CFD in focus: Dash, the cryptocurrency
The cryptocurrency Dash has come in the spotlight lately as the cryptocurrency of choice for many Nigerian traders. Dash itself was created in 2014 and its aim was to become the user-friendly and adaptable cryptocurrency on the market. Dash has also been built to remove some of the flaws that can be found in Bitcoin and especially around the length of transaction intervals and privacy concerns. Even though Dash uses the same fundamental blockchain technology to hold its ledger, it has a major difference against Bitcoin since it operates on a two-tier network that miners and transaction nodes run on in parallel.
From a speculative trading perspective, it is important to understand what drives price changes for Dash. As with any other cryptocurrency, demand drives price changes upwards and supply drives prices downwards. Since the supply and demand curves are naturally flawed from a traditional economical perspective, drastic price movements occur and the asset becomes highly volatile. This provides excellent trading opportunities for the trader that is on his feet and quickly flex between buy and sell orders for Dash.
Another key price indicator to watch is announcements of partnerships with cryptocurrency exchanges and payment providers as this tends to drive the price of Dash up. As an example of this was the announcement of a partnership with Blockpay that drove up the price of Dash considerably in March 2017. Since the primary function of Dash is to be a transaction payment option, its price is also set to increase when more and more merchants except Dash as a payment method.
Most cryptocurrency experts believe that the long-term potential of Dash is one of great growth even though the short-term conditions tends to be volatile. As we have seen with other cryptocurrencies in 2018, a long upwards price trend is usually followed by a large drop in value as the price is ‘course-correcting’ itself. Many traders see this course-correction as opportunity to buy Dash although you should use your own trading strategy to see if this falls in with your general risk level and approach to trading.
If you are only interested in speculating on the price movements of Dash, the easiest way to do this is via a CFD on CFD trading platform without the need to set up online crypto wallets or having to buy Dash on an exchange. It really as simple as opening a CFD trading account and deciding on whether you should use a Buy order (if you believe the price of Dash will go up) or use a Sell order if you believe the price will go down.
We hope that this article on trading with Dash has given you the information you need. The next natural step is to use the free educational material and free demo account that our recommended CFD broker provides: