Review of the Dash cryptocurrency: the basics of the startup, its special features and its differences from other privacy-based cryptocurrencies.
The Dashcoin cryptocurrency is one of the best known privacy-based coins, included in the top list of 15 largest cryptocurrencies by market cap. Although all anonymous cryptocurrencies are now under a strong pressure from regulators, they are quite suitable for risk diversification of your investment portfolio. From this review, you will learn about Dash unique features and advantages. You will also learn where to buy and store your Dashcoins, the ways of Dash mining, and what the cryptocurrency is promising in future.
Dash cryptocurrency – digital cash with full confidentiality
At present, there more and more forks among the payment networks, like Bitcoin and decentralized networks. The privacy-based cryptocurrencies are less popular among developers, being the third most often idea among startups. Among all these projects, the Dash cryptocurrency (dash.org) deserves special attention. Even though it has lost its positions a little recently, it is still included into the top list of 15 largest cryptocurrencies by market cap. In this class of cryptocurrencies, only Monero is ahead. From this article, you will learn about what Dash is in fact, in what way it differs from BTC, where you can buy and store Dashcoin, how to mine DSH and what its future outlook is.
Dash cryptocurrency review: basics, mining, prospects
The DASH cryptocurrency is thought to have appeared in 2014-2015. Some Evan Duffield founded the Dash Core DAO company, originally aiming at copying Bitcoin blockchain, eliminating its flaws. In particular, it was about fully confidential transactions, higher transaction speed and a higher level of security. In some terms, DASH can be called a Bitcoin fork, as the coin utilizes its programming code.
Dash utilizes two tier blockchain; in addition to the basic tier, consisting of miners, there is also the second tier, consisting of masternodes. Miners are controlled by masternodes, which is a decentralized network of volunteers who sign transactions. As soon as miners discover new blocks, the users, connected to masternodes, jumble the coins in random order, breaking the link between the users and the transactions. Masternodes can be joined by any user, who has 1000 or more Dash tokens on the account. The block rewards is distributed like this: 45% of coins is received to miners, 45% go to masternodes, and 10% is sent to the reserve fund.
In fact, DASH is also a payment system, based on a different algorithm with a higher level of confidentiality. Its advantages:
- The transaction speed is much higher, compared to Bitcoin.
- Any decision is taken, based on the decentralization principle, by the decentralized autonomous organization (DAO), rather then by the majority of votes. It avoids the problem of multiple divisions (forks), when a part of the network participants.
- It offers an "instant" transaction method known as InstantX or Instant-Send.
A new block appears in about every 2.5 minutes; block reward is 5 tokens. It is suggested that all coins will have been issued by 2050; the annual issuance will be reduced by 7% on average.
Where to buy Dash and store your Dashcoins
Although DSH cryptocurrency is one of the best among the most popular privacy-based cryptocurrencies, most of it is traded only on a few exchanges, located in different regions. About 16%-19% of Dash is traded on the British HitBTC (hitbtc.com), where you can buy Dashcoin for BTC and USDT. The exchange is not one of the largest, so neither ETH nor the fiat can be traded there, and it suggests converting costs.
The second largest amount of Dash is traded on the European exchange Huobi (huobi.pro), about 13%-15%. Although, it also offers a limited choice of cryptocurrency pairs (BTC, USDT), the exchange is more convenient for investment, in terms of functionality. After the Chinese department was shut down due to regulation problems, Huobi has switched to the European market, entering the top list of 10 largest exchanges by trading volume. It is more functional and more convenient for complex investment, compared to HitBTC.
The third position is taken by Trade by Trade (tradebytrade.com), a little-known exchange; about 75%-77% of its turnover is covered by Dash. You can also buy DAshcoin on the platforms like YoBit, Binance, Bitfinex, WEX, OKEx; and on less known exchanges, Exrates, Lbank, Octaex, B2BX, and so on. About 2%-6% of Dash is traded on each platform.
As for the Dash share in the total turnover of the largest exchanges, the coin is far behind its rivals. For example, on OKEx, Dash is blow the 60th place, with the share of about 1% (the leaders are ВТС, EOS, ЕТН, LTC). The same situation is on Binance, where Dashcoin is below the 100th place. About 1.5% of Dashcoin is traded on Huobi, being below the 40th place. THE only exception is YoBit, where Dash is leading, covering about 32% of the total turnover.
It can be concluded from the above that the cryptocurrency is popular only on small, local platforms, and investors use it for long-term investment, rather than for short-term speculating.
I have emphasized more than once, that the accounts on cryptocurrency exchanges are not safe. In addition potential hacks, the exchanges themselves can block the account at any moment or switch off the website (a technical failure). So, as soon as you have bought the Dash cryptocurrency, you’d better store it on the wallet. The list of the official recommended wallets is on the Dash website.
