decision where you need to consider various factors such as control for your private keys, wallet security, client assistance, convenience, the capacity to back up your data and price.
If your goal is to hold DASH for quite a long time such as years, you are a 'hodler'. For such financial investors, the best variation is a cold wallet that looks like a flash drive. It doesn't contain any hardware such as WiFi which can be used to access it through the internet. This guarantees that your DASH tokens stay protected from any hacking endeavours.
On the other hand, in the event that you are a short-term investor or day trader who needs to trade his digital assets quickly and on-the-go, you could prefer a versatile mobile wallet that offers a fair mix of security and DASH availability. In situations where you need greater security and a wide variety of advanced features, a desktop software wallet would be a superior fit for you. These are programs that you can install on your PC and afterwards, you'd have the option to store your DASH tokens.
When you are simply holding digital coins like DASH for a few minutes for your quick trades, at that point web wallets that are incorporated into your crypto platform can take care of business. These wallets are not especially secure as they exist on your crypto service website which is consistently a target of cybercriminals but then again, as long as you are not putting away a considerable amount of DASH or need to hold the coins for a short duration, there isn't a huge risk with using web wallets. If you need better security, you can consider third-party web wallets like MyDashWallet. The best component of web wallets is that they empower you to execute your trades as well as open and close your positions in no time. You have immediate access to your DASH tokens to guarantee you don't miss out on profitable trading opportunities.
Regardless of whether you are investing through a peer-to-peer network, a crypto broker, or an exchange, each digital money service that cares about its clients will verify your identity to ensure compliance with KYC and AML laws. This permits them to guarantee that there are no illicit, fake, or morally sketchy activities occurring on their platform giving you a sound and safe investment venture service where your assets stay secure.
Where Can You Invest In Dash?
There are a wide range of leading exchanges as well as brokers that you can trust to buy DASH coins. But to enable you to make an informed decision, we have selected some of the most well-known cryptocurrency platforms and reviewed them for a variety of essential features including ease of use, regulatory compliance, affordability, customer support, variety of coins, payment modes, and more to identify the best platforms for you. Our top recommendations include the following crypto platforms.
When you register your account on a digital money brokerage service or a crypto exchange you will see that they give you a number of payment methods. These for the most part feature wire transfer, debit and credit cards, and digital payment services. The accessibility of these modes is subject to the country you live in and the service you are using to purchase DASH. In the event that you are beginning as a financial investor, it is suggested that you store your seed capital with a debit or credit card. It will be a bit expensive, however, it is quick and convenient to use. When you deposit your seed capital, you can put your money into DASH tokens.
Cryptocurrency platforms will also permit you to store your funds directly through your bank. The technique is easy to use yet the deposits may take some time to show up in your account, particularly if it's a global transaction. To use this mode, provide the crypto platform with your bank’s name and your preferred fiat currency. You will be taken to another page for identity and account verification. Whenever you have completed this verification procedure, you can deposit the payment and begin investing in Dash.
Dash Investment Strategies
For investing in DASH, there is a multitude of both short and long-term investment strategies which can be quite successful if executed perfectly. Following are some of the most well-known trading and investment strategies you can use including the details regarding when and how to use them.
Buy and 'Hodl'
What is it?
The word 'hodl' came into existence when an annoyed Bitcoin financial investor posted a long remark and incorrectly spelled 'hold'. His remark circulated around the web and the term turned into an inside joke of the crypto world. With regards to 'hodling', the procedure is actually what it sounds like. You purchase DASH coins and store them for an extensive stretch of time until the DASH price is sufficiently high to sell your tokens and acquire financial gains.
How to use this strategy
This method expects you to purchase tokens and hold them for which you'll require a wallet. At that point, you should join an exchange and verify your identity. You need to remember that the 'hodling' methodology is for patient and trained financial investors who would prefer not to sell immediately. For this technique to work, you should be patient and fight the temptation to sell early.
When to use this strategy
The best technique to execute the ‘hodling’ strategy is to purchase DASH when it's experiencing a bearish trend. Purchase your DASH tokens and store them in your safe wallet until the cost is sufficiently high to sell and make enormous profits. Meanwhile, the crypto market will experience a lot of price volatility but you shouldn't let it influence you. Simply hang tight and wait for the moment when the price of DASH has arrived at where it is highly profitable for you to sell.
Buy Fractional Dash
What is it?
Like numerous other digital forms of money, Dash doesn't compel you to purchase the entire token as the blockchain network offers more modest units of the coin. Dash’s smallest denomination is called Duff and 1 DASH = 100,000,000 Duffs. Capacity to purchase part of DASH implies you can put any sum you need in Dash. Regardless of whether you have $10,000 or just $30 to save, you can buy Dash and store it until the price is sufficiently high to sell. This fraction strategy additionally permits you to contribute occasionally so you can build your portfolio by enhancing your stake in DASH across a period that spans over months or even years.
