What is DASH?
Dash (DASH) is a fork from Bitcoin. It was originally launched in 2014, under the name Xcoin, and it got later rebranded to Darkcoin. Dash was created to protect anonymity and privacy. The project’s whitepaper is signed by Evan Duffield, Daniel Diaz, and Daniel Diaz. It is described as a privacy-centric cryptocurrency based on Satoshi Nakamoto's work.
Although it retains strong encryption features, the company has recast its goals. Dash aims to be a medium for everyday transactions, as a digital currency that can either be used as cash or credit card. Dash is an open-source project that includes a decentralized payments network.
On the Bitcoin network, all nodes in a network must validate transactions. This process is intended to guarantee consensus without authority and requires substantial investment infrastructure to support full nodes. Bitcoin miners who run full nodes have to spend more time and money to ensure that the system works optimally. This is becoming increasingly difficult due to the rapid growth of Bitcoin's network.
This takes a long time and can lead to clogging. A backlog of transactions in Bitcoin's memory pool can result from slow processing. This can result in high transaction fees that make Bitcoin unsuitable for daily transactions.
Dash uses a different system to handle transactions. Dash is managed by a subset of its users, known as masternodes. Masternodes make it easier to verify and validate transactions. Masternodes make it easier to verify and validate transactions.
This solves the scaling problem of transactions. Because the transaction approval process is simplified, this reduces the number of required nodes. Masternodes approve transactions from the miner network. They also provide services to the Dash network, including privacy and payment.
Dash's governance model is the second innovation in its ecosystem. Two similar cryptocurrencies to Dash are Bitcoin and Litecoin. But unlike Bitcoin and Litecoin, Dash has pioneered a self-funding model by splitting block rewards between three stakeholders ━ masternodes, miners, and treasury. Each of the first two receives a 45% share. The 10% share that accrues to the Treasury is used for future development projects at Dash. Masternodes also play an important part in this process: their votes decide the future direction of cryptocurrency development.
As crypto exchanges have become more accessible and the DASHUSD price has risen, more people have begun to invest in cryptocurrency. DASH trading is allowing a great transfer of wealth and even new investors can hope to profit from its fast growth and earn higher returns than they would on the stock market.
With so much attention from the media and financial traders, new cryptocurrency investors are always looking for advantageous ways (platforms) to buy DASH (DASH) online. Luckily, there are numerous services and guides on how to buy DASH to help you get started in the cryptocurrency market.
Where to Buy DASH (DASH coin)
There are two ways cryptocurrency investors can choose when searching how to buy DASH (DASH) online:
- Cryptocurrency exchange
- Online Brokers
Crypto exchanges might be a good option for holding your funds, especially if you plan to withdraw them to a private wallet.
Online brokers are another great option where to buy DASH (DASH), which is increasing in popularity lately due to ease of trading, fast transaction, and greater control over the digital assets in your portfolio.
When you use a broker platform, you gain access to a comprehensive feature set that will assist you in more precisely calculating your strategies and risks. As a result, you will be able to add more indicators to the chart and use the built-in technical analysis tools. However, unlike an exchange, the broker platform will not provide you with the same large offer of cryptos to trade.
Additionally, global brokers like CAPEX also provide a few options to indirectly invest in DASH and other cryptocurrencies: cryptocurrency Exchange-Traded-Funds (ETFs) and companies connected to cryptocurrencies (crypto stocks).
Buying DASH cryptocurrency over an exchange
If you want to participate in a crypto project development and own the digital asset, you can buy DASH (DASH) online through a cryptocurrency exchange, such as Binance, Kraken, Bittrex, or Coinbase, and store it in a digital wallet.
Having an account on a cryptocurrency exchange allows you to send and receive DASH (DASH). Transferring DASH is like the way traditional bank transfers work, except for the bank account address, which is replaced with a DASH address. Because digital currency is transmitted directly between individuals without needing third-party entities, such as banks, transaction fees are cheaper than those charged by traditional institutions.
