How to Buy Solana

How to Buy Solana

Launched in March 2020, Solana is a blockchain with its native cryptocurrency SOL. Ever since launching Solana has seen huge success and cemented itself as one of the top 20 cryptos in the world. Currently, Solana trades for $14.15, and during its peak valuation, it was trading for just over $260. This is one of the most frequently used DeFi tokens on the market with many different utilities. Being dubbed as the Ethereum killer, Solana currently has a rough time with prices being significantly down.

Things to know about Solana

  • Solana operates on its own native blockchain
  • Solana has become one of the most used tokens for purchasing DeFi NFTs
  • Solana can complete 50,000 transactions per second with fees lower than $0.01
  • Solana currently has a total supply of just over 534 million tokens

What is Solana?

Solana is an independent blockchain that has its native token SOL. Solana initially was released as a whitepaper in 2017 by Anatoly Yakovenko and presented many different innovative features that the upcoming blockchain will have. The first block of Solana was created on 16 March 2020 and started a journey that will name it the most dangerous opponent for Ethereum. Solana uses an innovative Proof-of-History timing mechanism before its proof-of-stake protocol. This makes Solana transactions really fast and cost-effective. In essence, it does the same things that Ethereum does, but cheaper and significantly faster. Solana has lost significant value ever since it hit its peak market valuation of $260. This fall was mostly due to Ethereum announcing and then making their transaction to proof-of-stake protocol and also crypto market crash had dealt a significant blow to Solana. Currently, Solana trades for around $14–16 and has a market capitalization of $5.1 billion. This places Solana as the #17 crypto by market capitalization behind Cardano and above Dogecoin. 

“Our goal — and I think we’ve succeeded there — is to make Solana an open source project that people just have fun building on the weekend or in their free time — so also unkillable.” - Anatoly Yakovenko

Solana is commonly used by many different DeFi projects. DeFi projects aim to reduce transaction costs and increase speed as much as possible and Solana is one of the best tokens which does those things perfectly. Currently, most of the GameFi projects use Solanas as the third-party tokens on their platforms and it also has become a famous crypto for purchasing NFTs, but it is still far behind Ethereum in that regard. 

How to buy Solana?

Since Solana is the #9 Crypto by market capitalization and daily trading volumes reaching $1 billion constantly, there are many different exchanges that offer Solana tokens on their platforms. But buying Solana is not a full straightforward process. There are some decisions we need to make before purchasing Solana. How would we like to purchase Solana? With fiat or crypto? What aspects of crypto exchange do we prioritize and many more. So here we will go over what you will need to prepare before actually buying Solana.

Find an exchange

Our first step should be to find an exchange we will be using to purchase Solana. When making this decision we have to decide how are we planning to pay for this token. If we want to make a purchase using fiat currencies such as USD, EUR, or GBP we should look for an exchange that offers the biggest selection of payment options for fiat currencies or the one with lower deposit fees. But if we were not able to find an exchange that offers good options for Solana purchase or we already own different crypto and want to exchange it for Solana we should be looking for an exchange that has good trading pairs for Solana. There are also exchanges that offer additional utilities when using Solana which might be useful for us.

Opening an exchange account

After we decide which crypto exchange is best for us, we need to open an account on that exchange. This process might differ depending on the exchange we are using. Different exchanges operate from different countries with different regulations. Usually, we will need to pass the identity verification process to gain access to the exchange. But there are also some exchanges that allow trading without identity verification, but in most cases, trading maximums and minimums are very limited and some of the most important tools are not available without verification. There are also decentralized exchanges where you don’t need to pass any verification and acquire Solana just by using your private crypto wallet. 

Deposit fiat/crypto and swap it for Solana

Once our exchange account is ready we will need to purchase the Solana. As we mentioned we can take two different approaches to do so. We can directly purchase Solana using fiat currencies. This is usually done by bank transfers, credit/debit card deposits, and some exchanges even support third-party services such as PayPal. If our desired fiat payment is not available for Solana, we can acquire different cryptocurrencies and swap them for Solana. There are many different trading pairs for Solana where we can exchange selected crypto for Solana.

Create a crypto wallet

We can go one step further and acquire our personal crypto wallet. When using exchange wallets crypto is protected by exchanges and in general, is not as protected as it would be in our personal wallets. We can use wallets that come in form of software and hardware. Some wallets even allow direct purchases or swaps of Solana.

Where to buy Solana?

So we know what kind of process we will need to complete in order to purchase Solana. But which exchanges are the best for it? Since Solana is one of the most valuable cryptos on the market there are many different exchanges that support Solana. Some are better for direct purchases of Solana using Bank transfers, Debit/Credit cards, and other traditional ways. While there are some exchanges that do not offer good fiat purchase options for Solana or have high deposit fees. But some of those exchanges have great trading pairs for Solana which we can use in order to acquire it. 

eToro - Best overall exchange to buy Solana

eToro is one of the best places to purchase Solana. This exchange is built with both beginner and seasoned traders in mind. When joining the exchange no one will have any problems understanding the website structure. This does not mean that experienced traders are limited with the tools available as eToro also provides great instruments for experienced traders and the best part is that if you are a newcomer eToro is built in a way that these advanced tools won’t complicate your trading experience. Also, you can start trading on eToro with just a $10 deposit.

