Already decided that the time has come to buy Solana (SOL)? You can buy SOL on Coinmama, Uphold, Gemini, and other exchanges listed below.
As cryptocurrency continues to become more widespread, its growth has introduced scalability challenges for blockchain platforms like Ethereum. The rise in popularity leads to high transaction fees and limits on the number of transactions per second (TPS), which has hampered the progress of the blockchain.
Anatoly Yakovenko recognized these challenges and came up with the idea for Solana in 2017; in 2020, the Solana high-performance blockchain was launched. It maintains low transaction fees and high TPS through a unique Proof of History (PoH) consensus mechanism algorithm, which uses timestamps to set the next block on the blockchain. However, Solana’s high throughput comes at the cost of decentralization. Its network is only secured by a handful of nodes, whereas Ethereum and other competitors offer better execution times, stronger security and decentralization.
Solana’s SOL token is used to pay transaction fees and participate in the governance of the platform. Solana has attracted a lot of attention from developers and projects in the blockchain industry, but since FTX’s sister investment firm, Alameda Research, has funded many of these projects, the Solana ecosystem suffered a severe blow following the insolvency of FTX.
TL; DR: Is it a good time to buy Solana?
Solana has seen its fair share of price swings since its launch in 2020. SOL reached an all-time high of around $260 per coin in 2022. Its success has been largely attributed to general speculation during the bull run and the adoption of the token.
After the peak of the crypto market at the end of 2021, the price of SOL experienced a sharp decline in August 2022. The blockchain platform faced a hack, which led to the draining of SOL tokens from wallets users. Despite the setbacks, the overall trend has been up with SOL price slowly recovering from its low below $10.
Despite the fluctuations that have occurred with SOL, it has managed to establish itself as one of the biggest cryptocurrencies in the market today due to its high transaction throughput and its partnerships with large companies and projects. Now may be the perfect time to buy Solana, as it is well below its all-time highs, but is also holding above important support levels.
How long will the crypto bear market last?
While cryptocurrency prices are down across the board, it’s important to consider that the market has been on a downtrend for over a year. Many investors believe the market has hit local lows as most leverage left the sector following stock market insolvencies. It may take until after the Bitcoin halving in 2024 for token prices to return to all-time highs.
Using investment techniques such as cost averaging and diversification can help make better investment decisions and potentially achieve long-term profitability. These techniques can help manage the emotional roller coaster of the market.
Will Solana reach all-time highs again?
Solana’s high above $250 means the token will need to appreciate by around 1000% to get back to all-time highs. Although not an easy task, the volatility of the crypto markets makes all-time highs possible. Key factors could potentially push up Solana’s market capitalization.
Adoption and use: The more companies and individuals who use Solana and its technology, the more valuable the platform will be seen and the higher the demand for SOL will be.
Partnerships and collaborations: Solana has formed partnerships with a number of major companies and projects in the blockchain space. These partnerships could lead to wider adoption of the platform and increase the value of SOL.
Development and innovation: Solana is continually developing its technology and exploring new use cases. If the project is able to deliver on its promises, the token will likely increase in value.
General market sentiment: The general sentiment in the cryptocurrency market influences the value of SOL. A general bull run in the crypto market could help boost Solana’s market capitalization.
Is Solana (SOL) a good long-term investment?
Solana’s unique PoH consensus algorithm enables the network to process over 50,000 TPS, making it one of the fastest blockchain networks on the market. Solana’s low latency also means that decentralized applications (dApps) and decentralized finance (DeFi) projects can deliver a faster and more responsive user experience.
Ethereum is set to increase its throughput through Layer 2 solutions, giving Solana a run for its money. Zero-knowledge (ZK) proofs and optimistic rollups give Ethereum similar transaction speeds to Solana while keeping Ethereum’s network secure. Many investors, especially those with large amounts of capital, prefer to use Ethereum because it is more secure and decentralized than Solana. Ethereum also has many more apps and developers than Solana.
