Table of contents:
- 1 Dash Wallet: Create the Dash Wallet now, because it is indispensable for crypto currencies
- 1.1 What does a wallet consist of and why is it necessary?
- 1.2 Differences of Dash Wallets to comparable offers
- 1.3 Desktop Wallet is the first choice for many users
- 1.4 WebWallets as an uncomplicated possibility
- 1.5 Mobile wallets for payments on the move
- 1.6 Text wallets as a special feature of Dash
- 1.7 Hardware Wallets as storage for professionals
- 1.8 Cold Storage vs. Hot Storage: Which is better?
- 1.9 Who should use which wallet?
- 1.10 Is it worthwhile to buy Dash at present still?
- 1.11 How well suited is Dash to pay for it?
- 1.12 InstaSend, PrivateSend and Uphold: What should a Dash wallet be able to do?
- 1.13 How can interested parties buy Dash?
- 1.14 Are there ways to use Dash without Wallet?
- 1.15 Result: Wallets substantially for function of Crypto Currencies such as Dash
Dash Wallet: Create the Dash Wallet now, because it is indispensable for crypto currencies
Without wallets, crypto currencies are not conceivable. Only through them transactions are possible at all. However, they are not easy to understand, especially for beginners. Therefore the developers of Dash from the outset attached much importance to the fact that the Dash Wallet can be used also by beginners fast.
We explain why a wallet is so important and what different types are available. We also try to make the decision between the different wallets easier by explaining their optimal use and possible weaknesses.
- Wallets are the bank account of the crypto currencies
- Cold Storages are more secure
- Hot Storages are more comfortable
- Dash continues to develop Wallet
What does a wallet consist of and why is it necessary?
The term wallet is of course a clear reference to the wallet. In fact, a crypto-wallet is more like a virtual bank account than a wallet.
A Wallet for crypto currencies enables users to acquire and spend coins. It is often only usable for a certain crypto currency. A Dash Coin Wallet can therefore often not be used to store Ethereum or vice versa. There are also multicoin wallets, which then however often consist of several wallets that share a user interface and overview.
It doesn’t matter if it’s a complex Dash Core Wallet with many functions or a paper wallet. A wallet consists of two essential features:
- Private Key
- Public Key
The public key is in a way the address of the dash wallet. It is comparable to an IBAN. Whoever sends dash coins gives this key and the crypto currency arrives there.
The private key, on the other hand, has the function to legitimize transactions from the wallet. So the transactions are only initiated if users confirm them with the private key.
Differences of Dash Wallets to comparable offers
With Dash it was already clear since the establishment that the crypto currency should become clearly more user-friendly than other Coins. Although the founder built on predecessors such as Bitcoin and Litecoin, he followed the plan from the beginning that Dash can also be used securely by beginners very quickly.
That’s why developing a beginner-friendly Dash wallet was one of the most important goals that Dash has pursued from the beginning. In addition, the wallet is constantly being improved and new functions are added. In this way, user-friendliness and application possibilities have been considerably improved in recent years.
With many other crypto currencies the developers or founders do not regard the Wallet as their core task. Instead they set above all on the development of the Blockchain and see other developers in the obligation to offer a functioning and safe Wallet.
With Dash there are naturally just as independent developers, who offer also alternatives to the Dash Wallet. This has the advantage that competitors set different priorities or find ways to implement certain functions. The user can only benefit from this.
For various reasons it can of course make sense to use alternative providers:
- Risk spreading by splitting the risk among several providers
- other purposes (e.g. mobile or longer storage time)
- personal preferences
Of course, there is no disadvantage for users if they use a different wallet than the one developed by the Dash Core Team.
Desktop Wallet is the first choice for many users
Many users interested in crypto currencies like Dash are the first to use a desktop wallet. This is a – usually small – program that is downloaded to the PC or laptop and can then be opened and used at any time.
In some cases, they bring along functions that can make payments with the wallet much easier or even more innovative. For example, there are wallets that allow anonymous payments even without using DASH PrivateSend.
A wallet for Dash is offered for all major operating systems:
- Windows (64 bit)
- Windows (32 bit)
A desktop wallet is considered somewhat more secure than a web wallet. The reason for this is not least that the wallet is not permanently online. However, this only applies if users protect their PC sufficiently. If this is not the case, the Wallet is often even significantly less secure.
Desktop wallets are often very powerful and allow a quite comfortable handling of crypto currencies. This is especially true for wallets for Dash, because the development team puts a lot of emphasis on providing a wallet that is as user-friendly as possible. Accordingly, the wallet of the Dash Core Team offers very good conditions. It also acts as a gateway to many other Dash features and services.
