Table of contents:
- 1 Dash buy and act – the crypto currency as alternative to Bitcoin
- 2 How to buy Dash
- 2.1 What are faucets?
- 2.2 Buy Dash at exchanges
- 2.3 Trading with a broker with Dash
- 2.4 Trading Dash at the crypto exchange and broker
- 2.5 What do you use to buy Dash Coin?
- 2.6 When is the ideal time to buy?
- 2.7 Why it pays to invest in Dash
- 2.8 Varying prices for Dash
- 2.9 Faucets offer the possibility to buy Dash for free
- 2.10 Strategies for trading Dash
- 2.11 Do not rely exclusively on Dash
- 2.12 Day trading and investment in CFDs
- 2.13 Trading CFDs on Dash Coin
- 2.14 Test strategies and gain trading experience
- 2.15 Free demo accounts make you familiar with trading
- 2.16 Conclusion: Dash is a good alternative to Bitcoin
Dash buy and act – the crypto currency as alternative to Bitcoin
Dash (DASH) describes itself as digital cash that offers its owner financial freedom. Payments are simple, fast and secure. The fees for transactions are kept to a minimum. Dash was developed to bypass existing problems with Bitcoin. The means of payment supports real use cases with the goal of providing a decentralized payment solution. With Dash Coin you can buy from numerous merchants worldwide. You are independent from banks. You trade Dash on the most important stock exchanges and with well-known brokers. With the latter, you trade CFDs and securities. To purchase Dash, you need a Dash Wallet. You can download it directly from the provider’s website. A small amount of equity is sufficient to purchase Dash and start trading crypto currencies.
- Dash is scalable, secure and faster than comparable crypto currencies like Bitcoin.
- Dash is “real” digital cash, which is recognized by various merchants worldwide. The cost of transactions is close to zero.
- You earn Dash Coins by mining.
- Alternatively, you can buy Dash from crypto exchanges or purchase CFDs and securities from crypto brokers.
A short overview of the crypto currency Dash
Dash is an alternative to the classic Bitcoin block chain. Unlike the most popular crypto currency, Dash offers clever solutions for the biggest problems of Bitcoin. Dash lowers the consumption of energy during mining. The crypto currency guarantees integrity and anonymity in payment transactions. In addition, the network protects better against attacks than the conventional Bitcoin system. Dash was launched in 2014 as a fork of the crypto currency Litecoin. The currency was known as xCoin. A little later it became Darkcoin. Another rebranding took place in 2015. Since then the crypto currency has been called Dash. This is a made-up word, which is made up of the words Digital and Cash. The code is based on Litecoin. The developers see Dash as an improvement on Bitcoin. The blockchain concept is designed to avoid the problems of system implementation and design of Bitcoin. This allows them to offer a superior system. Unlike Cardano or IOTA, the developers did not present a new concept for an alternative block chain. They focused on improving the original Bitcoin system.
The functionality of Dash
Customers who buy Dash are interested in how the crypto currency works. Just like Bitcoin, it relies on the well-known proof-of-work mechanism for validating transactions. Mining is used to confirm digital money transfers. A disadvantage of this procedure is the high consumption of resources using energy-intensive systems for mining. To reduce this problem, Dash relies on the use of the X11 hash algorithm. This is a string of eleven hash algorithms (hence the number 11 in the name). In contrast to Bitcoin’s SHA-256 algorithm, the execution of the algorithms stored in sequence is more energy efficient.
The algorithms include:
- BMW (Blue Midnight Wish)
Running eleven algorithms in a row is more time and energy saving than running SHA-256.
It is possible to create dedicated hardware for individual algorithms that perform the same set of operations over and over again. These systems are specially tailored to one algorithm. In the case of Bitcoin, for example, this is used to guess hash sums of the SHA-256. With Dash’s X11 algorithm, this is not possible because the construction of a corresponding hardware that covers eleven algorithms is very complex. In this way, the developers prevent the monopolization of digital assets. Users cannot reinvest their assets in dedicated hardware to mine much larger amounts of Dash.
Understand the network to buy Dash currency
Behind Dash is a sophisticated network. The provider declares nodes with more than 1000 DASH as master nodes. They step out of the mass of other nodes. The master nodes take over important tasks regarding security and administration. For the vote on further development, they receive a share of the revenues from network mining. To get into the inner circle, you need a minimum deposit of 1,000 DASH. This offers users the security that nobody creates fake accounts or multiple accounts that negatively affect the network by their number. In computer security, an attack on the peer-to-peer network with false identities is called a Sybil attack. Dash is considered sybil-safe because of the minimum deposit.