Solana’s functionality is primarily to provide a fast and efficient blockchain framework for dAPPs, NFT marketplaces, Web 3.0 applications, and DeFi projects. Solana’s low latency and high transaction throughput make it ideal for cases that require fast and frequent transactions.
In addition to its technical capabilities, Solana also has a vibrant and active community of developers and projects that rely on the platform, which helps provide a strong ecosystem for dApps and DeFi projects to thrive.
How to buy Solana (SOL)
US-based investors can access Solana by purchasing SOL, the native cryptocurrency of the Solana network, on a cryptocurrency exchange that supports trading of the SOL token.
You will need to open an account with a crypto exchange. Some of the best exchanges that allow users to buy and sell Solana include:
With some cryptocurrency exchanges, you can buy and sell Solana paired with Tether (USDT), a stablecoin.
Exchanges that combine SOL and USDT include:
US$100 (or equivalent)
Variety of tokens
A fast trading experience
Rates are calculated by the average of the XBX index + 2% (standard derivation) + sales charge of 0.9 to 1.9%.
How to Store Solana Safely
When investing in Solana or other cryptocurrencies, you should store your tokens using a crypto wallet if you want to keep your funds in your own custody. As the catastrophic insolvencies in 2022 show, it’s a good idea to use a crypto wallet to truly own your digital assets. Several storage options are available depending on your preferences, risk tolerance level, and intended use for your cryptocurrency:
- Hardware wallets: Hardware wallets are physical devices that store your cryptocurrency offline, away from the internet. This process makes it the safest way to store your SOL. Some of the best hardware wallets include Ledger and Trezor. Ledgers and Trezors both support all kinds of cryptos, including Solana, Bitcoin, Ethereum, and all ERC-20 tokens.
- Software wallets: Software wallets, including Phantom and Exodus, are digital wallets that can be downloaded to your computer or mobile device. They are generally considered less secure than hardware wallets, but they can be useful for quickly and easily accessing your SOL.
- Official Solana Wallet: Solana has its own official wallet called Sollet, which is considered a relatively safe way to store SOL. It is also user friendly and easy to use.
It’s important to remember that no matter what type of wallet you choose, you should never share your private key (or seed phrase) with anyone. Also, it’s a good idea to back up your wallet in case you lose access to it.
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How does Solana fit into the bigger picture?
Solana can be compared to other blockchain platforms like Ethereum and Binance Smart Chain, which also have their own cryptocurrencies that are used to pay transaction fees and participate in network governance. These platforms are similar in that they support the development and deployment of dApps.
Ultimately, Solana sacrifices decentralization and security to scale its transaction throughput. Users enjoy fast and cheap transactions on Solana, but the network has been down eight times in 2022 alone. The added value of Solana is threatened by the security of Ethereum, and the future of the network is not yet certain.
Solana’s unique features, fast transaction speed and low transaction fees make it an attractive asset for developers, traders and investors.
So is it the right time to buy Solana (SOL)?
If you are a long-term investor and bullish on SOL, now might be the time to buy Solana. Although Solana is a relatively new blockchain platform, it is one of the biggest cryptocurrencies in the market and has investors with both institutional and retail investors.
Some investors may view Solana as a promising long-term investment opportunity due to its scalability characteristics. However, as with any investment, it is important to conduct your own research and consider your risk tolerance before investing in Solana or other cryptocurrencies.
Frequently Asked Questions
Is it the right time to buy Solana?
Now may be the right time to buy Solana if you are a long-term investor and believe in the future of the project. The token is down more than 90% from all-time highs, so buyers can take advantage of a steep discount from bull market prices.
Can Solana reach new all-time highs?
It is possible that Solana will hit all-time highs when the cryptocurrency market turns bullish again. However, a price increase is far from certain. Solana may become obsolete with the appearance of Ethereum scaling technologies like ZK proofs and optimistic rollups.