How to Buy Solana (SOL)

The Solana protocol offers a robust ecosystem for developing Web 3.0 and decentralized finance applications. As a result, increasing the adoption of such technologies among users can drive up the demand for the Solana blockchain among developers and make it a worthwhile investment to include in your crypto portfolio.

The SOL price can increase as more dApps launch on the blockchain and gain traction among users. Thanks to its high throughput, scalability, and smart contract capabilities, the Solana network offers a highly attractive alternative to Ethereum for dApp developers, one of the most substantial advantages supporting its value growth.

The Solana price can also enjoy growth amid a bullish sentiment toward the crypto market. Whenever the price of leading cryptos like Bitcoin and Ethereum rise, investor confidence receives a boost which drives up interest in leading altcoins, SOL included.

Solana is among the top 10 cryptocurrencies by market cap and has enjoyed quite the wild price action through the second half of 2021. It shot to fame, powered by the bull run in the crypto market and the rising adoption of its smart contract capable ecosystem by dApp developers looking to escape the high transaction costs and network congestion issues on Ethereum.

The Solana price hit an all-time high (ATH) of above $260 in November 2021, although the bearish mood towards digital assets brought down the SOL price into early 2022. Since its launch, Solana (SOL) has enjoyed an ROI of over 18,000%, making it one of the strongest performing altcoins in the crypto market lately.

There is also rising interest in Solana crypto among institutional investors, which could help the SOL price reclaim its ATH and rise even higher. As more mainstream investors buy Solana, the asset's value could increase well beyond its current highest price.

However, remember that there is no surefire way to make an accurate Solana price prediction over any period. You can, however, increase your chances of profit while trading Solana by doing your own research(DYOR) before entering a new trade.

The SOL token is the native digital asset of the Solana blockchain and serves many purposes, including:

Pay Transaction Costs

SOL is the cryptocurrency in which users and developers pay transaction costs for using the Solana network. As of June 2022, the transaction costs on the network are around $0.00025 per transaction.

Staking

You can stake your SOL crypto to increase the security and resilience of the Solana blockchain. In addition to staking to become a validator who verifies transactions and adds new blocks, you can also delegate your SOL stake to existing network validators. In return, you can earn rewards and grow your Solana investment.

Cryptocurrency to Trade and HODL

Solana is one of the top cryptocurrencies in market cap, liquidity, and trading volume. As a popular digital asset among investors, you can trade SOL against other cryptocurrencies or hold it over the long term to increase the value of your trading portfolio. Always check Solana price live, SOL market cap, circulating supply, trading volume, and fundamentals before placing a new trade in SOL.

Earn Passive Income on CryptoGem

You can earn attractive returns on your Solana holdings by lending liquidity in SOL to the CryptoGem Exchange. Head to the CryptoGem Crypto Lending section and select the SOL token from our list of offerings. Enter the number of SOLs you wish to lend and select the duration (choose from 7 days, 14 days, or 28 days). You can then see the daily interest rates we offer and get an estimate of the profits you could make.

CryptoGem also lets you stake SOL crypto to generate a stream of passive revenue. Head to the CryptoGem Earn section to learn about the latest APRs on offer and start staking Solana on our platform.

Solana (SOL) cannot be mined as the blockchain does not use proof of work consensus mechanisms like Bitcoin and Ethereum. Since Solana leverages a combination of proof of stake and proof of history mechanisms for consensus, you can contribute to validating transactions via staking SOL tokens on the network.

You can stake SOL to function as a validator node responsible for verifying transactions taking place on Solana and creating new blocks. In exchange for your efforts, you can earn rewards in SOL crypto.

There is no minimum number of SOL you have to stake to become a validator, but you need a vote account with a rent-exempt reserve of 0.02685864 SOL and a commitment to spend up to 1.1 SOL each day to send a vote transaction. You also need to invest in a higher-powered CPU with 12 cores or 24 threads, a processing speed of at least 2.8 GHz, at least 128 GB RAM, and high disk space of more than 500 GB.

Keep in mind that Solana does not yet have its official wallet as of June 2022. You can, however, stake Solana through other supported wallets.

Here’s how to stake SOL and generate a stream of passive income from holding this cryptocurrency:

1. Buy Solana via a crypto exchange like CryptoGem.
2. Transfer your SOL tokens from your CryptoGem trading account into an external wallet supporting Solana staking.
3. Create a staking account on the wallet of your choice that allows you to stake Solana.
4. Select the validator you wish to delegate your staked tokens to.
5. Sit back, claim your staking rewards regularly, and grow your SOL holdings.