Learn Cryptocurrency
7 Jan 2022

Dash Cryptocurrency – All You Need To Know

Akumbenla Jamir

What is Dash?

Dash is a digital currency that offers fast and cheap payments anywhere in the world. It aims to provide a user-friendly experience and privacy. 

In recent years, cryptocurrencies such as Dash have become a popular investment option. With that said, it is critical to know what you’re getting yourself into before purchasing Dash coins or any other digital currency. So, in this article, we will explore everything you need to know about Dash and how to get started investing in it.

Key Takeaways

  • Dash was launched in 2014. It was built on top of the same blockchain technology that Bitcoin uses. 
  • Dash offers fast and cheap payments anywhere in the world. It aims to provide a user-friendly experience and additional privacy compared to most other cryptocurrencies.
  • Dash has three special features that make it stand out from other cryptocurrencies – Masternodes, InstantSend, and PrivateSend.
  • You can invest in Dash in India through CoinSwitch Kuber

Understanding Dash Cryptocurrency

Dash was launched 5 years after Bitcoin. It was built on top of the same blockchain technology that Bitcoin uses.

Dash, Litecoin, and Bitcoin share the same ancestry, technology-wise. Dash was forked from Litecoin, and Litecoin was forked from Bitcoin. A “fork” is when changes are made to a blockchain which causes the blockchain to split into two. So, all of their technology is similar, but each has its own unique features.

We will talk more about the similarities and differences between these cryptocurrencies in the latter part of the article. 

History of DASH

Dash was founded by software developers Evan Duffield and Kyle Hagan. They describe it as a privacy-centric cryptocurrency based on Bitcoin founder Satoshi Nakamoto’s work. 

Dash was launched in January 2014, under its original name of XCoin, which was later changed to Darkcoin. It went through another rebranding to Dash in March 2015, and the name comes from its goal of being “digital cash”. Who doesn’t love a nice nickname, right?

When DASH was launched in 2014, the cryptocurrency was priced at less than $10, which continued till the end of 2016. It wasn’t until 2017 that the price of Dash started to increase and reached a high of $1540 in December 2017.

Today it’s priced at $135.82 USD or ₹10,962 INR and ranks at number 81 among the cryptocurrencies in the world. 

Dash vs Bitcoin

Bitcoin has secured a stronghold as a market leader. With that title, there are so many competitors, such as Dash, that entice potential traders to return for a second look.

Here are some significant differences between Dash and Bitcoin: 

Different Algorithm

Dash uses the X11 algorithm, a modification of the proof-of-stake (PoS) algorithm. It also uses CoinJoin mixing to scramble transactions and make privacy possible on its blockchain. In contrast, Bitcoin uses a proof of work (PoW) algorithm.

Transaction Speed 

Bitcoin’s transaction speed has always been a downside of Bitcoin when compared to other coins. Dash founders understood the need for speed (Yup! NFS) when verifying transactions. So, Dash created InstantSend, which allows almost instant transaction speed. The decentralised technology guarantees and confirms payments in about 4 seconds! 

Community and Governance

With Bitcoin, changes can be made only through a rough consensus among its most active contributors. But with Dash, there is a formal voting system in place. When changes are needed, a vote takes place, and action is implemented within a short time.

Privacy Features

The history of each transaction in Bitcoin is permanently stored in the Bitcoin network for anyone to see.

Dash takes it a step further with a  feature called PrivateSend, which is a coin-mixing service. The technology works to add privacy and security so that transactions can’t be traced directly to the parties involved.

Dash Vs Bitcoin

Dash Future 

To know the future of a coin, one must first understand the past of the coin with a special interest in price history, reputation and their coin community. Dash has managed to capture the attention of investors and crypto-enthusiasts since its launch, all the while maintaining an impressive performance. 

Dash’s first big surge came between April and May 2014, when its price rose from $5 to $15, a significant increase reflecting a large amount of early investor interest. There were no drastic price changes between 2014- 2016, with its price hovering between $15 and $25.

