Dash is a cryptocurrency that allows users to make instant, private payments to various merchants and to individuals. Dash uses blockchain technology to facilitate and record transactions made on the peer-to-peer network. Dash utilizes a self-governing and self-funded model that compensates both individuals and businesses for adding value to the network. Dash was originally released under the name Xcoin, although the name was changed a short time later to Darkcoin. In March of 2015, the name was changed again to “Dash.”
Why the Sudden Interest in Dash?
Dash and other cryptocurrencies have become increasingly popular in recent years, and saw a strong rise in investor interest in 2017. Some have suggested that cryptocurrencies could potentially be the “wave of the future,” perhaps even challenging more traditional methods for global payments. That being said, some long-term investors may be of the opinion that Dash and other cryptos could see a large increase in value.
What are Some of the Advantages of Cryptocurrencies?
There are several potential benefits that cryptocurrencies may offer. Cryptocurrencies run on a decentralized network, which means they are not controlled by any single governing authority. They can offer a convenient, cost effective solution to making and receiving global payments. A transaction sent overseas, for example, may potentially be performed at a lower cost compared to a bank wire or ACH payment. Unlike many credit cards, there is also no foreign transaction fee charged. Not only that, but there is no need to then perform a currency conversion, as Dash is the same anywhere on the globe. Dash may also settle significantly faster than checks or electronic transfers, which can sometimes take 14 to 30 days to settle.
Can Charts be Useful for Investing in Dash?
Charts can potentially be a very useful tool for trading or investing in Dash. Charts can be viewed on the time frame of your choice. Longer-term investors will likely be more focused on the daily, weekly and monthly charts. Charts provide a simple, graphic depiction of price action, and can be useful for spotting price trends or identifying possible areas of price support and resistance. Long-term buyers can, therefore, use charts to look for areas in which to initiate a long position or add to an existing position.
What Could Fuel Higher Prices for Dash?
Although cryptocurrencies are currently accepted by many merchants, they have really only begun to scratch the surface. As these forms of payment become more mainstream and widely accepted, their values could potentially increase. Many cryptos also have a limited number of coins, tokens or units that can be mined. The laws of supply and demand would dictate that if demand continues to rise with limited supplies, price may increase.
Should I Consider Investing in Multiple Cryptocurrencies?
When it comes to investing in anything, whether it’s stocks, bonds or other products, diversification is always a good thing. By investing in multiple cryptos, you can spread your risk out, as some cryptos may eventually become more popular and more valuable than others.