- Dash desktop wallets: the common single currency Dash Core and Dash Electrum, multi-currency wallets Jaxx, Exodus;
- Dash mobile wallets: (IOS, Android): Dash Wallet, Jaxx, Edge Wallet, Coinom
- Dash hardware wallets: Keep Key, Ledger Nanj S, Trezor;
- Dash paper wallets: Dash Core Paper.
The wallets are also grouped according to operational systems: Windows 64 bit and 32 bit, OSX, Linux. If you use other dsh cryptocurrency wallets, not enumerated on the site, you may lose your money.
One of DASH distinctive features is that it, unlike other cryptocurrencies, doesn’t utilize Scrypt or SHA-256 algorithms. The Dash network is based on X11 algorithm, so the hash functions works in 11 directions.
- CPU mining. It is applied when the computer processing capacity is fully utilized. Mining software: Cpuminer, Minerd, Xcoin-miner;
- ASIC. The most popular equipment for Dash is Baikal, Pinidea;
- Cloud mining.
CPU mining and GPU mining will suit individual investors best; it requires little investment; but the yield will be also less, in comparison to ASIC. For example, Intel Core i5 4670 has the capacity of 0.5 МН/s, the graphic chipset ATI – 2.5 МН/s, ASIC - 900 МН/s. The point is only in ASIC cost-effectiveness, the calculator ryptocompare.com/mining/calculator/dash. will help you here.
Mining pools include: Mining pool hub, AntPool, F2pool, Supernova, Zpool, CoinMine, HashPower, Nicehash, LTCRabbit.
The drawback of mining is relatively large initial investment. Wallets are good for long-term investment, but doesn’t suit for short-term speculating. An alternative is making money on Forex long and short positions. You can learn more about how to make profits and what cryptocurrency pairs are available for trading here.
DASH prospects for investors
DSH price in general follows global market trends. A gradual increase without any drops through November, 2017, then, a price surge until January, 2018, followed by a sharp drop. Now, the Dash price is recovering, though, not that fast. It is more interesting to compare the DSH moves to USD and to BTC, it shows how you can make profits from trading ВТС/DASH; its volatility is far stronger than for USD/DASH.
The Dash cryptocurrency is often called one of the major Bitcoin’s rivals; though I don’t think it is fully correct. The demand for a cryptocurrency directly depends on the community’s attitude to it. Bitcoin is gradually recognized as a payment means (that is utilizing the Bitcoin blockchain as it is intended), but the DSH price still depends on investors’ speculative expectations. The state officials will hardly change their attitude to the cryptocurrencies, which can’t be controlled and regulated, soon. So, it is yet makes no sense to see the Dashcoin as the BTC rival.
The Dash immediate competitors among privacy-based cryptocurrencies are:
- Monero. It is one of the most popular cryptocurrencies, based on CryptoNote protocol. Nowadays, it is the most popular cryptocurrency, among the confidential ones. It is about one or two levels higher by the market cap.
- Zcash, ZenCash, ZClassic. They are a few successful long-term projects that are often copied and have numerous forks. They differ from Dash and Monero by the encryption algorithms, they utilize.
- SmartCash. This project’s special feature is “smart confidentiality” that allows buying cryptocurrency and then clear the history of transactions. This technology prevents from tracking digital transactions, confusing the hackers as well. The coin is rated at about 130th place, but it has some prospects. Everything depends on its developers.
- BlackCoin. Another interesting startup that hasn’t yet ever been hacked. Its encryption algorithm is based on the principle, similar to Monero. It is rated below the 300th position, but its algorithm may be the base for a new startup.
There were other tries to develop similar cryptocurrencies, like Spectrecoin, VCash or ShadowCoin, but, looking at their rating and the history of quotes, they are not real rivals. It is difficult to suggest the Dash future rate to USD, but the forecast is rather positive. The privacy-based cryptocurrencies have been losing their positions recently; both Dash and Monero have been outside the top 10 list, nevertheless they are steady in the top list of 15 largest cryptocurrencies. Apart from Monero, there are no other competitors for Dash, but its high confidentiality is now against it. Investors see that the coin usage will be limited because of the restrictions; so, they prefer more transparent payment systems or decentralized networks. A vivid example is the FSA (the Japan’s financial services agency) recent order to quit trading DASH, Monero and ZCash. It may have a negative influence on the Dash rate. After all, Forex traders can well make cash on the drawdowns as well.
Conclusion. The Dash cryptocurrency is an appealing asset to make profits from speculative price changes that follow the crypto market general trends. The startup is developing slowly, but steady, increasing the number of its participants. According to discoverdash.com, the network has been joined by over 1000 companies, located in Venezuela, Australia, some U.S. regions, and so on. Although, this fact alone is not enough for the project’s full scale development. I suggest this trading instrument as an additional asset to diversify the risks.
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