One of the best advantages of purchasing Solana on eToro is that you don’t have to pay any fees when purchasing the token. Bank transfers and Credit/Debit card deposits have 0% fees and this is the feature that traders should not miss out on. 

But how do we exactly purchase Solana on eToro?

Create an account

The first step for purchasing Solana on eToro is to open an account on eToro. This is a simple process that can be done within minutes. eToro gives us a few options to open an account. We can register using the email address, Google, Facebook, and Apple. When using the email address to create an account we will be simply asked to provide our email address, username, and password. After this, all that is left to do is to verify our account by the link sent to our email address.

Verify your identity 

When we create a new account we can not start purchasing and trading Solana straight away. To do so we need to verify our identity. When we start the verification process eToro has added one step to the verification process that most exchanges don’t ask. Alongside basic information such as our first and last names, address, and date of birth we are asked to provide information about our occupation, trading budget, trading timeframe, and other similar information.

Once we provide the necessary information we will have to upload a document that verifies our identity. This can be ID, Driving license, and Passport. The verification process on eToro might take up to 3 days but usually, it is done within a day.

Buy Solana

When everything is finished and our account is verified to start trading everything left for us to do is to buy Solana. To do so we need to navigate our way to the Discover page There we need to select the Crypto section and find Solana from the presented tokens. Purchasing Solana might be limited based on the country you reside in and make sure to check beforehand if it is available for you. When we find Solana from available tokens there will be a Buy option presented to us. Here we will be given different payment options. We need to complete the transaction and Solana should appear in our balance shortly.

Kraken - Best for purchasing Solana using crypto

If eToro is not available in your country or you prefer to purchase Solana using other cryptos Kraken is the best option for you. Kraken is supported in 176 countries and 48 US states. Purchasing Solana using Solana trading pairs here is really easy. Just like eToro, you can also purchase Solana using Debit/Credit cards on Kraken but deposit fees are 3.75% which is relatively high. What is good for Kraken is the low fees for using crypto-to-crypto trading pairs. So if you hold other crypto and want to swap it for Solana, one of the best places to do so is Kraken. You can use trading pairs such as Sol/BTC, Sol/USDT, and many others to exchange your crypto for Solana. But we need to mention that available trading pairs will depend on the country of your residence and make sure to check if the crypto of your choice is available to trade with Solana.

Here is how to get started with Kraken and acquire Solana

Create an account

Just like any centralized exchange, we need to open up our account on Kraken. This is an easy process to follow. When creating a Kraken account we will need to provide our email address and country of residence. We will also be asked to come up with a username and password for our account. After this, the only thing left for us to do is to verify our email address by the link sent to us there and the account will be ready for the next step.

Verify your identity

Kraken also requires users to verify their identity before giving them access to the trading functions of the exchange. Kraken has three different tiers of verification each of them giving us different benefits and requiring different documentation. While you can deposit crypto on Kraken to trade it for Solana without passing KYC verification and can just provide your basic info, it is still suggested that you pass Intermediate verification so you can gain access to more functions of the exchange. 

For intermediate verification, you will need to provide personal information, your field of occupation, and government-issued identity-verifying documentation. The verification process takes 4-10 minutes so you will be able to use Kraken in a short amount of time.

Deposit crypto and exchange it for Solana

The last step we have to take is to deposit crypto and exchange it for Solana. For this, we need to go to the Funding page which will be at the top menu. There we will see the Deposit option and will be given a list of cryptos we can deposit. Once we select which crypto we want to deposit we will be given a screen. There we can generate the address where we have to deposit the crypto and as soon as the blockchain verifies the transaction funds should appear on our Kraken wallet.

Coinbase - The best place to buy Solana with PayPal

If you are a US citizen some of the exchanges will offer you PayPal payment methods. For Solana purchases one of the best exchanges that support PayPal is Coinbase. One of the largest crypto exchanges in the world supports a wide selection of payment methods. If we want to purchase Solana on Coinbase using PayPal we will need to set up our Coinbase account before we are able to do it.

Create an account

When creating a Coinbase account you will be asked to provide your email address and your first and last names. You will also need to set a password for your account and lastly verify your email address by the link sent to it.

Verify your identity

Once the account has been created you will need to provide the necessary documentation to verify your identity. You will need to provide a government-issued ID or any other government-issued documentation which verifies your identity. You will also be asked to take a photo and upload it with documentation. This is a simple process and usually, verification does not take longer than a day.

