Where to Buy Solana Coin – Beginner’s Guide

Solana is one of the best-performing digital currencies of recent years. However, it experienced a drastic decrease in its value after the collapse of the popular crypto exchange FTX. Though the cryptocurrency dropped as low as $10, losing more than 90% of its value, Solana has started to perform well since the beginning of 2023. 

The coin’s value has increased by 130% during 2023 which has brought Solana back into the list of top 5 cryptocurrencies by market capitalization. If you believe this is the right digital token for your portfolio, this guide will explain how to buy Solana coin in under five minutes with an SEC-regulated broker.

For a more comprehensive explanation of how to buy Solana coin – read on.

Where to Buy Solana Coin 

Potential investors will need to choose where to buy Solana crypto tokens. Fortunately, as a top 10 crypto asset, dozens of brokers and the best crypto exchanges have listed this popular token.

The best place to buy Solana from our research would be via one of the cryptocurrency platforms reviewed below:

1. Crypto.com – Simple Place to Buy Solana Coin With a Debit Card

Crypto.com is now one of the most popular online cryptocurrency exchanges in the market and one of the best places to buy Solana. The platform strives to offer its customers a simple but cost-effective way to invest in crypto assets. In fact, once you have gone through the process of opening a Crypto.com account and verified your identity, you can then buy Solana coin with a debit card.

With both Visa and MasterCard accepted, this offers a super-convenient way to invest. In terms of fees, Crypto.com charges a commission of 2.99% to buy Solana with a debit card. With that said, the platform waivers this fee for the initial 30 days after you have opened an account. In addition to Solana, Crypto.com is home to over 250+ other digital tokens. This covers a range of small, mid, and large-cap projects – so the choice on offer is plentiful.

In addition to traditional exchange and brokerage services, Crypto.com offers a wide spectrum of other digital asset products. For instance, the platform offers a pre-paid debit card that is backed by Visa, which allows you to buy products and services online and in-store, as well as withdraw cash from an ATM. Moreover, through the Crypto.com Earn tool, you can generate interest on idle cryptocurrency investments. Crypto.com also offers a mobile wallet that supports over 100+ digital currencies.

Crypto.com even doubles up as an NFT marketplace that allows you to invest in NFTs using Solana and other cryptocurrencies like Ethereum.

2. Coinbase – User-Friendly Way to Buy Solana Coin Today 

If you’re looking for a user-friendly cryptocurrency platform that allows you to buy Solana coin in a simple manner, Coinbase could be the right broker for you. Launched in 2012, this established platform has since become a NASDAQ-listed stock. With tens of millions of customers on its books, Coinbase has a great reputation in this industry.

In order to buy Solana coin at Coinbase, you first need to register an account and upload some ID. Then, you can pay for your digital tokens instantly via a Visa or MasterCard deposit. The fees to buy Solana coin with a debit or credit card amount to almost 4% at Coinbase, which is pricey. You can also transfer US dollars via ACH on a fee-free basis. Then, when the funds arrive, you will pay a commission of 1.49% to buy Solana.

Coinbase offers dozens of other digital tokens in addition to Solana, so this is a good platform for those looking to diversify. Although fees are high at Coinbase, we do like the broker for its top-notch security protocols. For instance, when you sign in to your account from a new device or IP address, you need to confirm access via an email code. Moreover, all account users need to set up two-factor authentication. 98% of client digital tokens are kept offline at all times, too.

3. Binance – Buy Solana With Crypto at Just 0.10% Per Slide 

If you’re looking for the cheapest way to buy Solana coin from the comfort of your home, you might consider Binance. This top-tier exchange is now used by over 90 million traders, not least because fees are super-competitive. That is to say, when you trade Solana against a supported digital asset – such as Bitcoin, Ethereum, BNB, or USDT, Binance will charge a commission of just 0.1%.

This low fee structure is, however, on the proviso that you have the ability to deposit funds in crypto. The reason for this is that US clients will pay a whopping 4.5% to deposit funds with a debit or credit card, and a further 0.5% to buy Solana with USD. On the other hand, Binance does allow you to deposit funds via ACH and domestic bank wire for free. Take note, while ACH withdrawals are also fee-free, domestic wires cost $15 per cash-out request.

In using the Binance US website, you will also have access to over 60 other digital currencies. This covers a good blend of large-cap blockchain assets like Bitcoin, Ethereum, and Cardano, as well as less liquid ERC-20 tokens. Irrespective of how you decide to pay for your Solana investment, Binance offers a range of storage options. This includes its very own Trust Wallet app, which also gives you access to the popular decentralized exchange PancakeSwap.

What is Solana? 

Solana was launched in 2019 as a means to improve on the short fallings of legacy blockchains like Ethereum. By this, we mean offering network users a faster, cheaper, and more scalable blockchain ledger.

As a prime example, although Ethereum is the world’s second-largest cryptocurrency and the de-facto smart contract protocol of choice, only 15 transactions per second can be facilitated. This is nowhere near efficient enough to operate as a global blockchain network. In comparison, Solana can allegedly process in excess of 65,000 transactions per second.

