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How to Buy Solana (SOL)

The decentralized finance ( DeFi ) are a hot topic in the industry criptomonedas. Most of DeFi’s infrastructure is built on Ethereum, the largest and most robust blockchain network that supports smart contracts.

Smart contracts are the code that powers DeFi , allowing exchanges, financial derivatives, and even insurance to be processed on the Ethereum blockchain .

With the affluent demand for the Ethereum network, transaction costs have skyrocketed. This makes it difficult for retail investors to use DeFi on Ethereum, as transactions can cost more than $ 50.

Like Ethereum, Solana uses smart contracts to host decentralized applications ( dApps ). However, Solana’s unique parameters allow for significantly lower transaction costs, while increasing the speed of the network.

Next, discover what Solana is, and how to buy the cryptocurrency in 3 easy steps.

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What is Solana?

Solana is a smart contract-enabled cryptocurrency that uses proof-of-stake and proof-of-history consensus to secure its blockchain .

Instead, Ethereum uses a proof-of-work consensus , which increases transaction costs on its network.

To understand the differences between Ethereum and Solana, you should familiarize yourself with these different consensus models.

Proof-of-work consensuses use computational power to secure blockchain transactions. Bitcoin, for example, also uses proof-of-work consensus , although Ethereum is currently in the process of upgrading its blockchain from proof-of-work to proof-of-stake .

The proof-of-stake consensus uses validators with a financial stake in the cryptocurrency to verify transactions on the blockchain.

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In many cases, anyone can become a validator as long as they have enough cryptocurrencies to use as collateral on the blockchain.

Cryptocurrency collaterals serve to keep validators in check: if guarantors attempt to introduce fraudulent transactions, their cryptocurrencies are confiscated .

The proof-of-history consensus works by adding what is essentially a timestamp to the blockchain.

In this way, transactions can be verified based on when they are sent using a verifiable delay function. Unlike the proof-of-work and proof-of-stake consensuses, the proof-of-history consensus records a transparent sequence of transactions, when they occur.

Brief history of Solana

Although the Solana (SOL) cryptocurrency token was just launched last year, the Solana Foundation has been busy with this task since 2017, when Anatoly Yakovenko and Greg Fitzgerald left Qualcomm , to start the Solana Foundation .

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The token began trading in April 2020 at USD 0.75 and throughout the year, Solana roughly doubled in price.

In 2021 Solana gained the attention of the mainstream, rapidly ascending to the 10th largest cryptocurrency by market capitalization . Solana is currently trading at $ 67 per coin and has a market capitalization of more than $ 19 billion.

Solana’s rapid price recovery, from recent lows around $ 23, shows that investors are eager to bet on the future of blockchain.

How to buy Solana

1. Open an account online

Unfortunately, most of the popular cryptocurrency trading platforms have yet to add support for Solana. Being such a promising project, Solana is likely to be added to more cryptocurrency exchanges in the near future.

Right now, your best option is to use Crypto.com to invest in Solana.

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To open an account at Crypto.com , you will need to enter an email address and create a password.

You will most likely also need to provide personally identifiable information to the website for tax purposes. Once your identity is verified, you are ready to start investing.

2. Buy a wallet (optional)

Before investing in any cryptocurrency, you should consider where you are going to store it.

It is not recommended that you store your cryptocurrencies in an online exchange, as exchanges are a great target for hackers.

Many exchanges have been hacked in the past. The only reason you should keep your cryptocurrencies on an exchange is if you are trading short-term. Instead, you should store your cryptocurrency in a hardware or software wallet.

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Software wallets are free-to-use applications that allow you to store your cryptocurrencies safely on a PC or mobile device.

Hardware wallets are the safest way to store cryptocurrencies, since they store your assets offline, on a physical device.

3. Make your purchase

You can buy Solana on Binance using Bitcoin or USDT. Tether (USDT) is a stablecoin pegged at $ 1, so it simulates an investment in fiat currency.

Some cryptocurrency investors like to trade against Bitcoin, as this provides a metric to measure the performance of an investment.

You can place your buy order as a market order or a limit order.

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Market orders are executed instantly at market price, while limit orders are executed if the cryptocurrency reaches a specific price that you can specify. However, if the cryptocurrency never reaches that price, your order will not be executed.

