How to buy Dash Coin online
Compare where to buy Dash Coin, and open an account
Read on to find out more about Dash in 2020 or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to buy Dash coin.
What is Dash?
The first thing to say about Dash is that it isn’t a development platform. In fact, it’s a blockchain-based cryptocurrency that, as its portmanteau brand name suggests, functions like digital cash. Dash is designed to offer a rapid digital payment solution that’s built on the Bitcoin protocol, thus offering decentralised governance and independence from any central authority.
How does Dash work?
Dash has a past life. Back when it was launched in 2014 it was called Darkcoin and promoted as a coin that offers unprecedented anonymity and privacy via super-strong encryption. While privacy remains an important feature of the Dash offering, its current incarnation foregrounds more mainstream benefits like speed and ease of use. Dash is being positioned as the crypto for daily transactions.
To achieve Bitcoin-beating scalability Dash bolsters its network of nodes with Masternodes. What the devil are Masternodes? Well, as the name implies, Masternodes are like nodes but more important. The Dash website describes them as ‘powerful servers backed by collateral held in Dash’ that are ‘designed to provide advanced services and governance on the blockchain’. Masternode operators are rewarded with regular Dash payments.
How to buy Dash online – step-by-step guide
Step 1. Get a suitable wallet
After you buy Dash coins online, you will need to store them somewhere. A wallet allows you to store your DASH securely. It’s a good idea to have one ready before you invest so you’re able to transfer your freshly acquired currency off the exchange and keep them safely stored. There are a few good options on the market, including:
- Ledger Nano X: One of the safest options for storing your DASH is the Nano X hardware wallet from Ledger. It’s not the cheapest wallet out there, but if you’re serious about security, it’s one of the best.
- Dash Core Wallet: The official Dash wallet is available for desktop and connects you to the Dash network offering a host of P2P client features, including InstantSend, PrivateSend, governance and masternode management.
Step 2. Find a Dash exchange
There are plenty of exchanges on offer if you want to buy and sell DASH. Each has advantages and disadvantages, so it’s a good idea to do a bit of research. To get you started, here are two of our favourite DASH exchanges:
- Binance: Widely considered to be the best, most dependable place to buy altcoins, Binance is the world’s biggest crypto exchange. It offers a huge marketplace and fees that compare favourably with its main competitors, plus a well-designed mobile app. Check our Binance review for more details.
- Kraken: Founded in 2011, Kraken is one of the biggest and most trusted cryptocurrency exchanges around and, in 2020, is a great place to buy DASH. It’s US-based but has links with banks in Germany and Japan. Kraken users can trade a wide variety of fiat currencies and cryptocurrencies on the platform.
Step 3. Withdraw your Dash
It’s a good idea to secure your DASH by moving them off the exchange and into your wallet as soon as possible. To withdraw your DASH to your wallet you need to generate an address then paste it in the relevant field of your exchange account.
How to trade Dash – step-by-step guide
If you’re not planning on buying DASH and only interested in trading it you needn’t worry about getting a suitable wallet because trading involves taking a position on a currency rather than actually buying it. This means you can potentially make a profit from DASH without the hassle and security risk of owning it.
Step 1. Find a broker
Step 2. Deposit money
Most trading platforms will allow you to deposit Fiat money (USD, GBP, EUR etc.). It’s worth noting that crypto brokers offer leveraged trading, which means you don’t have to put down the full value of a trade. Instead you can pay a deposit, known as a ‘margin’. This means you can potentially make bigger profits and, of course, bigger losses.
Step 3. Decide how you’d like to trade
There are two methods to trade cryptocurrencies: CFDs (contracts for difference) and Spread Betting. Both methods essentially entail speculating on the price movements of your chosen currency. If you aren’t sure which option to go for, we recommend researching the differences between spreads and CFDs.
Step 4. Start trading
If you’re a complete novice we recommend starting with a demo account and familiarising yourself with the process and the platform. Cryptocurrency trading is extremely volatile, which means you can make and lose money very quickly. Cryptocurrencies are prone to fluctuation, which makes them intriguing prospects for traders who look to exploit volatility.
As a crypto trader you’re speculating on your currency’s price movements by taking a short (sell) or long (buy) position. If you think DASH will fall in value you should take a short position, if you think it will rise in value you should take a long position.
You may choose to incorporate leverage into your trading strategy. Leveraged trading allows you to put up a fraction of the trade’s value as a deposit or ‘margin’. This can be risky, though, so make sure you have a stop loss in place for damage limitation.
- Transaction speed could give Dash an edge
- Clearly aiming for mass adoption as the everyday digital payment platform
- Dash has shown impressive staying power and evolved its offering since 2014
- Price likely to be closely tied to BTC until market matures
- Jury’s still out on Digital Cash as a prospect, although this is gradually getting closer