DASH Token: Everything you need to know about the DASH cryptocurrency
DASH Token, the cryptocurrency DASH aims to become a viable alternative to fiat currencies, although it is not an exact replica of Bitcoin. In many ways, the digital asset is a typical cryptocurrency, and it follows in Bitcoin’s footsteps and improves on Bitcoin’s limitations.
While Dash token isn’t trying to reinvent the wheel, it has improved on some real and potential Bitcoin bugs. InstantSend, PrivateSend, Chainlock, and Sporks are some of the key features that differentiate DASH from other fiat and cryptocurrencies. These features help improve transaction speeds and ensure the privacy that many people are looking for in a viable digital currency.
What is DASH Token?
DASH (formerly known as Xcoin/Darkcoin) is a digital currency on the DASH blockchain that enables fast (real-time or near-instantaneous) and private transactions. You can use DASH to:
- Shop in store,
- Perform global transfers,
- Engage in online trading and/or
- Send anonymous transactions.
InstandSend bypasses miners and therefore the transaction is fast and real-time, which is why DASH is preferred as the payment currency. PrivateSend enables completely anonymous payments using unspent DASH.
Chainlock and sporks provide security features. Chainlock protects against 51% of attacks, while Sporks allows incremental updating of the blockchain through hard forks or soft forks.
Is DASH a kind of money?
As a major altcoin, Dash is a type of money. Cryptocurrency (or Dash) digital money was derived from the Bitcoin protocol. Like Bitcoin, which is widely accepted as a form of money around the world, DASH falls into the same category due to its similarities with Bitcoin.
DASH use cases also show that it is a type of money. You can use it to send money anywhere in the world within 24 hours.
Over 40 million merchants around the world accept this as a form of payment for their products and services. As seen on the network’s official websites, several online companies also accept DASH.
Is it legally recognized?
Although several countries have either banned or made DASH illegal, the future of the digital currency remains bright. In China, where cryptocurrency was banned in the early days of the digital currency revolution, authorities are now interested in the idea.
In India, where the central bank (Reserve Bank of India or RBI) issued a circular urging banks not to do business with crypto exchanges or provide services, the Supreme Court of India ruled that the order/the circular was disproportionate. According to the three judges, the RBI could not justify the ban.
In many countries, there is no specific law governing the use of cryptocurrencies including DASH. Some of these are Albania, Colombia, Argentina, Kenya, Kosovo, Tanzania, Peru, United Arab Emirates and Mauritius. Therefore, from a legal point of view, the lack of legislation implies that cryptocurrency is considered legal. To declare an activity illegal (e.g. cryptocurrency trading) there should be a specific law declaring the activity illegal.
However, in some countries, Dash is not considered legal tender due to its decentralized nature.
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What do people use DASH for?
Many people consider cryptocurrencies as a way to invest. While this is true for many cryptocurrency investors, DASH has other purposes as well.
You can use the coin to make international payments, transact with various merchants, and pay off debt.
Which merchants accept DASH?
Many people cannot appreciate the value of a currency that is not widely accepted by businesses. The basic use of money is to obtain essential goods and services. DASH is so popular because many companies around the world readily accept it. Some of these dealers are:
eGifter
eGifter sells gift cards that you can send to others via email, post, text, or even mail. You can easily print a gift card from the portal. eGifter customers can also earn eGifter points with their purchases, which offer additional discounts.
Travala.com
Travala.com lets you book hotels, accommodation and flights from the comfort of your home or office. You can reach the 24-hour customer service team and choose your worldwide destinations. Additionally, the online retailer offers real rewards through its innovative and symbolized incentive programs.
NORTHDVPN
This online service provides a secure and encrypted tunnel that supports online traffic flow. The VPN ensures that nobody sees through the tunnel or gets their hands on your internet data. It can also keep your browsing history private.
Snel.com
This online service offers Smart Dedicated and Cloud VPS hosting with a particular focus on enhancing customer experience. Snel.com offers its customers a number of other IT services and customized options.
How does DASH work?
The cryptocurrency is based on the Dash blockchain and is characterized by its decentralized functionality. It is similar to the digital currency Bitcoin in many ways.
The history of DASH
Although DASH is now working hard to become a medium of choice for everyday transactions, its original aspirations were not aligned with that goal. In the early days of the coin, when it was known as “Xcoin and later Darkcoin,” it placed a high value on privacy and anonymity.
In 2015, the network changed focus and was renamed “DASH”. Evan Duffield, the founder, saw significant weaknesses in Bitcoin’s lack of anonymity and slow transaction speeds and suggested that developers should focus on improving them. When the proposal was rejected, he began developing a new altcoin.
Evan Duffield released a new altcoin and named it “Xcoin” in January 2014. Shortly thereafter, the name was changed to “Darkcoin,” which received bad press as media houses promoted the idea of the coin being used in the dark web markets. As of March 2015, the team had mined about 1.9 million coins, but the focus on anonymity limited the coin’s success and it was further renamed “DASH,” which stands for digital money. The Dash team has added several new features such as: B. Master node.
