How To Buy Solana (SOL)?
A common question you often see on social media from crypto beginners is “Where can I buy Solana?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Solana on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Solana (SOL)
First, you will need to open an account on a cryptocurrency exchange that supports Solana (SOL).
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Solana (SOL) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Solana (SOL)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Solana (SOL) or Solana (SOL) trading pairs. Look for the section that will allow you to buy Solana (SOL), and enter the amount of the cryptocurrency that you want to spend for Solana (SOL) or the amount of fiat currency that you want to spend towards buying Solana (SOL). The exchange will then calculate the equivalent amount of Solana (SOL) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Solana (SOL) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What Is Solana (SOL)?
Solana is a blockchain network focused on fast transactions and high throughput. It uses a unique method of ordering transactions to improve its speed. Users can pay their transaction fees and interact with smart contracts with SOL, the network’s native cryptocurrency.
Founded in 2017 by Anatoly Yakovenko from Solana Labs, the Solana blockchain adopts a new method of verifying transactions. Bitcoin, Ethereum, and many other projects suffer from scalability and speed issues. Using a method known as Proof of History (PoH), the Solana blockchain can handle thousands of transactions per second.
How does Solana work?
What is Proof of History?
This hashing process creates a long, unbroken chain of hashed transactions. This feature makes a clear, verifiable order of transactions that a validator adds to a block, without the need for a conventional timestamp. Hashing also requires a certain amount of time to complete, meaning validators can easily verify how much time has passed.
By ordering the transactions in a chain of hashes, validators process and transmit less information in each block. Using a hashed version of the latest state of transactions greatly reduces the time of confirming a new block.
Solana’s key features
Tower BFT — a PoH-optimized version of Practical Byzantine Fault Tolerance
Turbine — a block propagation protocol
Gulf Stream — Mempool-less transaction forwarding protocol
Sealevel — Parallel smart contracts run-time
Pipelining — a Transaction Processing Unit for validation optimization
Cloudbreak — Horizontally-Scaled Accounts Database
Archivers — Distributed ledger storage
How fast is Solana?
Solana can process 50,000 transactions per second (TPS) or more. In fact, it says that number could increase to as much as 700,000 TPS as the network grows. To put that in context, Ethereum currently processes 15 to 45 TPS.
Visa says its payments system processes about 24,000 TPS. This is important because if cryptocurrencies are ever going to compete as a form of payment, they should at least be able to match Visa’s speed.
What is SOL token?
Paying for transaction fees incurred when using the network or smart contracts.
Staking tokens as part of the Proof of Stake consensus mechanism.
Official website: https://solana.com/