How to Invest in Dash 2021
Dash is a cryptocurrency and blockchain protocol that not only focuses on fast and cheap transactions - but privacy.
Sure, Bitcoin transactions are not tied to your identity. But, with the right technology at hand, it is highly feasible to trace Bitcoin transactions to both the sender and receiver.
This is an issue that the Dash blockchain solves - as transactions are truly anonymous.
If you want to know how to invest in Dash online, this guide will tell you everything you need to know.
This includes the pros and cons of investing in Dash, potential risks and rewards to consider, and a simple step-by-step walkthrough of how to get started with a purchase today.
How to Invest in Dash in 5 Easy Steps
Some of you might not be interested in reading our How to Invest in Dash Guide from start to finish.
Instead, if you simply want a walkthrough of how to make a Dash investment in less than 10 minutes, follow the 5-step process outlined below!
- Step 1: Open an account with a regulated, commission-free Dash broker like eToro
- Step 2: Deposit some funds with a debit/credit card, e-wallet, or bank transfer
- Step 3: Choose how much Dash you want to buy ($25 minimum)
- Step 4: Confirm the investment
- Step 5: Leave your Dash stored at eToro until you decide to cash out
As long as you have an instant payment method to hand - the above process can be completed in minutes!
What is Dash?
Launched in 2014 - Dash is a cryptocurrency that is backed by blockchain technology. It carries many similarities to Bitcoin, as the Dash network supports digital transactions from wallet-to-wallet.
By using Dash to send and receive digital payments, you will rarely pay a transaction fee of more than $0.01. Additionally, while Bitcoin transactions take 10 minutes to confirm, Dash payments are instant.
This makes it ideal as a cross-border payment network - both in terms of cost and speed. However, one of the main attractions of Dash is that it is a 'privacy' coin. In other words, transactions that go through the Dash network can be 100% anonymous and confidential - if you select the respective option.
In terms of the figures, Dash currently possesses a market capitalization of just over $1 billion. In total, the number of Dash coins in supply will be 18.9 million. At the time of writing, just over 52% of this figure is in circulation.
According to Dash itself, the network now processes an average of 20,000 transactions each and every day. Taking all of this into account, if you want to invest in Dash yourself, you have over 260 exchanges and brokers to choose from.
How Does the Invest in Dash Process Work?
If you are new to crypto-assets like Dash, rest assured that the investment process is like any other financial market. Whether that’s stocks, ETFs, mutual funds, or bonds - the overarching objective is to make money.
In the case of Dash, you will achieve this goal if you are able to sell your coins for more than you originally paid. Like any financial market, the value of Dash coins will go up and down each and every second.
The direction of the digital asset’s price is determined by market forces.
So, if more and more people decide to invest in Dash, naturally, this will see the asset increase in value. And of course, if market sentiment on Dash is somewhat negative, this will result in the crypto-asset going down in value.
To show you just how easy the Dash investment process is, check out the example outlined below.
- You invest in Dash at a stake of $1,000
- When you make the investment, the price of 1 Dash is $108
- You are a long-term ‘buy and hold’ investor, so you leave the Dash stored in your digital wallet for two years
- When the time comes to cash out, 1 Dash is worth $560
- This means that the cryptocurrency is now worth 418% more than you originally paid
- You exit the position and withdraw the proceeds back to your debit card
As per the example above, the value of Dash increased by 418% from the time you made the purchase. In turn, this means that on an original Dash investment of $1,000 - you made a total profit of $4,180.
While returns of this magnitude might sound somewhat farfetched, it is important to remember that Dash was priced at just $0.33 when it was first launched in 2014. As we cover in more detail shortly, the same digital currency was worth over $1,500 in 2017.
Why Should you Invest in Dash?
If Bitcoin is the gold of the cryptocurrency scene, Dash could well be the silver. After all, it currently possesses a market capitalization of just $1 billion - meaning that the upside potential is huge.
Whether or not you will be able to make any money by investing in Dash remains to be seen. But, some of the reasons why you might decide to add this digital currency to your portfolio are further outlined below.
