Solana is one of the best-performing digital currencies of recent years. This has resulted in Solana becoming a top-10 cryptocurrency in terms of market capitalization. If you believe that this is the right digital token for your portfolio, this guide will explain how to buy Solana coins in simple ways.
Want more than just to buy SOL? Access dozens of different cryptocurrencies buying guides 2023 here.
What is Solana (SOL)?
Solana is a blockchain looking to address the scaling issue head-on, allowing users to process a massive number of transactions per second (TPS). To put things into perspective according to Binance Academy, while Bitcoin, Ethereum, and Visa currently offer TPS rates of just 7, 30, and 2000 respectively, Solana allows users to facilitate a whopping 50,000 transactions per second.
SOL is the native token of the Solana ecosystem and has a maximum supply cap of 489 million tokens. Since the platform makes use of a Proof-of-Stake (PoS) network, participants can stake their SOL coins to become validators within the network as well as earn passive rewards for their efforts.
In August 2021, Solana jumped onto the non-fungible token (NFT) bandwagon, adding it to its hefty list of decentralized finance (Defi) projects. Its entry into the NFT market is known as the Degen Ape Academy, where users can purchase an avatar (which is a ‘smooth-brained’ ape) and enroll as a student in the Academy. From there, NFT holders will be able to create and submit artwork to competitions and participate in a customizable kart-racing game with in-built rewards.
Upon the NFT platform’s launch, all 10,000 Apes available were sold out within 10 minutes, immediately causing a surge in Solana’s token price. Well-known celebrities such as Paris Hilton and Gary Vaynerchuk were some of the many to purchase an Ape NFT at launch.
How Does Solana (SOL) Work?
While some pretentious NFT collectors with multi-million dollar NFT collections dismiss Solana’s blockchain for NFTs, it’s not so clear whether Ethereum is better than Solana for non-fungible tokens. Of course, high-end NFT collectors value the security and decentralization of Ethereum’s blockchain and are willing to put up with high transaction fees. Also, NFT investors value a chain’s history, and Ethereum has the most on-chain history, being the oldest smart contract blockchain.
However, many NFTs are priced out of using Ethereum’s blockchain. Since NFTs cost around $150 to mint, the token must be worth more than this amount for it to make economic sense to create a non-fungible token. Since Solana has far lower transaction costs, it’s ideal for less expensive NFTs. And, thanks to the speedy transactions on Solana, the blockchain may be setting itself up perfectly for video game NFTs.
Why Buy Solana (SOL)?
Solana is undoubtedly one of the fastest-growing blockchains, as evidenced by both its bulging ecosystem and rapidly rising SOL token prices. It has become increasingly popular among traders and one of the most sought-after crypto assets by medium to long-term investors.
It’s never too late to buy and invest in Solana (SOL) in 2022, as the crypto industry continues to be surprised by new infrastructure and innovation from Solana. Today, Solana has built a reputation as a successful host for a wide range of dApps, DEXs, Defi platforms, and automated market makers (AMM).
That’s not all: Solana recently landed its arrival in NFT (non-fungible tokens) sector through its new NFT marketplace, Solonart. Now, the gap between NFT investors and artists can become closer through the Solana blockchain.
How to Buy Solana (SOL) in 4 Simple Steps
- Step 1: Decide where to buy Solana (SOL).
- Step 2: Think about how to store your Solana (SOL).
- Step 3: Make your purchase.
- Step 4: Manage your investment.
How to Buy Solana (SOL) on a Crypto Exchange
Solana is a relatively new smart contract platform and one of the fastest-growing blockchain ecosystems. It was created to solve the speed, cost, and scalability challenges facing Ethereum, hence the ‘Ethereum Killer’ tag.
The altcoin has only been around for 2 years. But during this time, SOL token prices grew by 43000%, expanding Solana’s market cap to $31.6 Billion. Moving forward, it is expected to sustain this uptrend – which makes it one of the most sought-after altcoins by both retail and institutional investors.
We believe that as long as the fundamentals of the Solana project remain stable, the price of Solana crypto will increase significantly. Opportunities arise when projects like Solana are growing while the crypto market is in decline as it could play well for new investors buying at such a discount.
