How to Buy Dash and Where to Buy it From
While Dash is a cryptocurrency based on Bitcoin’s protocol, it actually manages to improve on it in a number of ways. These include: faster, almost instant processing of transactions; greater privacy when making said transactions; and a native voting system to drive faster decision-making.
As a result of Dash’s approach to budgeting and decentralized form of governance, it has become a notable decentralized autonomous organization (DAO). And in this piece, we’ll cover key factors like how to buy it, where to buy it, and more.
First-time users should find it fairly easy to buy Dash, particularly if they have any experience of other cryptocurrencies.
You can get started by creating your own account at a reliable marketplace, such as a popular broker’s service or a cryptocurrency exchange.
The amount of time this process takes can vary from one marketplace to the other. Typically, you’ll be required to go through an identity verification check, during which you have to upload copies of valid ID such as a passport or driving license.
On top of this, you might need to set up your own wallet to store Dash if your chosen marketplace fails to provide a native one as standard. You might be able to get through all of this within a matter of minutes or, in some cases, a number of weeks.
Dash is available to purchase at various types of marketplaces, as we touched on above. But let’s take a closer look at your options to help you get started:
A cryptocurrency exchange is similar to the sort of high-activity exchanges you might expect to see on Wall Street, New York. But there’s less personal contact involved, and the process may be quicker.
If you choose to buy Dash via a cryptocurrency exchange, you’ll be trading with fellow traders directly in a process revolving around high-tech matchmaking programs. These algorithms determine the cost of Dash and pinpoint sellers suited to your unique order.
As cryptocurrency exchanges utilize state-of-the-art features, they tend to be tailored for trading professionals — and this can be a little daunting for people just getting used to the entire process.
This is a totally different ball game to cryptocurrency exchanges.
A broker service sells Dash from its own assets: there are no transactions with traders when you buy Dash through a broker. They usually demand a bigger fee than most cryptocurrency exchanges do, but you might find they deliver a wider range of payment options.
Brokers are known for providing a more complete, dedicated customer experience, too (though that’s not a guarantee).
A P2P (peer-to-peer) directory is a platform designed to let cryptocurrency users trade their Dash with fellow traders directly.
Sadly, this is considered a slightly riskier way to buy Dash because there’s no third party involved. That’s worth thinking about before you make your choice.
If you think you might be ready to start buying Dash, you’re probably wondering which purchase channel is right for you.
This can be a difficult question to answer with so many options. But we’ve broken down the main factors you should consider when you decide to buy Dash:
As we’ve already mentioned above, you’ll need a wallet to store your Dash, but there are multiple types available. This is basically a hardware device or application designed to keep your Dash safe, but whichever you choose, security is paramount.
Newcomers usually find the in-built wallets offered by marketplaces to be the most practical, user-friendly option. But it’s generally safer to set up and manage your own wallet instead.
Be warned, though — there is a learning curve involved. You’ll find this manageable if you do your research beforehand. A little extra time now can save trouble later.
ID verification is a standard procedure at the majority of marketplaces, and it’s for your own benefit. You’ll need to verify you are who you claim to be, and that your permanent address is valid.
You can do this by submitting a copy of a utilities bill (recent) or your passport. Marketplaces tend to provide lots of information and support for this process, so check for guidance before you get started.
The entire process can last just a couple of minutes or — sometimes — weeks.
You have to send your fiat money to any marketplace you decide to use before you’re able to buy Dash. Wire transfer is the only payment method accepted by a lot of exchanges, though brokers might provide you with more flexibility.
It’s not uncommon to find broker services accepting credit cards and Skrill for your convenience, but at an extra cost.
Never underestimate the power of security when you start buying and selling Dash (or any cryptocurrency, for that matter). Look into the type of encryption a marketplace utilizes, as well as other security measures.
You want to know your funds are safe, especially when cyberattacks are on the rise.
Dash’s price hinges on the current number of users looking to sell it and buy it (otherwise known as supply and demand).
Exchanges will determine their own Dash prices, while brokers make sure theirs match the rates at the biggest cryptocurrency exchanges. However, they’ll add a markup and additional fees, too.
Also, you might incur costs when you want to withdraw or deposit Dash or your fiat money.
Knowing the right time to buy Dash can be difficult, especially as a newcomer. It’s important to study trends, get involved with the cryptocurrency community, and watch activity on the most popular marketplaces.
Over time, you’ll find yourself becoming more in-tune with Dash fluctuations and knowing when it’s the right time to buy. Just put the hours in and be willing to wait for a better deal.