How to buy Solana online
This guide introduces you to SOL tokens and Solana, and by the end of it you will know where to buy SOL tokens, the history of the platform, and its future investment prospects.
Compare where to buy Solana, and open an account
If you are already familiar with Solana and SOL tokens, and you are ready to buy, just click on one of the links below to sign up to one of our reccommended brokers. Keep scrolling for more information.
What is Solana?
Solana is a blockchain project for developers to make secure and fast apps that can scale to be used by people across the entire internet. It uses the SOL native token to facilitate micropayments across the blockchain.
The fundamental aim of the blockchain is to allow the number of transactions to scale proportionally to the network bandwidth available. Partly inspired by the architecture of Filecoin, the Solana blockchain introduces a decentralised clock to timestamp transactions.
Therefore, Solana’s block time is just 400ms, which is considerably faster than Ethereum’s 15 seconds and Bitcoin’s 10 minutes. This makes it a platform with a long-term vision, and it is attracting numerous developers who are excited at the prospect of developing decentralised applications with no need to design their way around performance bottlenecks.
How does Solana work?
Solana uses several features to function. First and foremost is the platforms ‘clock,’ or proof of history (PoH) mechanism. The clock ‘ticks’ each time a new block is created, so while other blockchains require validators to communicate with each other, Solana doesn’t.
The project also uses a Tower Consensus, which is a clever algorithm that compliments the platform’s clock and makes it run seamlessly and quickly. Developers can then create decentralised applications that function effectively on a web-scale.
SOL tokens have a variety of functions, and they are chiefly used to pay for fees accrued on the network and they can also be staked to become a blockchain node (a computer connected to a crypto network). Eventually, holders of SOL tokens will be able to vote on platform governance and help choose the company’s direction of development.
How to buy Solana online – a step-by-step guide
Step 1. Find an exchange to buy SOL
The best way to buy SOL tokens is via a crypto exchange, and these are large marketplaces for different cryptocurrencies. Some of the best platforms to buy SOL are at the top of this page, and to help you further, we have listed two of the best exchanges below:
- Bitpanda: Bitpanda is a strong option when choosing a crypto exchange. It has a good user interface and supports plenty of coins. Join Bitpanda and buy SOL today >
- Binance: Many crypto investors open a Binance account because it is the largest exchange by trade volume. It supports many coins and has plenty of charts and tools for you to use. Sign up for a Binance account now >
Step 2. Sign up and fund your account
If you want to buy Solana tokens via an exchange, follow the on-screen prompts and sign up for an account. At some stage, for ID verification purposes, you will need to provide a copy of your photo ID and a few contact details, but this won’t take long. Then, you can fund your account with fiat money or even a crypto like Bitcoin.
Step 3. Buy SOL
If you want to buy SOL with fiat money, search on the exchange for the SOL/fiat currency pair (such as SOL/GBP or SOL/USD). Enter the amount you want to buy and execute the transaction, and you will then own Solana tokens. If you’re using Bitcoin, look for the SOL/BTC pair instead.
Step 4. (Optional) Get a suitable wallet
If you want to store your SOL tokens securely for an extended period of time, crypto wallets offer enhanced security. They come in both offline and online formats and can be an effective way of protecting your funds from theft. Here are two of the best SOL wallets.
- Trezor: Trezor was the first hardware wallet to come out some years ago, and it is regarded as industry-leading. Your SOL tokens will sit offline away from the possibility of online attacks. Open Trezor hardware wallet today >
- Freewallet: A popular online choice with a connected app, Freewallet supports many cryptos, including Solana. Get a Freewallet for your SOL now >
How to trade Solana – a step-by-step guide
Step 1. Find a broker
To trade, you need to open and close buy and sell positions quickly to capitalise on price fluctuations in the market. Traders generally use an online broker to accomplish this, and there are plenty of options at the top of the page.
Step 2. Deposit money
Fund your broker account with fiat currency just like you would an exchange account. You can generally trade with these funds directly, but make sure to keep an eye on the trading fees because they can add up quickly.
Step 3. Decide how you’d like to trade
Come up with a clear and decisive trading strategy before you start trading. Check out our website for advice on how to form a great trading strategy of your own. Essentially, you need to focus on the key technical indicators like Bollinger bands and stochastic oscillators, and you can use these to predict trends and patterns so you can buy low and sell high.
Step 4. Start trading
Before doing the real thing, it may be a good idea to practice your trading strategy with a practice account and fake money. Most brokers support this service, and to make sure your one does, check out our reviews.
When you start trading, you can go long or short. Going long involves investing in the belief something will rise in value, whereas going short means the opposite. Both strategies can be useful in different market conditions, so make sure you are analysing the market before choosing one or the other.
You can also use something called leverage, which is available via most brokers. This means you can gain more exposure to the price of an asset without you needing to buy more of it outright. However, your exposure to any downsides is also magnified, so be cautious before using it.
If you still aren’t sure if you want to invest in Solana, take your time and don’t rush. Here are the pros and cons of Solana as a platform.
- Heavyweights like FTX’s CEO Sam Bankman-Fried on board
- Over 3.5 billion transactions over Solana so far
- Solana could become the blockchain used by centralised finance in the future
- Smart and unique project
- Questionable whether Solana will outperform other competitors such as Ethereum 2.0 and Polkadot
- Emission schedule of SOL tokens could negatively affect price
Below are 3 questions and some key considerations to help you decide if you want to invest in Solana.
1. Is it a good time to buy SOL?
This is really dependent on your investment strategy. If you are a long-term investor, Solana could become the blockchain of the future, and this could result in massive growth, driving the price of SOL tokens up. If you believe in this vision, buying tokens now could be a great way to speculate on their future price and even vote on development decisions.
If you are more of a short-term trader, the long-term outlook for Solana isn’t as relevant, and you instead need to analyse the market from a technical standpoint to make cold and calculated trading decisions. If you spot a pattern or trend as it emerges, you should be poised to take advantage.
Whether you want to buy SOL token for the long-term or short-term, keep informed with the latest analysis:
2. What problem does Solana solve, and what are the coin’s investment prospects?
It allows blockchain developers to make decentralised apps that can operate on a web-scale rather than being hampered by issues of scalability. This unlocks a huge number of possibilities as the what blockchain is right now, and what it can become in the future.
If it can successfully compete with its major opposition, the project could experience success. The management team certainly has the track record to inspire confidence, and the technical side of the project is undoubtedly impressive, though it will be interesting to see how things develop from here and if the price of SOL will rise.
Whatever you think of Solana’s investment prospects, stay informed about its development and read the latest news on the platform:
Solana (SOL) integrates Tether (USDT) tokens into its platform
The DeFi sector turns to Solana as an Ethereum alternative
3. Do you want to hold SOL for the long term?
You can hold SOL for the long term value proposition, or you can trade it for a short-term gain. The considerations you should make for each strategy are outlined below.
Considerations for a long term investment strategy
If you want to vote on the direction of Solana and believe it is the blockchain of tomorrow, buy some SOL tokens through a reliable exchange. If you want to hold them for an extended period of time, store them in a crypto wallet to keep them safe.
Considerations for a short term trading strategy
For those who want to trade their way to success, sign up to a low-fee broker and start trading Solana tokens now. This can be a good way to supplement your income from your own computer, tablet or mobile.