- Step 1. Create a Coinbase account
Download the Coinbase app and start the sign-up process. You will need a valid ID and may be asked for proof of address in order to transact, so be sure to have those ready. Verifying your ID may take longer than a few minutes, depending on where you live.
- Step 2. Add a payment method
Tap on the payment method box and connect a payment method. You can use a bank account, debit card, or initiate a wire.
- Step 3. Start a trade
Press the button then selects “Buy” from the list of options.
- Step 4. Select Solana (SOL) from the list of assets
Search for Solana (SOL) by typing “Solana (SOL)” into the search bar. When you see Solana (SOL) show up in the results, tap it to open up the purchase screen.
- Step 5. Enter the amount you want to buy Solana
Use the number pad to input the amount you want to spend in your local currency. The app will automatically convert that into a Solana (SOL) amount.
- Step 6. Finalize your purchase
Tap “Preview buy” when ready. You’ll be shown the details of your purchase. Make sure everything looks good and then confirm your purchase. That’s it, you’ve bought Solana (SOL).
- Step 1: Find a crypto exchange or trading platform that offers Solana (SOL)
There are a number of exchanges that will let you trade your funds for Solana (SOL). One of them is the eToro trading platform.
- Step 2: Sign up
If you’d like to buy Solana (SOL) through eToro, all you need to do is sign up, verify your account and make a deposit. From there, you’ll be able to buy Solana and sell Solana (SOL) easily.
- Step 3: Buy Solana (SOL)
Solana (SOL) can be purchased fractionally, so you don’t need to buy a full Solana (SOL) to own some. For example, if Solana (SOL)’s price is $10,000, you can purchase 0.1 Solana (SOL) for $1,000.
- Step 1. Log in to your account or sign up for Bitfinex.
- Step 2. Go to Deposit, and choose Payment Cards.
- Step 3. Select the payment processors.
- Step 4. Choose the crypto and enter the amount.
- Step 5. Select the destination wallet and proceed with payment
- Step 1: Create your Binance Account
Sign up with your email address or mobile phone number, and choose a strong password. Or, download the Binance crypto trading app from the App Store or Google Play store and open an account there.
- Step 2: Start Buying Solana (SOL)
There are two main ways to buy Solana (SOL) on Binance using cash: you can link your debit/credit card or bank account, or buy crypto directly from other users on Binance P2P.
Linking your debit card, credit card, or bank account (available in many regions) is one of the easiest ways to buy Solana (SOL). Through this method, you can buy Solana (SOL) for a minimum. (This amount varies depending on the currency you use.)
Buy Solana (SOL) directly from other Binance users with your local fiat currency via Binance P2P. Browse a variety of Solana (SOL) listings to shop the best offers on Solana (SOL) from other users. With thousands of merchants and hundreds of payment methods available, Binance P2P caters to many regions in the world right now.
- Step 1. Sign Up for KuCoin Account
- Step 2. Secure Your KuCoin Account
- Step 3. Verify Your Identity
- Step 4. Connect Your Account to Funds Fund Your Account
- Step 5. Start Trading on KuCoin
How to Buy Solana (SOL) With PayPal
- Step 1. Login to Paypal and Select Cryptocurrency
In Paypal website, you should see the option for cryptocurrency in the top right of the dashboard, next to ‘Send’ and ‘Request’.
- Step 2. Select ‘Solana (SOL)’
Or choose any of the other coins listed.
- Step 3. Select ‘Buy’
- Step 4. Choose How Much You Want to Buy
Enter a number of dollars you want to spend on Solana (SOL) or choose a pre-set amount below.
- Step 5. Select Payment Method
You likely already have your bank account linked to your Paypal account, but you can also hook up another method if you don’t want to use your bank account.
- Step 6. Hit the ‘Buy’ button
After finalizing your purchase, you will be taken to a confirmation screen and you should see your coins reflected in your Paypal account dashboard.
How to Buy Solana (SOL) With a Credit Card?
Not all platforms will allow you to use a credit card to make your cryptocurrency purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high-interest rates, among other fees.
Some credit card companies allowing cardholders to make crypto purchases treat the purchases as a cash advance (cash advances usually involve a cardholder using a credit card to withdraw money from an ATM). This has several critical disadvantages.
- Cash Advance Fees: Some cards treat a cryptocurrency purchase as a cash advance. This means each crypto purchase is subject to a cash advance fee. A typical fee of either $10 or 5% (whichever is greater) would be charged. These fees are in addition to fees charged by the vendor or exchange.
