Dash (DASH) is a "next generation" crypto-currency that is trying to solve a lot of the problems that plague Bitcoin. Similar to Bitcoin, it's an open source crypto-currency that forked (i.e. split) from Litecoin in 2014.
Dash is trying to differentiate itself from Bitcoin by working to solve one of the biggest complaints about using Bitcoin as a currency - speed. Bitcoin transactions can take minutes to resolve. In today's world, that's unacceptable. Dash currently offers instant transactions via it's InstantSend protocol.
However, Dash isn't the easiest crypto currency to buy. It requires some additional steps compared to investing in Litecoin or Ethereum. But let's break it down and show you what to do.
If you want to get a head start, you can open an account on an exhange like Uphold and buy Dash right away.
Get started opening those up and follow the directions below.
What Is Dash?
Dash was split from the Litecoin blockchain to be a better alternative to Bitcoin. The goal was to create a faster, more private transaction.
As the currency has gained popularity, it's value has risen dramatically. Dash, like most other crypto-currencies, has seen it's price spike from next to nothing to well over $100. While it's way down from it's 2017 highs, it's still been doing very well.
It has also been seeing daily volume of over $100 million USD equivalent each day.
How Dash Is Different
The big difference of Dash compared to other currencies is that it maintains a two-tiered network, which allows for faster transaction processing time.
Like Bitcoin, it has a lower tier, which is comprised of the miners and main network functions - such as creating new blocks for the blockchain. However, Dash has a second tier, which it calls "Masternodes", which allow it to perform it's InstantSend and PrivateSend functions. The Masternodes also serve as a level of governance for the Dash network.
InstantSend it what really separates Dash from other competitors. Unlike Bitcoin, which can have transactions that take minutes to process, Dash's InstantSend allows it to process transactions almost instantly - solving a huge issue with transactions.
PrivateSend is another feature of Dash that has been adopted by other coins, but not the main ones like Bitcoin. This allows users to send money, and it essentially cannot be directly traced back to the sender.
How To Invest In Dash
As we mentioned earlier, Dash is not “easy” to invest in. However, there are rumors that Coinbase will be adding support for Dash in the near future. If that happens, you can likely expect the price of Dash to increase substantially as new investors will easily be able to purchase the currency.
In the meantime, you can go to some exchanges directly to invest in Dash. For example, Uphold supports it directly. You can open an Uphold account here.
However, if you want to have a more robust experience, you need to follow a strict process to buy Dash.
1. Create A Binance Account
The first thing you need to do is setup a Binance account. Binance is the place where you will hold your Dash tokens.
Binance is a popular choice, because it allows crypto-to-crypto transactions from companies like Coinbase. It's important to note that you can't send money to Binance (or any other Dash exchange currently), so you have to go to Coinbase -> Exchange (Binance) -> Dash.
So, you'll always need two accounts:
- Binance: which you can signup for here
- Coinbase: Coinbase gives you $10 in free Bitcoin when you signup and deposit $100 or more
Hopefully this changes soon, but that's how it goes today.
2. Buy Bitcoin or Ether on Coinbase
Once you have a Binance account setup, you need to buy Bitcoin or Ether on Coinbase.
It's very easy to do once you have a Coinbase account setup. You simply go to the Buy/Sell page and enter your information. Then, your Bitcoin will be in your wallet and you can move to step 3.
3. Transfer Your Bitcoin To Binance
Once you have your Bitcoin or Ether in your Coinbase account, you can transfer it over to Binance. This is also fairly easy to do.
In your Binance account, simply click “Balances”, then “Wallets”, and you can see all the different coins you can hold in your account.
In our case, we're transferring over Bitcoin, so click on Bitcoin, and you'll see a Wallet Address generate. Here's what it looks like:
Once you have that address, you go back to Coinbase, choose “Acccounts”, and then “Send”. You'll see this screen come up where you can send your Bitcoin to the address generated in Binance.
4. Buy Dash
Once you have your Bitcoin in your account at Binance, you can finally buy Dash (DASH).
At the top of the Binance homepage, you can click on Exchange, and then choose Dash from the dropdowns:
Once you place your trade, it will show up in your Binance account.
Final Thoughts
Like any currency, there is a high degree of risk involved if you're considering investing in Dash. However, given the low price point, it does have the possibility for a high return with low barrier to entry.
If you don't like the idea of a digital wallet and/or all of these steps, there are no ETFs that track Dash yet. However, GBTC is an ETF that tracks Bitcoin, and you can invest at popular online brokerages like Webull (where you can also get free stock for signing up).
You never know, Dash could skyrocket as high as Bitcoin is today, and you might be thanking yourself in several years.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.