After the rebranding, the price of DASH started to increase steadily. In 2017, the platform saw the most significant growth, but profits began to decline in early 2018. Still, the market cap was stable at around $4.3 billion in April 2018. DASH has managed to maintain its position as the preferred payment mechanism worldwide and is among the top 50 cryptocurrencies worldwide.
Dash is open source and maintained by a community, although the original team is still very much involved in the project. The Dash Core Group is responsible for managing the team’s essential operations. It confirmed the launch of Dash platform version 0.14 about two months ago. The group approves money each month to fund network operations.
The Dash Investment Foundation, a team that makes currency-denominated corporate equity and business lending within the blockchain, recently bought gold. It is used to introduce the Dash to Gold rebalancing strategy.
DASH Mining – How are new coins created?
The process of mining Dash begins with setting up a computer, securely connecting it to the internet, and then leaving it alone to perform calculations. Millions of people make and record transactions around the world. The only challenge is that some of them may try to cheat the system.
The good news is that the Dash blockchain uses Proof of Work consensus technology and miners to prevent this.
As a miner, your computer has to solve a math problem. Other miners also get it at the same time. If you solve the problem first, create a new block and earn DASH for the effort. Of course you will compete with other miners.
After successfully creating a block, the blockchain verifies that your Ledger version matches its own. If so, the blockchain reaches consensus and the rewards are distributed. A portion of the mining reward is allocated to the Dash community for administration and funding.
Supply – How many coins are available, what if they run out?
At the time of writing, CoinMarketCap states that there is a supply of 11,582,705 DASH in circulation. The maximum bid is 18,900,000 DASH and the market price is $32.72. The market cap is $379,009,759. Also the Fully diluted market cap of $618,112,227
The available supply cannot run out, but no mining will continue once the maximum supply is reached. However, if the blockchain is changed, mining can continue. The Dash community can hire the miner to allow the forces of supply and demand to increase this digital currency price.
The value of deflationary currencies is steadily increasing, which encourages investors to hold them (Tron or TRX is an inflation-based cryptocurrency). Many people use them to buy various goods and services for this reason. Dash’s price has fluctuated depending on various market forces, as we have seen in this article. The Dash Investment Foundation has introduced the strategy of balancing Dash to Gold. In this respect, its volatility also mimics that of gold very well.
Decentralization – what does that mean?
Decentralization is the process of sending and receiving money without the involvement of a third party. DASH is a decentralized currency as there is limited third party intervention.
A decentralized autonomous organization governs the network and facilitates the decision-making process via master nodes that host blockchain copies, route messages, and validate transactions. In addition, masternodes act as shareholders. They vote on suggestions to improve service delivery in the Dash ecosystem. Default nodes and miners are also part of the governance structure.
The miners rely on the proof-of-work algorithm, which includes the principle of consensus building.
Due to decentralization, DASH is a global currency and local economic factors do not affect its value. At the same time, DASH users have the ability to influence how the platform is managed.
Invest in DASH
DASH can be used as an investment prospect due to its upside potential. Once all the coins are mined, the demand will likely be higher than the supply. Therefore, some investors could make more money in the future. However, investors need to consider the volatility of the coin before making an investment decision. Since cryptocurrencies have different use cases, you must consider DASH’s unique features before participating in the network or investing in the coin.
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Why should you invest DASH?
Investing in DASH can be the right way to grow your finances. If you buy and hold Dash, you can take advantage of many benefits when the value of the currency increases later. If this is your goal, you should evaluate the volatility of the coin and decide on a strategy or approach that will allow you to get the most returns.
Investing in a decentralized system is best suited for those who want to protect their finances from bank failures and destructive economic policies.
Price and Volatility – Why is the price so volatile?
All cryptocurrency prices, including DASH, are volatile due to speculation. When traders speculate on the coin increasing in value, many of them buy it.
They do the opposite when the predictions aren’t positive. These activities can destabilize the forces of supply and demand and lead to price volatility.
Follow the current DASH course and stay up to date.
Volatility carries significant risk, and investors should mitigate it by not investing more than they can afford to lose. A smart and experienced cryptocurrency trader can take advantage of this volatility and employ a buy low and sell high strategy to make quick profits.
Where to buy DASH?
Not all crypto exchanges offer similar features. If you want to buy DASH, first look for an exchange that best suits your needs. Consider trading fees and fiat pairs offered by the exchange before you start buying DASH. We’ve shortlisted some of our favorite exchanges here for you to consider:
eToro
eToro offers over 1,000 assets for you to choose from. The social trading platform was founded in 2007 and has since taken steps to make it easier for everyone to buy and sell cryptocurrencies, including Dash. Millions of people also choose the broker because it is safe, responsible and educational.
eToro
minimum deposit: $10 (promotion)
User rating: 10
Plus500
Plus500 also includes our favourites list as it is an easy-to-use trading broker with a specially designed mobile platform. The account opening process is simple and completely digital. The trading fee on the platform is also low.
