Frequently asked questions
Solana is a project that aims to combine scalability with lightning-fast speed and near-zero fees. It’s ambitious — but it’s shown promise thus far, with new blocks being produced in less than half a second, and support for more than 50,000 transactions per second. The network has been around since 2017, but it didn’t launch officially until 2020. It’s favoured by creators of decentralised applications.
Solana takes a slightly novel approach to achieving consensus across the network. It uses a ‘Proof of History’ function, alongside a proof of stake consensus for the underlying blockchain. Rather than ascertaining what time that particular events happened, it focuses on establishing the order in which they happened. It’s this method that’s behind the currency’s impressive achievements.
Solana's ticker symbol is SOL. On exchanges, you sometimes may need to use this ticker name to find trading pairs for Solana.
Solana's price is determined on exchanges, based on supply and demand. This means that Solana's price will rise if there are more buyers than sellers.
Solana's price action is — like other forms of crypto — somewhat tied to the wider crypto market. Like they say: a rising tide lifts all boats.
That said, investors should also look at the potential utility of the network in the long term. Solana is highly scalable and could accomodate many different real-world applications. It’s also of particular utility for the financial sector.
Solana can be bought on so called crypto exchanges. To do so, you need to open an exchange account, verify your identity, and deposit money via bank transfer or credit card to start trading.
A crypto exchange (or cryptocurrency exchange) is a marketplace where buyers and sellers trade cryptocurrencies. Just like regular stock exchanges, a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.
Is now a good time to buy Solana? Frankly, we don’t know.
But there are several strategies when it comes to crypto investing. One approach is to buy in when price slips. In the crypto community this strategy is known as "buying the dip" (BTD).
Another strategy is dollar-cost averaging: investing a certain amount of money on a set schedule, say $100 every Monday morning. Dollar-cost averaging seeks to average out the lows and highs over time.
No matter which strategy you choose, Cryptoradar’s price alerts help you to not miss a dip, and adhere to your investment schedule.
There are risks associated with any investment. Crypto markets are particularly volatile, with large upswings and downswings. Only invest as much as you can afford to lose.
When it comes to choosing a crypto exchange, there are also a couple of thinks to be wary of.
Before you can start trading, a crypto exchange will ask you to verify your identity. This is necessary because of anti-money-laundering laws. The verification process and time can differ significantly and take anywhere from minutes to weeks.
All crypto exchanges charge a fee or a spread to finance their operations. Fees can differ significantly among exchanges, so make sure to get a good deal.
Additionally, make sure that your preferred crypto exchange supports the payment methods of your choice, but be aware of any additional payment fees that may apply.
Last but not least, if you’re new to crypto, make sure that your chosen platform is easy to use and has good customer support. This helps you avoid making costly mistakes.
Certain exchanges will accept a wide range of payment methods. Thus, if you’re looking to invest in Solana, you’ll have plenty of options. Other exchanges, however, are a little more discerning. With the help of Cryptoradar, you’ll be able to assess your options, and make a decision that’s right for your circumstances before you invest in Solana.
Getting started with crypto can be hard. Our detailed price comparisons and cryptocurrency guides have you covered.