Solana is a top altcoin and part of a group of cryptos commonly referred to as “ethereum killers.”
Like ethereum, the solana (SOL) blockchain supports various decentralized finance (DeFi) projects such as NFTs, smart contracts, and decentralized app development (dApps). You can also use the solana token to stake and earn coins, and pay fees when transacting on the blockchain.
Solana has some good qualities and some issues, says Mark Fidelman, host of YouTube’s “Cryptonized” and founder of crypto marketing agency SmartBlocks. Solana “is faster and has much lower costs than ethereum, which is ideal for building dApps,” he says. “Solana’s current problem is lack of traffic. It needs a killer dApp that attracts people to the platform.”
If you’re interested in adding solana to your crypto portfolio, here’s what you should know, along with how to buy it.
Before You Invest
Steps to Buy Solana
Buying Solana via a cryptocurrency exchange is a straightforward process that involves funding your account with the amount needed to make your purchase. Keep in mind that different exchanges have different minimum thresholds for buying different tokens, as well as different fee structures depending on how you execute trades.
Cryptocurrency is an emerging asset class and must be approached carefully. Do your due diligence and only invest what you can lose.
Find a Cryptocurrency Exchange
For most newer crypto investors, experts recommend using a prominent, mainstream exchange such as Coinbase, which we think is the best overall exchange for most investors. Other popular mainstream exchanges are Gemini, FTX.US, Kraken, and eToro.
Coinbase and other top exchanges do often charge higher fees than other crypto exchanges, but experts say you get what you pay for and point to the security standards, ease of use, and transparency as good reasons to pay the higher fees.
Fund Your Account
Funding your account is a straightforward process on most exchanges. You will typically connect your funding source to the exchange and deposit a designated amount of money into your wallet, which can then be used to place orders for various cryptocurrencies offered on the exchange.
Place an Order
The details and exact process for any order will vary per exchange, and each exchange may designate a minimum or maximum amount that can be purchased within a single transaction or a single day.
Understanding an exchange’s terms of service is a key part of successfully placing an order. While most transfers happen pretty quickly, occasionally there may be a delay in your transactions, due to factors outside of your control.
Storing Your Solana
You have a few options for storing your new SOL tokens after buying them. If you want to keep things simple, you can store your tokens directly in your exchange account. But if you’ve got an array of holdings and want some added security or privacy, you might move your coins off the exchange into your own crypto wallet.