The demand for privacy-focused coins is expected to increase in the future as government regulations impose transparency on transactions. (See also: What Does Government Regulation Mean For Privacy-Focused Cryptocurrencies?) Here is how you can buy two coins that enable private transactions.
The PrivateSend feature of Dash mixes up the identity of recipients and senders of transactions. This could prove to be a useful feature for transactions that users would like to keep private and not displayed on the public blockchain. Currently, PrivateSend transactions account for less than 1% of Dash’s network, according to its CEO Ryan Taylor.
Buying Dash with Dollars
Sites like WallofCoins.com offer you the capability to purchase Dash with cash. Based on your location and amount you want to spend, the site suggests options, where you can purchase the cryptocurrency.
You can also buy Dash from a coin ATM. Use a site like CoinATMRadar.com to find out the ATM closest to your location.
Cryptocurrency exchanges can be used to buy Dash using your credit card or to transfer funds from an exchange. Several exchanges, such as Binance and Poloniex, offer this capability.
Note that purchase of Dash from an exchange requires you to sign up for the service. The authentication and verification may take several days, depending on documents required. Because several cryptocurrency exchanges offer services across borders, the processing time may be further delayed.
Buying Dash Using Cryptocurrencies
Cryptocurrency exchanges also offer you the facility to buy Dash using other coins. Some exchanges that offer this service are Binance, CEX.io, Coinspot, and Huobi. In this type of transaction, you may have to purchase Tether (USDT) using your coins and, finally, use them to buy Dash.
Tether has parity with the U.S. dollar, meaning you will spend an equivalent amount in Tether to purchase Dash. There are also online brokers that enable you to exchange cryptocurrencies. For example, Changelly, an online cryptocurrency broker, enables users to change between cryptocurrencies. At current rates, one bitcoin will help you purchase approximately 13.67 Dash.
Storing Dash In Wallets
Once you have purchased Dash, you need to store it. The nonprofit foundation responsible for Dash offers two desktop wallets that store the cryptocurrency in a secure manner, depending on security level and size.
The Dash Core wallet downloads the entire Dash blockchain and is packed with latest features, such as PrivateSend, and updates. It occupies much more size as compared to the Dash Electrum Wallet, which is lighter in size because it indexes the Dash blockchain.
You can also store Dash in mobile and hardware wallets. Coinomi provides hardware wallets, which are portable and disconnected from the Internet. Paper wallets, with scannable QR codes for making transactions with the cryptocurrency, are also available from the Dash foundation.
Monero is considered the most private and secure of all coins. (See also: What Is Monero Cryptocurrency?) In keeping with that reputation, the cryptocurrency cannot be purchased using cash.
Within the United States, Monero can only be bought using another cryptocurrency. This means that you must purchase bitcoin (or another cryptocurrency) that can subsequently be exchanged for another coin at an international exchange.
The workflow for purchasing Monero is roughly similar to that for buying Dash. Before purchasing Monero, you need to set up a wallet to receive the payment. The Mymonero wallet is the official wallet released by the coin’s founders. It is available in open source and closed versions. The wallet does not store a user’s private key and generates a mnemonic seed (or phrase) that can be used to restore the wallet, if the tech available for it is absent. You can also use Monero Address to generate offline wallets, which are not connected to the network, for greater security.
After creating the wallet, you need to buy bitcoin or other cryptocurrencies (such as Litecoin, Ethereum, or Dash) from an established exchange, such as Poloniex, in order to convert it to Monero.
As of this writing, there are nine exchanges that support Monero and the list can be found here. On these exchanges, you can convert the crypto you purchased earlier to Monero and send it back to your wallet address. Depending on the network latency, the transfer of Monero from the public exchange back to your wallet may take some time.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns small amounts of bitcoin.