If you want to hold your crypto for a longer time, it is advised to transfer them from the crypto exchange to a secure cryptocurrency wallet. Wallets are much safer, and each private crypto wallet has a private key. It is critical to keep your private key safe because you won't be able to access your crypto without it, and if it's easily available, your funds could be stolen.
Buying DASH (DASH) through an exchange is for those who want to use it for day trading or purchasing crypto to transfer to a wallet. When you’re buying DASH (DASH) through a cryptocurrency exchange, you own the digital asset, and you can transfer it to a crypto wallet or do whatever you wish with it. If the price of DASH rises, then the value of your portfolio goes up as well. But if the price of DASH (DASH) falls, then the value of your portfolio falls, while the amount of DASH (DASH) remains the same.
Here are the main drawbacks when buying DASH (DASH) through a cryptocurrency exchange:
- Cryptocurrency exchanges may not be regulated in your country and offer little to no protection for investors.
- The matching engines and servers on DASH (DASH) exchanges are often unreliable, leading to the inability to access your account and control your funds.
- Cryptocurrency exchanges have many restrictions and limitations for their services, including transaction fees, withdrawal fees, and imposing minimum amounts for funding and withdrawing funds.
The good news is that investors can limit the risks presented by the crypto exchange by trading DASH (DASH) with contracts for difference (CFDs). DASH (DASH) CFDs allow you to speculate on the price of the cryptocurrency without having to own the digital asset.
Read on if you want to learn to trade DASH with capex.com in the most convenient way.
Buying DASH (DASH) with an Online Broker
Trading DASH (DASH) with an online broker like CAPEX means that instead of owning DASH outright, you’ll be speculating on its price with CFDs.
The main difference between buying DASH (DASH) from an exchange and buying DASH (DASH) from an online broker is that you don’t own DASH (DASH) when you use a broker. Owning crypto requires investors to have a crypto wallet, either within the exchange or a private wallet. But when you purchase DASH (DASH) CFDs using an online broker, the CFDs are stored in your account and are far more liquid, which makes trading CFDs more popular. Unlike cryptocurrency exchanges, online CFDs brokers are regulated by financial authorities.
The Alternative Way to Invest in DASH (DASH)
Trading CFDs is a process of buying or selling CFDs and can generate a profit if the value of the asset moves in the direction of the investor’s prediction, or a loss if the market goes against him.
You can buy DASH CFDs (go long) if you believe the value of the digital asset will increase.
At the same time, you can “go short” if you believe that the price of the underlying asset, in this case, DASH (DASH), will decrease, by selling CFDs.
Trading CFDs provides leverage, and you can open your position by depositing only a margin.
For example, if a trader wants to buy 100 DASH CFD at $180 would only require $9000 of trading capital.
It’s important to remember that leverage can increase both your profits and your losses, and they will be based on the full exposure of the trade, not just the margin requirement needed to open it. Potential losses, as well as profits, could exceed your margin.
Concisely, if you choose to trade crypto CFDs, you can profit from the difference between the buying and the selling position.
With CAPEX, you can trade CFDs on futures or spot prices. Trading CFDs on futures gives you exposure to the futures market, but without requiring you to take on any obligations or worry about any of the other nuances that are associated with futures trading.
Buy DASH DASH CFDs - Go Long
Instead of taking ownership of DASH, you can place a ‘long position’ translates to buying DASH CFDs. Your position, or DASH CFDs, will increase in value according to the increase in the price of the digital asset DASH’s price increases. If the price of DASH falls, then your position will lose value and can lead to loss.
Let’s assume that DASH is trading at a sell/buy price of 178/180 USD. You want to buy 100 CFD (units) because you think the price of DASH will go up. DASH has a 1:2 leverage or a margin rate of 50%, which means that you must deposit only 50% of the position’s value as position margin.
In this example, your CFD position margin will be $9000 (50% x (100 units x $180 buy price)). Losses greater than the margin can occur if the price of DASH moves against your position.
Outcome A: a profitable trade
If your prediction was correct, and the price of DASH surges over the next hours or days, then you have made a profitable trade. If the sell/buy price is 198/200 USD when you decide to close your position by selling at 198 (the new sell price), then your profit will be $1800.