Another reason why Solana is so popular is that the blockchain network is able to process transactions in just 2-3 seconds, while Ethereum takes 13-15 seconds. Moreover, while Ethereum is known for charging high fees when the network is busy, Solana transactions cost a tiny fraction of $0.01.

Taking these performance-driven metrics into account, many market commentators believe that Solana could one day surpass Ethereum both in terms of market capitalization and global adoption. Just like Ethereum, Solana has its own native cryptocurrency token – which is traded as SOL.

Is Solana a Good Investment?

Although the value of Solana has performed extremely well since it is was launched in 2019, this isn’t to say that you should just dive right in and make an investment.

Instead, it’s super wise to consider both the potential rewards and risks before parting with any capital.

Some of the main reasons why you might decide to buy Solana coin for your portfolio are discussed below.

SOL Token Price Action

The first thing to look at when deciding whether or not to buy Solana coin is to assess the performance of its digital token. As noted above, Solana was first launched in 2019. Back then, this digital asset was available to buy for less than $1 per token.

This means that an investment of just $1,000 would have got you in the region of 1,000 Solana coins. Although growth was somewhat sluggish over the following year, it was in 2021 that Solana really began to take off.

• For instance, in mid-2021 – which is when the Solana coin last hit an all-time high, the token was trading at over $260.
• This means that investing when Solana was first launched in 2019 would have been looking at gains of nearly 26,000%.
• And as such, your 1,000 tokens at a principal investment of $1,000 would have been worth nearly $260,000.

After many cryptocurrencies hit their all-time highs in March 2021, a series of negative events in the crypto market happened which resulted in a significant price drop and started a “crypto winter”. The price of Solana has been affected by this and has fallen significantly from this point – which we discuss in the following section.

Discounted Entry Price

Since its all-time high of $260 per token in mid-2021, Solana has since hit lows of $8.50 – which is just above the region it is trading in as of early 2023.

Solana 1Y Chart

This means that if you wish to invest in this popular cryptocurrency, you can do so at a highly favorable entry price. For instance, as of writing, you will pay just over $23 per token, which, in comparison to its recent high of $260, offers a discount of around 90%.

Better Upside Than Ethereum

We have already discussed the difference in efficiency levels between the Solana and Ethereum blockchain, with the former offering faster and more scalable transactions.

However, from an investment perspective, it could be argued that Solana also offers a much more attractive upside potential than its Ethereum counterpart.

• For example, at the time of writing, Solana and Ethereum are carrying market capitalizations of approximately $9 billion and $236 billion, respectively.
• This means that to mirror Ethereum’s value, Solana would need to increase by a quite achievable 3,000%.
• In comparison, if Ethereum were to grow by the same amount, it would reach a market capitalization of over $7 trillion, which is far less likely in the short term.

Crucially, by adding SOL tokens to your portfolio, you can target much greater gains that are otherwise less achievable with larger-capitalized projects.

Solana vs the Stock Markets

Solana was among the coins that suffered significantly because of the collapse of the FTX exchange. The problem was that the project was closely related to the CEO of the FTX project Sam Bankman-Fried. This aroused some kind of disbelief among people about the Solana project, and the panic made them sell their SOL tokens too, which significantly affected Solana’s reputation, and many investors even thought that Solana couldn’t make it. 

However, things have started to get lucky for Solana since the beginning of the year, and in just 4 months, Solana managed to reach $23, starting the year with a quite low price of $10. Hence, the SOL token has a 130% YTD return rate which is quite high compared to many other cryptocurrencies. 

Easy to Diversify 

Solana is one of many blockchain projects that is often referred to as an ‘Ethereum Killer’. This simply means that some market analysts believe that Solana will eventually overtake Ethereum as the de-facto smart contract blockchain.

• On the one hand, achieving this goal will not be easy when you consider the many rivals that Solana has in this space – including but not limited to Neo, Cardano, Avalanche, and Polkadot.
• However, shrewd investors will look to cover all bases by diversifying their portfolios across multiple smart contract projects.
• For example, some platforms only need a minimum investment of $10.

And as such, you could also allocate $10 to each of the aforementioned cryptocurrencies that are competing with Solana.

What are the Risks of Buying Solana?

So now that we have discussed the core benefits of adding Solana to your portfolio, we now need to explore the main risks that need to be considered.

In taking the risks outlined below into account, you will be able to make an informed decision as to whether or not to buy Solana coin today.

Ethereum 2.0 

We have mentioned several times that the Solana blockchain outperforms Ethereum in virtually all areas – from speed and scalability to transaction fees.

However, the Ethereum Foundation recently completed its migration to proof-of-stake to enable its blockchain to offer next-generation efficiency levels.

