Blog Borrowing Dash coin (DASH): A beginner’s guide to invest

Dash coin (DASH): A beginner’s guide to invest

date October 16, 2020 time 4 min read 430 views

Forked from the Bitcoin blockchain, Dash Protocol and is one of the most prolific privacy protocols in the business working to make the blockchain faster and more secure. DASH coin is used to run and incentivize the network and has grown increasingly popular with the rise of DeFi. Here’s what you need to know about DASH coin and its history today.

Blockchains are not as anonymous as you might think. While for years people have hyped the anonymity of on-chain transactions, there are still many aspects of crypto transactions that can become public knowledge. AND can be traced back to their account owners.

Dash coin’s chain, DASH protocol boasts a big advantage over older cryptos: complete anonymity and instant transactions. You can use DASH coins to finance purchases on the blockchain without leaving behind any trace of your existence.

DASH protocol has grown increasingly popular with modern crypto platforms and investors in the wake of the DeFi movement. This has caused the DASH coin price to skyrocket at the end of 2020.

We’re going to give you a complete overview of the history of DASH coin and how it got to the top of the crypto markets today.

What is Dash coin and why was it created?

The first cryptocurrency, Bitcoin, was revolutionary but had many flaws. Today transactions take a long time to be completed, and security deficiencies are frequently exploited and abused by hackers. There are also no chargebacks or refunds possible if one makes a mistake when transacting.

Dash coin – technically speaking – used to be Bitcoin. It was created by a hard fork in the Bitcoin chain. As a result, its underlying structure is very similar to Bitcoin, with a few tweaks to solve some of the above issues.

DASH was first known as ‘Xcoin’ and then rebranded as ‘Darkcoin’ for a few years before finally consolidating under the name, Dash. The creator of Dash and members of the project worked frequently at an incubator in Arizona State University and have since gone on to fund a blockchain research institute using funds from DASH. Today,  c it’s become one of the most trusted and secure cryptocurrencies on the market.

Dash coin offers an unparalleled level of security
Dash coin offers an unparalleled level of security (source: dash.org)

DASH has many features making it popular among the crypto community. Of course, its most prominent feature is the ability to make transactions untraceable. 

Dash coin’s PrivateSend protocol allows you to send and receive untraceable payments on the blockchain. This is all done automatically through Dash’s mixing process, which mixes up the Dash coin in your wallet with DASH from other transactions. This makes your coins more difficult to track.

And for investors who hate waiting, Dash coin’s InstantSend protocol allows instant transactions, eliminating long waiting times for transaction validations on the blockchain. This makes it more competitive with centralized payments processors like VISA.

Additionally, Dash incorporates a powerful feature known as the Chainlock protocol. This protocol protects against 51%  attacks — an attack on a blockchain referring to a group of miners trying to control over 50% of the network’s mining hash rate. When used in conjunction with InstaSend, Chainlock creates another layer of security.

Fast transaction times and many layers of security make Dash coin a great investment
Fast transaction times and many layers of security make Dash coin a great investment
(source: pxhere.com)

Where to get Dash coin?

Dash coin can be obtained via mining, or bought on exchange.

Mining DASH

Because it’s a Bitcoin hard fork, Dash coin follows a similar Proof of Work protocol to BTC for awarding coins. You can mine it with a node just like Bitcoin with a good power source.

Dash coin is just one of many cryptocurrencies that can be mined
Dash coin is just one of many cryptocurrencies that can be mined (source: pxhere.com)

Where to store DASH coin

Wondering where to store DASH coins? Like most other cryptocurrencies, DASH is stored in a digital wallet. Think of a digital wallet as a completely virtual bank account. Just as you would access your bank account from an online platform, Dash coin operates similarly.

However, because DASH is a digital coin stored on a separate chain you’ll need to use a wallet specially designed to hold DASH. While you can always store your DASH on an exchange, you may want to select one of the many private wallets that can hold it today.

Some examples include:

  • Trezor hardware wallet
  • DASH paper wallet
  • Ledger Nano S hardware wallet
  • DASH Core mobile and desktop wallets

Where to buy and store DASH at the lowest market prices today

Want to buy into DASH coin but don’t want to sell your crypto to do it? A crypto-backed loan may be exactly the thing you need.

Using MyConstant’s crypto-backed P2P lending service, you can unlock the value of your crypto assets to purchase without selling them.

MyConstant crypto credit allows you to stake crypto you already own to receive loans in other coins like DASH at low rates. We automatically source the best prices from all the major exchanges for you.

Here’s how it works:

  1. Deposit a crypto to use as collateral on MyConstant.
  2. Select what percentage of your crypto you wish to back your loan with and the loan term (between 1-6 months).
  3. Choose how you want to receive your loan.
  4. Receive a crypto-backed DASH loan in minutes.
  5. Payback the principal + interest by the loan termination date to receive your collateral back.

When you withdraw in DASH with Crypto Credit on MyConstant you also get the following benefits:

  • You set the rate and terms
  • Rates from as low as 6% APR
  • Your collateral is held by a secure third party
  • Best exchange rates guaranteed
  • 24/7 customer service
  • Early repayment options for lower rates

Get in on one of the hottest trends in DeFi and unlock a world of investment options while you’re at it. Sign up for a free account with MyConstant today.

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