Where and How to Buy Solana (SOL)

Solana is still a new cryptocurrency. It is only within the last couple of years that investors and traders interest in Solana has sky rocketed. As a result the amount of exchanges where you can buy Solana has increased.

However there is not a huge diversity of other platforms where you can buy it. So crypto ATMs, mutual funds or ETFs are out of the question at this point in time.

In this article you will find out:

  • where and how to buy Solana,
  • platform comparisons and how to save on fees,
  • whether Solana is a good investment,
  • how to secure your Solana and
  • ways you can earn passive income from Solana.

Best Exchanges to Buy Solana

1 kraken-1200x1200
9.3
More details + Standard exchange fees: 0.9% – 1.5%
Kraken Rating
This is a crypto exchange with a solid track record and good customer service
BTC, ETH, DOT, DOGE, 90+ Cryptos
Security
10
Ease of use
8
Customer support
9
Value for money
10
PROS:
  • Excellent security features
  • Low fees on Kraken Pro
  • Established exchange
CONS:
  • The lowest fees can only be accessed on the Pro area. There is a small learning curve to learn how to use it
Editor’s choice 2 coinmama-1200x1200
8.5
More details + Standard exchange fees: 0.9% – 3.9%
Coinmama Rating
An easy way to get started buying crypto
BTC, ETH, BCH, 10+ Cryptos
Security
8.5
Ease of use
9.5
Customer support
9
Value for money
7
PROS:
  • Established exchange
  • Simple, intuitive website
  • Excellent customer support
CONS:
  • Fees are high
  • No crypto-to-crypto transactions
3 cex-1200x1200
8.4
More details + Standard exchange fees: 0.16% – 7%
CEX Exchange Rating
One of the best and most trusted crypto exchanges
BTC, ETH, BCH, 60+ Cryptos
Security
9
Ease of use
8.5
Customer support
8
Value for money
8
PROS:
  • Easy to use app
  • Cryptos, derivatives, stable coins
  • 24/7 support
CONS:
  • Lacks in choice of coins
4 Binance Review
8
More details + Standard exchange fees 0.06% – 0.1%
Binance Rating
Binance is one of the best cryptocurrency exchanges. It is renowned for its low trading fees, vast array of supported cryptocurrencies and services.
Security
7
Ease of use
8
Customer support
7
Value for money
10
PROS:
  • 600+ cryptos to trade
  • Low trading fees
  • Automated trading bots
  • Comprehensive service
CONS:
  • Was hacked in 2019
  • Customer service needs improvement
5 coinbase-1200x1200
7.6
More details + Standard exchange fees: 0.5% – 2%
Coinbase Rating
The only crypto exchange to be listed on the stock market
100+ Cryptos on Coinbase and 250+ on Coinbase Pro
Security
6
Ease of use
10
Customer support
5
Value for money
9.5
PROS:
  • Is insured against hackers
  • Low fees on Coinbase Pro
  • Supports 100+ countries
CONS:
  • Customer support is slow and ineffective
  • Goes down when large volumes of users hop on the platform

