What is Dash?
Originally released as XCoin in 2014, dash (DASH) later became 'darkcoin' before being rebranded as 'dash' in 2015. The name "dash" is a portmanteau of ‘digital cash’. This open source, peer-to-peer cryptocurrency holds a place in the top 10 cryptocurrencies by market cap. Dash is a decentralized autonomous organization (DAO), as it uses a self-governing and self-funding model. It offers users the option of sending funds instantly and privately.
How is it different from bitcoin?
Dash cryptocurrency differs from bitcoin in a number of ways. Developer Evan Duffield created dash, as he felt that the Bitcoin network was too slow and lacked privacy. Dash addresses this through its PrivateSend and InstantSend services. Bitcoin is limited due to its slow block generation time of 10 minutes. Dash’s block creation time is only two and a half minutes. Also, bitcoin is pseudonymous, as transactions can be traced back to a specific address, while dash transactions are anonymous when using PrivateSend.
One of the main differences between Dash and Bitcoin is that unlike Bitcoin, Dash uses a two-tier network with the second tier consisting of masternodes. These masternodes require 1,000 dash currency which offers a financial incentive for responsible action. Mastermodes are responsible for PrivateSend and InstantSend features, as well as governance. Each masternode has a vote, giving the owner a say in the growth of the Dash network. This is another incentive to own masternodes. Bitcoin has a lack of incentive for development, while Dash has a self-funded blockchain and governance model. With Dash, a portion of each block is allocated to development and promotion.
Buying and selling
Dash is on a number of large cryptocurrency exchanges, making it easy to find. Dash trading volume is particularly high on the exchanges of HitBTC, Binance, Bithumb, Bitfinex, and Poloniex. Dash to BTC is the most popular trading pair, with a few fiat trading pairs also available.
USA: If you’re located in the USA, the best options for buying dash are Bitfinex, Kraken, and CEX.IO, which all have a Dash/USD pair. In particular, CEX.IO lets you buy dash with a credit or debit card. Another option available to you is exchanging another cryptocurrency for Dash. Many exchanges, including Binance, have a BTC to Dash or Dash to BTC pair. Changelly and ShapeShift allow you to exchange many other cryptocurrencies for dash, such as ethereum and litecoin. With ShapeShift, you don’t even need to sign up for an account in order to buy or sell dash.
Canada: Unfortunately, there’s no Dash/CAD currency pair available. As such, your best bet when buying in Canada is to buy another cryptocurrency and trade it for dash. The most common pair is Dash/BTC. You can do this on a Canadian bitcoin exchange, such as QuadrigaCX or Coinsquare. There you can buy bitcoin with CAD before transferring it to another exchange wallet in order to buy dash cryptocurrency. Alternatively, Kraken allows you to fund your account for free via wire deposit, while CEX.IO accepts payment by credit card.
UK: There are a few different options available to you if you’re buying dash currency in the UK. While there are no large cryptocurrency exchanges offering a Dash/GBP pair, you can find one on smaller exchanges, such as Bittylicious and Cryptomate. Otherwise, there are plenty of exchanges on which you can buy bitcoin and trade it for dash. These include Kraken, ShapeShift, and CEX.IO. Choosing what is best for you depends on your preference regarding payment methods and the like.
Australia: There are no real options when it comes to buying dash with AUD. The quickest and easiest method is to trade BTC for dash. You can do this on many different Bitcoin exchanges, including Coinbase and BTC Markets. BTC Markets is an Australian currency exchange that accepts AUD. Once you’ve purchased your BTC, you can always use ShapeShift or Changelly in order to trade it for dash.
Europe: The easiest way to buy dash with EUR is on Kraken. If you’re in a SEPA country, you can make a SEPA transfer, which is both fast and free. Another option to consider is CEX.IO, which also allows you to purchase dash with EUR. A range of available payment methods include SEPA, bank transfer, and credit or debit card. Keep in mind that although paying by debit or credit card is the fastest method, greater fees are incurred.
Storing options
A safe place to store dash is in a cryptocurrency wallet. While you can keep your dash on a cryptocurrency exchange, it’s not the safest option. If you chose to do so, you’re running the risk of your account being hacked or the exchange closing down. It is a good idea to leave some dash on the exchange for trading (if that’s what you intend to do) while transferring the majority to a wallet. There are a wide range of wallets to, from desktop to mobile, giving you a wide range of options to choose from.