WebWallets as an uncomplicated possibility
If you want to be able to redeem your Dash Coins at any time, you need a WebWallet. The wallet can be accessed at any time and it is usually easy to transfer the coins. They are also often very user-friendly and allow transactions to be carried out within a very short time.
Many WebWallets store the public and private key of the wallet. Users then gain access through other login data that they have usually chosen themselves. In many cases, the private key is then no longer necessary for the transaction. Instead, users confirm with a mouse click after they have already shown that they are authorized by logging in.
In this way, using a wallet on the web is of course very straightforward. It is very similar to the use of e-wallet providers. Many users therefore prefer this option to other options.
However, there are also disadvantages to having the Dash Wallet online. Thus on-line Wallets are clearly more susceptible to hackers or other cheats and are not considered therefore also as safe, as Wallets, which are separated from the Internet.
If you are interested in a web wallet for Dash, you should make sure that it is as secure as possible. Furthermore, PrivateSend and InstaSend are often particularly relevant here. Users should also be aware of the common security gaps and of course be very careful, especially with regard to phishing attacks.
Mobile wallets for payments on the move
Crypto currencies and mobile payment are the optimal complement – at least if, thanks to InstaSend, payment is confirmed within seconds. A mobile wallet for Dash should support this service accordingly. Only in such a way makes it at all to use the Dash Coin Wallet also on the way.
As a rule, the mobile wallets are mainly offered for iOS and Android. The choice is quite large. Nine wallets of this kind alone are listed for Android. Among them are also some multicoin providers. This can have advantages for all users who use more than one crypto currency for payments on the go. A disadvantage, however, is that a multicoin app usually does not support InstaSend.
Many apps support QR codes and NFC technology. This makes it much easier and less complicated to make transactions.
However, this is often not the case even if a wallet focuses on Dash. If you want to be on the safe side, use the Dash wallet. The app also has other advantages and is considered one of the most secure solutions for a wallet app for Dash. The wallet is stored decentralized and P2P. Even when users are offline, payments can be made via Bluetooth. The app is therefore also suitable for use as cold storage in conjunction with an old smartphone.
Text wallets as a special feature of Dash
Especially in the time of hyperinflation in Venezuela, Dash has been looking for some ways to reach users who are not technically equipped to Western standards and, for example, do not have a smartphone or cannot access the Internet.
The text wallets were created especially for this purpose. They make it possible to set up a wallet on simple cell phones without any Internet access and to pay or receive payments with Dash.
There are currently two of these SMS wallets:
- CoinText in the USA and Canada
- Dash text in Venezuela
A disadvantage is of course the regional limitation of the text wallets. However, they also have the advantage that they do not incur any additional costs, but usually only the fee for an SMS. In this way, it is possible to use the wallet at very low cost. It is naturally also understandable, why the use is regionally so strongly limited. finally SMS are abroad also for the operators clearly more expensive and thus not attractive enough. At least CoinText strives however a very extensive expansion and would like to be represented soon in approximately 50 countries.
Of course it is comparatively complicated to enter a public key on a cell phone. However, this is ultimately necessary to be able to transfer. Dash Text therefore uses new short codes that make it much easier to enter the destination of a transaction.
PaperWallets as a cost-effective and durable storage solution
Paper Wallets have several advantages over other wallets:
- almost no costs
- Cold storage and thus secure against attackers
- Data loss due to defects is unlikely
Therefore a Paper Wallet is obligation for as well as each user, who trades more frequently with Dash and other crypto currencies and stores also larger sums. They are often regarded as the best solution to store coins safely in the long term.
However, a Dash Paper Wallet can also have significant disadvantages. If you keep a lot of value in it, you should protect it additionally and store it for example in a safe deposit box. This way, users can also be sure that the paper is protected from fire or water damage at home. In addition, it is naturally also more likely to be protected against theft there than when it is stored at home. This would, however, cause follow-up costs, provided the user does not rent a locker anyway.
Another disadvantage is that paper wallets do not allow direct access to the coins. Handling is therefore much more complicated than with a WebWallet, for example.
In addition, users of paper wallets should make sure that the wallet is generated by a secure and trustworthy provider. Cases have already been reported in which the providers have secretly stored the keys. With Dash, the in-house generator is certainly the most secure way to generate a paper wallet.
