Solana

With hundreds of cryptocurrencies with decentralized authority and open-source blockchain networks, Solana is the world’s fastest-growing competitor. Read on to know more!

What is Solana?

Solana (SOL) is a fourth-generation blockchain cryptocurrency that uses an open infrastructure to ensure greater scalability. Solana is already seen as a potential successor to Ethereum (ETH). Solana (Sol) has experienced considerable growth since its launch in 2017. Solana’s new and unique technologies, unmatched transaction speeds, and enterprise-level security make it a tough competitor in the crypto market. 

Why should I invest in Solana?

Today, Solana’s performance makes it one of the most talked-about digital assets in the crypto world.

  • Solana offers scalability greater than all its rivals in the cryptocurrency market, meaning it can theoretically handle around 65,000 transactions per second yet. It can already handle 50,000 transactions per second right now.
  • Solana takes the Proof-of-History approach for synchronization. This means that Solana uses a cryptographically secure function to verify the time between two transactions and record everything so miners or bots cannot keep decisions to record or ignore specific transactions.
  • Solana is invested in various partnerships and projects, which means that the company is sure to rise. Solana is also raising funds trying to boost its blockchain networks and take down its competitors.

How can I invest in Solana?

If you want to invest in Solana, there are a lot of ways. Solana is new and is not on every exchange, but it can be found on the major ones such as Crypto.com, Binance, Coinbase, etc. You can open an account using an email id, then verify your country’s valid ID and start investing in the exchange. All major exchanges offering Solana’s SOL accept debit/credit cards, cryptocurrencies, and US Fiat currencies to fund your purchase.

How to invest in Solana and make money

The crypto sector is highly competitive, and Solana is one of many players. You can invest in Solana in the following ways – 

  • Trading: You can make daily trades, offering the Solana’s SOL that you own and quote a price to sell it on profit. All online exchanges provide trading services to the users.
  • Investing: If you can invest funds for longer times, you can also invest in Solana. You can buy Solana, keep it securely in a crypto wallet and sell it when its value rises.
  • Lending: You can also lend your Solana’s SOL crypto on exchanges and earn interest on it.
  • Staking: Solana’s SOL can also be staked, which helps secure the blockchain and helps you earn rewards and commissions.

Can I lose all my money in Solana?

Yes, just like any other cryptocurrency, there are several risks of losing your money in Solana. These can be:

  • Inexperienced Trading: Trading Solana’s SOL requires some knowledge of how the trading of cryptocurrencies works. This is why you may lose all your money while trading on exchanges with the proper knowledge.
  • Cyber Attacks: Cyber-attacks are not unheard of in the cryptocurrency market. These can lead to theft of users’ cryptocurrencies or a disruption of the blockchain network resulting in you losing money. Solana has suffered a DoS (Denial of Service) attack in the past as well.  
  • Ponzi Schemes: Since Solana is still new, users do not know where it is leading and where it may make a hold. Fraudsters offering Ponzi schemes may rob you of your Solana’s SOL using this as an advantage, so be wary.
  • Phishing Attacks: Fraudulent emails, messages, etc., may lead you to websites where you will end up losing your Solana. Always avoid such suspecting links.

Risks of investing in Solana?

Solana might be gaining popularity but is still new. The platform is a 4th generation blockchain platform and was founded in 2018. There are market exchanges out there that have been in the crypto game for longer. 

  • The cryptocurrency market is highly volatile, so it is impossible to know if the price of Solana is going to increase or decrease. One can invest in cryptocurrency but the value of an asset cannot be predicted properly. Solana is one of the top ten cryptocurrencies in the world, but the market’s unpredictability may lead to unexpected results. 
  • Solana is facing stability issues at the moment. Solana came like the wind, giving tough competition to the top cryptocurrencies, claiming to be the fastest cryptocurrency globally, but users are still facing denial of service issues. 
  • Solana has also invested in over 400 projects, which opens to a lot of exposure as all the projects might not be successful. 
  • Unlike some other cryptocurrencies, Solana’s SOL is not limited. This means that, unlike Bitcoin, there can be an unlimited number of Solana’s SOL in existence, making the cryptocurrency’s value fall in the long run. 

Things to consider before investing 

Unlike other similar blockchains such as Ethereum and Polkadot, Solana has adopted a single blockchain as a Layer 1 solution.

  • It can handle a lot of transactions, so the fee structure is extremely low.
  • Solana’s blockchain is programmable, meaning it can create smart contracts with specific actions and conditions.
  • Solana is investing and raising funds for plenty of great projects to develop its base, network, and other technologies.

Final words

Solana is trying to create an ecosystem of decentralized applications designed for several purposes. It will continue to innovate in this area to find solutions for other blockchains, such as Bitcoin, Ethereum, and Polkadot, which suffer from high per-transaction fees. Solana works with a proof-of-stake consensus mechanism (PoS), with future planned upgrades to achieve a lower entry barrier, make timestamp transactions, and maximize efficiency. This makes it an excellent for long term investments and a great cryptocurrency to start with if users like its initiatives and innovations. If one is looking to make quick trades, there might be better-suited options. 

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