Solana has become one of the most valuable blockchains of today. Due to Solana’s popularity, many asked important questions like “how to buy Solana” and “where to buy Solana.”
If you want to be a part of the Solana ecosystem but don’t know where to start, this article can help you. We will cover the fundamental steps of buying Solana, as well as other topics related to the SOL token.
Solana (SOL) Buying Guide
Step 1: Find An Exchange That Supports SOL
To start buying SOL, you must create an account in a compatible crypto exchange. Finding this exchange is easy because there are numerous active marketplaces that support SOL.
Cryptocurrency platforms may be similar in purposes but different in operation. Some crypto exchanges have seamless functionality while others have premium security with reasonable transaction fees.
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Registering to a crypto exchange will take only a few minutes. To start, you must enter your basic personal details like full name, email address, and password. The crypto exchange may also require you to add a home address and a phone number for verification.
You probably need to fill up a KYC (Know Your Customer) form before proceeding with any transaction. The KYC process is a security option implemented by heavily regulated exchanges and financial websites.
Step 2: Deposit Funds to Your Exchange Account
Before buying a SOL token, you must add funds to your new crypto account. Depositing funds is easy because most exchanges allow crypto-to-fiat transactions. Some of the popular examples of fiat currency are USD, AUD, and EUR. You can fund your account through debit cards, credit cards, bank transfers, and e-wallet transfers.
Crypto exchanges have different payment methods for transactions. These methods probably have higher fees than the ones you’re commonly using. So, before depositing funds to your crypto account, you should do your own research.
Step 3: How to Buy SOL Officially?
Learning how to buy SOL is not difficult. First, you must go to a crypto exchange’s search bar. Oftentimes, the search bar is located on top of the website page. Once you’ve located the search bar, start looking for the UNI ticker. You can also look directly for SOL trading pairs to save time. Afterwards, just enter the amount of the SOL tokens that you want to buy.
You must always double-check the transaction details to avoid errors or inconsistencies. Additionally, before the transaction, crypto exchanges might refer you to their exclusive wallet software. This wallet is essential for storing your cryptocurrencies, but it is optional since you can always create an individual software wallet. If you have money to spare, you can even purchase a hardware wallet with competitive security encryption.
Everything You Have to Know About Solana (SOL)
Solana is a decentralized blockchain network designed to improve the efficiency of block transactions by producing high throughput. Instead of using the traditional methods of processing transactions, Solana relies on a new system fueled by smart contracts and an effective protocol.
To streamline block transactions, Solana uses the Proof-of-History mechanism. Under this function, Solana gathers input and generates a unique output. This output will become the new input of the next hash, creating an accurate chain of secured blocks with verifying factors. The validator node doesn’t need a timestamp because everything is recorded in the recent hash. The Proof-of-History mechanism helps validators save precious time on receiving and transmitting data to the entire chain.
Keep in mind that the Proof-of-History is not a consensus protocol. Rather, it is a separate system that complements consensus protocols like Proof-of-Work and Proof-of-Stake.
How Does SOL Work?
Solana operates under the Proof-of-Stake consensus, but it is supported by the underlying Proof-of-History method. The method simply works by bundling transactions into one verifiable timestamp instead of relying on one timestamp per transaction. With such a rate of efficiency, Solana managed to reach 50,000 TPS (transactions per second).
What Makes Solana (SOL) Unique?
Solana is unique because of its Proof-of-History processing mechanism. The mechanism increased the speed and efficiency of the Solana blockchain.
Solana also offers additional features:
- Tower BFT – Byzantine Fault Tolerance improved under Proof-of-History (POH)
- Turbine – A block propagation system for advanced efficiency
- Gulfstream – Mempool-less transaction forwarding system
- Sealevel – Useful parallel smart contracts
- Pipelining – A separate Transaction Processing Unit for validation optimization
- Cloudbreak – Database of horizontal scaling accounts
- Archivers – A distributed, decentralized ledger system
Who Are the Founders of Solana?
The Founder and creator of Solana is Anatoly Yakovenko. Before working on Solana, Yakovenko helped develop some operating and distributing systems at Qualcomm and Mesosphere. He also helped improve the compression capabilities of Dropbox. Additionally, Yakovenko is a patent holder for high-performance Operating System protocols.