- Cash Advance Interest Rates: Most cards have a higher Annual Percentage Rate (APR) for cash advances—often over 25%. This is a variable interest that changes with the market. Interest will start to accrue on the day the purchase is made and will continue to accrue until the credit is paid off. By comparison, cardholders have up to 25 days to pay off a regular credit card charge before accruing any interest.
- No Credit Toward Rewards or Bonuses: Credit used to purchase crypto (and thus make a cash advance) typically doesn’t qualify for any purchase rewards nor toward spending that would normally apply to a welcome bonus.
- Lower Credit Limits: Cash advances often have a lower credit limit than the cardholder’s overall credit limit that applies to the card itself. Cardholders hoping to make big crypto buys may find themselves limited by the cash advance terms and limitations.
Buying Solana (SOL) FAQs
What is a Solana (SOL) Wallet?
Solana is one of the top blockchain platforms for the most popular cryptocurrency investment options, including NFTs, staking, and storing tokens and coins. These devices are constructed with solid durability, including resistance to water, fire, and high voltage levels. One of the essential features of a Solana-compatible wallet is security, significantly improved with a hardware wallet.
You can choose from various crypto wallets based on your experience and how comfortable you feel using commands (for advanced users) or app-based options. For most users, app-based wallets allow you to install an app for easy interaction without the need to learn complex codes or commands that more experienced or tech-savvy users may prefer.
Can You Sell Solana (SOL)?
There are numerous exchanges that support the trading of Solana for other cryptocurrencies and withdrawing in USD. In the United States, you can use regulated exchanges like Crypto.com, Coinbase Pro, FTX, Gate.io, Binance.US or Huobi. Other exchanges might require you to convert your coins to Bitcoin or USDT first and then to fiat.
Please note that government legislation and anti-money laundering (AML) regulations will typically require you to complete a know-your-customer (KYC) process. This includes asking for information such as your name, address and proof of ID before you can begin to sell your digital assets.
Find the right exchange to buy, sell and trade SOL by comparing their deposit methods, supported fiat currencies and fees. Select “Go to site” to sign up directly with the provider.
Read More: How to Sell Solana (SOL)?
What is a Solana (SOL) Address?
Solana Wallet has 3 extremely important pieces of information you must note:
- Solana Wallet Address: A sequence of numbers and characters used to send assets to the Solana wallet. Others can transfer coins to you through the wallet address you provide. A Solana wallet address (SOL & SPL token) will have the following format: HN7cABqLq46Es1jh92dQQisAq662SmxELLLsHHe4YWrH.
- Passphrase: A security key that can be understood as a password consisting of any 12 English keywords. If you want to perform the wallet recovery operation, you must go through the Passphrase login step. Format of a Passphrase: lecture estate tube tunnel decade tone flash army pink nice net trap.
- Private Key: This is a string format to connect to the account, quite similar to the password of a bank account. Format of a Private Key: npLNkAEgTjed78Q97G7t5PiwtVuGqKCYgpYjtsuoKrefWAbxocZBxK4mAtexP7ECgJVA9Fbba57UM1jMX7pmXYY
To make it easier to visualize, you can imagine that the Solana Wallet is a bank account, the wallet address is the account number and the passphrase/private key is the password.
The difference here is that with a bank account, other people will know your personal information. As for the Solana Wallet, the user becomes anonymous, no one knows who owns the wallet, and transactions only occur through the address encoded into a sequence of numbers and characters.
How to Accept Solana (SOL) Payments?
Solana payment allows merchants to accept instant international payments for their goods or services. Solana is a high-speed open source blockchain designed to create decentralized applications. Thanks to the innovative Proof of History consensus mechanism, the Solana platform is able to process more than 50,000 transactions per second without compromising security. In addition to the lightning-fast transaction processing speed, Solana offers some of the lowest fees. These factors played into the hands of the project and at the moment Solana has attracted the attention of many organizations that accept SOL as payment.
- First, you need to sign up for a NOWPayments account. The process shouldn’t take more than a minute!
- Go to Store settings. Add your Solana wallet and create a new API key.
- Choose the tool to add to your checkout.
- The integration will be active on your website, and you’re ready to accept payments in Solana!