How to Buy Solana - a Beginner’s Guide
Below is a step-by-step guide to how you can start buying Solana and begin your journey to owning a piece of the world's fastest blockchains. We know that the process of buying a crypto like Solana might be complicated, especially if you are new to crypto. So we put in the time and effort to help you navigate your way through this process, as digestible as possible.
Solana was founded in 2017 by Anatoly Yakovenko, who published a whitepaper introducing a new hybrid consensus algorithm that combines Proof-of-Stake with Proof-of-History (PoH). This new consensus structure enables two computers that don't trust each other to agree on the time of an action or function. This is a key component that helps Solana in its mission to be scalable and be incredibly fast. It can now process around 50,000 transactions per second, which is approximately 10,000 times faster than Ethereum.
To understand more about how and why to buy Solana, have a look at our guide below.
5 Steps to Buy Solana Instantly!
1Visit our recommended platform to buy Solana by clicking the button below.
2Enter your details in the required fields to create a new account.
3Fund your account using your preferred payment method and confirm your new balance.
4Choose Solana and select a "Instant/Market Order” to buy it instantly.
5Enter the amount you want to buy (you’ll see the equivalent in SOL) and confirm your order!
5 Quick Steps to Buy Solana
1. Sign up for free with a broker or Exchange
After researching what exchange you feel suits you, the next step will be to sign up to an exchange or broker. The first interaction you will have is with the homepage of the website. You will see either a `"Sign-up”, ''Join Now", or a "Trade Now" button; click on one of these. Upon clicking that option, you will be prompted to fill in your details. Fill out your information, completing the necessary requirements. You will then be sent an email to verify it's you to then log in once this process is completed.
2. Fill out the questionnaire
Once you sign up, you will be given a questionnaire that is multiple choice. From this questionnaire, you will have to select answers to questions about some of the basics on investing & trading tools and products. Complete this and move on to the next stage.
3. Fund your account with fiat currency or crypto
There will be a deposit button on the page of the platform you are using. Click on this, and this will start the next stage of the process that will enable you to fund your account. You will be able to fund your account by depositing money like GBP, USD, EUR– these types of currencies are called fiat currency. It will be one of these currencies you deposit from one of your linked payment methods.
4. Follow the simple steps to link your payment
The next step will be to link the account you wish to deposit from. You have the option to deposit from a bank account where you have your funds. Some exchanges even offer a drop-down menu of the banks you can select from. Once the linked account is accepted, you can move on to the following step, which is to deposit your fiat currency.
5. Buy Solana
You will select or key in the specific amount you wish to deposit in fiat currency and the exchange will process this. Deposit times will vary depending on the payment method you choose or on the policy of the exchange. A bank transfer as a deposit method can be instant. However a wire transfer could take a couple of days. Once your payment is linked, you will be able to deposit your funds and begin trading & investing.
Where to buy Solana?
Solana can be bought on many centralised exchanges. Larger, more popular cryptocurrencies like Solana have a high level of liquidity and demand, making it a typical listing among the biggest providers.
If you’re a first time buying, consider one of the easy-to-understand platforms listed below deciding where to purchase from.
Payment methods you can use to buy Solana
Solana can be purchased with many payment methods, but this will depend on the Exchange or broker you use. To make this process easy for you, we have listed some of the methods below.
PayPal: Buying Solana directly with PayPal is currently not possible. Indirectly, brokers, exchanges & P2P payment providers allow it as a deposit method.
Credit Card & Debit Card: Credit & debit cards are an option that can be used, which are typically quite fast. But be aware that some major banks prevent buying cryptocurrency with these cards and might block users.
Bank Transfer: Most exchanges offer a bank transfer option, offering deposits in all major currencies. These kinds of deposits may take longer than other options listed here.
Buying vs Trading Solana
Buying and holding are typically associated with a longer-term view of investments. Trading is associated with short term buying and selling. What you decide on depends on the investment approach you want and will be unique to you.
It's vital to keep in mind that trading cryptocurrency affects the type of tax you owe. In nations like the UK, trading more than once a year means you are liable for an income tax, not a capital gains tax.
How to Trade Solana
Be aware there are different styles of trading that will depend on your level of experience and tolerance for risk. Trading cryptocurrency like Solana requires an understanding of how market trends work and change over time.
Technical analysis is employed to evaluate trades or investments using indicators and statistical analysis trends gathered from the recent trading activity. Some indicators include price movement and volume. Technical analysis is often used for entry and exit strategies, which can supplement fundamental analysis about a project you want to invest in.
