How To Buy Solana in 2023
Updated · Mar 06, 2023
One of the fastest growing cryptocurrencies, Solana (an acronym for scalable, decentralized, open-source app), has already achieved staggering growth.
At its peak, this digital currency increased by about 50x in value since it appeared on the market. The developers built this coin by basing it on a new type of blockchain designed with scalability in mind. That's what makes Solana unique.
Solana makes use of proof-of-history (PoH) as its consensus algorithm, which is much more efficient than proof-of-work (PoW).
Many major exchanges have already listed Solana, so it's easy to buy without first owning another high market cap digital currency like Bitcoin.
Before venturing into investment in Solana - or any other cryptocurrency for that matter - there are a few things to take into consideration.
Don't Risk Your Retirement and Emergency Savings
Don't invest more than you can afford to lose.
As cryptocurrencies are highly volatile, it is essential to understand the risks associated with them to make an informed decision.
The primary reason for this volatility is that cryptocurrencies are yet to be widely adopted by the mainstream public. This means large price swings are regular occurrences.
Cryptocurrencies are also extremely unpredictable - they can be affected by exogenous events, such as hacks, government regulations or even rumors.
For all these reasons and more, it is very important to make sure you understand what you're getting yourself into before diving in.
The first step is to familiarize yourself with the technology and learn everything there is to know about your intended purchase. This will better equip you to make an informed decision.
These are the basics of how to buy Solana cryptocurrency:
- There are many reputable exchanges to open an account and buy cryptocurrency. Choose one that has been around for a few years and has plenty of users.
- Depositing fiat currency is a relatively straightforward process, but you must follow local laws and regulations.
- It's also best to buy during a pump so you have a better chance of your investment being worth more.
- Once you've bought cryptocurrency, hold on to it and wait for a pump to deliver the highest returns possible!
More About Solana
Solana is a scalable, energy efficient blockchain that will be capable of processing 710k transactions per second.
That's over 1 million times as many as Bitcoin currently handles, so as to meet the throughput as demanded by any high transaction rate application.
Solana's new architecture replaces Proof of Work with Proof of History and applies some state-of-the-art cryptography in the process.
The team behind Solana has worked on security at Akamai, AWS, Google, and other large internet companies and brings this same security mindset to Solana.
First, Consider Trading Strategy - Hold or Daily Trading
Before you buy Solana, it is essential to understand your investment strategy.
You must weigh up hundreds of factors when buying cryptocurrencies, in order to make the right decisions.
If you intend to buy and hold long-term like most other investors or traders, then make sure to think carefully about how much money you want to invest.
It's also very important that you choose a trusted platform from which to trade, as there are many risks involved.
If holding is not a strategy to your liking, then you should definitely look into trading cryptocurrency frequently.
The biggest risk by far is participating in a pump without understanding what you're buying into or how it fits into your overall portfolio. We believe that there is no need to expose yourself to a pump, regardless of the asset class. When you buy into a pump, there is no margin of safety and your position can be underwater in minutes.
Trading cryptocurrency is not like trading stocks or other currencies where you're basically trying to capture directional moves (e.g., long EUR/USD, short USD/CHF).
You should only trade if you understand the specific underlying dynamics of your target cryptocurrency.
Which brings us to...
Choose a Reputable Exchange
The next step is to decide where you want to buy.
There are thousands of cryptocurrency exchanges around the world and most, if not all, of them don't offer reputable security and stable interfaces.
A good rule of thumb when choosing an exchange is to find one that has been in business for a while and has a proven track record. This will go a long way in ensuring you are at least trading on a stable platform.
Even the most reputable cryptocurrency exchanges may be vulnerable to external attacks, resulting in major leaks of personal information and even long term loss of funds.
(It is also possible to lose money by sending cryptocurrency to the wrong address, so be careful and know what you're doing!)
It is a good idea to use exchanges that provide insurance against hacks and other losses beyond your control.
Here are a few Solana crypto exchanges with a proven track record:
- Coinbase Pro
It is not only important to find a reputable exchange, but one that offers an easy way to deposit fiat currency. Although you can buy some cryptocurrencies using the cryptocurrency itself, starting off with a fiat deposit is usually easier.
Open an Account
Once you've found the right exchange, it's time to buy your Solana.
Sign up for an account and go through the verification process. You will likely have to provide a form of personal identification such as a copy of your photo ID.
It's also standard that the reputable exchanges will perform some sort of KYC (know your customer) and AML (anti-money laundering) checks before you can buy cryptocurrency.
The last thing that you want to happen is miss out on a great investment because your account wasn't approved in time (or there wasn't enough supply when you wanted to buy). This is especially true during a pump!
Deposit and Buy Solana Coins
After signing up and waiting for your account approval, you can deposit fiat currency into your exchange account.
This usually takes the form of a wire transfer or direct deposit from your employer (if you're lucky enough to work at a company that accepts cryptocurrency as payment).
In this case, cryptocurrencies often have a minimum purchase amount to allow consumers to buy without having to transfer too many zeros into their account.
Deposit a small sum, just in case you need it for change or if the price drops right after you've bought at the current rate.
You can also use fiat currency to buy another cryptocurrency and then use that cryptocurrency to buy Solana. This is what a lot of people call a "fiat gateway" or "fiat on-ramp."
In either case, you now have the option to buy as much or as little Solana as you want.
Once your purchase has been confirmed, congratulations!
You can now hold your cryptocurrency and wait for it to increase in value (hopefully, after the next pump begins).
When it comes to buying cryptocurrency, it's important to do your research first. Not all exchanges are created equal, and some are more secure than others. It's also important to find one that offers a way to deposit fiat currency, which is the type of currency most people use in their everyday lives.
Once you've found a reputable exchange, it's time to buy some cryptocurrency. Sign up for an account and go through the verification process. Most exchanges require a form of personal identification like a copy of your photo ID.
It's also standard that all exchanges will perform some sort of KYC (know your customer) and AML (anti-money laundering) checks before you can buy cryptocurrency.
Once everything is cleared, you can purchase your first SOL coins and inject the excitement of online investment into your life.
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