Huge Returns are a Possibility
All investors risk money to increase the size of their capital. In the case of blue-chip stocks and high-grade bonds, the amount that you can make can and will be limited. In turn, the risks of losing money are far lower.
However, in the case of Dash, this highly speculative crypto-asset does offer the potential of huge financial returns. This theory was validated in late 2017 when the price of 1 Dash coin surpassed $1,500.
Bearing in mind that the digital currency was priced at just $0.33 in 2014 - this translates into growth of over 450,000% in just three years. In other words, had you invested $100 into Dash when the project was first launched - at its peak your money would have been worth over $45 million.
Now, we should note that the current market price of Dash is just a fraction of the aforementioned all-time high. In fact, at the time of writing in early 2021, Dash is valued at just over $108.
However, it is also important to note that at the start of 2020, Dash was priced at $41. This means that in just over 1 year of trading, Dash investors have seen returns of 163%.
Dash is a Great Payments Network
Bitcoin is the de-facto cryptocurrency payments network for a whole host of reasons. However, don’t forget that transactions take 10 minutes before they are processed.
Additionally, the Bitcoin network can handle just 7 transactions per second and fees can be extortionate during busy periods.
When it comes to Dash, transactions are processed instantly. This is the case whether you are sending funds locally or to somebody on the other side of the world.
Dash transactions cost less than $0.01, too. Once again, this offers a great way to send money overseas at a super low-cost fee.
Although Dash is a privacy coin, we should note that transactions are not 100% anonymous by default. That is to say, you need to select the PrivateSend option when you make a transfer - should you wish to keep things private.
Nevertheless, this does appeal to certain segments of the cryptocurrency community, as there is a feeling that transactions should remain confidential between the sender and receiver.
There is clearly a market for such an anonymous offering, as Dash facilitates more than 85,000 active wallet addresses every day.
No Need to Risk Large Volumes
Make no mistake about it - whether it’s Bitcoin, Ethereum, Ripple, Dash, or any digital coin for that matter - cryptocurrencies are arguably the most speculative and high-risk asset class in the financial scene.
In other words, while you stand the chance of making huge returns, there is also the possibility that the value of your Dash investment will tank. The good news, however, is that you can invest in Dash with really small amounts.
Not only is this because Dash can be fractionated, but online brokers like eToro allow you to invest from just $25. This is an inconsequential amount that allows you to gain access to the Dash investment scene, without risking more than you can afford to lose.
How to Invest in Dash - Various Options Available
Dash has been an active member of the cryptocurrency industry for over six years. As such, it makes sense that there are various ways in which you can invest in Dash in 2021. This includes investment methods both online and offline.
If you’re wondering the best way of how to invest in Dash as per your financial goals - review the sections below.
If you prefer dealing in cold-hard cash, you might be surprised to learn that there are now an abundance of Dash ATMs scattered across the globe. The vast majority of these machines are located in the US and Europe - and largely concentrated in major cities.
In terms of how to invest in Dash via an ATM, the process works like the following:
- You locate a Dash ATM and follow the on-screen instructions
- The ATM asks you how much you want to invest in Dash
- You enter $200 (or whatever your local currency is)
- The ATM tells you how much Dash you will get for your $200 investment after transaction fees
- You enter $200 into the ATM
- The ATM prints a receipt with your Dash wallet details - with instructions on how to claim the coins
On the one hand, investing in Dash through an ATM is suitable for those of you that prefer completing transactions in the ‘real world’ so to speak.
However, we should make it clear that Dash ATM providers typically charge double-digit commissions. In some cases, this can be as high as 15-20% of the investment amount.
Secondly, the ATM option doesn’t seem so convenient when you consider that you still need to claim the coins via a cryptocurrency wallet. And of course, if you are a complete newbie, you might not have an understanding of how Dash wallets work, and thus - this is itself a risk.
With this in mind, we would argue that the best way to invest in Dash is to use an online platform.