The price has moved $18 (198 - 180) in your favor. Multiply this by the size of your position (100 units) to calculate your gross profit which is $1800.
If the position was closed during the day, there will not be any swap charges and the net profit is $1800.
If the position was closed after a few days, there will be swap charges according to the overnight rollover specification, in this case, -0.0563%.
Let us assume the position was closed the next day, the overnight swap calculation formula will be:
- Overnight swap = 100 (units) x $190 (price at rollover) x 0.0563% x 1 (days) = $107
Therefore, your total profit on DASH CFD is your gross profit minus the rollover cost.
- $1800 - $107 = $1693 net profit
Outcome B: a losing trade
If your prediction for the price of DASH was wrong, the DASH CFD trade will result in a loss. Let’s assume that the price of DASH drops over the next hour to a sell/buy price of $170/172. Because you want to limit the loss in the eventuality that the price continues to drop, you can sell at $170 (the new sell price) to close the position.
The price has moved $10 (180-170) against you. Multiply this by the size of your position (100 units) to calculate your loss, which is $1000.
Sell DASH DASH CFDs - Go Short
In this CFD example, DASH is trading at a sell/buy price of 178/180 USD. Assume you want to sell 200 CFDs (units) because you think the price will go down. DASH has a 1:2 leverage or a margin rate of 50%, which means that you only must deposit 50% of the position’s value as position margin.
In this example, your CFD position margin will be $17800 (50% x (200 units x 178 sell price)). Remember that if the price moves against you, it is possible to lose more than your initial position margin of $17800.
Outcome A: a profitable trade
Your prediction was correct, and the price falls over the next 2 days to a sell/buy price of 166/168 USD. You decide to close your trade by buying back at $168 (the new buy price).
The price has moved $10 (178-168) in your favor. Multiply this by the size of your position (200 units) to calculate your profit, which is $2000 gross.
Let us assume the position was closed after 2 days, the overnight swap calculation formula will be:
- Overnight swap = 200 (units) x 175 (average price at rollover) x 0.0118% x 2 (days) = $8.26
Therefore, your total profit on DASH CFD is your gross profit plus the rollover cost.
- $2000 + $8.26 = €2008.26 net profit
Outcome B: a losing trade
Unfortunately, your prediction was wrong, and the price of DASH coin rises over the next hour to a sell/buy price of $186/188. You feel the price is likely to continue up, so to limit your potential loss you decide to buy at $188 (the new buy price) to close the position.
The price has moved $10 (188-178) against you. Multiply this by the size of your position (200 units) to calculate your loss, which is $2000.
If you are not ready to trade CFDs at spot or futures prices yet, we have also got educational resources like CAPEX Academy with free courses on how to trade. Plus, we offer a demo account – giving you $50,000 in virtual funds to build your confidence in a risk-free environment.
Investing in DASH without actually buying DASH
While buying and day trading cryptocurrency is a major trend right now, it is important to remember that cryptocurrencies are a volatile and risky investment choice. If investing in crypto on an exchange or via a broker does not feel like the right choice for you, here are a few options to indirectly invest in DASH and other cryptocurrencies:
Exchange-Traded Funds - Crypto ETFs
Exchange-traded funds (ETFs) are popular investment tools that allow investors to buy exposure to hundreds of individual investments in bulk. That is why ETFs are a means of diversification for your portfolio and as less risky than investing in individual investments.
A crypto ETF allows investors to trade cryptocurrency on a traditional market and eliminates the need to trade the asset on a crypto exchange. Another advantage of trading crypto ETFs is that investors do not have to worry about the security aspects of trading crypto.
US investors can enter the crypto market by using ProShares Bitcoin Strategy ETF (BITO). The Fund provides capital appreciation through managed exposure to bitcoin futures contracts.
A DASH ETF could come in 2022. The approval of a Bitcoin ETF means a similar offering for DASH is imminent.