But in 2017, there was a surprising hike in the average price of the coin.

In January, its price was $43.82. By September, it had gone up to $50.49. By December 2017, Dash reached its all-time high of an incredible $1,642.22!

The year 2018 was not the best year for most digital coins, and Dash too fell in this category with a downward price of $47.26 in December 2018.

The tables turned in 2019 and 2020 and Dash recovered and rose back up to $100. By 2021, its price increased to $450.

The price of Dash as of January 2022 is $135.82 USD or ₹10,962 INR. 

Benefits of Investing in Dash

Dash has three special features that make it stand out from other cryptocurrencies and also pose as a competitor among popular cryptocurrencies like Bitcoin.

  1. Masternodes: Masternodes act as special servers that perform the critical functions on the Dash crypto network. They facilitate functions such as InstantSend, PrivateSend and ChainLocks.
  2. InstantSend: Dash’s most notable feature is its InstantSend, which allows for instant transaction confirmation. Most currencies have a delayed transaction time because a certain number of blocks must pass before the transaction can be verified.
  3. PrivateSend: Dash offers a service called PrivateSend which adds privacy to transactions. With PrivateSend, transactions cannot be traced back, nor is the identity of users revealed to the world. 

How to Invest in Dash in India

India ranks second on the Global Crypto Adoption Index, according to tor Chainalysis. 

You can invest in Dash, and 80+ other cryptocurrencies through CoinSwitch Kuber, India’s leading crypto exchange platform. Start investing by following the steps below-

  1. Just download the app from Google Play Store or App Store on your phone.
  2. Enter your phone number and complete the OTP verification process.
  3. Next, complete the KYC procedure in just a few minutes. Necessary documents are – PAN card and a secondary ID, either Aadhar, Drivers licence or Voters ID.
  4. Go to the Market section on the app and search for Dash.
  5. Select Dash and select the Buy option.
  6. Enter the amount and click confirm to buy. (PS. Make sure you have added a sufficient amount to your wallet)
  7. Track your investment under “Portfolio” at the bottom of the app screen. 

Invest in Dash With CoinSwitch Kuber. 

Conclusion 

Dash cryptocurrency has been predicted by experts to do well in the market. Dash has a maximum supply of almost 19 million, and about 9.8 million is in circulation. With its current market capitalisation of over $1 billion, there is an exceptional chance for the coin to grow. But of course, given the volatile nature of cryptocurrency, you should always do your own research and also read into the price predictions given by experts. 

With that being said, you can buy Dash coin in India from one of the most easy-to-use exchange platforms – CoinSwitch Kuber. With CoinSwitch Kuber, you can buy Dash coins starting from just ₹100.

Common FAQs

  • Why would you use Dash?

Dash is designed to be used in the same manner as cash. With its instantpay function, Dash has a higher chance to see large spikes in value with more partnership ventures accepting this digital coin. Dash is accepted in Best Buy and GameStop, Lowe’s, Home Depot, and Staples, including restaurant chains like Chili’s, Chipotle, and Subway.

  • Is it good to invest in Dash?

Dash has maintained to retain a lot of investors and crypto enthusiasts because of its proven potential in the past.  However, investing in cryptocurrencies, whether it is Dash, or any other coin comes with both pros and cons. It is advisable to first analyse the coin and do proper research before you invest. Risk will always be there but make sure that the pros outweigh the cons.  

  • How does the Dash work?

Dash is a two-tiered blockchain network that uses both miners and masternodes. Dash network reaches consensus through a proof-of-work mining algorithm, but it also uses an X11 algorithm that executes 11 different hashing functions through a masternode. The masternode layer acts as a transaction mixer and serves as the voting mechanism for Dash’s on-chain governance.

  • Is Dash safe?

Dash is one of the more trusted coins which has been in the market since 2014. It was designed to be fast, secure, fungible and private. But the decentralised nature of cryptocurrencies also means that you are responsible for your own security, so make sure to read up on crypto safety and security. 

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

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Akumbenla Jamir

Content Writer

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