Buy Solana using PayPal

When your account acquired the right for trading all that is left to do is to purchase Solana. To do so you should go to Explore tab at the top menu. There you will see a list of tokens, find Solana, and press Trade next to it. This is where you will see the buy option and if you are a US citizen you will be given PayPal as one of the available payment options. 

This should be noted that if your Coinbase and PayPal email addresses are different you will need to pass additional two-factor authentication on Coinbase. Also, the country you selected when registering on Coinbase should match the country you have indicated in PayPal otherwise you won’t be able to purchase Solana with PayPal.

Where to store Solana?

Once we are in possession of Solana we need to store it somewhere. Of course, we can keep the tokens on the exchange we bought them on, but storing your crypto on exchanges is not as safe and there have been numerous cases where exchanges have been hacked and users' funds taken out. Because of this, it will be a better decision to keep our Solana in private wallets. If you are not scared of hacking as there have been only a few cases of it, it still might be a good idea to move your Solana to different exchanges which have better utilization of Solana tokens.

D’CENT - Best cold wallet for storing Solana

Storing Solana in a cold wallet is the best security precaution we can take. Cold wallets are wallets that are disconnected from the internet and come in form of hardware. D’CENT is one of those wallets and one of the best options for storing Solana tokens. It comes in a form of a USB which has Bluetooth connection functionality and can be connected to Android and IOS phones.

Binance - Best exchange to keep Solana

When it comes to the best exchange where we can store our Solana, Binance is the no-brainer. As the world's largest crypto exchange Binance offered Solana staking last year and it came with more than 40% APY. But ever since then this number has gone down but still maintains a competitive edge. Staking Solana on Binance is the same as opening a savings account. Here you can lock your Solana for 30, 60, or 90 days. The average APY on Solana is 9.41%, 10.23%, and 13.45% based on how long you lock your coins up.

Security Cold wallet is disconnected from the internet to ensure the highest securityUses a Cold wallet to store users' funds, but can still fall victim to hacking attacks
BenefitsHighest securityAbility to earn passive income
Number of available cryptos for storage  

eToro vs Kraken vs Coinbase vs Binance

Purchase options for SolanaFiat & CryptoFiat & CryptoFiat & CryptoFiat & Crypto
Fees0%ACH deposits - 0.5%; SWIFT - Free; Debit/Credit Card - 3.75% + $0.25ACH deposits - Free; Wire - $10; SEPA - €0.15 Credit/Debit Card - 2.5% 

SWIFT transfer - Free; Signet transfer - Free

Credit Card - up to 2%

Allows Solana Stakingnonoyesyes
Number of trading pairs available for Solana41056
Trading options for SolanaSpotSpot & MarginSpot & MarginSpot & Margin
Withdraw fees for Solana

$5 + additional conversion rates if withdrawal is not in USD

Direct Solana withdrawal - 0%

ACH - Free; SWIFT - $4

Direct Solana withdrawal - 0%

ACH - Free; Wire - $25; SEPA - €0.15

Direct Solana withdrawal - 0%

SWIFT transfer - $15; Signet transfer - Free

Credit Card - up to 2%

Direct Solana withdrawal - 0%

SecurityTwo-factor authentication, crime inusrance, and uses cold walletTwo-factor authentication, crime inusrance, and uses cold walletTwo-factor authentication, crime inusrance, and uses cold walletMulti-factor authentication, crime inusrance, and uses cold wallet

Should we invest in Solana

Currently, Solana is going through a very tough period as it currently trades for $14, while just one year ago the price was just under $230. Ever since then the price has been falling rapidly. The first price fall can be attributed to the ongoing crypto winter that has been going on since the beginning of 2022 when Solana was trading in the range of $30-50. If this was still the case then we could have suggested investing in this token, but with the collapse of FTX, and Ethereums successful Merge, Solana prices took another hit and are currently being valued at around $14, which means that it has managed to lose around $7 billion in market capitalization in the span of 3-4 month. Because of this, it might be best to look somewhere else and invest in the token that currently is not in such a shade as Solana.

Pros and Cons of investing in Solana

Can complete 50,000 transactions per second Criticized for not being decentralized enough
Fees lower than 0.01$Had multiple network shutdowns 
Implements breakthrough innovations 

FAQs on Solana

Can you purchase Solana on Coinbase?

Yes. You can purchase Solana on Coinbase using different methods. You can purchase using credit and debit cards, bank transfers, PayPal, and using different cryptocurrencies. 

Can you buy Solana on MetaMask?

No. MetaMask is an Ethereum-based crypto wallet. Because of this, you can only purchase ETH tokens on Ethereum. If you want to hold Solana on the MetaMask wallet, that you can do, but you will need to bridge MetaMask to the Solana network which requires some knowledge of both blockchains and how the crypto wallet works.

What is the best wallet to hold Solana?

If you are looking for a hot wallet then Phantom Wallet is the best choice. This is a non-custodial wallet which makes it a decentralized crypto wallet. If you want more security D’CENT cold wallet is the best choice for that.