Much like its more famous cousin Bitcoin, Dash is a cryptocurrency that offers instant transactions, privacy and security — Dash coins can be used to purchase goods or services from merchants who accept it as payment.
Dash accomplishes this by using a 2nd-tier network of “masternodes” which functions as an incentivized system for decentralized governance and funding. The coin’s value is derived from its utility and usage.
The rising popularity and demand for Dash coin – short for digital cash – has made many people wonder what it is, how it works, and if they should buy some.
In this blog post we will answer these questions and more as we explore the world of Dash coins.
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Dash coin mining
Mining is an important process that solves complex mathematical equations with high speed. In this case miners are people who use powerful computer systems for solving these puzzles automatically through methods called “mining.”
To prevent system duping from happening in Dash, Proof-of-Work (PoW) applies which means that miners get rewarded with cryptos so long as other computers agree that their solutions were correct.
The Dash coin mining system divides the reward to 3 parts.
- 45% goes to a miner
- 45% goes into Masternodes
- 10% is saved in the treasury
Masternodes are a type of decision-making body that oversee Dash’s ‘InstantSend’ and ‘PrivateSend’ functions. A Masternode must own 1,000+ DASH to participate in this program; they also agree to keep their system online 24/7 for the betterment of all users.
Dash mining can be a relatively passive way to get into the cryptocurrency game. You don’t have to sit in front of your computer for hours on end just waiting, but it does come with some costs outside of time investment: it requires optimized hardware and access to free or very cheap electricity.
Mining pools are one solution. Pooling resources together gives everyone more chances at solving problems and winning rewards – this means that you could help out without having as much technical knowledge about computers or other aspects involved in running these types of machines.
Cloud mining services can be ideal for those looking to mine Dash or other crypto without the high cost and time investment of running rigs. You pick your desired plan, pay up front, then start earning Dash with the higher hashrate you get in return. The cloud service company takes a small cut of what you earn when profits are made.
However, there are a lot of cloud mining scams out there. If in doubt, look for reviews on places like Reddit, Trustpilot and general Google searches.
How to buy Dash coin
Simply transfer in any cryptocurrency you already own, or fiat currency like US Dollars, British Pounds or Euros, then exchange them for Dash. If/when you want to Dash, you can exchange it back into your desired currency and spend your earnings!
If these services aren’t available in your country, a popular alternative is peer-to-peer (P2P) exchanges like LocalCoinSwap, which allows you to connect with other people from around the world and exchange coins for a variety of different currencies.
Where to spend your Dash
Since the creation of Dash in 2014, there has been a noticeable shift to digital payments.
People are paying with their phones and ditching cash for cards. In an age where we’re all glued to our screens anyway, it’s no surprise that companies like Starbucks have adapted by adding mobile payment options.
The adoption of Dash by retailers and businesses has been slow, but the list has been growing over the past few years. A number of medium-to-large companies now accept Dash coin as a payment method for their products and services, including:
Thanks to Dash’s widespread brand recognition, they’ll undoubtedly partner with more businesses down the road.
Is Dash a good investment?
If you’ve got Dash coins and aren’t sure what to do with it, it may be worth focusing on the investment opportunities instead.
Dash is an interesting cryptocurrency investment, with the potential to grow as it becomes more integrated into payment systems and grows in adoption. Dash has been gaining popularity as a payment method, in part because it is easy to use. It also integrates well with most existing point-of-sale systems and has increased adoption rates over the past year.
Dash’s ease of use makes it favorable for investors looking to diversify their portfolios or simply invest some spare change into something other than the dollar.
How to get free Dash coin
If you’re unable to buy Dash from exchanges like Kraken or Coinbase, you can get free Dash coin from cryptocurrency faucets. All you need to do is set up a free microwallet on FaucetPay.io, visit a faucet, share your wallet address, and get given small amounts of free crypto every few minutes.
Once you’ve earned enough Dash, you can then invest it and wait for the price to go up, or invest it risk-free in a crypto interest account. We use Stakecube for our portfolios, and generate 0.02% daily compound interest.