FXTB
ForexTB (FXTB) is a web-based trading platform suitable for beginners.
Advanced traders may want advanced features. However, if you only want to buy DASH, FXTB is a safe and regulatory broker that can meet your needs.
The best DASH wallets
You need a suitable wallet to store DASH. Many brokers and crypto exchanges offer this service automatically, but it is necessary to fully understand the pros and cons of different wallet types in order to choose the best wallet.
What are wallets?
Wallets are software or devices that allow digital currencies to be stored securely and anonymously. The best are secure and allow you to easily manage and transfer currencies at any time.
What types of wallets are there?
Read on for the main types of wallets available for DASH. Be aware of the pros and cons of each wallet type before choosing the one that best suits your needs.
Web Wallet
These are the wallets that cryptocurrency exchanges and brokers offer on their online platforms. They are affordable and easy to use. However, since the wallets are always available online, they are often targeted by hackers. The exchange can also file for bankruptcy and put your money at risk.
Mobile Wallets
Mobile wallets are similar to web wallets. The only difference is that they are used on mobile devices such as mobile phones or tablets. You can access it remotely from anywhere. Also, you can improve their security by installing the necessary security protocols. However, if you lose your phone (or it gets stolen), others can access the wallet and steal your DASH.
Examples of mobile wallets are:
- JaxxLiberty
- Coinomi
- DASH wallet
- DASH Core iOS
- Paytomato
- Edge
Desktop Wallet
As the name suggests, the software is designed for use on desktops. They are less convenient as you cannot access the wallet without a desktop.
However, you can make them more secure by installing a number of safeguards like 2FA.
Examples of desktop wallets are:
- Exodus
- DASH Electro
- DASH Core
- atomic
- Guarda
Hardware Wallet
These physical devices come with special software that stores your cryptocurrencies in an offline environment. Hardware wallets are therefore cold wallets and offer the best security. However, they must be purchased and are not available for free. New and inexperienced users may also have difficulty using them.
Examples of hardware wallets are:
- Ledger Nano S
- Trezor
- KeepKey
Wallet Combinations
Some wallets like the Ledger Nano S can be linked to the native Ledger Live app Ledger Live or other DASH apps for increased security and convenience.
Keeping the wallet on an exchange, the possible advantages and disadvantages
A cryptocurrency exchange offers wallets in which to store your funds. They are cheap and easily accessible. By storing the cryptocurrency on an exchange, a user can trade at any time.
The possible fault is a lack of security. When the exchange is hacked, the funds in an exchange’s wallet are also compromised. If the exchange files for bankruptcy or has legal issues, a user may experience limitations or lose all funds (worst case scenario).
What are the pros and cons of DASH?
The cryptocurrency Dash offers a number of advantages, but also some disadvantages.
Benefits of DASH Token
In addition to anonymous payment transactions, users praise the secure network. In addition, Dash significantly reduces energy consumption during mining compared to other cryptocurrencies. This enables higher returns in less time. Transactions are processed and settled in seconds. In addition, Dash’s pronounced data protection was particularly popular with investors.
Disadvantages of DASH
A disadvantage of Dash is that it is still not widely accepted as a cryptocurrency in retail. Not every provider accepts the coin as a payment method. In addition to the more tried-and-tested altcoins, the still young currency is therefore finding it particularly difficult to establish itself in the free economy. Still, thanks to the freedom and security that Dash offers, the overall verdict on cryptocurrency is positive: its advantages are structural, the disadvantages will wear out over time.
The future of DASH
Most cryptocurrencies show a similar course. It can be observed that in the first months of 2019, prices are rising again after a long low. The Dash course, on the other hand, continues to fall steadily. Therefore, the current forecasts for this currency are not particularly positive. A Dash purchase is an interesting risky investment thanks to this course, which enables a high return. In addition, if Dash succeeds in convincing more online traders of the coin, the currency can establish itself as a means of payment. As a result, the price should rise again and the coin should become more lucrative. Overall, Dash is a good alternative to Bitcoin.
FAQ
- Does DASH have competitors?
Yes. Bitcoin can be considered as one of DASH’s main competitors due to the introduction of the Lighting Network. Bitcoin Cash and Litecoin also aim to become a medium for daily transactions.
- What inspired Evan Duffield to start DASH?
He wanted to overcome Bitcoin’s shortcomings, i.e. low transaction speed and lack of privacy.
- Is DASH a new cryptocurrency?
Dash was launched in January 2014 and as of April 2018, the market cap was already $4.3 billion.
- What technical feature makes the DASH Proof of Work unique?
The algorithm has a special hash function known as “X11”. It consists of eleven hash algorithms required to complete the PoW. It offers maximum security with fewer knots.
- What transactions do Masternodes offer?
Masternodes offer “InstantSend” which bypasses mining and “PrivateSend” which uses the user’s unspent DASH before executing a transaction.
