This article will cover what Solana is, Solana’s advantages, and how to buy Solana. In March 2020, the cryptocurrency Solana (SOL) first appeared on the market. Solana aims to provide a fully functioning open-source framework for implementing decentralized financial solutions (DeFi). Decentralized app (DApp) development is made easier with increased scalability because of the Solana Protocol. Solana (SOL) attempts to establish a proof-of-history (PoH) consensus mixed with the proof-of-work (PoW) consensus to achieve this. The mixed-consensus approach has promise for both small-time traders and large financial institutions. Step-by-step instructions are provided below to help you purchase Solana (SOL) in the most efficient way possible.
What is Solana (SOL)?
In the race to become the leading innovative contract platform, Solana is a blockchain network hoping to unseat Ethereum. Contracts running on decentralized blockchain networks are known as smart contracts. Non-fungible tokens, such as NFTs and decentralized autonomous organizations (DAOs), are examples of decentralized financial applications (Defi). Even though Ethereum is one of the most popular cryptocurrencies, it has several problems, including poor network speeds, hefty transaction fees, and the usage of the much-criticized mining consensus process, which is inefficient.
Solana was created to address these issues. Because the majority of Ethereum’s flaws stem from its reliance on an inefficient consensus method, staking is the most significant change introduced by Solana. As a result, high network speeds may be achieved by combining Proof of Stake (PoS) with Proof of History (PoH). Decentralization and security are bolstered by PoS, while transaction throughput is boosted with PoH.
Reasons to Invest in Solana
Because Solana is an innovative contract platform, SOL tokens have numerous applications that make them attractive to investors. The following are some of the benefits of investing in Solana:
- Although SOL tokens aren’t intended to be used as money, their holders may use them to pay for products and services.
- Users of the Solana network pay transaction fees to the network’s validators in SOL tokens. Gas costs are paid in SOL tokens through smart contracts.
- Solsea, Solanart, and Margin Eden are a few Solana-based NFT markets that accept SOL tokens as payment. Non-fungible tokens are created, sold, and purchased using SOL. SOL is employed in producing, selling, and purchasing these tokens.
- Financial services without intermediaries or middlemen are known as decentralized finance. SOL tokens are required to engage in the new financial world on the Solana network, which includes applications like Solend and Apricot Finance.
- You will need SOL tokens to engage in the new financial world on the Solana network embodied by applications such as Solend and Apricot Finance.
- Nodes running on the network, or delegating shareholder rights to others for a payout, is a feature of Solana’s Proof-of-Stake (PoS) system.
- Solana’s ecosystem is still developing, which might lead to SOL tokens being used for more than their current usefulness.
Solana: Where to Purchase?
You can obtain SOL tokens in various ways. The most straightforward of which is by purchasing them on a . Other options include accepting them as payment for products and services or winning SOL in contests. Using an exchange is likely to be preferred by crypto novices over alternative methods.
Centralized exchanges (CEX) and decentralized exchanges (DDEX) are two kinds of exchanges for purchasing cryptocurrency (DEX).
- There are CEX platforms, i.e., those managed, operated, and maintained by a single person or a small group of people who make governance choices. In most cases, the exchange is a corporation’s work with a staff of people dedicated to its upkeep.
- There are also DEX platforms, i.e., those are administered by a group of people who make choices about governance together. Members of the community regularly volunteer to maintain the exchange.
Pros of CEX Platforms
- Regulators typically safeguard users by dictating how these exchanges are run.
- Platforms for CEX often provide customer service, have a user interface that is easy to use even for newbies, and are generally user-friendly.
- Companion smartphone applications allowing on-the-go access, among other features, are typical.
Cons of CEX Platforms
- Their centralized form makes them more vulnerable to security breaches, making them less secure.
- Services and goods provided by these companies are often geo-restricted due to regulatory requirements. In addition, some of these centralized exchanges support fewer assets than their DEX equivalents, which further reduces the use of their services.
Pros of DEX Platforms
- Because no government controls these platforms, anybody in the world may use them.
- Security is frequently in the hands of the end-users themselves.
How to Buy Solana (SOL) in 3 Steps
Following is the step-by-step guide to buying Solana. We will use Coinbase for this example.
1.  Signup with Coinbase
Thankfully with Coinbase, you’ll be able to purchase it directly. For this, you’ll need to sign up with a Coinbase account. Simply go through the guided steps to create your account.
2.  Link Bank Account
To purchase SOL on the Coinbase crypto exchange, you must first link payment and fund the account with a bank transfer, debit card, or an immediate cash payment (applicable in some countries).
3.  Buy SOL
Simply search for “SOL” under the “Trade” tab and click on it. Once you’re on the coin page, click on “Trade” and “Buy SOL.” Go through the guided steps and you’re done!
Storing Solana
Congrats! Solana tokens have been acquired. Therefore, the next step is to choose where to keep them. You can transfer your SOL coins to an external hardware wallet. You may also keep SOL coins in a regulated brokerage account with a built-in online digital wallet (such as Coinbase). It is possible to access your Solana tokens directly while ensuring their safety with either option.
How to Purchase Solana using a Debit Card
Solana may be purchased straight from most brokers with a debit card. So why not? It’s a straightforward and fast procedure. It’s possible, though, that your service provider has set limits. For example, you will not be able to buy Solana from an international supplier if you use a few US banks (usually local or regional). Alternatively, payments to internet brokers may be restricted.
How to Purchase Solana using a Credit Card
The process of purchasing Solana with a credit card is identical to the one mentioned above, in which you authorize the transaction by submitting your personal information. However, you may have to pay additional costs if you choose a broker other than the one recommended by your credit card company.
How to Purchase Solana using PayPal
In terms of e-wallets, PayPal is by far the most popular choice. A payment option that your Solana broker accepts will let you complete your deals and get your SOL coins instantly.
About Solana ATMs
In light of this, it is no surprise that ATMs exist for cryptocurrencies. For the time being, these devices will not be able to access Solana. Since acquiring digital tokens from cryptocurrency ATMs may be time-consuming and expensive, this may work in your favor in the long run.
The Bottom Line
Solana is a cryptocurrency that has just entered the market. This token is still in its infancy. Thus, it’s impossible to predict how it will change in the future. When considering your options for getting Solana, we highly advise that you do your homework and learn as much as possible about the project before making a final decision based on your study and considering the pros and cons. You may create a trading account with a regulated cryptocurrency broker when ready.