An important aspect of selling is knowing the right time to sell your Solana. This is important because traders buy and sell Solana with the goal of making profits. Cryptocurrencies are volatile assets and hence, could experience a rapid rise or fall in price within a short time.
Want more than just to sell SOL? Access dozens of different cryptocurrencies selling guides 2022 here.
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What is Solana (SOL)?
Solana is one of the largest cryptocurrencies in the world, and it has a market cap of over $61 billion. It was launched in April 2020 and has risen drastically to become the seventh-largest cryptocurrency. It rose from about $1.50 in January 2021 to $214 at its peak last month, showing an outstanding rise in price.
Solana is a fourth-generation blockchain platform for decentralized applications. It is an open-source project built by developers at Solana Labs based in San Francisco and maintained by the Solana Foundation. Solana has advantages over Ethereum, such as its faster operations and lower transaction fees. This is important because Ethereum is currently the largest decentralized app platform, and to rival Ethereum, Solana is offering a significantly lower cost of transactions and faster operations.
Read More: What is Solana (SOL)?
How Does Solana (SOL) Work?
In order for Solana to accomplish all of its goals, the developers had to think outside of the box. As such, the network is packed with proprietary systems. These systems work in tandem to create an extremely useful and reliable blockchain network.
The biggest draws of Solana are its fast and cheap transactions. It’s reportedly able to handle 65,000 transactions per second, and the average cost per transaction is $0.00025.
Solana is able to do that because it uses proof of history, a unique algorithm to validate transactions. Most blockchains use either a proof-of-work or proof-of-stake consensus mechanism, with proof of stake being the more efficient option. Solana uses a hybrid protocol that combines proof of stake with proof of history for even faster processing.
Why Sell Solana (SOL)?
Generally, financial experts warn to only invest as much as you can afford to lose in cryptocurrencies due to their significant risks.
Solana, in particular, has its own risks. First, it has appreciated substantially in a short period of time. Just like with other cryptocurrencies, the potential for large price swings should be considered and understood before investing. As quickly as it reaches a new high, it could go back down.
Critics also worry about Solana’s decentralization after it suffered a 17-hour outage in September, during which the network couldn’t process transactions. Solana developers later blamed something called “resource exhaustion,” Bloomberg reported.
All in all, “the risks are that [Solana] is competing with other technologically slick blockchains and blockchains with very large communities and established user bases,” Hougan says. “It’s like betting on a new and slick software company.”
Where to Sell Solana (SOL)?
Option 1: Cryptocurrency Exchanges
Cryptocurrency Exchanges often support a wide range of fiat currencies. A crypto exchange can act as an intermediary between sellers and buyers of cryptocurrency. To sell Solana (SOL) for cash, you will first need to set up an exchange account and deposit your Solana (SOL) in the hot Solana (SOL) wallet that is provided by the exchange.
Note that most reputable Solana (SOL) exchanges require their users to provide personal information before they can sell cryptocurrency, in order to comply with KYC and AML rules.
The key advantage of using a cryptocurrency exchange to sell Solana (SOL) for cash is that well-known exchanges have deep liquidity and provide quick access to a large pool of potential buyers.
They are also relatively easy to use: you will need to place a sell offer, define how much cryptocurrency you wish to sell, and set your asking price per unit. The exchange then automatically processes the transaction once your offer is matched.
Option 2: Direct Trades (Person-to-Person)
- Online P2P Selling
- Face-to-face Transactions
Rather than doing the work for you, a peer-to-peer (P2P) exchange lets you choose your price, and the platform helps find a buyer willing to pay it. The two parties then decide between them how to pay. You can sometimes do this on the site — often called direct trades — but normally, you would use a separate bank transfer.
P2P trading allows you to sell cryptocurrency without the limits of an exchange. This means that you could do a wire transfer, send gift cards for popular online stores, trade cash in the real world or even send expensive art if that’s what you want; as long as both parties agree, and you’re in a P2P marketplace that doesn’t limit payment methods.
There are some problems around this, such as what happens if the buyer doesn’t pay up, and the peer-to-peer marketplaces will still have some information on who you are. However, this is still a good step if freedom of choice and minimal interference are your priorities while still having access to things like escrows to hold the Solana (SOL) for protection from fraud.
Option 3: Solana (SOL) ATMs
It may be hard to come to terms with since Solana (SOL) ATMs are directly connected to the internet, but BTMs are entirely secure. BTMs are equipped with technology that protects against software and hardware malfunctions. Malware technology is also not able to threaten Solana (SOL) ATMs. Your digital wallet is encrypted and protected. Without the correct passwords and security credentials, no one aside from you can access your wallet.
A number of Solana (SOL) ATM operators have come together to form the Cryptocurrency Compliance Cooperative to make the use of Solana (SOL) ATMs even safer for the consumer, furthering the legitimization of the cash-to-cryptocurrency industry.