According to the official Dash website, there are more than 260 online exchanges and brokers that allow you to invest in the digital currency. However, when we went to validate this information at CoinMarketCap, we found that in all but a few cases, these platforms are unregulated.
This means that you will be depositing and entrusting your hard-earned money with a cryptocurrency exchange that does not take safety seriously. As you might know, there are countless examples of such exchanges losing client funds - either through incompetence or outright fraud.
Fortunately, there are a number of online brokers active in the space that not only allow you to invest in Dash - but in a 100% regulated environment.
For example, eToro is licensed by the FCA, ASIC, and CySEC - and registered with FINRA. The broker enables you to instantly invest in Dash with a debit/credit card or e-wallet without charging commissions.
Have You Considered Investing in Dash?
How to Choose a Platform to Invest in Dash
Leading on from the section above, the best way to invest in Dash is without a doubt via an online broker. However, to ensure you are able to do this in a low-cost, convenient, and safe manner - you need to do a bit of research on the broker before taking the plunge.
To help point you in the right direction, below we have listed the most important considerations to make when choosing a platform to invest in Dash.
Licensing and Reputation
We must once again hark back to regulation - and for good reason. Since the cryptocurrency investment phenomenon became a thing, many exchanges have been hacked. There are also cases where the exchange itself has engaged in malpractice - subsequently walking away with client funds.
As such, the most important metric of them all when choosing a platform to invest in Dash is that of licensing.
Once again, the likes of eToro are licensed, authorized, and regulated in several countries - subsequently ensuring that you can invest in Dash without worrying about fraud, incompetence, or internal malpractice.
Fees to Invest in Dash
We briefly mentioned investment fees earlier when we discussed Dash ATMs. To recap, these cryptocurrency ATM terminals charge in excess of 15-20% of the investment amount. This is yet again why online brokers are the way forward.
However, the fees and commissions charged by online platforms can and will vary by some distance. For example, cryptocurrency brokers like Coinbase charge a trading fee of 1.49% - which you pay when you invest and again when you cash out.
Your fee will increase to 3.99% all-in at Coinbase if you decide to use a debit card. Then you have the likes of Binance, which charges just 0.1% on commission. However, these cost-savings are countered by the fact that you need to pay 2% to deposit funds with a debit card.
Over at eToro, the regulated broker is 100% commission-free - which is the case when you invest in Dash and when you sell your coins. Additionally, there is a 0.5% deposit fee charged, but only when you use a payment method that is not denominated in US dollars.
Minimum Dash Investment and Payments
Like traditional online stock brokers, all cryptocurrency platforms will have a minimum investment amount. This might come in two various forms. For example, there might be a minimum deposit amount as well as a stipulated minimum investment.
These are crucial metrics to explore before signing up, as you Dash is a volatile asset class. In other words, you’ll want to choose a broker that supports small investment amounts, so that you can keep your long-term risks to a minimum.
At eToro, the minimum deposit is $200, albeit, you can invest in Dash from just $25 per transaction. Don’t forget about payment methods, either. After all, you will need to deposit some money into your brokerage account before you can invest in Dash.
As such, make sure that the broker supports your chosen payment method. If you want to benefit from an instant Dash investment process, eToro supports debit/credit cards and several e-wallets.
Storage and Cashing Out
A lot of newbie investors make the mistake of focusing exclusively on the Dash purchase process. However, don’t forget, Dash is a digital currency that must be stored in a private wallet.
This means that once you withdraw the coins out of the brokerage site in question, you are solely responsible for the wallet’s safekeeping.
This means having a firm understanding of internal security controls on your desktop or mobile device - as well as private keys and public addresses.
If this isn’t something that you feel comfortable doing, regulated broker eToro will safeguard your Dash investment so you don’t have to.
This means that you can forget about your investment until the time comes to cash out. When you do decide to sell your Dash back to fiat money, all you need to do is hit the ‘Sell’ button from within your eToro portfolio.
Ready to Invest in Dash?