Hardware Wallets as storage for professionals
Whoever owns crypto currencies with a larger equivalent value and wants to store them for a longer period of time, usually resorts to a so-called hardware wallet. This is a device that looks a lot like a simple USB stick, but has different features that make it ideal for storing crypto currencies.
Thus, many are password protected and have a display. Often it is possible to enter the password by key combinations. In addition, the manufacturers naturally ensure that the USB stick is completely free of malware and also use particularly robust materials to produce this hardware wallet.
Last but not least, the hardware wallets are so secure that many of them store your data in encrypted form and only disclose the data again after entering the password. In addition, many of the wallets are compatible with several crypto currencies and thus enable the storage of different coins even simultaneously. In some cases, they can even be combined with other wallets on the web or as a desktop version, thus enabling uncomplicated integration.
The biggest disadvantage of a hardware wallet is the purchase price. In addition, the wallets can also give a false sense of security. In any case, it is safer to use a backup and still have access to the coins in case of a technical defect.
Cold Storage vs. Hot Storage: Which is better?
Cold storage is the term used to describe wallets that are permanently separated from the Internet. Hot storage, on the other hand, is any wallet with a regular or permanent connection to the Internet. This includes most wallets. The wallet on the exchange is included here just like a mobile wallet or a web wallet. Desktop wallets are also usually hot storages.
Ultimately, it is not a question of which type is the better storage. On the contrary, it rather depends on how the customer uses the wallet: If they need frequent access to their dash coins, for example because they are speculating with them, it may even be the best option for them to store the crypto currency on the exchange. If, on the other hand, he has bought dash coins primarily because he assumes that the currency will appreciate in value and is planning a holding period of several years, cold storage is of course better.
The question of which type of cold storage or hot storage is best suited for which purposes is therefore much more interesting. Basically, it is more a question of the intended use than the actual superiority.
In the end, the risk that a user wants to take is the decisive factor. For example, a mobile wallet is naturally exposed to an additional risk of theft. Compared to a desktop wallet, customers should store less value here.
Who should use which wallet?
In most cases, it is recommended that users of crypto-currencies do not stick to one type of wallet, but instead use several at the same time. Basically, however, all coins that are not expected to be sold or exchanged within the next few weeks are stored on cold storage.
Here it depends on whether it is worthwhile to purchase a hardware wallet. After all, a good wallet costs a Euro amount, which can be in the three-figure range. This Investment is worthwhile itself naturally only if the user would like to secure also a quite large value thereby.
Due to the risk of theft, mobile payment is usually only sensible for smaller amounts. Users should not store more money in a mobile wallet than they would in fiat money. In this way, it is not a disaster if the smartphone is stolen or lost.
Another rule of thumb is that stock exchange wallets and web wallets are often very popular targets. Those who are more cautious should therefore store more money in the cold wallet or prefer the desktop version.
Of course, users should know how to secure their PC against attacks from the Internet. Only then should a user even think about generating a wallet and buying coins. Buying crypto currency is not unduly endangered, but users should still be able to protect themselves from attacks to avoid being easy prey.
Is it worthwhile to buy Dash at present still?
Dash had to experience as crypto currency already many up and down. To the weddings of the crypto currencies in December 2017 the crypto currency could register even six times as strong increases as Bitcoin and became fast very well-known. At that time Dash was one of the top 5 crypto currencies. This was due not only to the crypto currency’s performance, but also to its anonymity and a relatively clever concept that passes on part of the mining revenue to developers.
This was followed by a crash that went beyond what is usual for crypto currencies. Thus the crypto currency lost its place in the Top5 and ranks now more among the twenty most important Coins, which are on the market.
It is accordingly questionable whether the Dash Coin Wallet furnish themselves at present still at all worthwhile itself. On the other hand, Dash is planning another leap in development. With decentralized interfaces and decentralized Apps the crypto currency would like to find also the technical connection to the newer Altcoins.
Whether Dash will succeed in this is currently still unclear. From a technical point of view, Dash would be one of the few first-generation Altcoins that can achieve such a feat. However, it is not yet clear whether the many developers will succeed in creating a product that can compete with other DApps.
How well suited is Dash to pay for it?
Dash is the crypto currency that is most often used to actually pay with. Compared to other blockchains like Bitcoin, Dash has solved the problem of scalability quite quickly and very well.
Dash can handle significantly more transactions in the same time and is not as limited as Bitcoin is. In addition, the company offers InstaSend, an additional function that allows transactions to be processed and confirmed in seconds.
