We’ve all heard about Solana Coin. This currency became famous in 2021 due to its crazy increase.
The price of this currency increased from half a dollar when it was launched to more than $240 at the end of 2021.
What is this currency? What is its importance? Does it have a future? Is it easy to buy? Let’s learn more about this currency.
What is Solana?
Solana Coin is the main currency of the Solana blockchain. The Solana blockchain was founded in 2017, but the network and currency were launched in 2020.
The goal of the network was to create a fast and cheap blockchain network that could compete with MasterCard and Visa in the speed of completing financial transactions.
Until the launch of the Solana blockchain, the Ethereum network was the main network for completing financial transactions.
But although it is safe, it is slow and its fees are also very high. Which makes this network more suitable for large transactions.
You pay the same gas fees on any financial transaction, so if it is $20, you will pay it whether on a transfer worth a billion dollars or $10.
That’s why the Solana Network was launched. The network is considered one of the fastest networks in the world of crypto, and its administrators claim that it can reach up to 65 thousand transactions per second.
This is a very fast number. In addition, the network fees are cheap and very low, making it one of the most suitable networks for completing small transactions between individuals.
Solana is the main currency on the network, which means that it is used to secure the network on the one hand by staking currency stakes. On the other hand, gas fees are paid on the network through currency as well.
Therefore, to interact with the network, you must use Solana (SOL). The network also supports smart contracts, and therefore smart contracts can be built and developed on it and decentralized applications and platforms launched.
It has a huge ecosystem that rivals the Binance network ecosystem.
The difference between Solana and Ethereum
The biggest difference between Solana and Ethereum is the number of nodes secured to the network.
On Ethereum, there are very many devices, which makes it a much more decentralized network. But this also means a slow Ethereum network.
Also, the Ethereum network was based on the proof-of-work mechanism before it turned in 2022 to the proof-of-stake mechanism.
But the Solana network, since its inception, has been based on the proof of stake mechanism, and therefore the Solana currency is mortgaged to secure the network.
Therefore, it is considered faster, but it is also vulnerable to hacking due to the lack of secured computers and is therefore characterized by extreme centralization.
The network was subjected to closure and disconnection from the Internet more than once during the years 2021 and 2022.
It was later revealed that the FTX platform and its investment arm Alameda were the reason for this, as they are the largest investors in the currency.
They spread rumors and harm the network to sell the currency short and then buy it back at a low price.
The difference between the two networks can be summarized in that the Solana network is suitable for daily transactions that do not require a lot of security and can be completed quickly.
For example, if you want to send salaries to employees or transfer money to your family abroad.
The Ethereum network is used to build and develop applications and to send huge amounts.
Is investing in Solana coin good?
Investing in Solana coin is considered one of the most popular investments in crypto. This is because the currency’s market value currently places it in the top 10 digital currency projects.
The current currency price is above $60 and its market value is approximately $26 billion.
But it is worth noting that the currency’s price has increased from about $8 at the beginning of the year to above $60.
We talked in detail about this in the Solana price analysis article. Therefore, investing in the currency currently is not considered one of the best financial decisions.
But in general, many experts expect Solana’s price to increase in the coming year and the bull market, especially after the FTX platform dropped out of the picture due to its severe negative impact on the currency and the network.
Therefore, we recommend waiting until the currency price undergoes a correction first, and then after that, think about investing in it.
But the currency’s returns in the bull market are expected to be very good, as many investors expect it to break the 2021 peak and rise above it.
How to buy Solana coins?
Solana is one of the most popular cryptocurrencies on the market and can be purchased in more than one different way.
1. Buy Solana via a centralized platform
The first way to buy Solana is through centralized platforms. Because the currency is one of the largest currencies in the crypto market, it can be easily purchased on huge central platforms.
The most popular platforms on which Solana can be purchased are the Binance platform, the Coinbase platform, and the OKX platform.
The first way to buy the currency on a central platform is by depositing USDT and then buying directly from the spot market.
This can be done either by purchasing at the market price or by limit order. We prefer the second method because you can place a purchase order from now at the level to which you expect the currency to fall, and as soon as the currency price falls to this level, the purchase order will be executed automatically.
Buy Solana from a central platform via a credit card
Some platforms, like Binance, allow their user to purchase Solana coins directly with a bank card. While some other platforms only allow the purchase of USDT.
After creating an account and going through the KYC steps, you can link the bank card to the platform and then make a purchase directly from the platform.
Some platforms like OKX may make your purchase through a third party like Moonpay and therefore you will have to go through KYC procedures there as well.
2. Buy Solana via a decentralized platform
Theoretically, Solana coins can be purchased via a decentralized exchange or hot wallet. However, the method will not differ much from purchasing it from a central platform.
The problem lies in converting fiat currencies into crypto. So there are several different ways.
The first method is to purchase directly through the Phantom wallet with your bank card, as the wallet allows you to purchase via Moonpay.
The second way is that if you have USDT or ETH you can transfer it to the Solana network via blockchain bridge but don’t forget to transfer Solana so you can pay the gas fee.
You will always need Solana to pay the gas fees, and one Solana coin may be enough to cover the gas fees for a very long time. Even a $10 Solana purchase can cover gas costs for years.
Where can Solana be kept?
If you buy Solana coin you can easily hold it either on the exchange or in a hot or cold wallet just like Bitcoin or other cryptocurrencies.
The safest method is the cold wallet, but in all cases, each method has risks.
The platform could go bankrupt or be hacked, and your hot wallet could be hacked by connecting to a fraudulent site.
Finally, if the password is lost, your coins in the cold wallet will be lost forever.
Therefore, be very careful in whichever method you choose. Also, remember that purchasing the currency through futures contracts does not mean that you own it.
You are only speculating on the price of the currency in this case and do not own it. Only purchasing from the spot market gives you the right to own the currency.
Can Solana be sold easily?
Since Solana coin is one of the largest and largest cryptocurrencies in terms of market capitalization, it is very easy to sell it.
This is because there is always an abundance of currency liquidity. Therefore, it can be sold on centralized or decentralized platforms very easily and without being exposed to significant price slippage.
If you have a lot of currencies that you want to sell, the best thing to do is to send these currencies to more than one different platform.
This is so that you do not sell them all in one liquidity pool and suffer a lot of loss as a result of selling pressure.