How to Invest in Dash Today - Step-by-Step Walkthrough
This guide has explained all of the key metrics that you need to know to invest in Dash from the comfort of your home. However, if you want a step-by-step walkthrough of how to invest in Dash safely, following the guidelines below.
Step 1: Open an eToro Account
As we have covered extensively, eToro is by far the best broker to invest in Dash. As such, head over to the provider’s homepage and open an account.
You will need to enter your personal information and contact details, as well as choose a username and password. You will also need to verify your mobile number via an SMS that eToro sends to your phone.
Step 2: Upload Some ID
As a regulated broker, eToro needs to verify your personal information. It does this by asking you to upload a copy of your government-issued ID (passport or driver’s license).
You also need to provide proof of residency, with eToro accepting a utility bill and bank account statement.
Note: If you are not depositing more than $2,250 right now, you can upload the above documents at a later date.
Step 3: Make a Deposit
You need to deposit at least $200 at eToro. The platform supports debit/credit cards and several e-wallets - all of which are processed instantly.
You can also deposit funds via a traditional bank transfer. But, this can take up to 7 working days to arrive.
Step 4: Search for Dash
Now it’s time to invest in Dash. To go straight to the relevant page, enter ‘Dash’ into the search box, click on the result that loads up, and then hit the ‘Trade’ button.
Step 5: Complete Dash Investment
You will now see an order box. Simply enter the amount that you want to invest in Dash. This is in US dollars and needs to be at least $25 upwards.
Finally, click on the ‘Open Trade’ button to invest in Dash commission-free.
Note: If you want to invest in Dash at a specific entry price, change the ‘market’ box to ‘limit’. Then, enter the price that you want eToro to execute your order at.
Step 6: Cashout Your Dash Investment
Once you have invested in Dash at eToro, you can leave your coins at the broker. When you decide to cash out your Dash investment, head over to your eToro portfolio. Next to the Dash entry, click on the ‘Sell’ button.
In doing so, the funds will be added to your eToro account. If you want to withdraw the money straight out, the funds will be sent back to the same method that you used to deposit.
Note: If your payment method has since changed, eToro might ask you to upload a document that proves you are the owner of the respective bank account, e-wallet, or debit/credit card.
How to Invest in Dash - The Bottom Line
In summary, Dash is far from the most popular cryptocurrency investment in the space. After all, the likes of Bitcoin, Ethereum, and Ripple carry significantly higher market capitalizations. However, this does mean that the upside on Dash is potentially higher.
Crucially, by reading this guide on how to invest in Dash from start to finish, you should now be armed with the required tools to complete the purchase with ease.
As we have discussed, eToro allows you to invest in Dash commission-free. The regulated broker is home to over 13 million users - and supports debit/credit card and e-wallet payments.
eToro – Best Broker to Buy DASH
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
How much should I invest in Dash?
Firstly, the most important thing to remember is that you should never invest more than you can afford to lose. Secondly, Dash is a highly volatile digital asset, so you are best advised to keep your stakes to a minimum.
A good way to counter the volatile nature of Dash is to stick with a regular investment plan at small amounts - for example, $50 per month or $25 per week.
Is Dash a good investment in 2021?
The wider cryptocurrency markets have once again taken off - meaning that Dash investors had a great 2020.
Whether or not this upward trajectory remains in place in 2021 and beyond is anybody’s guess. As such, you should perform lots of independent research before taking the financial plunge.
How do I start investing in Dash?
The easiest way to invest in Dash is to use a regulated broker like eToro.
In doing so, it takes minutes to open an account and you can instantly deposit funds with a debit/credit card or e-wallet.
Plus, eToro allows you to invest in Dash from just $25 and it charges no commissions whatsoever.
Can I invest $100 in Dash?
Yes, like all digital currencies, Dash can be fractionated. This means that you can buy and sell micro-amounts. If using eToro, you can invest any amount as long as you meet a $25 minimum.
Can you lose money on Dash?
Yes, no financial asset is risk-free. This is especially the case with Dash - which has proven to be a super volatile cryptocurrency.