• In the future, some market commentators note that Ethereum 2.0 will take the blockchain from 15 transactions per second to over 100,000.
• As such, not only will this solve the issue of scalability constraints, but it supersede the efficiency of Solana’s 65,000 transactions per second.
• Furthermore, it is believed that Ethereum 2.0 will solve the issue of high transaction fees.

Crucially, if Ethereum 2.0 is able to achieve these vast efficiency improvements, then it could make Solana somewhat redundant.

After all, Ethereum has already solidified itself as the de-facto smart contract platform – in terms of users, partnerships, market capitalization, token valuation, and trust.

Volatility and Speculation  

Make no mistake about it – like virtually all digital assets, Solana is both volatile and speculative. As we covered earlier, the digital token enjoyed highs of $260 in mid-2021, only to fall sharply to the $100 level.

Although this downfall was experienced by most cryptocurrency projects, this still represents a valuation decline of over 60% in just half a year.

As a result, if you do decide to buy Solana coin for your portfolio, you must prepare yourself for sharp volatility spikes.

Solana Price

The Solana coin price is determined by market forces – meaning that when it enjoyed 2021 gains of nearly 2,000%, this resulted from extreme buying pressure. In other words, as more people were seeking to invest in Solana than those wishing to sell, this allowed the project to enjoy a strong upward trajectory.

However, as noted earlier, the Solana price started to drop after hitting an all-time high in March 2021. By the end of 2021, the SOL token has lost its value by over 90% from its prior highs. This is because, since mid-2021, the number of sellers looking to offload Solana far outweighs that of new investors. 

The mass sell-off among investors is associated with the overall events around the crypto market, including increased regulations in many countries. In March 2023, Solana’s price dropped to $78, but then it again bounced and reached $134. But the crypto market continued to decline for most of 2022, and Solana followed the path.

Solana All-time Price Performance, Source: coinmarketcap.com

Such events, such as the collapse of the FTX exchange, the Terra Luna cryptocurrency project, and many other high-profile cryptos, negatively affected the overall market. Bitcoin dropped as low as $16,000 after hitting an all-time high of $66,000 and took most of the crypto market after him. FTX collapse generated disbelief in the Solana project, leading to a huge sell-off, with SOL dropping below the $10 mark. 

But Solana’s performance has started to change since the beginning of 2023, so the project regained the trust of its investors. New upgrades to the project may also play a role in this increase, including introducing its crypto-friendly mobile phone called Saga phone. 

Solana is currently traded at $23.11, with a 24-hour price range of $22.27-$24.94. With a market capitalization of $9,070,028,132, CoinMarketCap ranks SOL as the 10th largest cryptocurrency. There are almost 392.5 million SOL tokens currently in circulation. 

Solana Price Prediction

Looking at the Solana price predictions by different algorithm-based platforms, we notice that some of them indicate SOL will recover its previous all-time high of $260 in a few years. For example, Digital Coin Price predicts that SOL tokens still have an average price projection of $49 in 2023 while its maximum price can even hit $50. 

According to this platform, Solana will continue growing in the next few years. In 2026, it will be traded above $100 with a maximum price of $105. The platform indicates that SOL will reach $240 in 2030 and hit $300 and $400 in 2031 and 2032, respectively. 

While some market commentators are bullish on Solana, others argue that the digital currency is overvalued. Instead of relying on Solana price predictions to make an informed investment decision, it is best to conduct your own independent research.

Ways of Buying Solana

The best way to buy Solana will depend on your preferred payment method.

When using one of the top-rated brokers reviewed earlier, you will get to choose from the following deposit types:

Buy Solana With Credit Card or Debit Card

Once you have opened an account with a regulated online broker like Coinbase, you will then have the option to buy Solana with debit card, or credit card.

In terms of the positives, this payment type allows you to invest in SOL tokens instantly, as your chosen broker will debit your card straight away and subsequently add the digital assets to your portfolio.

However, some brokers charge high fees on credit and debit card payments. For example, Coinbase charges 3.99%, while at Crypto.com – you’ll pay 2.99%.

Buy Solana With Paypal

If you’re wondering how to buy Solana coin with PayPal, you’ve got several options. For instance, you can complete the process at Coinbase after opening a verified account.

But, fees mirror that of credit/debit card payments at 3.99% of the transaction amount.

Buy Solana Without KYC Verification 

If you were hoping to buy Solana without going through a KYC process, this is only possible if you are able to pay for your investment with crypto.

That is to say, by using an unlicensed exchange, you can deposit Bitcoin and swap the tokens for Solana.

However, if you are looking to buy Solana with fiat money via a credit/debit card or Paypal, then you will invariably need to upload some ID as part of the anti-money laundering process.

Conclusion

Solana is one of the most promising cryptocurrencies to buy in 2024 – with the project’s underlying blockchain offering super-cheap transactions at a highly scalable level. Investors interested in a coin linked to Solana may want to buy Sealana or Smog, SOlana based promising cryptocurrencies.

If you’re looking to buy Solana coin for your portfolio right now, try the best trading platform – Crypto.com

FAQs