All of these trading methods have their dynamic differences and require a suitable technical strategy. Some of these TA strategies might be useful for:
Identifying price action before or after an All-Time High (ATH)
Helping you decide where to take profits
Identifying an accumulation area
Identify key price levels with support and resistance levels
What to consider before buying Solana
Before you consider buying Solana, you should understand the characteristics that make it unique as a blockchain. Solana, in this case, is a blockchain that is a Layer 1. A Layer-1 is a blockchain that aims to improve the protocol's base layer to make the overall system more scalable. This is often done by offering fully functional smart contracts. These are code-based agreements that operate without the need of a third party, facilitating an agreement or an exchange between two parties. This is a competitive area of crypto innovation and development.
There are other cryptocurrencies that use their own layer 1 blockchain technology. Some of these Solana competitors are AVAX, FTM, and DOT. It is important to compare both the technicals of these Layer 1's so you can really see what Solana is up against.
What Features Does Solana Have?
Solana’s unique features are:
Fast transactions: One of the fastest blockchains, at its peak, can process 50,000 transactions per second (tps). It aims to compete with traditional forms of payment providers like Visa.
Smart contracts: Fully functional smart contracts that are fast and easy to deploy. A growing community of developers, roughly 10,0000, are building projects on Solana.
DApps: Solana's smart contract functionality, has meant that it can process and deploy fast contracts for Decentralised Finance (DeFi) Applications.
DeFi community: Solana is the second-largest for DeFi.
NFTs: One of the largest NFT communities outside of Ethereum. It has an abundance of NFT marketplaces that enable minting, creation and selling of Non-Fungible-Tokens (NFTs), which can all be done at a fraction of the cost of Ethereum.
Cost: Using Solana is relatively cheap when compared to other significant blockchains like Ethereum. This is because Solana is built using Proof-of-Stake & Proof-of-History, these help its blockchain to be more efficient & scalable.
Will Buying Solana Make Me Money?
To figure out if Solana will make you money, it will be essential to incorporate an outlook from both a long & short term point of view. A strong balance of both will help with focus on the fundamentals that drive the project compared to short-term price action, which is typically volatile.
One thing to consider is that Solana received a vote of confidence for its long term plan by closing a massive funding round of over $300 million in 2021. Some of the world's most prominent technology investors like A16z took a punt on the crypto currency. Funds like these are often tipped as 'smart money' due to the resources & teams behind these organisations that lead their investment decisions.
It's hard to make a prediction for Solana in the short term, as it has seen rapid growth in its relatively short existence. Solanas price has been very volatile; constantly making all-time highs. Volatility is not helpful when making predictions on how much money you can make using short term price data, this is because the price action rarely reflects reality.
If both sides are considered & the fundamentals remain strong, then a Solana investor could make money in the long-term and is likely to be an excellent investment. We do however emphasise that you conduct your own research on Solana
Should I Buy Solana?
Pros For Buying Solana
- Innovative blockchains with new Proof-of-History
- Outside investment from 'smart money funds
- The largest amount of developers outside Ethereum
- Easy to use infrastructure. Through wallets like Phantom, accessing the Solana blockchain through apps is relatively painless
- Functioning smart contracts
- Solana features NFTs on its Solana Art platform.
- Fast transactions and cheap to use
Cons For Buying Solana
- Exponential price growth in a short space of time could mean that upside in the short term could be limited.
- Competition from other Layer 1s might take market share from Solana.
Frequently Asked Questions
Solana is a Layer 1 blockchain technology with its cryptocurrency $SOL. It is very scalable and efficient in terms of speed and cost for its users. Having a system that uses the Proof-of-Stake & Proof-of-History helps Solana achieve this. Together, this helps with its smart contract functionality.
Solana is one of the fastest blockchains at a peak performance of 50,000 tps. People in the community have debated that it's not the fastest due to the way Solana measures the speed of transactions. This is a political issue and leaves much open for debate.
No, in its standard format, it is not possible to send ETH to the Solana blockchain. The way in which you could do so could be if you could wrap the ETH to WETH. The Wormhole Bridge connects Ethereum and Solana.
Buying Solana directly with PayPal is currently not possible. Indirectly, brokers like eToro allow it as a deposit method—exchanges like Binance & FTX. And P2P providers like Paxful also offer this option.
There is an abundance of centralised & decentralised exchanges that you can select from. The Exchanges that you can use include Coinbase, Binance, and FTX.In addition, some decentralised exchanges like Raydium & Orca and also regulated brokers like eToro.