>> Learn what is an ETF and how does it work
Companies Connected to DASH and Cryptocurrency - DASH Stocks
Another option is to invest in cryptocurrency indirectly by investing and buying shares of companies that offer real-life products and services but still use or own cryptocurrencies as part of their business model (known as DASH stocks). With an all-in-one trading account with CAPEX, you can also trade shares CFD of public companies like:
- MicroStrategy (MSTR). This company provides organizations across the globe with best-in-class enterprise analytics. It also holds a significant part of its funds in Bitcoin. Learn how to buy MicroStrategy shares
- PayPal (PYPL). This is a worldwide payment service that allows their customers to buy and sell crypto using their PayPal and Venmo account. Learn how to buy PayPal shares
- Square (SQ). Since October 2020, Square has purchased over $220 million worth of Bitcoin. As of February 2021, this payment services provider stated that 5% of its cash is stored in Bitcoin. Their app, Square Cash, allows clients to buy, sell and trade crypto. Learn how to buy Square shares
- Coinbase (COIN). Coinbase is a cryptocurrency exchange that allows consumers, financial institutions, and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies. Learn how to buy Coinbase shares
- ING Group (ING). The Dutch multinational has backed HQLAx, a blockchain liquidity management platform. Learn how to buy ING shares
>> Learn more about stock investing
How to Buy DASH Coin
Are you wondering how to buy DASH with CFDs? CAPEX offers DASH trading via CFDs on DASH USD spot prices to speculate on the value of DASH against the most popular currency, as well as the brand-new PRO Shares Bitcoin Strategy ETF. Here are the steps:
Step 1: Create an account and deposit funds
When you trade on cryptocurrencies, instead of purchasing DASH and other popular digital currencies, you can be ready to open a position much faster. You do not need a digital wallet or an account with an exchange. In fact, all you need to trade via CFDs is an account with a leveraged trading provider.
With CAPEX, you can open an account in minutes, and there is no obligation to add funds until you want to place a trade.
When you create a trading account with CAPEX, you will be able to:
- ‘Buy’ (go long) or ‘sell’ (go short) DASH and other popular cryptocurrencies to speculate on their price rising or falling
- Take a position on our range of ETFs to get exposure to a basket of shares from an entire country, index, or sector that could be rising or falling in price.
- Trade a host of global indices to go long or short on the performance of an entire economy with a single trade.
- Use QuantX, the smart portfolio builder that helps you cover the popular industries and only invest in the top-performing stocks.
Step 2: Choose your Crypto trading platform
Our trading platforms can provide you with a smarter and faster way to trade DASH CFDs – with personalized alerts, interactive charts, trading signals, and built-in risk management tools. You can trade via the CAPEX trading platform using:
CAPEX Web Trader
Trade on one of the most complete, fully customizable trading platforms on the market.
Available on desktop (Windows, Mac) and mobile (Android, iOS), it provides intuitive, web-based access to a vast range of tradable instruments, charting tools, analytical tools, and many more features.
To view DASH's real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Cryptocurrency" and then select the instrument, in this case, DASH (DASH).
MetaTrader 5, one of the best crypto trading apps, is providing superior tools for comprehensive price analysis, use of algorithmic trading applications (trading robots, Expert Advisor), and copy trading.
MetaTrader 5 is available on both desktop and mobile.
Step 3: Pick up a DASH trading strategy
Learning how to buy DASH is easy but adopting the right DASH trading strategy is essential to time the market.
The main DASH trading strategies are:
Buy and hold, also called position trading, is an investment strategy whereby an investor buys DASH to hold them long term, with the goal of realizing price appreciation, despite volatility.
Traders take a position according to the main trend (months to years). You can “go long” if DASH is in a bullish trend or “go short” if the DASH trend is bearish. If the major trend starts to slow or reverse, you will think about closing your position and opening a new one to match the emerging DASH trend.
All trades are performed during the day. There are no open positions overnight, though no rollover charges. Traders are looking to profit from DASH’s short-term price movements (including scalping), and it can enable them to make the most of daily volatility in bitcoin’s price.