Best Trading Platforms to Buy Solana

1 kraken-1200x1200
9.3
More details + Standard exchange fees: 0.9% – 1.5%
Kraken Rating
This is a crypto exchange with a solid track record and good customer service
BTC, ETH, DOT, DOGE, 90+ Cryptos
Security
10
Ease of use
8
Customer support
9
Value for money
10
PROS:
  • Excellent security features
  • Low fees on Kraken Pro
  • Established exchange
CONS:
  • The lowest fees can only be accessed on the Pro area. There is a small learning curve to learn how to use it
2 huobi-1200x1200
8.8
More details + Standard exchange fees: 0.2%
Huobi Rating
Huobi is a fantastic exchange. It has a huge variety of service and supported cryptocurrencies that rivals other top exchanges.
Security
9
Ease of use
7
Customer support
10
Value for money
9
PROS:
  • 500+ supported cryptos
  • Excellent customer service
  • Established in 2013 and never hacked
CONS:
  • Not available in the US
  • Largely unregulated
3 tradingview-1200x1200
8.5
More details + Access to multiple brokers
TradingView Rating
Popular trading platform with vast amount of data and analysis tools.
Trade 650+ cryptocurrencies
Security
9
Ease of use
7.5
Customer support
9
Value for money
8.5
PROS:
  • Choice of pricing plans
  • Incredible charts and indicators
  • 15m+ monthly users
CONS:
  • Can be overwhelming for newbies
  • No customer support on free plan
4 cex-1200x1200
8.4
More details + Standard exchange fees: 0.16% – 7%
CEX Exchange Rating
One of the best and most trusted crypto exchanges
BTC, ETH, BCH, 60+ Cryptos
Security
9
Ease of use
8.5
Customer support
8
Value for money
8
PROS:
  • Easy to use app
  • Cryptos, derivatives, stable coins
  • 24/7 support
CONS:
  • Lacks in choice of coins
5 bitfinex-1200x1200
8.3
More details + Trade up to 10x leverage
Bitfinex Rating
A great platform for the serious trader
Security
9.5
Ease of use
7
Customer support
7.5
Value for money
9
PROS:
  • Used by professional traders and investors
  • Customisable interface
  • Over the counter crypto trades for whales
CONS:
  • Difficult for beginners
  • US players not accepted
6 kucoin-1200x1200
7.8
More details + Standard exchange fees: 0.05% – 0.1%
KuCoin Rating
KuCoin is consistently rated as a top 10 cryptocurrency exchange by many different organisations.
Security
7
Ease of use
7
Customer support
7
Value for money
10
PROS:
  • 600+ cryptos to trade
  • Low trading fees
  • Automated trading bots
  • 10 million clients worldwide
CONS:
  • no fiat-to-crypto exchange
  • Quick buy feature has hidden fees
  • No US license
7 ftx-1200x1200
7.3
More details + Standard exchange fees: 0.02% – 0.07%
FTX Rating
FTX is a good exchange overall, albeit unproven.
Security
7
Ease of use
6
Customer support
6
Value for money
10
PROS:
  • 270+ cryptos on FTX.com
  • 20+ cryptos on FTX US
  • Lowest trading fees in the industry
  • Automated trading bots
CONS:
  • Customer service needs improvement
  • Not suitable for crypto beginners

Exchanges vs Trading Platforms to Buy Solana

Whether you use an exchange or trading platform you have to sign up to the site. The difference is when you go to buy Solana.

Buying Solana from an exchange is the easiest method to buy any cryptocurrency. They have a simplified exchange area similar this Kraken example below. As you can see all you need to do is select the cryptocurrency you want to buy and the amount.

kraken-review-exchange-area
Kraken

It’s when you opt to buy Solana from a trading platform where it becomes a little bit more tricky.

Trading platforms are a little bit more complex. Additionally some have a few more options than others. You can master how to use a trading platform fairly quickly. Here is an example of a trading platform.

Bitfinex

However we recommend you stay away from using leverage because it is dangerous for anyone new to trading. You can end up losing everything and it is something you want to want to avoid.

On the other hand trading platforms have cheaper fees than exchanges. So you will save quite a bit of money and buy more Solana instead.

If you are new to cryptocurrency we recommend you stick to the easy exchanges for a while. That is to say until you get used to crypto. After that you can go on to mastering the next level up. 

You should also note that exchanges usually have both a simplified exchange area and a separate trading area. Not only is the interface different, but so are the fees. So although you might sign up for an exchange you can always use the same account to trade in future.

Save Money on Fees When You Buy Solana

Apart from using a trading platform to save on fees you should also avoid using a credit card. Credit cards come with additional fees that are charged by third party providers. As a result you could end up paying up to 3.5% more.

The best way to buy Solana or other cryptocurrency is by using bank transfer. Bank transfers are usually free or come with minimal fees when you deposit into an exchange or trading platform.