Under Anatoly Yakovenko’s guidance, Solana (SOL) grew into the fast and efficient blockchain system that it is today.
What Are the Use Cases of Solana?
Currently, Solana has two primary use cases:
- SOL as transaction fees for smart contracts and Solana utilities
- SOL staking
Who Builds on Solana (SOL)?
The Solana blockchain is great for project builders and service providers who want to improve the effectiveness of their systems and outputs. With Solana’s fast transaction processing rate, anyone in the network can gain fast, uncompromised results. Everyday users can also benefit from Solana’s inherent speed and versatility.
Official website: https://solana.com/
Essential Points of the Solana (SOL) Whitepaper
The Solana (SOL) Whitepaper focused on the operating mechanism of the Proof-of-History model. Additionally, the paper explored the fundamental aspects of Solana and how all users will benefit from the platform.
These are the strong points of the Solana (SOL) Whitepaper:
- Proof-of-History protocol
- Solana’s distinct features and programs
- SOL staking rewards
- Solana projects and linked apps
- Decentralized exchanges (DEXs) under Solana
The Best Cryptocurrency Wallet for SOL
After knowing how to buy SOL, you should think about the security of your cryptos next. Fortunately, you can always choose from dozens of available crypto wallets. You should pick a crypto wallet based on your trading habits and security preferences.
You will likely begin your crypto journey with hot storage wallets. These digital wallets are connected online, allowing easy access whenever you want. Hot storage wallets are also cheaper than cold storage wallets. However, one downside of a hot wallet is its vulnerability to online theft. You may need to use additional security measures to keep your hot storage wallet safe.
On the other hand, cold storage wallets are physical hardware wallets. Since cold wallets are tangible, their security level is better than digital wallets. You can put a physical storage wallet in a separate deposit box for premium protection.
What Factors Affect My Choice of Crypto Wallet for SOL?
At first, you might get confused with the diverse choices of crypto wallets in the market today. Knowing the common buying factors for crypto wallets will help you make the right decision.
Check out the important factors affecting your choice of SOL wallet:
- Are you a regular trader? If so, then a hot storage wallet is the best choice for you. A hot wallet allows a quick and easy log-in method to your chosen platform. In less than a minute, the integrated hot wallet will let you trade SOL right away.
- Not all wallets support a wide range of cryptocurrencies. The best crypto wallets are those that will let you trade hundreds of cryptocurrencies without limitations.
- When it comes to security, a physical cold storage wallet is better than a hot wallet. You can simply store your cold wallet in a private safe deposit at home or the bank. Just make sure that your private seed phrase is safe and secured.
- Setting up a digital wallet is free. On the other hand, getting a cold storage wallet requires money because you need to buy the physical hardware.
- Do you want to see detailed technical analytics? In that case, you can never go wrong with hot wallets. In most cases, hot wallets generate technical analytics and semi-accurate market insights to help you make a trading decision. Cold wallets also have analytics capabilities that you can tweak freely.
Ledger vs. Trezor – The Best Crypto Wallet for Traders and Investors
Now that you already know how to buy SOL, you must protect your investment by choosing a cold storage wallet. As mentioned above, cold wallets offer better security levels than hot wallets.
When it comes to cold storage wallets, it’s best to start with Ledger or Trezor products.
Ledger is a popular cold wallet brand because of its reliable security features. The Ledger interface, for example, will only let you send cryptos if you’re connected to a personal computer or device.
If Ledger excels in security functions, Trezor wins in terms of intuitiveness and compatibility. Trezor’s interface is beginner-friendly, allowing fast and efficient trades once the device is ready. Trezor products are also compact and appealing to the eyes.
General Market Overview for Solana (SOL)
Do you want to learn more about Solana (SOL) and other crypto coins? Check out our crypto blog and expand your knowledge about cryptocurrencies!
Additionally, here are some important topics in our blog:
- Trading speculation about Solana (SOL)
- The current market prices of cryptos
- Detailed price charts with comprehensive histories
- Whitepaper summaries of cryptos
- Founder profiles and their related works
- Up-to-date cryptocurrency news and developments