Product in the Spotlight: Dash – The Instant Coin
Evan Duffield found Bitcoin to be very slow and lacking in privacy, when he came across it in 2010. As the core members wouldn’t allow him to change Bitcoin’s source code for the better, he went on to make his own cryptocurrency, called XCoin.
From XCoin to DarkCoin to Dash, the journey has been eventful and positive for the team. Duffield managed to create a coin that focuses more on daily economic life, rather than experimentation. It is due to this that Dash crossed the billion dollar mark in June 2017, and touched an all-time high of $1,600 in the month of December. As of May 2018, its total market cap stands at $3.09 billion, with each coin costing $383.
Its speed is one of the reasons for Dash rapidly finding its way into the mainstream crypto market. The average block mining time of Dash is 2.5 minutes, which is almost 4-times faster than that of Bitcoin. The coin has improved day-by-day in terms of infrastructure, features and usability.
What Made Dash So Popular?
As one of the most popular altcoins in the market, Dash enjoys a stable follower base. The fact that many users stuck to it through various challenges made it worthy in the eyes of investors. Let us look at the factors that influenced this rise in popularity.
1. Transaction Speed of 4,000 per Second
Slow transaction speeds can be catastrophic in the highly volatile crypto market. With Dash’s special features, such as “Instasend” and “Privatesend,” transactions are not only faster, but totally anonymous, as per blockchain standards. Compared to Bitcoin’s 7 transactions per second, Dash offers nearly 4,000 transactions per second, at a much lower price.
2. Constant Development and Funding
Support from a highly active community has been instrumental in its growth. With a monthly budget of $2.5 million, the Dash team is dedicated to making the system more and more efficient for users. The currency has followed a highly organised path so far, where technical modifications are decided through a voting system. Developers remain focused on the platform roadmap, while accommodating user demands. They have developed an excellent interface to enable users to procure coins offline. The crypto space is hugely dependent on trust and this is where Dash scores highly.
3. High Liquidity
The altcoin is gradually being included on many online exchanges and being adopted by various affiliate online stores. This has increased its liquidity.
4. Complete Anonymity and Privacy
With over 4,100 master-nodes, it has the largest peer-to-peer network, making the coin ideal as a payment model. Unlike Bitcoin, user anonymity is far more enhanced. It almost works like a real currency, and there are theories that it might replace fiat currencies in the future.
5. Cheaper Transactions
Dash can be considered as the cheaper alternative to other digital currencies, including Bitcoin. As of May 2018, Bitcoin is trading at $8,120, while Dash is trading at $384. The falling price of Bitcoin has also made traders flock to profitable options like Dash.
6. Partnerships and News
In March 2017, the value of Dash increased, as news of a partnership with BlockPay surfaced. Speculators poured their money into the currency. Similarly, just before the Dash conference in September 2017, the value of the cryptocurrency surged, due to the anticipation of more announcements. Dash has designed its structure to be useful in the same manner as real cash. Its value will increase as more partnerships take place and more ways to spend it emerge. We can expect spikes in the price as more and more online merchants adopt this currency.
Like a majority of cryptocurrencies, the first quarter of 2018 saw a decline in the value of Dash. However, since then, it has steadily gained its momentum. Its positive price movement, in this critical crypto market condition, has surprised investors. If it continues to grow in a positive direction, experts suggest that it might reach a value of more than $1,000 by the end of 2018.
Dash Prices
Dash Bitcoin (to be linked to respective article)
Dash USD (to be linked to respective article)
Trading Dash CFDs
According to data from US Equity Research, the cryptocurrency market is expected to grow at a CAGR of 32% by 2023. It is important to get onto the right crypto bandwagon to make the most of this growth. If you are looking to invest in altcoins, Dash could be the right option for you. Dash can be traded against the USD or other cryptocurrencies. With a lot of exchanges listing it, you have a variety of options.
However, exchanges can be hacked. In 2017, hackers made off with $72 million worth of Bitcoin, from Mt. Gox, which resulted in the loss of balance in user accounts by 37%. This is why most experts recommend Contracts for Difference or CFDs, instead of trading directly on an exchange. CFDs prove to be safer with a regulated broker.
If the market moves in your direction, your broker will pay the difference and if it moves against you, you end up paying the broker. The key is to be able to predict the market direction accurately to be able to profit from both rising and falling prices.
Trading Tips for Dash CFDs
1. Start Small
When trading using margin, your losses could exceed your initial deposit. Keep your trades small as a beginner and learn from your mistakes.
2. Decide on your entry and exit points
Decide in advance, the level you will trade at. Maintain discipline and do not deviate from your plan spontaneously. You can have two exit points; one as a backup, in case the trade doesn’t go in your favour.
3. Use Stop Losses
You want to cut your losses quickly, rather than letting them run. Losses are imminent when you trade and a stop loss will enforce your exit levels and protect your capital. It is important not to move stop losses.
4. Get out of a losing trade
Do not hold on to a trade in the hope that a losing trade will turn in your favour. The key to profitable trading is having the knowledge of when to get out of a trade. Keep emotions out of the game.
5. Monitor Your Positions
Even if you have relevant stops and limits in place, do not forget to check your positions on a regular basis. You must ensure that there is sufficient margin in your account, so that positions are not closed out.
