How to Buy Dash (DASH) – Forbes Advisor UK

Dash (DASH) is a Bitcoin-challenger cryptocurrency, designed to be faster and more private than the world’s number one crypto asset.

Launched in 2014 as a hard fork from Litecoin (which itself was a hard fork of Bitcoin), DASH peaked in value at almost £950 in 2018. Today it trades at around £23.

Here’s what there is to know about buying Dash.

Dash (DASH) explained

Dash is a payments-focused cryptocurrency. Its premise is to provide faster transaction speeds than cryptocurrencies such as Bitcoin.

It does this using what it calls ‘masternodes’. Masternodes are special servers that perform functions on the Dash network. These functions include instant transactions, private transactions and blockchain governance.

Having transactions facilitated by the masternodes makes transactions private – unlike Bitcoin transactions where anyone can see the public addresses of the sender and recipient.

Masternodes also make transactions almost instant. Bitcoin transactions, by comparison, are confirmed in around 10 minutes.

Anyone who wants to run a masternode must stake 1,000 DASH, but they get a 45% share of all DASH mined by miners, who also get a 45% share. The remaining 10% goes towards funding network improvements.

How to buy DASH in four steps

1. Choose a crypto exchange

In order to buy a cryptocurrency like DASH, investors need to use a crypto exchange. Crypto exchanges are websites and apps where crypto buyers and sellers meet to trade.

There are a lot of crypto exchanges to choose from, each with its own features and fees. We chose eToro and Uphold as two of the best crypto exchanges.

When choosing an exchange it’s important to consider the transaction fees, what crypto assets are available for trading and wallet provision.To learn more, see our guide on crypto exchanges.

Once investors have chosen an exchange they’ll need to register for an account. This typically involves sharing some personal information and, increasingly, passing a brief identity verification check. This usually means uploading a selfie or following a series of prompts in front of a webcam or a phone’s front-facing camera.

2. Choose a payment method

Most exchanges offer a range of payment options for buying crypto. The simplest and most cost effective (card payments attract transaction fees) is to pay via direct bank transfer.

Regardless of how much investors intend to spend on a crypto asset, most exchanges ask for a minimum deposit of around £10. So even if investors only wanted to invest in 10% of one DASH at around £2.20, they’d still need to deposit the £10 minimum.

And, of course, if investors only invested the minimum amount, they’d only be able to buy around 54% of one DASH.

3. Place an order

Once an investor has created and funded their account, they can navigate to the Dash (DASH) page in the app or website and enter the amount they’d like to invest.

4. Choose a storage method

Crypto holders have a few options for storing the public and private keys they need to facilitate trades. Crypto exchanges, by and large, offer free storage for these keys for free.

These custodial wallets are convenient because they’re accessed through the holder’s crypto exchange account. This means one less set of log in credentials to remember and protect.

The downside is that they’re a target for cybercriminals who aim to steal people’s keys and effectively take control of people’s crypto holdings. There have been many such hacks, and although exchanges are always increasing their countermeasures, they will remain a target.

Another option is to store the keys with a third-party crypto wallet provider. This provides a degree of separation from the place where investors buy their assets, slightly reducing the chances of losing control.

As one might imagine, however, these providers are also targeted by criminals. They’re also not free, so investors need to be prepared to pay for storage.

Finally, there are offline, hardware-based wallets. These storage devices are not connected to the web by default, making them difficult for hackers to reach – at least until someone whose personal security isn’t adequate plugs one into a web-connected device.

The downside to hardware wallets is that they also cost money and are arguably less convenient, as access depends on users remembering a series of 12 or 24 random words in order – a ‘seed phrase’ used to authenticate the user. Once forgotten or lost, users would be effectively locked out of their keys and, therefore, their assets.

Choosing a storage method is about balancing convenience with security.

Selling DASH

Investors can sell their DASH in exchange for fiat currencies like Pound Sterling or for other cryptocurrencies. The amount someone will get in return for their DASH depends on its current market value.

To sell DASH, investors need to navigate to the ‘sell’ option within their crypto exchange’s app or website, input the amount they want to sell and what kind of currency they want in return.

A preview of the trade that will then illustrate any fees paid to the exchange. Once happy, the investor can execute the trade. A confirmation email will be sent and investors should see their account balance update accordingly.

Cryptocurrency is unregulated in the UK. The UK regulator, the Financial Conduct Authority, has repeatedly warned investors that they risk losing all their money if they buy cryptocurrency, with no possibility of compensation.