The master nodes also enable PrivateSend. They collect the transactions of other nodes in order to summarize them into payment flows. This eliminates individual transactions. Inputs and outputs from the individual nodes migrate into the payment flows. They exit again at the destination. This increases anonymity, since the individual payment bundled by master nodes cannot be traced. Besides PrivateSend there is also InstantSend. This function enables the master nodes to compare inputs and outputs. They verify them across networks. This increases the speed of the transactions many times over. In general, Dash is a crypto currency based on the classic concept of a block chain. However, Dash is scalable, faster and more secure than other digital currencies like Bitcoin. At market launch Dash showed a rapid development. Keeps Dash at the crypto market the digital currency offers a well thought out, cleanly implemented and simpler alternative to Bitcoin.
How to buy Dash
To buy the digital currency, crypto exchanges are the best way to do so. To do so, you need an account at the exchange of your choice and a crypto-wallet. You make your deposit on this wallet. When you buy Dash online, you trade with fiat money or Bitcoin. Alternatives to crypto exchanges are brokers who trade in crypto currencies. It is possible to trade Dash CFDs, securities and other financial instruments on the crypto market. The most important facts about Dash:
- To buy Dash Coin, you only need a small amount of equity.
- The Dash Wallet is the basis for the direct trade with the crypto currency.
- Master nodes offer a higher anonymity and a faster transaction.
- Dash is sybil safe.
- With the broker you acquire securities and crypto-CFDs.
- With Faucets you earn Dash for free.
What are faucets?
Faucet means translated water or tap. In the case of crypto-currencies, it is an internet presence that gives away coins like Bitcoin, Litecoin or Dash. The goal of this procedure is to increase the acceptance of crypto currencies. On the Website prospective customers deposit their crypto coin address (Wallet) and receive small cent amounts (in the sense small drops).
Buy Dash at exchanges
You can buy Dash Coin at various crypto exchanges. These operate globally. They are also available to German traders. Buy the Dash currency, own it. Surely they keep these in the suitable Dash Wallet. In general, this option is suitable for traders who are looking for a long-term investment opportunity. The digital currency is also suitable for short-term investments. However, here you need more experience in trading. If you fall below the holding period of one year, taxes are payable on your profits. Therefore, many traders wait the twelve months before selling the coins to legally save taxes. When trading the crypto currency in the exchange, you are bound to your capital for a longer period of time. You are responsible for the safekeeping of the dash coins in your wallet. If you don’t want this, you can use trading with a reputable crypto broker.
Trading with a broker with Dash
When trading dash at brokers, direct trading with the coins is not the main focus. Therefore you do not need a wallet to store Dash. Instead, you trade CFDs or other financial instruments like shares. Brokers offer clients flexible investment and trading opportunities. They can flexibly determine their investment horizon and diversify their portfolio. Crypto currencies are generally considered volatile. So is Dash. Contracts for Difference offer the opportunity to take advantage of this volatility. Even in difficult market situations, brokers can achieve profits at best. With CFD trading, they bet on rising or falling prices. If necessary, you use leverage. However, this option not only offers the chance of high profits. Trading CFDs is primarily recommended for experienced traders, as the use of leverage can result in high losses.
Trading Dash at the crypto exchange and broker
To purchase Dash directly from the crypto exchange, register in advance with a provider who trades with Dash. On the Internet you will find various exchanges. To register, enter your name, address, date of birth and e-mail address in the forms provided. You will also need a pseudonym for the exchange and a secure password. To verify your account, you identify yourself with an identification document. You prove your address with a current telephone or electricity bill. To verify, you upload the required documents or make a video call to a support representative. The individual steps are essentially similar to registering with a broker. The next step is the account capitalization. You can buy Dash with PayPal, Skrill, Neteller, Mastercard, bank transfer or Visa. Some providers also recognize Bitcoin as a means of payment. Brokers do not offer payment with crypto currency.
In contrast to the crypto exchanges, brokers now require less equity capital to trade CFDs. The costs for trading are also lower. In case you buy Dash Coin, you bring a higher equity with you. If you buy Dash currency, you will need a wallet to manage the digital currency. You choose from online and offline options. Offline wallets, such as the paper or hardware wallet, are suitable for long-term secure storage. By storing them in these digital wallets, you ensure that hackers cannot get hold of the coins. This way, you can keep your dash coins safe for at least twelve months to make tax-free profits. At the broker you do not need a wallet, because you do not purchase the crypto currency directly.
What do you use to buy Dash Coin?
