Solana is just another high-throughput blockchain platform, having entered the competitive world as one of the most promising competitors in the cryptocurrency ecosystem. The native asset of the system is SOL, and this catches the eye of many investors, considering it has the potential for being fast and scaling with transactions. To be willing to enter the growing ecosystem of Solana, this guide will pretty much cover how to buy Solana and what you need to know.
Understanding Solana
Now that we have our basic premise on Solana, let’s plunge straight into the purchase. Launched in 2017, Solana had an ambition to solve some of the scaling issues that had been strikingly absent even from more mainstream blockchains, such as Ethereum. It did so by being able to process thousands of transactions using a combination of Proof-of-Stake (PoS) and Proof-of-History (PoH). This speed and capability attracted developers to create decentralized applications on the Solana network.
Reasons To Buy Solana
Here are a couple of reasons that will make purchasing Solana quite compelling:
- High Growth Potential: Innovative technology and the growing ecosystem of Solana are showing good indicators of value in the long term.
- High-Speed Transactions: Solana transactions occur very fast, within milliseconds, which means it will be a user-friendly experience for all applications and DeFi protocols.
- Scalability: The ability to handle large transaction throughput without slowing down is good for scaling Solana-wide.
- Potential for Mainstream Use: Solana’s capabilities will place it well to unlock tremendous potential for blockchain technology.
Before You Purchase Solana
And then, here are some key things to consider before clicking “buy”:
- Market Volatility: Cryptocurrency, as a marketplace, is already characterized by huge volatility. So, Solana can increase in value massively, but it might also drop like a stone, so only invest that which you can afford to lose.
- Regulation: Cryptocurrency regulations keep changing from time to time. Be aware of the new regulations that are within your region and can affect your investment.
- Security: Take your time selecting a safe platform to buy and store your Solana. We will explain this in a minute.
How to Buy Solana
The two common ways of buying Solana are through centralized exchanges (CEXs) and decentralized exchanges (DEXs).
Centralized Exchanges (CEXs)
CEXs are online platforms accepting traditional ways of payment for buying or selling cryptocurrencies. CEXs tend to be user-friendly and also accept a great variety of traditional payment methods, such as credit cards, bank transfers, etc. Here’s a simple explanation of the process:
- Choose a CEX: Good examples include Binance, Kraken, and Coinbase. Take note of key parameters in your selection, including security, supported currencies, and fees.
- Sign Up and Verification: Sign up at your favorite CEX. Most of the times, KYC is the procedure in which you will need to upload some identification document.
- Account Funding: Add funds to the account of your chosen exchange by using either bank transfer, purchase using a credit card, or transferring in other cryptos you already hold.
- Purchase Solana: Search for the SOL/USD or SOL/EUR trading pair (whichever of the two the currency you deposited trades against). Enter the amount of Solana you want to purchase and place the trade.
Decentralized Exchanges (DEXs)
DEXs work quite differently from CEXs. This is a peer-to-peer market where cryptocurrencies are exchanged directly between users. Here’s a fairly easy breakdown of how to buy Solana on a DEX:
- Choose a DEX: Other well-known DEXs that support Solana are Serum and Raydium.
- Get a Crypto Wallet: Unlike CEXs, DEXs need a non-custodial wallet to store your crypto. Phantom and Solflare are common Solana-compatible wallets.
- Wallet Top-Up: Add already-existing cryptocurrencies to your wallet—usually stablecoins, such as USDC—by sending them to your wallet address. This is typically achieved through the use of a CEX or perhaps another DEX.
- Connect Your Wallet to the DEX: Connect your wallet to the DEX you selected.
- Purchase Solana: Find the SOL trading pair and exchange your deposited cryptocurrency for Solana.
Storing Your Solana
As soon as you buy your Solana, you will want to store it securely. Here are your choices:
- Hardware Wallets: This is hardware that offers the best security in storing one’s cryptocurrency. Examples include Ledger Nano and Trezor.
- Software Wallets: A software wallet is an app or browser extension through which you can access your digital wallet. Generally, this option is considered to be convenient yet less secure than a hardware wallet. The most popular ones include the likes of Phantom and Exodus.
Conclusion
And as much as you purchase your SOL, remember that although it brings along some satisfaction, it is not really a way to riches. It is an investment. Take your time to research and understand the associated risks, then proceed by buying and storing your SOL through a reputable option. This guide will literally take you around the world of Solana, giving you the information needed to make even the most sophisticated investment choices.