The best cryptocurrency exchange for Solana

Solana is available to clients in the US on some notable exchanges, including Binance, Coinbase, and Crypto.com.

If you are in the United States, then Coinbase is a great place to start investing in cryptocurrencies, as it is one of the oldest and most established cryptocurrency exchanges in the industry.

Additionally, Coinbase is a publicly traded company, so you can rest easy knowing that your funds are in good hands.

Binance is another great option for investors around the world.

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The trading platform has a higher volume than the rest of the cryptocurrency exchanges. Even small market cap altcoins are on Binance. Additionally, Binance has a wide variety of altcoins to invest in. Given this, many operators go to this exchange in search of cryptocurrencies.

The best cryptocurrency wallets for Solana

Best Hardware Wallet: Ellipal Titan

In almost every way, Ellipal Titan is the best hardware wallet on the market. The wallet has 2 storage solutions: a hot wallet (mobile app) and a cold wallet (a physical device). Both are interoperable, allowing you to easily manage your cryptocurrency portfolio directly from the application.

Ellipal Titan has a sleek design with a large touch screen. In addition, the wallet does not use cables or bluetooth to connect to the application. Instead, the wallet uses QR codes, the safest way to transfer cryptocurrencies (since you need to physically scan the code to access your funds).

Although Ellipal is typically more expensive than its competitors, the company is currently offering a $ 30 discount as a special promotion. Applying the discount, the Ellipal Titan becomes a great deal, especially considering its premium features.

Best Software Wallet: Trust Wallet

Trust Wallet is a free-to-use mobile wallet that supports a wide variety of cryptocurrencies. If you ever plan to invest in tokens that use Binance’s smart chain, then you will need a software wallet like Trust Wallet to interact with Binance’s decentralized ecosystem.

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Remember to save your initial phrase somewhere safe, as you will need it to recover your funds if you lose access to your account.

Trade, sell or convert your Solana

If you plan to actively trade with Solana, you will need to leave your funds on Binance to do so. If you are buying Solana to maintain it, in the long term, then you will need to transfer your tokens to and from your cryptocurrency wallet when you want to make transactions.

It is a good idea to average the purchase price as well as the selling price. Since cryptocurrency investments are so volatile, averaging your purchase helps reduce some of the risk associated with its volatility.

Current cryptocurrency prices

The cryptocurrency market has exploded this year, after large institutions such as Tesla and Paypal have expressed support for blockchain technology and Bitcoin.

While Bitcoin’s annual returns have been impressive, in terms of percentage gains, cryptocurrencies like Ethereum and Solana have done much better.

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It is a good idea to keep an eye on the cryptocurrency markets to get an idea of ​​how prices are moving.

Is Solana a good investment?

If Solana can truly compete with Ethereum, then the cryptocurrency can be a solid investment by 2021.

Ethereum still has the largest infrastructure on its blockchain , including decentralized exchanges (DEX), non-fungible tokens (NFT), and automated lending protocols.

If Solana is not able to build its infrastructure before Ethereum migrates to proof-of-stake , then it is unlikely that Solana will be able to compete with the Ethereum network, given the scope that network effects have on the industry. cryptocurrencies.

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Crypto

Ethereum 2.0 is just around the corner: kintsugi testnet deployed

Another testnet that brings closer to V2 – Ethereum (ETH) is about to undergo a major update with the transition to its V2. This transition, initiated in December 2020, is expected to accelerate in the first quarter of 2022, with the merger between Ethereum 1.0 and Ethereum 2.0.

Ethereum 2.0 and “The Merge”: the long-awaited update

This is not news to anyone: Ethereum is a victim of its success. Indeed, over the last 2 years, the network has been the cradle of the latest trends. In 2020, the network hosted the creation as well as the rise of decentralized finance(DeFi). In 2021, it was the turn of NFTs to become the flagship attraction on Ethereum.

Obviously, who says boom says massive arrival of users. However, the Ethereum blockchain is only able to process about twenty transactions per second. As a result, over-reported transactions on the network have led to significant congestion.