Wallets
Take a look at the following dash wallets, all of which have pros and cons:
Desktop: A desktop wallet offers greater security than a web or online wallet, while also providing just as much convenience. For storing dash cryptocurrency, you can download Jaxx or Exodus, which are two popular multi-cryptocurrency desktop wallets. Both wallets are available on Mac, Windows and Linux.
Hardware: One of the safest wallet options is the hardware wallet. There’s plenty of choice when it comes to hardware wallets for dash. Three popular options are the Ledger Nano S, Trezor, and KeepKey. If you’re holding a large amount of dash currency for the long-term, consider storing them in a hardware wallet.
Mobile: You’re spoiled for choice when it comes to mobile wallets for dash. Jaxx is not only a desktop wallet, but also a mobile wallet available for iOS and Android devices. In contrast, Coinomi is a mobile-only wallet. Able to store multiple cryptocurrencies, it’s currently only available on Android devices. Be sure to check out Dash Wallet for Android, as well as Dash Core iOS, depending on which device you have.
Web/Online: There aren’t really any viable options when it comes to web or online dash wallets. As such, exercise caution if you do come across one. The closest thing you can find is Jaxx, which is accessible on desktop, mobile, and browser extension (Chrome and Firefox). An online dash wallet is arguably the least secure wallet option, so it’s best to consider one of the other types available.
Paper: A paper wallet is another secure form of storing your cryptocurrency. Naturally, it’s important to keep the paper safe, as you’ll lose your dash if you misplace the paper or if you damage it beyond repair. There are plenty of paper wallet generators with the Dash Core Paper Wallet one of the most popular.
Buying stuff
There’s an increasing number of merchants and services who are accepting dash. This will continue to increase as cryptocurrency experiences wider adoption.
- Wirex: With Wirex, you can have your own payment card, allowing you to spend dash in stores and online, as well as ATM withdrawal.
- Njalla: Njalla is a domain name registration service with a focus on privacy. They purchase the domain name for you, reducing the amount of personal information you give up.
- FortuneJack: A number of online casino have started to accept cryptocurrencies, such as dash. FortuneJack is one such example.
- Always HODL: You can buy dash merchandise with dash on Always HODL. This includes sweaters, caps, shoes, and watches.
- Bitgild: On Bitgild, you can buy precious metals such as gold, silver, and platinum with bitcoin and other cryptocurrencies, including dash.
Mining
How it works
Dash mining works much like the mining of any other cryptocurrency, such as bitcoin or litecoin. Specialized computers are used to solve complex math problems. Solving such a puzzle, and having it confirmed as correctly solved by the network, results in the block being added to the dash blockchain and the miner receiving a reward in dash currency.
How to it set up
Dash mining with a CPU or GPU is no longer effective, due to the presence of ASIC miner hardware. As such, you’ll want to buy an ASIC miner if you’re interested in mining dash. Some of the most popular options include ASIC Pinidea X11, Antminer D3, and Baikal Mini Miner.
Dash mining pools
Joining a dash mining pool offers you the chance to receive more consistent rewards. Be sure to consider the size of the pool, the reward type, and the fees charged, before making a decision. Some of the main dash mining pools to consider include MinerGate, CoinMine, and Supernova.
Calculate mining profitability
Mining dash with a CPU or GPU isn’t profitable anymore. However, mining with an ASIC miner is another thing entirely. The X11 mining algorithm used by dash is efficient and affordable. Use a mining profitability calculator, or dash calculator, and work out whether mining dash is worth it for you based on power consumption, hash power, and the cost of electricity.
E-commerce
How to accept dash payments
You can integrate dash as a payment method on your online business through a payment gateway, such as CoinPayments. Once you’ve done this, you can submit your website URL to Discover Dash, which is a directory of all merchants and services which accept dash as a payment method.
Dash e-commerce services for merchants
The main dash e-commerce service for merchants is CoinPayments. With this service, you can accept over 100 different altcoins with fees of 0.50%. There are plenty of plugins offered for the likes of WooCommerce, Opencart, and more.