Is it safe to invest in Dash?

Do you want to invest in Dash but are not sure what it is?

Welcome to the club, because the majority of investors are in the same boat.

It is not that we do not really know what Dash is – in theory is a mean of payment – but we do not really know how it works and why is it so valuable that people want to invest in it.

Dash is one of the latest criptocurrencies to join the cryptocurrency bubble.

Its technology is the same as that of Bitcoin, therefore we have a criptocurrency in which in theory we will be able to do payments online in a private and efficient way.

The same as with Bitcoin, we will not be able to create unlimited amounts of Dash because that would put its value to zero obviously.

To create Dash we will have to mine them. In other words, work hard.

The supposed advantage of Dash is that it is faster than Bitcoin.

The rest of characteristics are pretty similar.

That supposed speed is because of the Masternods, which use a technology called InstantX, with which transactions are taken in a matter of seconds.

Besides this speed, it is supposed that the transaction costs are minimal, only a couple of cents, making this system cheaper than Paypal, MoneyGram or Western Union.

Besides, Dash gives us the chance of having a debit card, which can be denominated in euros, dollars or pounds.

The Peer to Peer of Dash adds a reward system in by which those who help to develop and maintain the masternods get compensation.

Those masternods make possible the whole structure of Dash.

Dash takes the confirmation system to two levels contrary to the typically used one of Bitcoin. With this mining is not only enough but also Masternods must be used to be able to run the InstantX or private transactions (Darksend) services.

To be able to manage a Masternode we have to prove that we have 1,000 Dash, which at the current price seems quite complicated (640 USD).

The managers of the Masternods are compensated by the fact that when miners discover new Dash blockchains they share some of the profit.

Then, is it a good idea to invest in Dash?

In principle, everything sounds good.

This is another of the numerous successful criptocurrency stories. Dash seems one that can challenge Bitcoin in the near future, although we are far from there yet.

Today Dash ranks 7 in volume, which makes it one of the most desired criptocurrencies.

As with all the cryptocurrencies it has a lot of detractors and proponents.

Personally, I do not find it especially more attractive or less than Bitcoin, although the fact that it started late gives it some sort of disadvantage.

It is quite difficult to reach the market leader, since in a way we are talking about a Ponzi system, at least philosophically, although so complex that people cannot see it. Despite the fact that everything works with high technology, security, etcetera, the fundamental case is that the criptocurrency world is a ponzi scheme where the first ones were the most benefited.

With Dash we have a criptocurrency that has been successful in its creation and promotion side and that gives it good credit for the next months and years. In this sense, just as well it changed its initial name, Darkcoin, since it was not an easy name to sell. People are not very interested in dark concepts, at least regarding money.

Anyway.

What interests us here is if it is good idea or not to invest in Dash.

Though, before investing we should now what we are doing.

In first place, the notion of investing tells us that we are waiting to get a significant profit.

We have to see that Dash quotes against our typical currencies, namely dollars, pounds or euros.

Therefore, we should expect that those fiat currencies depreciate against Dash.

We should have an objective.

We cannot expect Dash to multiply itself by 1 million in the coming months, unless there was an hyperinflationary episode in the world, although in that case you would probably have other problems to worry about.

It is also a fact that despite of the amazing bull market we have in criptocurrencies, it cannot continue rising 1,000% a year forever.

I say this because a lot of people may think that this is going to keep rising indefinitely without consequences.

The truth is that is that is very possible that Dash goes to 20 or 100 thousand dollars, but it is complicated that eventually we do not have a major breakdown that takes with it the majority of investors.

This is the danger we face with Dash.

Investing in Dash rise

buy dash 2017
We should not rule out a strong correction any time soon, specially it it reaches 1,000

To have an idea of how violent the rise of Dash is, just remember one article of coindesk about 8 months ago in which it was speculating if it was a good idea to buy Dash or not when the price was trading at 60 USD.

What a good idea to buy Dash at that time right?

If we read the article we can see the author names many advantages and disadvantages of investing in Dash.

The truth is that 8 months later, the price has multiplied by 10, so those who were against Dash were wrong, at least in the short-term.

Today we are far above 600 USD and rising, with strong waves and corrections on its way up.

I even bought some speculative positions when it was around 290 USD, but not from a trading or investing point of view, simply as a speculation for the middle term.

With the conditions we have in Dash it is difficult to do trading the same way we do in instruments like the DAX futures, for example.

We are talking about an asset with epic volatility.

In specialized brokers, like Kraken, we can find spreads of around 2 points, which today would equate to 0.33% of the price, although we should add bigger spreads quite often so the true cost of the spread would be more like 1% or more.

buy dash kraken
order book in Kraken

In the case of CFD brokers like eToro or XTB, we can see how the spreads are quite bigger, but much more stable than in the specialized brokers.

buy dash xtb

In eToro we find a big spread, and in xtb 4 points a 0.6%, which is not bad at all considering the alternatives in the market.

When will Dash stop rising?

I do not know.

I wish I did.

Quoting at 700 $ I am tempted to sell, in this case with a profit or more than 100% of the original position, although a small considering my trading accounts.

However, the original idea was not that.

If I am right, and we are in a epic bubble, I think that we should not rule out that we have still a significant way to go, despite Bitcoin trading above 10,000.

Nonetheless, despite the warnings of bubble, of which I am the first to subscribe, I think that we have room to go.

The risk is there, but I think it is worth the while, since we are talking about risking a small percentage of my funds.

Conclusion

Besides the speculative point of view, I do not think it is a good idea to invest in Dash, at least from a point of view of thinking that we are going to buy now at 700 and in 10 years we will have 700,000 without any problem meanwhile.

The bull market in Dash is good while it lasts but beware, because we can expect that any day it could be over and we could lose everything.

That is why, in cases like this, as well as other cases, it is better not to put all the eggs in the same basket.

Regards, prudence and good trading folks.

Original article: Invertir en Dash es seguro?