The only drawback is that you will have to wait until your deposit goes through. It could take up to 5 working days. However some countries have a fast track system where 2 or more transfers are processed quicker.

Each exchange or trading platform have different fees. So you might want to check the fee charges before you sign up.

Although fees are not necessarily the only thing you want to look at when you pick an exchange. Hence why we have a review for each exchange or trading platform. All the exchanges and platforms listed here are the best of their kind. However there are subtle and major differences between one and another.

How to Buy Solana From an Exchange

We have put together an easy guide on how to buy cryptocurrency. This guide goes through the step by step process with you. It shows how to buy any cryptocurrency including Solana on any exchange.

The process is quite simple and goes into more detail on:

  1. Signing up
  2. Confirm your email
  3. Verify your account – Exchanges are money businesses. So you will need to submit documents to verify you are who you say you are.
  4. Wait for account approval
  5. Deposit into your account
  6. Buy Solana

The whole process is pretty straight forward and similar to signing up for any other website. The only difference is that you have to submit documents so it takes a little more time. You have to make sure you set some time aside to set up your account.

After that you will need to wait for the exchange to get back to you. Each exchange is different and some are more efficient than others. Some will verify your account within an hour. Others will take several days.

Solana Wallet – Securing Your Funds

After you buy Solana you want to make sure you properly secure it. Especially if you are not going to actively trade it, stake it to earn passive income or anything like that. Consequently that means removing it from the exchange and placing it in a secure wallet.

The best wallets are the ones where you are in custody of your own private keys. As a result you do not have any third parties that have access to your funds. Only you have access. This is not the case when it comes to exchanges. In fact this is why you should remove your Solana from the exchange.

Exchanges have been hacked and their crypto funds stolen many times in the past. Some of these heists have made it to the headlines because millions of client funds got stolen.

crypto-exchanges-hacks

Sourced from NBC News

There are a range of different wallets you can use, but the wallets with the best security are hardware wallets. Currently from the best hardware wallets available, only Ledger supports Solana. You can have a look at the Ledger review here.

They do cost some money to buy, but they are more secure than free hot wallets. In fact some free hot wallets were already compromised by malware called BHUNT. On the other hand hardware wallets have been around for years and not had any security breaches.

Incidentally you can also stake your Solana through Ledger’s software interface; Ledger Live.

Why Solana is Surging

Solana started getting a lot of attention the past couple of years.

Solana is a crypto commodity like Ethereum so it has a programmable blockchain. However the fees on Ethereum have gone up significantly. Sometimes the fees have gone up over $100, even for small transactions.

In fact it has put off some investors since the fees are so exorbitant. On the other hand Solana’s fees are cheaper than $0.01. As a result a lot of people have shifted over to buy Solana and use it instead. Partly for this reason.

What Solana Offers

  • Smart contract blockchain
  • Thriving ecosystem
  • Processes 50,000 + transaction per second
  • Defi
  • Social tokens
  • NFTs
  • Games
  • Cheap fees

Solana offers just as much as Ethereum. Except since Solana came onto the scene way after Ethereum, it has some improvements to Ethereum’s blockchain.

Firstly Solana is scalable up to 50,000 on default. In fact Solana is thriving because Ethereum can only process up to 45 transactions per second.

This is until Ethereum can implement the ETH 2.0 upgrade. The upgrade will increase transactions per second to 10,000+ which will reduce network congestion. As a result it will stop fuelling the gas prices and they will decrease.

In the meantime Solana is looking poised to continue gaining momentum. Perhaps even after Ethereum’s upgrade.

Solana vs Ethereum

Here is an overall comparison between Solana vs Ethereum as they stand now. However when Ethereum goes through its upgrade there will be less differences.

 EthereumSolana
Transactions per second15-45 tps50,000+ tps
Fees$2.50-$200Under $0.01
Consensus mechanismProof of workProof of stake and proof of history
DeFi investment$82.4 Billion$1.98 Billion
DeFi apps2037

Is Solana a Good Investment?

