Solana is a high-performance blockchain designed for decentralized applications (DApps) and decentralized finance (DeFi). Known for its speed and scalability, it has long established itself as a key player in the industry. With a growing ecosystem and innovative projects, Solana continues to attract developers and investors. This guide breaks down all aspects of Solana including how it works and how to buy it.
KEY TAKEAWAYS
➤ Solana is a high-speed blockchain supporting decentralized applications, DeFi projects, and NFTs.
➤ It uses proof-of-stake and proof-of-history consensus mechanisms to achieve fast, low-cost transactions.
➤ Solana can be bought on major exchanges like Binance, Coinbase, Kraken, and Paybis.
➤ Solana’s scalability presents strong potential, but investors should carefully factor in market volatility.
How to buy Solana?
In a nutshell:
1. Download and install a cryptocurrency exchange app that supports SOL.
2. Sign up and complete identity verification, if required.
3. Deposit funds into your account using bank transfer, card, or other methods.
4. Search for Solana (SOL) and enter the amount you wish to buy.
5. Confirm your transaction to complete the buy order.
Now, let’s explore each step with a live demonstration. In this example, we have used one of the most popular exchanges, Coinbase, as an example. Here’s how you do it:
1. Visit the App Store (iOS) or Google Play Store (Android), search for “Coinbase” and download and install the app on your device. Ensure you are downloading the official app to avoid any security risks.
2. Open the app and tap on “Get Started.” Enter your email address, create a strong password, and agree to the terms of service. You’ll receive an email to verify your address, so click the verification link to proceed. After verifying your email, Coinbase will guide you through identity verification. You’ll need to upload identification documents like a driver’s license or passport, depending on your country’s requirements.
3. Once your identity is verified, you can add a payment method to fund your account. Tap on “Settings” and select “Payment Methods.” Here, you can link a debit card, bank account, or other supported options to deposit funds.
4. With funds in your account, use the search bar to find Solana (SOL). Enter the amount of SOL you want to buy.
3. Review the transaction details, then tap “Place Order” to finalize your purchase.
If you’re looking to buy Solana, the first step is to know your options and preferences. While some users might choose ease, others might prioritize anonymity. For easy buying, onboarding CEXs like Binance, Coinbase, etc., makes sense. Or, you can head over to DEXs like Helix and Saber DEX for spot Solana trading.
➤ If you’re looking to purchase SOL, check out our long term forecast in our expert backed Solana price prediction.
Note: Discretion and caution are advised while you buying SOL, or any other crypto for that matter. Never invest more than you can afford to lose, and always diversify your investments.
How to sell Solana?
1. Firstly, open the Coinbase app, go to the “Trade” tab, select Solana, and press “Sell.”
2. Afterwards, type in the amount you would like to sell.
3. Finally, press “Place Order” to complete your sell order.
Selling Solana follows the same path. On the mentioned DEXs, you can quickly swap your SOL token for USDT, ETH, or anything else. Or, if you have SOL in your exchange wallet, direct selling is also an option. If you have a Solana wallet, DEXs are better picks.
Understanding the Solana network
Before you decide to buy SOL, it’s important to understand the network’s full potential, transaction throughput, and operational details.
Solana is a layer-1 blockchain created by Anatoly Yakovenko, who aimed to solve the pressing challenges of limited scalability and security weaknesses that plague many blockchains today.
➤ Solana’s network is built to host decentralized applications and support various cryptocurrencies. Its ultimate objective is to cement its position as the go-to platform for developers looking for speed and efficiency.
Overall, you could think of Solana as a programmable blockchain similar to Ethereum, albeit with some very stark differences that we will discuss later in this article.
How does Solana work?
Solana operates using a novel consensus mechanism that combines proof-of-stake (PoS) with proof-of-history (PoH), a unique cryptographic timestamping tool. This hybrid approach allows Solana to achieve high throughput with low transaction costs.
PoH serves as a clock that sequences transactions. It reduces the workload for validators and enables the blockchain to process thousands of transactions per second.
Solana’s Turbine protocol further boosts network speed by breaking data into smaller packets, which then allows a quicker propagation across the blockchain. The network also supports parallel execution of smart contracts, which helps it handle a higher volume of transactions simultaneously.
Solana is known for its decentralized and scalable architecture, and it continues to attract developers who appreciate its speed and flexibility.
“Some smart people tell me there is an earnest, smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future.”
Vitalik Buterin, co-founder of Ethereum: X
What makes Solana popular?
While Solana is one of the more capable ecosystems, there are highly specific reasons for its popularity. These include:
- It supports high-speed transactions
- Solana trading can be executed on almost every top cryptocurrency exchange
- It has an extensive NFT ecosystem built within
- Boasts excellent usability with easy-to-work-with tools on offer for developer
- Innovative blockchain architecture
In all, Solana seems plenty capable. But let us see how it compares against other big names.