Crypto exchanges and brokers offer essentially the same payment options. If you want to buy Dash Coin using PayPal, you will find only a few providers. The common exchanges prefer Neteller and Skrill. Many customers buy Dash with fiat money. Payment with Bitcoin is interesting for traders who already have these coins in their wallet. With the crypto stock exchanges Bitcoin is a usual digital means of payment. Brokers show themselves more restrained when paying with crypto currency. The transfer of fiat money or bank transfer takes up to five days. Check with your bank in advance to see if there are any fees for the bank transfer and currency conversion. Before making a deposit, it is advisable to check the additional costs with all providers in order to keep the losses low.
When is the ideal time to buy?
When you buy Dash, the perfect trading time is what counts. This depends on your investment strategy and the financial instrument you are using. If you buy Dash Coin on a crypto exchange, choose a time when the price is as low as possible. This is the case when a downward trend can be seen. With brokers you invest in stocks or Dash CFDs. When trading in contracts for difference, you trade both rising and falling prices. An important instrument when trading with crypto-currencies are price analyses. Forecasts of the course of prices give information about when your chances for high profits are at their best. Many crypto exchanges and brokers offer paid tools that support you in the analysis. You also have the possibility to open a free demo account with the broker of your choice. This allows you to try out different strategies for CFD trading. At the same time, you will familiarize yourself with the individual functions.
Why it pays to invest in Dash
There are more than 2,700 crypto currencies on the market. Dash is one of the digital currencies with the best future prospects. Digital cash offers investors numerous advantages. The privacy factor plays a decisive role. Unlike Bitcoin and Litecoin, Dash transactions are anonymous. If desired, you can carry out the transaction in private mode. This protects your personality. To find out whether Dash is right for you, long-term forecasts help. In addition to fundamental analyses and the current market situation, technical analyses offer sound support for your trading decision. It should be noted that crypto currencies are subject to high volatility. Price fluctuations can occur quickly. These quickly lead to enormous losses, especially when using levers in CFD trading.
Trading on stock exchanges is more difficult than with brokers. Difficult market phases, in which the price changes constantly or a sideways trend can be recognized, are a challenge for many investors. The ideal time to start trading is difficult to determine. CFDs offer the advantage that you can trade even in difficult market situations. Through the skilful use of leverage you can quickly multiply your capital. Private traders benefit from a maximum leverage of 1:2. Professionals work with greater leverage. For beginners, CFD trading using leverage is not recommended, as high losses can quickly occur. Many brokers offer a free demo account where you can try out your strategy. Advanced training courses are available to help you with CFD trading.
Varying prices for Dash
At the different crypto exchanges you can buy Dash Coin at different prices. For a profitable profit you choose a provider with low prices. These are subject to market-related fluctuations. Supply and demand determine the price in the individual exchanges. In the Exchanges the users are responsible for the price developments. There are no uniform regulations. In order to get a comprehensive picture of the costs before buying, it is recommended that you look around on several exchanges. Make sure that the data basis is the same. Live data reflect the current market value of Dash Coin. If the stock exchange uses delayed data, this gives a distorted picture of the forecast of the price development. This leads to negative trading decisions.
Many users buy Coins at low prices. They speculate on a high rate of increase. This is theoretically possible. Consider that at the market over 2.700 crypto currencies exist. There is no guarantee for a high yield. Especially in the case of Dash it is important to keep an eye on the market situation.
Faucets offer the possibility to buy Dash for free
Many beginners have little equity capital. For these it offers itself to look for alternatives for the acquisition of Dash Coin. In addition to the well-known mining, which you use to mine Dash, there is the option to earn Dash for free. You provide time for the suppliers. The rewards are Dash Coins. In the crypto world this exchange is called Faucet. They announce themselves in addition with your public Wallet address with the respective offerer. How much you earn depends on the respective Faucet. Usually users only get a small amount of Dash Coins. In order to accumulate larger amounts, you will need a corresponding amount of time. It makes sense to register with several faucet providers to get more Dash. You will not accumulate wealth with this method.
Strategies for trading Dash
There are several ways for investors to invest in Dash. If you are interested in buying coins, wait for the lowest possible purchase price. This option is suitable for long-term investors. The purchase of the coins and the storage in your own wallet requires little effort. After the purchase you simply wait for the best time for the sale. During this time, observing the crypto market is less time-consuming than with CFD trading. The long-term investment has another background. If you keep the purchased coins in your wallet for at least twelve months, you pay no taxes on their profit. Whether the investment is worthwhile in the long run, you can find out in current dash forecasts. It also helps to get an overview of the trends of the Dash Coin price.
Some traders rely on holding the coins for a short period of time. This is useful in times of rising prices. If the profit rises above 50 percent, they sell the coins and reinvest the profit in new assets. Another option for trading is swing trading. With this strategy, you buy the coins at a low price. You hold them until they recover. At that point you sell Dash at the highest price. You invest the profit in new Dash Coins or in another crypto currency. If there are many traders who bet on this strategy, the options on a profit increase. This procedure belongs to the most complex. They need for it much experience in trading. Watch the market constantly to track the current price developments.
