Solana is a blockchain platform similar to Ethereum, designed to work with Proof-of-Stake (POS). The first thing that leaps out about Solana is how fast it can process transactions on the network.
While some other networks are still following Bitcoin’s old ways and using Proof-of-Work (PoW) or even PoS for their networks, Solana has proved that it can do 710 tps (transactions per second). That’s insane, especially when you consider that Ethereum is stuck at around 15 tps.
While this is an impressive statistic on its own, Solana’s CEO and founder, Anatoly Yakovenko, has gone even further than that with his claims. He has stated that Solana can process a massive 10,000 tps, making it one of those dream projects.
When you’re looking to buy and sell Solana in Australia, here are some strategies and information to think about.
What Makes Solana Tick?
Proof-of-History: Anyone who’s been around the cryptocurrency long enough will know that speed and security are two of the most important things to look for when you’re reading reviews about the latest and greatest. Solana has considered that and opted to use its Proof-of-History algorithm to secure transactions on the network.
Proof-of-Reputation: To further speed up things for users on the Solana network, they’re also boasting about their Proof-of-Reputation. It works a lot like Proof-of-Stake, which means that you don’t have to mine the coins. Instead, they’re distributed based on reputation, achieved through consistent behaviour and transactions within the network.
The best way to acquire Solana is by purchasing it. There are many ways to go about buying cryptocurrency, and this article will explore ten strategies that you can use so you don’t make any mistakes while investing in Solana.
1. Researching the Market Conditions
Before placing your hard-earned money on something as volatile as cryptocurrency, you need to conduct your own research. Look at the fundamentals of cryptocurrency and blockchain technology. By doing this, you will get an idea of why Solana is valuable. You can also consider the regulations that may affect Solana.
2. Pick Trading Platforms Carefully
There are many cryptocurrency trading platforms available. Some are secure and have a good track record, while others could be scams. Cryptocurrency is a billion-dollar industry that can easily disappear overnight if it isn’t managed properly. So pick the ones that have low charges and a good reputation.
You can easily buy and sell Solana in Australia once you have secured the right platform for your requirements.
3. Trading Volume
It refers to the amount of Solana traded within a certain period. You can easily find this on exchanges. If you are lucky, there will be a high trading volume, which means more people use it. Generally, more active platforms have low fees and better customer service.
4. Security Measures
Just like any other financial institution, your cryptocurrency wallet is susceptible to risks. Cryptocurrencies are always vulnerable to hackers. So before you invest, check the security of the platform and the ease with which you can get help if something goes wrong.
5. Look for Low Fees
Like most financial transactions, there are fees associated with buying Solana. Most exchanges list their fees, and you can pick one that has a low cost per trade. Some even do not take fees at all.
6. Solana Regulation
As Solana is still new in the market, there are no laws around its usage. Regulations can be positive if it checks competition and has good consumer protection laws. However, regulations can hamper development if they are harsh or unclear. So before you invest in Solana, make sure that you understand the legal landscape when it comes to Solana.
7. You Maybe Able to Get Solana for Free!
You can get Solana without spending a single penny by using bonuses, airdrops, or even bounties. A bounty is basically a reward that you will get for promoting a project. You can earn free tokens by performing simple tasks on social media like Twitter, Reddit, and other platforms.
8. The Solana Coin’s Circulation and Total Supply
Before you invest in a cryptocurrency, you must find out more about its total supply. The circulating supply indicates the number of coins that are currently available for trading or exchanges. It affects the price of a coin. For example, if there are only 100 coins available on the market but the total supply is 1,000, it can drive the price of one coin up because there are fewer coins available. If the circulating supply falls below the total supply, you could see a price rise.
9. Other Things to Keep in Mind
When investing in cryptocurrency, there might be additional things to consider, depending on your goals and personal preferences. For example, if you are technologically savvy and want to try your hand at mining, it might make sense for you to invest in Solana.
10. Trade Wisely
The best way to trade Solana is by using limit orders and stop-loss orders. A limit order is an order that sets a certain price at which you want to buy and sell Solana in Australia. In contrast, a stop-loss order allows you to sell the cryptocurrency when its price falls automatically.
Buying and selling responsibly can help you maximize your returns on Solana while keeping your risk exposure at a minimum.