Solana vs. Ethereum vs. Polygon
While a comparison with Ethereum makes decent sense, we also pit Solana against the less similar Polygon, as both Solana and Polygon are two of the fastest blockchain networks around:
| Attribute | Solana | Ethereum | Polygon |
|---|---|---|---|
| Blockchain type | Layer-1 | Layer-1 | Layer-2 (for Ethereum) |
| Consensus mechanism | proof-of-stake + proof-of-history | proof-of-stake | proof-of-stake |
| Transaction speed | Up to 65,000 transactions per second | Around 30 transactions per second | Around 7,000 transactions per second |
| Transaction fees | Very low (typically <$0.01) | Largest, with an extensive ecosystem | Very low (fractions of a cent) |
| Smart contract language | Rust and C | Solidity | Solidity |
| Decentralization | High, with thousands of validators | High, with over 8,000 validators | Relies on Ethereum’s decentralization |
| Use cases | DApps, NFTs, DeFi, fast transactions | DApps, NFTs, DeFi, strong security | DApps, NFTs, DeFi, scaling Ethereum |
| Network downtime | Occasional outages in the past | Rare but can get congested | Minimal outages |
| Largest, with an extensive ecosystem | Growing, especially in NFTs and DeFi | Largest, with extensive ecosystem | Extensive, interoperable with Ethereum |
The Solana ecosystem
The Solana ecosystem might not be as big as Ethereum’s, but it certainly expands across multiple avenues.
A world of NFTs
Solana’s NFT and DeFi ecosystem has been growing since 2021. Degenerate Ape, one of the more popular NFT collections, was launched atop Solana — a move that led to a price surge. Right now, Magic Eden is one of the premiere NFT marketplaces on Solana, making it a go-to chain for creators.
Top projects
As a layer-1 chain, Solana hosts several projects and apps. Some of the more recent and popular Solana projects include the Squad — a wallet standard, Tensor — an NFT trading interface, and more. Older projects like Mango and Raydium are still enjoying decent traffic.
DeFi landscape
Solana’s DeFi landscape is also worth some attention. The chain itself has $650+ million worth of value locked. At present, the liquid staking platform Marinade Finance is one of the top-performing products.
Staking Solana
Solana mining isn’t supported. However, users can stake their SOL tokens via validator delegation as a way to keep the network secure.
Despite the lack of Solana mining rewards, something that a proof-of-work (PoW) cryptocurrency offers, your staked Solana can help you earn a passive income. As for staking-supported tools, Jito and Lido are the top options operating on top of Solana.
➤ Lido, a popular liquid staking platform for ETH, operates on multiple chains, including Ethereum, Moonbeam, Moonriver, Terra Classic, and Solana.
Where to buy SOL
As one of those more popular cryptos on the market, you can choose between a number of leading platforms to buy SOL. Here are our top four:
1. Paybis
Buying Solana on Paybis was a hassle-free experience for us, especially since we could instantly buy the asset with a credit card. We found it very convenient not needing a separate wallet, and being able to send the SOL straight to our hardware wallet for security.
Paybis has a global reach, so whether we’re in the UK or elsewhere, we can reliably use them to quickly and easily obtain SOL.
2. Coinbase
Coinbase makes buying Solana pretty straightforward, which is a big plus in our book. It has a clean layout that doesn’t confuse you with too much crypto jargon. We also noticed Coinbase is upping their game with interactive tutorials that pay you in crypto – including Solana sometimes – for learning about blockchain.
What’s more, Coinbase offers a variety of payment options, including debit cards, bank transfers, and even PayPal. This makes it easy to get started investing in Solana, even if you’re new to the asset class.
3. Binance
Binance stands out as one of the most popular platforms for buying and trading Solana using basic to advanced strategies. The sheer range of available trading pairs gives you limitless options for executing complex trades and maneuvers.
Margin trading and futures contracts provide added flexibility for maximizing income potential. Newbies can also feel at home on Binance thanks to the educational content layered on top of the powerful trading tools.
4. Kraken
Kraken’s locked-in focus on security and risk management provides much-needed peace of mind in such a nascent market. The array of customizable order types allows us to strategically buy, sell and trade SOL regardless of wild market swings.
We also like Kraken integrating the ability to stake SOL and compound gains over the long-term. In addition, Kraken offers a wide range of other features, including margin trading, futures contracts, and even a lending platform. This makes it a great choice for both experienced and novice traders.
Top projects on Solana with massive potential
If you’ve decided to dive deep into the Solana world, don’t forget to explore some of the leading Solana projects. From NFT platforms to innovative DeFi applications, Solana’s ecosystem is thriving, offering unique opportunities for investors. Engaging with these projects can provide valuable insights and potentially rewarding experiences. Some leading projects to check out include:
- Serum
- Mango
- Solarians
- ORCA
- Star Atlas
Does Sol have a future?
Solana offers a powerful and feature-rich ecosystem, steadily increasing its DeFi value. The current prices reflect the potential of this layer-1 ecosystem. Additionally, optimistic price predictions, high transaction speeds, and a growing DApp ecosystem inspire confidence in Solana’s long-term viability. With persistent development, Solana has the potential to become a constant leading force in the blockchain industry.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Cryptocurrency markets are highly volatile, and investing in them involves significant risk. Always conduct your own research and consult a qualified financial expert before making any investment decisions.
Frequently asked questions
What is Solana?
Is Solana available on Binance?
Where can I buy Solana?
Where can I buy Solana in the U.S.?
Is Solana legal in the U.S.?
Disclaimer
In line with the Trust Project guidelines, the educational content on this website is offered in good faith and for general information purposes only. BeInCrypto prioritizes providing high-quality information, taking the time to research and create informative content for readers. While partners may reward the company with commissions for placements in articles, these commissions do not influence the unbiased, honest, and helpful content creation process. Any action taken by the reader based on this information is strictly at their own risk. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
