5 Ways To Invest In Dash In 2021
Originally launched in January 2014 as Xcoin, Dash is a cryptocurrency and an open-source blockchain that forked out of Litecoin (a well-known Bitcoin fork). The project got rebranded as ‘Darkcoin’ two weeks after its launch, before finally settling with the name Dash in March 2015. The current moniker Dash can be perceived as a portmanteau of ‘Digital’ and ‘Cash’ or ‘Digital Cash’. The aim of Dash has always been to improve upon Bitcoin and Litecoin’s capabilities, to deliver quicker transactions and a higher degree of privacy to its users.
Soon after its final rebranding, Dash started gaining market value, breaching $4 billion in market cap in 2018. But its price started declining thereafter. Nevertheless, the cryptocurrency stayed amongst the top 50 (in terms of market cap) at all times. Considering the fact that DASH’s market price swung from $1,600 per coin at one point of time to $0.21 at another, the coin can be easily exploited for investment purposes by both long and short term traders. DASH was trading at $286 per coin at the time of writing this piece, with a total market cap of around $2.73 billion. Here in this detailed article on Dash investments, we will acquaint you with 5 popular methods of investing in this cryptocurrency.
1. Trade Dash
Amongst the various options used by people to invest in DASH, trading the cryptocurrency on an established online broker platform is the most popular one. When you choose to trade DASH on a broker website, you’d essentially be using financial derivatives like Contracts for Difference (CFDs), Options and Futures, to speculate on its price movements, to make some profit for yourself. Trading Dash like this does away with the need of exchanging the ownership of the cryptocurrency, and eliminates the requirement of a crypto wallet to store your coins. It works best for investors who have some experience in short-term crypto trading and know how to use fundamental and technical analysis to their advantage.
Where to trade Dash
To be able to trade DASH on a broker platform, you will need to open a trading account with them first. This will entail supplying the broker with some essential personal details, including your name, address, phone number, email, and so on. You may also be asked to upload some government-issued photo identity and a proof of address to comply with their AML and KYC norms.
We’d like to stress here that transacting with a reliable broker is essential for a stress-free trading experience overall. To this end, you must compare and shortlist the best providers, based on multiple parameters including their regulatory status, customer service, deposit/withdrawal options, security measures and more. It is evident that it can be a fairly time-consuming and tiring activity! Therefore, we did all the hard work on your behalf, and have listed below some of the best broker services out there on the internet today. You can sign up with any of them based on your personal preferences.
2. Buy and HODL
‘Buy and HODL’ is a well-known investment strategy both in the crypto as well as other financial markets. A drunk bitcoin investor misspelt ‘Hold’ as ‘Hodl’ in an online chat room back in 2013, trying to emphasise that he was planning to hold onto his coins, and gave birth to this widely popular investment approach today.
HODL is also popularly treated as a backronym of ‘Hold on for Dear Life’ implying the need of holding onto one's coins and waiting for their price to appreciate. As can be gauged, the strategy is essentially about buying DASH and then keeping them safe in a wallet, in the hope of its price appreciating in the future. It’s a long-term strategy that doesn’t require any trading knowledge or experience.
To invest in DASH using the ‘Buy and HODL’ approach, you’ll need to purchase the DASH coins first. This can be done on any popular cryptocurrency exchange or a broker platform that allows for the actual sale or purchase of cryptocurrencies.
Considering the fact that there are many ways you can buy DASH in the market today, it can get very confusing for newbie investors in particular. In an effort to do away with all such hassles, our team has created a few dedicated web pages focused on buying DASH through specific payment options like credit card, PayPal, and debit card. The individual links to these pages can be found below. Before you go ahead and pull out your wallet to buy DASH, we’d like to inform you that some of these payment options may or may not be offered in your country/state of residence. You’ll need to check with your local crypto laws to get a better idea in this regard. Additionally, these payment methods may involve certain transaction fees too.
- Buy Dash
- Buy Dash with PayPal
- Buy Dash with Credit Card
- Buy Dash with Debit Card
3. Invest in Cryptocurrency and Blockchain Companies
An indirect and alternative way of investing in Dash is by buying the stock of a company built around the Dash cryptocurrency or heavily invested in it. Dash is well known for using two very popular transaction modes, ‘InstantSend’ which facilitates instantly settled payments, and ‘PrivateSend’ that offers a higher degree of privacy for the transactions. The way blockchain technology has evolved over the years, there are many entrepreneurs and tech enthusiasts today who are taking a keen interest in digital currencies like Dash, to come up with their own big innovations. If you spot any such initiative in its early stages and buy its stock at the right time, you could benefit immensely from your investment. The company could perhaps be using the above-mentioned transaction modes for its day-to-day operations or may have integrated the Dash technology in some other comprehensive way. Making this type of investment will give you an opportunity to benefit from the market sentiment around Dash as well the company’s overall performance, without buying or trading with the tokens themselves.
Where to invest in Dash shares
To buy the shares of any such Dash-based company, you will need the services of an established broker platform. The crypto broker will either enable you to buy/sell the actual ownership of the company’s shares or facilitate easy usage of derivatives like Options, CFDs and Futures to bet on their price movements. Furthermore, you may be offered the leverage facility too, to take big market positions, without tying up a substantial amount of capital. You can locate a reputed and reliable broker service for yourself by comparing the best ones in the crypto market on popular parameters like their regulatory status, market reputation, payment methods, customer service, fees and more. Below is a list of some of the top-rated online broker services our team has shortlisted, based on the above-specified critical factors.
4. Become a Miner/Staker
Dash employs a two-tier network for securing its transactions. Whilst the first tier is comprised of mining operations that employ a Proof of Work (PoW) consensus mechanism, via a hashing algorithm called X11, the second-tier comprises ‘masternodes’ which use a Proof of Service (PoS) consensus mechanism to prove their effectiveness in: 1) ensuring the network’s security and 2) processing InstantSend and PrivateSend transactions. While anyone can be a Dash miner, to become a masternode, you are required to stake/deposit at least 1000 DASH coins.
Out of every DASH coin that is mined, 45% (0.45 DASH) goes as a mining reward to the miners, 45% (0.45 DASH) is awarded to the masternodes, and the remaining 10% (0.10 DASH) is allocated to the Dash treasury for further network improvements. Therefore, you can be a miner and/or staker to acquire DASH coins for yourself through this channel.
Where to store Dash
Please note, any DASH coins you acquire via mining, staking, trading and/or buying activities, will need to be stored in a cryptocurrency wallet for later use. There are many types of crypto wallets offered in the market today, however, you can broadly categorise them into hardware wallets and software wallets. Both differ based on the purpose they serve. Whereas hardware crypto wallets are ideal for storing DASH coins for the long term, software crypto wallets can make your coins available as and when you need them, for any online/offline transactions. Below we have listed the best crypto wallets you can use to store your DASH coins.
5. Become a Dash Developer to Make Money
Expert Tip on When and How to Invest in Dash“ To summarise, we looked into multiple ways of investing in DASH in this article, including trading the coin at a reputed broker platform, buying and holding it, investing in the stock of a Dash-based company, mining Dash and lastly, getting into Dash development. No matter which Dash investment strategy you use, you must learn about fundamental and technical analysis, and gain some hands-on knowledge of a few useful analytical tools too to make the most of any such endeavour. As a final thought, please remember, there is no wrong or right time of making a Dash investment, as long as you’re sure about your due diligence, and are willing to learn from your errors. ”- Ashish Sood