There are some people that are sceptical about Solana’s claim to process 50,000+ transactions per second. In fact network disruptions have hit Solana several times already which proves they are right.

fool-article-solana-network

Sourced from The Motley Fool

However as the article on The Motley Fool explains these are no more than teething problems. Solana is growing very quickly. So much so that it is having trouble keeping up with community demand. The good news is this is bullish for the long term.

In fact investors’ confidence has not diminished at all towards Solana. We have noticed that for a lot of investors it is one of the top projects that has kept investors interested. As a result it is in the 6th spot for the crypto with the largest market cap.

coinmarketcap-solana

Sourced from CoinMarketCap

There is a good case to buy Solana. It has an experienced team with great skillsets to carry the project forward. Additionally it has applications already and the crypto community are adopting Solana at break neck speed.

Solana has quite a lot going for it so it is no wonder it has done well. In fact when Solana started trading it was priced at $0.78 and on the 5th April it is at $133.38. That is a whopping 17,000% price gain in just a couple of years.

Sourced from CoinMarketCap

There are many people invested in Solana including some heavy weights. One investor is Raoul Pal an experienced investor that managed billions. When asked about Solana he said:

When you start a bull market you own Bitcoin, then you start overweighting ETH. Then what happens is, everything that is riskier starts goes up more. So these are things that are earlier in their adoption cycle… so that’s how bull markets always work.

Raoul Pal

How Solana will Perform in the Future

No one knows if Solana is going to be the crypto to give the most gains this cycle. Moreover we do not know how it will perform after this cycle top.

For Solana to continue to do well it needs to survive this cycle and the lows of the next. It also needs to continue with its high rate of adoption.

Solana Staking

Since Solana is a proof-of-stake crypto you can stake SOL to secure the network. In return you receive a reward for helping the network.

As a result staking is a great way to earn some passive income. It might give you an additional reason to buy Solana. However staking does come with its fair share of risk.

Firstly, it is important to understand that staking involves locking your Solana for a certain period of time. During this time you cannot unstake your Solana from the platform.

The biggest risk is if Solana suddenly and drastically drops in price. If this happens your interest payments will also go down drastically. Additionally when you eventually unstake your coins you may have an unstaking period or around 7 days or longer.

Solana Staking Pool

The best way to make sure you can get rewards for staking is to join a staking pool. Like this you can join your funds with others to increase your chances of earning rewards.

Different pools will give you different percentage rewards. Additionally the reward rate may change according to the on-chain reward rate. Here are some staking pool rates as of 5th April 2022.

Exchange / PlatformStaking rate
Kraken6% APR
CEX.io5% APR
BinanceUp to 13.47% APY
BitfinexUp to 6.5% APR
FTX6% APR
Ledger6% APR
APR – annual percentage rate. APY – annual percentage yield.

However the most secure way to stake Solana is by using Ledger. This is because it is the same principle as securing it to take it off the exchange. You will have full control of your Solana by staking it through your Ledger device.

Frequently Asked Questions

What is Solana?

Solana is a programable blockchain that has SOL as its native cryptocurrency. It is a crypto with one of the highest market capitalisations and is very popular.

What is Solana known for?

Quite a few investors switched from Ethereum to Solana. This is because it supports smart contracts like Ethereum, but Ethereum gas fees were becoming exorbitantly high. On the other hand Solana’s transaction fees are less than $0.01. Solana is a top 10 NFT blockchain other than Ethereum.

Is Solana worth investing?

Solana has outperformed most cryptocurrencies returning 17,000% price gain in just a couple of years. If network adoption continues to grow and there are more use cases then Solana has a bright future.  

Why buy Solana?

Some investors buy Solana as a speculation to hold long term hoping to make some profit. Others trade Solana. While others buy it to stake it to get passive income or because they want to buy NFTs.

Where to buy Solana?

You can find the best places where to buy Solana here. You can check out fees and how to save on fees and find out how to buy Solana.
CoinStove
Logo