However, Dash of course also retains the major problem of volatility. Of course it is an advantage if transactions are processed very quickly, but if the coins used would have been 10% more valuable in a short time, this is ultimately not much use. These strong fluctuations in value are one of the reasons why Dash has not yet been able to establish itself properly as a means of payment.
For a crypto currency Dash is however quite well suitable as means of payment due to its speed and efficiency. So it is not surprising that there are comparatively many places of acceptance for Dash. Around 4,000 should currently make it possible to pay with Dash. A wide range of industries are involved:
- Lawyers and other services
However, the distribution depends very much on the region in which a user is located. Especially in Venezuela there are quite a few acceptance points, because Dash wanted to establish itself here during the hyperinflation.
InstaSend, PrivateSend and Uphold: What should a Dash wallet be able to do?
Unlike many simpler crypto currencies, users of Dash transactions have different options. For example, transactions can be executed much faster with InstaSend. Users do not have to wait for the whole block to be confirmed. Another option is anonymous execution via PrivateSend.
However, both transaction types are not used by default, especially since they can cause additional fees. The wallets must support these options and the user must agree to use these options. Anyone considering using these services should ensure that the wallet service they are using also offers this option. Or he may need to use an alternative wallet with some of his possessions that offers this option.
Another interesting option that some wallets offer is Uphold. Uphold makes it possible to exchange stocks of crypto-currencies within a wallet without having to register at a stock exchange. The conversion is also possible from fiat money. So Uphold can make the life of crypto-fans much easier, but not every wallet supports this service.
In principle, however, it is of course also possible to use different wallets for different purposes. A certain provider does not have to support all functions. Changing a wallet is uncomplicated, but users should know that some providers offer this option and others do not.
How can interested parties buy Dash?
If you want to buy Dash, you have several options. Basically, it is possible to buy Dash directly from a user without a third party. However, this option is relatively uncertain. Transactions cannot be reversed with Dash and stolen money is usually lost.
In addition, it is not easy to find an exchange partner who wants to sell exactly the amount of Dash that another user wants. Accordingly, most users go to file sharing sites on the Internet, which bring exactly these together. They also monitor the transactions and make sure that both buyer and seller receive the corresponding value.
Another possibility are exchange offices, which in principle do nothing else but buy and sell Dash. They use the same principle as currency traders at home or abroad and add a fairly large fee to the buying and selling prices. They use this spread to finance their services and also hedge against the risk of sudden large exchange rate losses.
A subform of the exchange office are Dash cash machines, which are also available in Germany in some places. Here users can often exchange money and crypto currencies without registration, as long as a certain amount is not exceeded. This variant is for many particularly delightful, often however also by far the most cost-intensive.
Are there ways to use Dash without Wallet?
If you do not want to create a Dash wallet, you cannot use Dash either. So there is no way around owning a wallet to trade with Dash. However, Dash offers a very low-threshold service. Thus there is contrary to most other crypto currencies also the possibility of using a text Wallet.
They were brought concretely into being, so that also users without Smartphone and Internet are able to use a Wallet. Instead, the transactions here work via text messages. There are no fees and users can actually carry out transactions offline. Thanks to shortcuts on the keys, this is possible in a secure manner.
Although users must still own a wallet to transfer dash, a text wallet offers a different set of options than is currently the case.
An exception is trading via derivatives. It makes it possible to bet on the price change of Dash without having to buy the coins directly. However, this is a very risky way of investing and traders still have to register with special brokers. The effort is therefore also here quite large. The big advantage, however, is that users can trade very easily and their coins can not be lost. On the other hand, users here do not have many advantages that would exist with direct purchase via a wallet. For example, they cannot use the coins for payment.
Result: Wallets substantially for function of Crypto Currencies such as Dash
Wallets are the linchpin of crypto currencies. Only with them is it at all possible for users to receive payments or carry out outgoing transactions. They are also responsible for storing the coins and must also protect them against attackers.
At Dash, the developers have put a focus on providing a wallet that is easy to use for beginners and is constantly being developed further.
Basically, users have to decide whether to store their coins with or without an Internet connection. The former significantly increases availability, or at least the time span until a transaction is initiated. The wallets connected to the Internet offer correspondingly more convenience. However, they are also less secure.
Cold storages such as paper wallets or hardware wallets, on the other hand, are particularly useful if coins are to be stored over a longer period of time. In this case, the lack of convenience when accessing the system again is much less important than the security gained by the offline status.
It often makes sense to combine different wallets that serve different purposes. This also increases the spread of risk.