When you hedge DASH, it means that you use CFDs to counteract the DASH price movement you already own. For example, if you owned some DASH but were concerned about a short-term drop in their value, you could open a short position on DASH with CFDs. If the DASH price falls, the gains on your short position would offset some or all the losses on the coins you own.
Following the chart patterns and general trends can give you a hint to where DASH is going.
Step 4: Set your DASH orders
A trade order is an agreement to buy or sell a specific asset like DASH at a specific price or price range.
To buy DASH CFD with CAPEX, click on the "Buy" button and a window is displayed to configure the purchase order. You can choose among Market, Limit, and Stop orders.
Additionally, you can pre-define Stop Loss and Take profit orders, which are crucial risk management tools – that help you minimize the potential loss and maximize the potential gains.
How to buy DASH with Market Orders
The simplest type of trade order is a market order. Market orders are usually placed by traders if they want to be certain trade is executed. A market order is instant. Therefore, it is simply an order placed by a trader to buy or sell DASH immediately at whatever its current price is.
I want to buy 200 DASH (DASH) right now or as quickly as possible.
How to buy DASH with Limit Orders
While a market order is simply an order placed by traders to buy or sell an asset immediately at whatever the current price, a limit order in its most basic sense, is an order to buy or sell an asset at a specific price. Buy limit orders are placed above key support levels with the purpose of limiting price risks anticipating the uptrend will resume after a correction (buy the dip).
The price for DASH/USD is currently at USD 176.00 and you place a buy limit order at USD 160.00, then your order is meant to execute at the price of USD 160.00 as soon as there is a matching sell order at this price or better.
How to buy DASH with Stop Orders
A stop order is an order that becomes a market order only once a specified price is reached. It can be used to enter a new position or to exit an existing one. Limit orders are placed above key resistance levels anticipating a breakout after a consolidation.
The price for DASH/USD is currently at USD 176.00 and you place a buy stop order at USD 180.00, then your order is meant to become market at the price of USD 180.00 as soon as the price is reached.
Step 5: Monitor and close your DASH position
To open a DASH trade, you’d buy if you thought that the price was going to rise or sell if you thought the price was going to fall. Once your trade is open, you’ll need to monitor the market to make sure that it’s moving in the way you anticipated.
The technical indicators available on our trading platform can help you to determine what DASH’s price might do next. Indicators can also help you monitor current market conditions like volatility levels or market sentiment.
CAPEX WebTrader can deliver an in-depth analysis of the charts and offers over 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The WebTrader platform also supports an interactive trading activity with high-end research tools helping you interpret market data.
Take Profit & Stop Loss
Traders can close a position immediately to take a profit or to cut a loss. You can use market order or set Stop Loss and Take Profit levels when you set the order to buy DASH.
The platform offers the stop-loss option, which lets you clearly state how much you're willing to risk with your trade. Similarly, the take profit is the exact opposite. It tells your broker how much you expect to make as a profit and when you want to close your position.
Any profits you make will be paid directly into your trading account. Losses are deducted from your account balance.
When to buy DASH (DASHUSD)
Investors should be aware of the fundamental and technical analysis when deciding when to buy DASH. The fundamental analysis considers the news and events about the coins, exchanges, and other crypto businesses. The technical analysis uses the price value history to map the evolution of the supply and demand for DASH.
DASH Price Prediction using Fundamentals
When using the fundamental analysis approach, investors should be aware of the government regulation, latest cryptocurrency updates, and technical issues, as well as cryptocurrency exchanges that affect the supply and demand for cryptocurrencies.
For instance, when Bitcoin CME was introduced into the government regulations, and it drove the price of Bitcoin to almost $20,000 in December 2017.
An accurate DASH price forecast using fundamental analysis considers the three main aspects:
- Blockchain metrics (hash rate, active addresses, transactions fees, and values)
- Financial (market capitalization, liquidity, trading volume, circulating supply)
- Project overview (team’s background, whitepaper, competitors, roadmap, tokenomics)
>> Learn how to forecast DASH price with fundamental analysis
What is the future of DASH?