How to Sell Solana (SOL)?
When you execute a sell market order, you will sell whatever amount of SOL tokens you specified at the highest bidding price in the order books until all those SOL tokens are sold. This means that your sell order will be filled instantly.
- Step 1: Set up an exchange account
The first thing you need to do is decide which form of money you will accept for your Solana (SOL).
Now that you know which currency you want in exchange for your cryptocurrency, it’s time to make an account on a platform that lets you sell your Solana (SOL).
There are tons of platforms to sell Solana (SOL) on, and the easiest, by far, are exchanges and brokers like Coinbase or Coinmama.
Signing up on Coinbase is really simple – it’s like making an account on Amazon!
- Step 2: Transfer your Solana (SOL) to your exchange wallet
Now that your account is created, you’ll need to deposit your crypto assets on the exchange.
Hit the “deposit” or “sell” button.
You’ll be presented with a wallet address and/or a QR code.
Scan that into your Solana (SOL) wallet and send the number of coins you want to sell.
- Step 3: Place a sell order
Now it’s time to make a sell offer on the platform you are selling on.
That means determining the price at which you are willing to sell your Solana (SOL).
The process for doing this always looks a little different on every platform, but for the most part, it works the same way.
Look for the “sell” or “trade” tab, and either sell at the price offered by the broker or create a custom sell order on an exchange order book.
The only difference is, with a broker, you are selling at whatever the spot price is (minus some fees).
With an exchange, you can set whatever price you want. Just don’t expect the sale to be accepted by any takers if your price is too high.
The nice thing about the crypto exchanges is that the fees tend to be lower than the brokerages.
Direct Trades (Person-to-Person Trading)
- Step 1: Go to the P2P Trading Page
Select (1) “Buy Crypto” then click (2) “P2P Trading” on the top navigation.
- Step 2: Choose to Sell and Set Your Currencies
Click (1) “Sell” and select the currency you want to buy (USDT is shown as an example). Filter the price and the (2) “Payment” in the drop-down, select an ad, then click (3) “Sell”.
- Step 3: Find a Buyer
After the buyer makes the payment, the transaction will now display “To be released”. Please make sure that you’ve actually received payment from the buyer to the payment app/method you used. After you confirm the receipt of money from the buyer, tap “Confirm release” and “Confirm” to release the crypto to the buyer’s account. Again, If you have not received any money, please DO NOT release crypto to avoid any financial losses.
- Step 4: Choose How Much You Want to Sell
Enter the amount (in your fiat currency) or quantity (in crypto) you want to buy and click (2) “Sell”. The transaction will now display “Payment to be made by the buyer”.
- Step 5: Send the Offer
You can use Chat on the right side to communicate with the buyer during the whole process.
If you have any issues in the transaction process, you can contact the buyer using the chat window on the top right of the page or you can click “Appeal” and our customer service team will assist you in processing the order.
- Step 6: Confirm the Release
The transaction will now display “Pending Payment.” After the buyer makes the payment, the transaction will now display “Confirm Receipt”. Please make sure that you’ve actually received payment from the buyer to the payment app/method you used. After you confirm the receipt of money from the buyer, tap “Payment received” and “Confirm” to release the crypto to the buyer’s account. Again, If you have not received any money, please DO NOT release crypto to avoid any financial losses.
Solana (SOL) ATMs
- Step 1: Choose to withdraw cash
- Step 2: Choose Solana (SOL) (these machines normally support other cryptocurrencies as well).
- Step 3: Choose the amount to withdraw
- Step 4: Send Solana (SOL)s to the given address via QR code.
- Step 5: Receive cash immediately as Solana (SOL)s transaction is propagated on the network
Read More: How to Buy Solana (SOL)?
Selling Solana (SOL) FAQs
What Determines The Price of Solana?
Solana’s price is determined on exchanges, based on supply and demand. This means that Solana’s price will rise if there are more buyers than sellers.
Solana’s price action is — like other forms of crypto — somewhat tied to the wider crypto market. Like they say: a rising tide lifts all boats.
That said, investors should also look at the potential utility of the network in the long term. Solana is highly scalable and could accommodate many different real-world applications. It’s also of particular utility for the financial sector.
Read More: Solana (SOL) Price Prediction 2022-2030
When is A Good Time to Sell Solana?
It’s difficult to predict the trajectory of any cryptocurrency, as they’re all so volatile. The suggestion that Amazon might start to support Bitcoin, for example, sent markets soaring in late July, only for things to contract shortly afterward. If you can hold your nerve and capitalize on such moments, then there’s scope for a considerable profit. However, bear in mind that there is always the risk that you will miss out.
Do I Have to Pay Taxes When I Sell Solana?
If you invest in Solana and profit from the sale of it, then you’re likely to be liable for capital gains tax, depending on the country in which you’re based. Make sure you know your obligations before you pull the trigger on a sale.