Launched in January 2014, Dash was originally called Xcoin. One of the main identifiable features of Dash is the use of its Masternodes that are servers running on a peer-to-peer network, which allow users to use them to receive important updates about certain events on the network. Because they play such an integral part in how Dash operates these Masternodes require a lot of maintenance and care, due to the amount of constant upkeep that is required to keep them operating there hasn’t been any increase in the amount of master nodes as there should be. Because of the lack of masternodes on the dash blockchain, this has seriously impacted the block propagation times and has caused many Dash users to start questioning the integrity of the cryptocurrency.
If you are a miner then you want your newly found blocks to propagate across the Dash network as fast as possible, in order to keep everything updated and running smoothly. Even if there is a one second delay it increases the chances of other miners winning the so-called block race and getting their blocks added onto the dash blockchain before anyone else.
Despite the issues with masternodes, Dash still remains one of the most popular cryptocurrencies to date that is actually based off bitcoin. Privacy is a very important component when considering cryptocurrencies, because even though bitcoin was hailed as being “private” there are certain things that people can do to identify transactions. This is what has spurred the rise of privacy-based cryptocurrencies like Dash because of their added privacy technology that allow for users’ payments to remain private. Dash has the technological capabilities to harness the power of its masternode network and utilize the InstantX protocol, which allows users to send money to each other and the transaction will be sent in full and be made irreversible within 4 seconds.
Choose Your Dash Wallet
At the beginning of the how to buy Dash process is getting a Dash wallet. Similar to Bitcoin Wallets, there are different Dash wallets. Any large amount of Dash should automatically go to a hardware wallet, whilst smaller amounts and amounts that need to be more liquid are fine to stored in an app or desktop wallet.
Recommended Dash Wallets
Out of the app wallets suitable for IOS and Android, Jaxx is considered the most popular of the app wallets.
For further information and more in-depth digital wallet reviews, please visit our Crypto Wallets page.
Choose a Dash Exchange
Once the wallet has been chosen, it is time to choose the exchange. To be able to obtain Dash coins you need to be able to convert fiat currency into cryptocurrency such as bitcoin, ethereum, bitcoin cash or Litecoin.
Purchasing Dash is often far trickier than it should be for anyone who is new to cryptocurrencies. People who already own Bitcoin can simply trade it for Dash on a number of different cryptocurrency exchange websites such as Coindummies recommendation of changelly.
However, exchanging fiat currency for Dash is a bit trickier and in some ways is similar to the problems faced in buying Bitcoin in the early days. You can purchase Dash with a credit via CEX.ioand via a wire transfer with Kraken.
When Choosing a Dash exchange, there are important factors to consider:
- Make sure that the exchange permits from your country.
- Check that the payment methods available match your needs
- Confirm the three fees – deposit, transaction and withdrawal
- Compare the exchange rates as fees are often ‘hidden’ within the exchange rates
- Be prepared for the Know Your Customer (KYC) process. ID and proof of residency is generally all that’s required. However, some exchanges require proof of income.
Recommended Dash Crypto Exchanges
Always check out the exchange’s online reputation. For full in-depth reviews, check out our best crypto exchanges.
After purchasing your Dash tokens it is advisable that you transfer your Dash tokens from your chosen exchange to your wallet, which gives them added security. There have been a lot of cyber attacks on cryptocurrency exchanges in the past where thieves have ransacked people’s accounts and stolen everything. Hardware wallets appear to offer the toughest security right now, because they are offline and can’t be connected to remotely, which rules out cyber attacks, however hardware wallets can be quite expensive and so desktop wallets are the second favourite with cryptocurrency fans, as they are free and can be installed relatively easily. Despite desktop wallets being free and easy to set up, they are still at risk of being violated by hackers so it is crucial to have strong anti-virus software installed on your computer