Dash is similar to Bitcoin, which was created to send and receive payments on digital currencies, but Dash has some significant improvements over the Bitcoin blockchain technology. It is popular because Dash offers higher transaction speed and better privacy than Bitcoin, which is possible with the unique model of Masternodes.
There are many self-governing and self-funding models in cryptocurrency. Dash is one of the popular privacy-centric cryptocurrencies. The best part is that Dash can fund itself to improve its technology, but the same is not possible in Bitcoin.
Dash was released in 2014 as XCoin; later, it changed its name to Darkcoin, and finally, it became Dash (combining two phases, ‘digital’ and ‘cash’) in 2015. It is a forked version of Litecoin, which itself is a fork from Bitcoin. However, it offers better privacy than Litecoin and Bitcoin. The features are divided into Masternodes, PrivateSend, and InstantSend.
Masternodes
They verify transactions and get rewarded for their work. They play the role of miners. However, there is a significant difference between Masternodes and miners. A Masternodes user must deposit a minimum of 1000 DASH for eligibility, and the user can act as a special server on the network for critical functions. Moreover, they are responsible for PrivateSend and InstaSend transactions. They also improve the security of the network.
PrivateSend
Unlike Bitcoin, DASH adds privacy to transactions, and no one can track the transactions easily. While on the Bitcoin network, all the details (senders’, receivers’ information, and amount) are public.
InstaSend
Bitcoin has been facing an issue with transaction speed, and Dash solves this problem with faster transactions. Dash can clear a transaction in 2.5 minutes which is faster than Bitcoin. It also offers a feature called InstaSend, where a sender can ask Masternodes to clear the transactions within a few seconds by paying a small fee.
Dash is a popular cryptocurrency, but should you include it in your portfolio? At least, the technical price chart does not show growth in the last year. The whole crypto market is down, so it can be a good opportunity for risky traders to invest for the long term.
At the time of writing this post, DASH was trading around $48.23. After an uptrend from June to August, it changed the momentum and consolidated in the lower range of the Bollinger bands between $44 and $49. However, now it has crossed the baseline of the Bollinger Bands. DASH is trading in the upper range, which suggests bullishness in the market supported by other popular technical indicators like RSI (over 50) and MACD. We think either it will consolidate between the range or take the previous uptrend, continuing the momentum.
After reaching a high of $440, it has been in a downtrend. It has taken support of around $44. However, we do not think it is an ideal time for the long-term investment because Dash may fall further to a lower level. You should wait until it crosses the crucial resistance before investing for the long term.