How to use this strategy
The best way is to save a specific portion of your income each month and put it in DASH. When you can do that for one to two years, you will be able to accumulate a decent amount of DASH tokens which will build your stake and opportunity of increasing potential gains.
When to use this strategy
This is a procedure for novice financial traders or individuals who either don't have adequate enough discretionary cash or don't have any desire to place a great deal of cash in digital assets. This empowers you to put your money in various stages and you can back off if or when you feel that your investment venture isn't working out.
Long Position on Dash
What is it?
Long positions are regularly opened by experienced financial investors who positively believe that the price of DASH coin will go up in the coming hours or days. This is by and large done through contracts for differences which empowers users to bet on the price of the asset without actually owning it. This could be a high-risk and high-reward speculation technique, especially with leveraged trading and should just be used by exceptionally educated and experienced brokers and traders who comprehend the consequences of their choices and monetary risks that come with long positions.
How to use this strategy
In the event that you are especially certain that DASH will go up in the coming hours, you can open a long position through a brokerage website. Whenever you have signed up and verified your identity, you should store a minimum deposit and select the sum you need to invest in your trade. Aside from that, you will enter the price at which you need your trading position to start. When DASH hits that mark and keeps on climbing, you can close the order and take your gains. Then again, if the price of the token doesn't arrive at that value, you need to bear the losses.
When to use this strategy
Long positions can be used when market factors are dictating that the price of a coin will continue to go up. Investors should only use it when there is a bullish trend. We should make it extremely clear that the long positions with leverage should just be utilized by somebody who comprehends both digital currency price unpredictability and monetary business sectors. If the price of DASH goes down even a few pennies, you can lose a lot of money.
Benefits of Investing in Dash
- Deflationary Digital Currency – As you might know that there is a limited maximum supply of DASH which is capped at 18,900,000 DASH coins, it is a deflationary cryptocurrency that does not lose value like conventional fiat currencies.
- Ease of Use – Dash is quite easy to invest in and is accessible on most cryptocurrency exchanges as well as brokerage websites.
- Autonomy – Dash is a decentralised blockchain which means that transactions and funds are highly private and no central authority can exercise control over them.
- Anonymity – When you trust Dash blockchain for financial transactions, you stay anonymous and it is quite unlikely to tie your personal identity to the transaction
- Fraction Investment – Dash’s smallest unit is called Duff and 1 DASH equals 1 billion Duffs. This means that you can invest as little as $25 in Dash.
Disadvantages of Investing in Dash
- High Volatility – As Dash is one of the most established cryptocurrencies, there is a lot of speculation around it. This means that the price of the currency is highly volatile.
- Beware of Scams – Since the cryptocurrency industry is still in its youth, there are various scams and fraudulent activities going on in the name of cryptocurrencies including DASH. You need to make sure that you are using a legitimate platform for your Dash investment.
Other Ways of Investing in Dash
If you are searching for alternative ways to invest in DASH, you can directly set up a meeting with a seller using a P2P platform. Just ensure that you are safe and meeting at a secure location. One more method to acquire DASH tokens is to use the ATM Radar website to find out the nearest DASH ATM in your region and use your fiat money to acquire DASH coins.
Invest in a Dash ETF
An Exchange-Traded Fund which is usually known as an ETF is a trading instrument that gives a direct and lawful path for new financial investors to trade cryptocurrencies such as DASH. An ETF is a speculation driver whose worth relies upon the digital assets it addresses. ETFs typically contain more than one asset for broadening the scope of investment and managing financial risk. This is exactly why ETFs give an ideal trading strategy to individuals who would prefer not to manage technicalities related to digital currency investment like public and private keys, DASH wallets and security.
Dash is built on a double-layered blockchain network that is used for securing transactions. The first layer includes nodes that carry out mining relying on a Proof of Work consensus protocol. This type of mining entails competition between miners who attempt to find the right solution to complex cryptographic problems. For the mining to work at least 51% of nodes must have to validate a transaction to add it to the blockchain. The algorithm that creates cryptographic problems on Dash blockchain is referred to as X11 which is a custom hashing algorithm developed by Dash.
Frequently Asked Questions
No. The smallest denomination of DASH is Duff which is a billionth of 1 DASH. You can use Dash for fraction investment.
You cannot. If someone is promising you 100% profitability, they are either running a scam or lying. What you can do is manage your financial risk by diversifying your portfolio etc.
That totally depends on tax laws in your country. Check your local laws before investing.
Yes, but it is a bit different from Bitcoin. Dash relies on a double-tier network for securing transactions. The first tier involves nodes that conduct mining under a Proof of Work consensus method. It means that miners compete to find solutions to complex cryptographic problems and at the very least, 51% of nodes must validate a transaction to include it in the blockchain.
Most of the top cryptocurrency platforms comply with KYC and AML regulations to ensure there are no frauds, scams and illegal activities on their platform.