Thus, it seems to have become normal to spend several tens to hundreds of dollars to make a transaction or interact with a smart contract on Ethereum. One of the solutions to this congestion problem lies in the transition to proof of stake (PoS). This transition in the consensus algorithm should partially mitigate the problem, increasing the processing capacity of the network.

Phase 0 of the transition to Ethereum 2.0 began in December 2020,with the launch of the beacon chain. As a reminder, the beacon chain will be the backbone of Ethereum 2.0. This ensures consensus and will be the coordinator of the various shards, planned for phase 2 of Ethereum 2.0.

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The next phase, Phase 1, is called “The Merge”. This one aims to connect the application layer of Ethereum as we know it to the consensus layer of Ethereum 2.0. This milestone planned for the first quarter of 2022 will mark the transition to PoS.

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Kintsugi: a first testnet for The Merge

The Merge is just around the corner. For several months, the developers in charge of its design have deployed different devnets to monitor its operation.

On Monday, December 20, Tim Beiko,coordinator of the transition to Ethereum 2.0, announced the deployment of the first publicly opentestnet of Ethereum 2.0. Called “Kintsugi”, thelatter will allow the entire community to test Ethereum 2.0 after the deployment of The Merge.

Tim Beiko’s post – Source: Twitter

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“After 4 ephemeral devnets, Kintsugi, a public testnet with a longer lifespan, is now online. While client development and UX continue to be refined, we encourage the community to start using Kintsugi to get acquainted with Ethereum in a post-merger context. »
Tim Beiko

From now on, the community will test Ethereum 2.0 post-merge and report any bugs so that corrections can be made.

While Ethereum developers put a watchword to ensure security, it is not the same with dApps developers. Indeed, they are victims of many attacks. Recently, the BadgerDAO protocol suffered $120 million in losses in an attack.

Will you support the Ethereum revolution? It’s up to you to board the crypto train! To do this, and start getting acquainted with this exciting world, do not wait to create an account on Binance,the bitcoin exchange and crypto reference (affiliate link).

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Staké as ever – The Ethereum 2 contract inflated to block

A full contract The year 2022 promises to be colorful for the Ethereumnetwork. Thus, it should witness the most important update of its history with the transition to proof of Stake. As the deadline approaches, more and more validators are rushing to the Ethereum 2.0 beacon chain.

Ethereum 2.0: Imminent launch

Ethereum has been a victim of its success for several months now. Indeed, the network is witnessing a growing number of users leading to an increase in the number of daily transactions. However, it is not able to properly process all of these transactions.

As a result, transaction fees have skyrocketed,making the network virtually inaccessible to most users.

In order to overcome this problem, developers have been studying and developing for several years the change of consensus to move the network from Proof of Work (PoW) to Proof of Stake (PoS). This new PoS-based network is commonly referred to as Ethereum 2.0.

With this change in consensus, the current validators of the network, in other words the miners, will be replaced by validating nodes.

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Thus, in December 2020, the backbone of Ethereum 2.0 was launched with the deployment of the beacon chain. As a reminder, it ensures the consensus layer of the network and evolves in parallel with Ethereum as we know it.

In 2022, Ethereum’s application layer is expected to be connected to Ethereum 2.0’s consensus layer via a mechanism called The Merge. Therefore, the transition to Proof of Stake is expected to be ensured in the first quarter of 2022.

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Validators rush to ETH 2

With the fateful date of The Merge’s application approaching, more and more validators are rushing to Ethereum 2.0.

Thus, the number of ETH that are blocked in the Ethereum 2.0 deposit contract has just exceeded the 8 million ETHmark.

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Announcement of the passage of the 8M ETH by Glassnode – Source: Twitter.

As a reminder, the deposit contract is a smart contract hosted on Ethereum. This allows you to block ETH on Ethereum 1.0 in order to issue the tokens on Ethereum 2.0 needed to operate a validation node. Indeed, as part of the Proof of Stake, validators must back a collateral of 32 ETH to their node to participate in the validation process.

Thus, the more than 8 million ETH deposited in this contract will be blocked there until the launch of Ethereum 2.0. The terms and conditions for retrieving the tokens have not yet been set. It is not yet clear if these will be recoverable during The Merge or later.