Dash is still one of the most widely used cryptocurrencies. This project is an excellent example of blockchain technology giving users more freedom and liberty. You can expect Dash to continue to play an important role in the crypto market over the years.
The price of cryptocurrency is affected by many factors and can change constantly. It is difficult to predict the price of Dash accurately due to market volatility. Government regulations are being put in place as the cryptocurrency industry matures. Privacy coins pose a serious threat to the government because anonymous users can transfer their wealth freely without paying taxes or following regulations.
The price of Dash is also affected by other factors, such as the Dash community and the utility of the cryptocurrency.
The Dash community can help new projects get funding through the DashRoots platform. Martin, one of the founders and of DashRoots says that the platform allows people to bring their skills and talents to Dash and crowdfund their ideas directly through the Dash community.
This type of activism could lead to Dash becoming a leader in crypto adoption. A recent study of cryptocurrency transactions found that Dash is the most commonly used currency for small trades. This is a measure of its real-world value as money.
According to statistics, Dash has maintained low transaction values and an average transaction value. Dash is mainly used for retail purchases and similar purposes.
Dash can be used to quickly and privately transact for just a few cents. It is easy to use on a daily basis. The crypto’s utility is a key driver for Dash price and other virtual currencies. The greater the utility, the more demand there is and the easier it is for the price to rise.
Dash is also supported by many international exchanges. This allows individuals to access DASH, one of the most rapidly-growing digital currencies worldwide.
Because is difficult to analyze the intrinsic value of a cryptocurrency, it is recommended you perform a technical analysis before investing in DASH CFDs. It might offer some insight into the past movements of DASH, helping you predict where it will head in the future.
DASH price prediction using technical analysis
Some believe the high concentration of retail traders makes cryptos truer to traditional chart patterns and indications of oversold, overbought conditions, etc.
Technical analysis techniques can be applied to any market where the price can freely fluctuate, and data is available to see those fluctuations. The CAPEX Web Trader has a full suite of all the best-known technical indicators and chart drawing tools.
>> Learn how to forecast DASH price with technical analysis
DASH Forecast 2022
Technical analysis of DASH/USD chart shows that the asset is consolidating bullishly. The closest trend supports are $150/$115. The nearest resistance levels are at $270/$209. Dash currently trades at $174 per token. It looks bearish in the short term and is likely to test the $115 support level. If Dash falls below 200MA, or if the daily close is below that level, then it could be considered a complete shift to bearishness.
TradingBeasts' prediction for the Dash coin's price suggests that it won't experience much growth. It may close the year at $181. They predict that it will trade at $145 in 2022 and close the year at $170 in 2022. The next years won't see much growth but it doesn't mean that the future is all bad. Dash will average $251 by 2024.
WalletInvestor's Dash price prediction says that Dash is not the best choice for long-term investment. They don't anticipate its price going significantly higher but they do predict it will take out $400 in 2022, and that Dash will rise to $500 in 2026.
What Moves DASH Price
The most important aspects that can influence the DASH price are:
- Total supply
- Rules and regulations
DASH’s price corresponds to the current supply and demand in the crypto space. Considering DASH has a fixed maximum supply of around 18.9 million DASH, it is a digital asset that will experience scarcity as more investors join the DASH trading market.
An important aspect of what moves the price of DASH is the news.
It is well-known that small cryptos mirror movements of BTC/USD. The DASH/USD pair mirrors the ups and downs of the Bitcoin trends. The coronavirus, which ravaged financial markets in March 2020, caused downtrends in the crypto-world, driving Bitcoin and DASH down.
When Bitcoin surged in December 2017, the price of Dash also followed, reaching its all-time high at $1,642.22 (December 20, 2017).
News and future developments can significantly influence the price of Dash.
In conclusion, should you Buy DASH or not?
As with any investment, make sure you carefully assess your financial situation before investing in cryptocurrency, DASH, and the stock market. DASH can be extremely volatile—a single tweet can make its price plummet—as cryptocurrencies are still a highly speculative investment. Follow the already famous crypto investment phrase — "invest only what you can afford to lose".
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