Do not rely exclusively on Dash
Many traders diversify their investments to mitigate potential losses. If you focus your trading exclusively on dash, you will incur heavy losses when prices collapse. A broadly diversified equity offers you more security. It is therefore advisable to invest in other crypto currencies or other financial products besides Dash. Beside Dash Litecoin and Bitcoin belong to the most promising crypto currencies. New digital currencies are interesting. They experience with the market start frequently a downright Hype. Here, short-term strategies offer themselves to profit from the high demand. Whether and when new crypto currencies come to the market, you can find out in the market news.
Day trading and investment in CFDs
When you buy Dash Coin, consider the risk. An alternative is day trading with a reputable broker. With this option you can trade even in difficult market situations. You do not own real coins, but borrow them from the broker for an agreed period of time. The contracts for difference allow you to
- greater security when trading,
- the option to use levers,
- to bet on rising and falling prices.
For this variant you do not need your own wallet, because you do not own the coins yourself. Coins have disadvantages in contrast to CFD trading. You take care of the security of the coins in your wallet yourself. To speculate with Dash Coin, you need technical knowledge in addition to a strategy. Furthermore, you have fewer trading opportunities. The physical currency offers advantages over CFDs. These include:
- the possession of “real” dash coins,
- the use of digital cash as a means of payment by many merchants,
- Independence from banks,
- lower risk than CFDs,
- anonymous, fast and secure transfer of digital currency and
- active participation in trade.
Trading CFDs on Dash Coin
Trading CFDs is a good alternative for many traders to make quick profits. With contracts for difference you speculate on falling and rising prices, so-called longs and shorts. The basis for speculation is the underlying asset of the digital currency. You speculate on the value of Dash. Since you do not own the coins yourself, you do not invest in the crypto currency. If you are interested in purchasing Dash Coin, choose a reputable crypto exchange instead of a broker. You speculate with CFDs on the expected price movement. You achieve a return if the price moved in the direction you predicted. In doing so, you make profits when prices rise and when they fall, provided your forecast is fulfilled. By using leverage, you quickly maximize your profits. Many traders lose a lot of money when trading CFDs using leverage. This option is primarily for experienced traders.
Test strategies and gain trading experience
There are different strategies for trading crypto currencies, which are not suitable for every trader. To buy Dash Coin you need little knowledge about buying and selling the currency. Here rather your technical understanding counts. The risk is low. Classic traders rely on long-term investments when buying Dash Coin. They wait for high increases in value. After twelve months investors even save the profit tax. Trading CFDs on Dash is more difficult. Here you need a sophisticated strategy, intensive risk management and calm nerves. Before you start, plan your strategy. Already the market entry is part of a strategic approach. Brokers provide you with various tools, which you should familiarize yourself with in advance. While trading, you will master challenging trading situations. It is important to stick to the strategy and not to act emotionally. In order not to lose everything at once, you keep the risks low and rely on a broad portfolio of investments.
Free demo accounts make you familiar with trading
Trading on stock exchanges and with brokers is always based on a strategic approach. Demo accounts are available to familiarize yourself with trading in contracts for difference. These are usually free of charge. With some providers, the period of use exceeds one month, so that even experienced traders use the demo account to test new strategies. Important factors when trading are:
- the individual risk level,
- Your previous trading horizon,
- Your trading experience and the
- available equity.
Crypto exchanges do not offer free demo accounts. At the broker you speculate with virtual money. Besides free advanced training offers are available. They offer you theoretical basics, which you can directly implement online.
Conclusion: Dash is a good alternative to Bitcoin
Dash is a crypto currency recognized by many merchants worldwide as a digital payment method. Digital cash offers users financial freedom with low transaction costs. You can buy Dash Coin at various crypto exchanges. Alternatively, you can use Dash CFDs or shares from reputable brokers. Dash is considered a better variant of Bitcoin. It is faster, more secure and scalable. Whoever does not generate Dash via mining buys it from the crypto exchange and stores it securely in the digital wallet. After at least twelve months in your own Wallet, you can earn profits without tax deduction if the price rises. The Coins are suitable for long-term investors, but experienced traders also make profits with short-term investments.
Those who focus on fast returns use CFDs. Here you need the right strategy to bet on the right longs and shorts. With leverage you increase your profit. Conversely, you can expect high losses if your plan does not work out. When investing in crypto-currencies, it is advisable to create a broad portfolio for your deposits in order to absorb losses. Which form of investment you choose depends on your particular strategy and your experience as a trader. You can test your approach without obligation with a demo account with the broker of your choice. You trade risk-free with virtual money.