Before investing in any cryptocurrency for that matter, one must understand the fundamentals of that currency; its structure, purpose, and how it operates. Here we discuss the salient features of Solana (SOL), a decentralized blockchain network that aims to displace Ethereum’s dominance as a smart contract platform. Smart contracts are pieces of code that are self-executing and are hosted on a noncentral blockchain; Independent decentralized finance (Defi) apps, Non-fungible tokens (NFTs), and decentralized autonomous organizations (DAO).
Currently, Ethereum enjoys dominating position, however, there are a few deficiencies in its structure and performance that SOL capitalizes on. Such as high network speeds, low transaction fees, and a mining machine that is extremely energy efficient; things that Ethereum lacked in.
Buying Solana
Solana is a powerful and fast blockchain perfectly placed for developers. The platform enables developers to create low-cost user-friendly apps for vast demography. SOL’s blockchain’s scalability has made it the go-to destination for dApps, NFTs, and Defi.
For the interested investors, we will explore ways in which you can buy SOL.
Choosing an exchange/broker
As with other cryptos, the first step is to choose a broker of exchange that suits you the best. Many factors will shape your choice; the reputation of the platform, regulatory compliance, and transaction fees. Uphold, eToro, Crypto.com, Coinbase, KuCoin, Huobi, and Binance, are the most popular exchanges that you can create an account on. Remember, that the rules and rates of each platform vary from the other, so we advise that the terms and conditions must be read carefully before opting for any platform.
Creating account
Once you have chosen an exchange, creating an account is the second step. Usually, the platforms require identity numbers, social security, proof of residence, and a valid bank statement. Ensure that you have the basic documents sorted out beforehand.
Funding the account
Once your account is verified and approved, you will be required to fund your account before making the purchase. Solano can be paired with USDT, GBP, and many other currencies. However, which currency you can pair it with depends on the exchange you have chosen.
After you have paired the currencies, you can either buy SOL at the current prevailing price or a future specified price and set a limit order.
Wallet for Solana
Several web-based browsers and applications support Solana. As with exchange, you need to choose one that suits your needs. The key while choosing a wallet is security, while accessibility is the second important thing you must look for.
For some investors, cold wallets (ones that are not connected to the internet) are more suitable whereas other hot wallets (ones connected to the internet) are more feasible. A soft wallet is one where the data is stored on a platform, a hard wallet is where the assets are secured on a specialized device (hardware). A paper wallet where the public and private keys are denoted by QR codes can be held in a secure place is also used by some investors.
Investing in Solana
Solana is a smart contract platform and as such SOL has several uses that create appeal for investors. We have jotted down the key features that may develop your interest as well.
- Currency: SOL is not designed as a currency, but rather to perform various functions such as payments against goods or services.
- NFT sales: In the world of the internet, NFT is The Next Big Thing (TNBT). NFTs are bought and sold for thousands of dollars regularly. SOL network platforms such as Solanart, Solsea, and Margin Eden use SOL as a local currency while creating and trading NFTs.
- Decentralized: The Defi feature of SOL brings it close to the traditional currency, only this is not regulated by a central bank.