On December 20, The Merge’s first community-oriented testnet was launched by Ethereum developers. This allows the community to test the transition to Proof of Stake and to report the bugs still present in the source code. Its smooth running will be decisive as to the date of deployment of The Merge on the Mainnet of Ethereum.

Itis not too late to acquire ETH and place them in staking in order to access attractive returns. To acquire the precious ethers, do not wait any longer by going to register on the Binance platform,THE absolute reference of the sector (affiliate link).

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From Bitcoin to Ethereum 2.0 – Vitalik Buterin looks back on 9 years of predictions

Vitalik makes a small retrospective – It’s now been 9 years since Vitalik Buterin, the co-founder ofEthereum (ETH),has been involved in the crypto ecosystem. Even before creating his network, he was already heavily committed to Bitcoin (BTC). On the occasion of the new year, he looks back on the predictions he has made since his arrival in the ecosystem.

Buterin’s predictions about Bitcoin

In 2013, when he arrived in the crypto ecosystem, Vitalik Buterin was extremely involved in the Bitcoinnetwork. Few remember that the interested party began his career as a content writer for a blog dedicated to bitcoin. As part of this blog, he shared many predictions. For the new year, our man returned to these predictions via a Twitter thread.

Post by Vitalik Buterin – Source: Twitter

Buterin begins his thread by going back on his predictions about Bitcoin. Initially, Vitalik had predicted an adoption of bitcoin in countries with weak fiat currencies,such as Argentina or Iran. It also pointed to the logical evolution of stablecoins. 9 years later, this prediction seems to have been relatively accurate.

“Last week I went to Argentina. My verdict: generally correct! The adoption of cryptocurrencies is high, but so is the adoption of stable currencies. Many companies operate in USDT. But of course, if the USD itself starts to show more problems, that could change. »
Vitalik Buterin

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In 2013, Buterin also explored the consequences of “increased regulation of bitcoin-related services.” At that time, our man felt that BTC would resist governments by being technologically incensurable, not by placing itself in an asset class legally. An opinion that has since evolved.

“Of course, Bitcoin’s decentralization would still allow it to ‘survive’ in a super hostile regulatory climate, but it wouldn’t be able to ‘flourish’. A successful censorship resistance strategy requires a combination of technological robustness and public legitimacy. »
Vitalik Buterin

>> Come and expose yourself to Bitcoin alongside Binance, the leading player in the sector! <<

And on the Ethereum side?

After his involvement in Bitcoin, Vitalik Buterin co-founded the Ethereumnetwork. Once again, the years of development have led to many predictions, which have not always come true.

First, Vitalik admits to having royally mistaken vis-à-vis the deployment times ofEthereum 2.0. A photo from his 2015 presentation on proof of stake and sharding deployment times shows a very poor estimate of development times.

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Post by Vitalik Buterin – Source: Twitter

“Honestly, these were very fake and it’s worth laughing about. I’m going to share a screenshot of one of my 2015 presentations so everyone can laugh more easily. »
Vitalik Buterin

Buterin admits to having greatly underestimated the complexity of the computer development of the solutions imagined at that time. Now, the developers of Ethereum 2.0 make it a point of honor to promote simplicity, both in design and implementation.

He also could not miss his famous remark of 2015: “The currency of the internet should not cost more than 15 cents for a transaction”. A claim he continues to support, explaining that this remains the guideline for Ethereum, thus justifying the move to Ethereum 2.0.

Finally, the father of Ethereum returns to the predictions made during the writing of the whitepaper,concerning the typical applications that we were going to meet on Ethereum.

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On this subject, Vitalik was rather far-sighted. Indeed, he predicted that DeFi would be very successful by anticipating the following applications:

  • ERC20 tokens;
  • Algorithmic stablecoin;
  • Domain name systems (such as ENS);
  • Decentralized file storage and computing;
  • DAO;
  • Wallets with withdrawal limits;
  • Oracles;
  • Prediction markets.

A great way to start the year 2022, especially with the imminent arrival of Ethereum 2.0. Indeed, the first community testnet of the transition to proof of stake at the end of December 2021, with a deployment on the mainnet estimated in the first quarter of 2022.

Whether you are a fan of Ethereum, Bitcoin or one of the cryptocurrencies that populate the market, it is essential that you have an account on Binance, the major player in the trading ecosystem (affiliate link)

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