Several people delimit the use of cash transactions nowadays because of the existing condition of the world at the moment. Health issues have been associated with the handling and exchange of bills so instead of using a real wallet, people resulted in the use of digital wallets and cryptocurrencies to purchase. The trading industry is also affected by this trend. As observed, more and more traders are investing in the use of crypto CFD in their transactions because they find it more secure than cash transactions. Among the many types of crypto currencies, Dash coins is believed to be a potential crypto currency because it possesses a more enhanced feature than Bitcoin which is its mother coin. That’s right, Dash coins which were previously called XCO then Dark coins were created from Litecoins which also came from Bitcoins. With its enhanced feature and fame, Dash coins now ranks 7th largest crypto currency in the market. For today’s discussion, we aim to explain the different conditions that affected trading value of Dash coins and other digital or crypto currencies.
Since crypto currencies are digitally formed, its value can also be affected by technology through bugs and forking. Forking happens when a blockchain is divided into two due to the manipulation of the system. When the dash coin was created, a bug attacked the dash system and this resulted in the mining of 1.9 million DASH coins within the first two days. Consequently, market rates for dash fell till 2016. But a year after that, Dash rates increased. In fact, the value was pegged as high as $1540 on December 20, 2017.
2. Number of Nodes
Node count is defined as the population of active users of the digital wallet. This number is usually indicated in the respective crypto currency websites. For traders of Crypto CFDs, financial coaches advise them to compare node count and the total market capitalization of their chosen crypto currency in order to determine if it is fairly rated in the market.
3. The Law of Supply and Demand
Just like typical goods in the market, crypto currencies are also affected by the law of supply and demand. Because of the increasing demand of people to use digital wallets in society, there is an increase in the market rate of crypto currencies. Aside from that, famous crypto exchanges have also noted that the popularity and adoption of the community determined the increased value of crypto currencies. Since crypto currencies come in many forms, those rare but usable types such as dash coins usually have higher value.
4. Expenses for Production
Similar to cash, the creation of crypto currency also determines its value. Since most crypto currencies are prone to bugs and hacking, the creators spend much on specialized equipment such as servers and CPUs to ensure the safety of users. Consequently, the payment for electricity and manpower also plays a role in determining cryptocurrency value.
Conclusion Cryptocurrencies, especially dash crypto, is believed to be a potential asset for crypto CFD traders. Just like other digital currencies, dash crypto’s value is affected by the abovementioned factors. This apparently means that trading with such merchandise requires skills on thorough research and analysis as it is prone to several dangers such as hacking and bugs.