Buy Solana (SOL) January 2023

  • January 26, 2023
  • 3 Min Read

How to Buy SOL

Step 1: Choose a Wallet

To store your SOL tokens, select a compatible wallet, such as Coinbase wallet, Exodus, or Phantom. Ledger hardware wallets also support SOL.

Step 2: Choose a Crypto Exchange

Select an exchange where you can buy SOL, such as Coinbase, Uphold, or Binance. Centralized exchanges require ID verification. Also, select a funding method, such as a bank account or debit card, to link to your exchange account.

Step 3: Decide on The Amount You Want to Purchase

Choose an investment amount and place a market order or limit order to buy SOL on the exchange you chose. Limit orders typically have lower fees.

Step 4: Store, Transfer, or Use Your SOL

The exchange where you purchased SOL can also hold your SOL tokens in a custodial wallet, but many crypto traders prefer to move their tokens to a self-custody wallet, like those mentioned in Step 1 above.

Where to Buy SOL

Several well-known exchanges offer SOL.

SOL Crypto Overview

TokenSOL
NetworkSolana
Websitehttps://solana.com/
Twitter@solana
Reddithttps://www.reddit.com/r/solana/
FoundersAnatoly Yakovenko, Raj Gokal, Eric Williams, Greg Fitzgerald
Key IndividualsAnatoly Yakovenko, Raj Gokal, Dominic Tsang, Eric Williams, Greg Fitzgerald, Michael Vines, Rob Walker
Year Founded2018
InvestorsBlockwall Management GmbH, Andreessen Horowitz, Polychain Capital, Coin Fund, Multicoin Capital, Jump Trading, Alameda Research, and others.

Why Does Anyone Buy Solana?

In its short history, SOL rocketed to the top of the crypto market, typically ranked in the top 10 or top 20 projects by market capitalization. Much of Solana’s appeal centers around the network’s ability to run smart contracts combined with faster transaction speeds and lower fees than competing networks like Ethereum.

Investors choose SOL for several reasons.

  • Solana is faster than Ethereum. While Ethereum remains the leading smart-contract blockchain, the network still averages about 12 transactions per second. Solana is built to handle up to 65,000 transactions per second, with blocks validated in just 400 milliseconds.
  • Solana is a leading blockchain for NFTs. Non-fungible tokens (NFTs) continue to grow in popularity and scope, and Solana is one of the top blockchains for minting and trading NFTs due to the network’s low costs.
  • Solana benefits from an enthusiastic community. A large community of Solana devotees creates a vibrant trading market for SOL. Solana also trades on most major exchanges.
  • Solana offers low fees. Whether you need to send SOL tokens to another wallet, buy an NFT, or interact with a smart contract, Solana typically costs just a fraction of a penny in transaction fees.
  • The Solana ecosystem is growing. High-profile projects like STEPN, a fitness-based play-to-earn app, and Star Atlas, a leading metaverse project, are part of a growing list of Solana-based applications.

Is SOL Being Used?

Current averages show over 2,000 SOL paid per day in transaction fees throughout the network, half of which are burned. The 24-hour trading volume as of this writing is about $717 million.

  • Staking: Solana has one of the highest staking rates in the industry, with nearly 70% of the eligible supply staked.
  • Games: Solana’s network speed and low fees make it well-matched to gaming. Mini Royale Nations is one of the best examples, combining a high-action first-person shooter with NFTs.
  • DeFi: Decentralized finance (DeFi) applications like Saber allow traders to swap tokens or earn yields. Marinade Finance, another popular Solana DeFi app, enables liquid staking for SOL tokens.
  • NFTs: Solanart brings NFTs to the Solana community, boasting hot projects like Neopets Metaverse and upgrade gear for ev.io, another first-person shooter game.
  • Peer-to-peer payments: The Coinbase wallet and Binance Pay (available with the Binance.US mobile app) both make it easy to send SOL to friends and family who have an exchange account.

Key Events For SOL

Discover Similar Tokens

  • Ethereum (ETH): As the leading smart contract blockchain, Ethereum is a core holding for many crypto investors. Both Ethereum and Solana use proof-of-stake to validate transactions.
  • Polygon (MATIC): The Polygon network is Ethereum-compatible, making it possible for app developers to add support for Polygon’s lower-cost network easily.
  • Cardano (ADA): Cardano’s deliberate and well-tested development model makes Cardano one of the most stable and scalable smart contract networks.

Frequently Asked Questions

  • Is Solana a good future investment?

    Expand to learn more

    All crypto investments are speculative, but there are reasons for optimism with Solana. Following the FTX fallout, SOL saw a rapid price recovery, spiking nearly 70% in two weeks. Development of the Solana network continues, and new projects expand the ecosystem.

  • What is the Solana Foundation?

    Expand to learn more

    The Solana Foundation is a non-profit organization dedicated to growing the Solana network in a secure, decentralized way. The foundation provides validation servers and grants to help grow and support the Solana community.

  • Is Solana decentralized?

    Expand to learn more

    Solana has over 3,400 validators worldwide, each working independently. However, a larger percentage of SOL tokens is held by insiders and early investors compared to competitors like Ethereum and Cardano.

  • What is Proof-of-History?

    Expand to learn more

    Proof of history is an agreement on which transactions took place at which time, like timestamps. These timestamps play a key role in Solana’s network speed.

  • How much can I make staking Solana?

    Expand to learn more

    You can make up to 7% or more staking Solana, depending on where you choose to stake. Staking through exchanges may provide a lower yield due to fees charged by the exchange. Milk Road’s Solana staking guide details the various options for SOL staking.

  • Can you buy Solana with a credit card?

    Expand to learn more

    Yes. Kraken offers credit card funding for Solana purchases. Purchases funded by credit cards cannot be withdrawn for 72 hours.

  • Can you buy Solana with a debit card?

    Expand to learn more

    Yes. Several exchanges, including Coinbase and Binance, offer debit-card funding for Solana purchases.

  • Can you buy Solana with PayPal?

    Expand to learn more

    Yes. Coinbase and eToro both allow PayPal deposits and offer SOL tokens for trading.

Contributors

  • Avatar of Eric Huffman

    Eric Huffman is a staff writer for MilkRoad.com. In addition to crypto and blockchain topics, Eric also writes extensively on insurance and personal finance matters that affect everyday households.

  • Avatar of Shannon Ullman

    Shannon Ullman is a senior editor for MilkRoad.com. Shannon specializes in cryptocurrency and personal finance. Her work has appeared in publications like The Motley Fool and Insider.