How To Invest In Solana (SOL) In 2022

Investing in Solana (SOL): A Step-by-Step Guide

Last Updated March 25th 2022
17 Min Read

Solana (SOL) is a recent blockchain network that has seen fast-growing adoption across the cryptocurrency industry. This digital token has a real utility, making it an attractive asset in the eyes of many investors. 

If you are wondering how to invest in Solana to make long-term profits, then our guide is designed for you. 

This includes some basic information about what Solana is, how you can make a purchase, and, crucially - what you need to look for to find the right online broker to invest in this cryptocurrency. 

Contents:

How To Invest In Solana (SOL) In Five Easy Steps

Today, if you have a computer and access to the internet, you can buy and sell Solana anytime, from anywhere. 

Here is what you need to do:

Step 1: Set up your investment account with a regulated online broker.  

Step 2: Make a deposit into your brokerage account using a credit/debit card or an e-wallet like PayPal. 

Step 3: Choose how much money you want to invest in Solana. 

Step 4: Confirm your Solana investment order. 

Step 5: Leave your Solana coins safely stored in your crypto wallet until you decide to cash out your investment. 

As you can see, investing in Solana is simple, even for those entirely new to the cryptocurrency industry. 

If you are looking for a more detailed explanation of each of these steps, we urge you to continue reading this comprehensive guide. 

invest in solana

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How Does Investing In Solana (SOL) Work?

Before we get to the details of how to invest in Solana, it only makes sense that we discuss what this innovative blockchain is all about. 

In simple terms, Solana is a cryptocurrency project designed with the objective to address the blockchain ‘trilemma’. Put otherwise, this ecosystem aims to make applications faster and more secure without compromising on the aspect of decentralization

With networks like Bitcoin and Ethereum unable to accomplish all three of these aspects simultaneously, Solana is trying to fill a gap. And not so surprisingly, this blockchain has been delivering promising results so far.  

As with any other asset with an inherent value, the price of Solana goes up and down throughout the day. Whether it rises or falls depends on the market forces at play, dictated by the supply and demand. 

When investing in Solana, the overarching objective is to sell your SOL coins for more than what you originally paid. 

For example, you will buy SOL tokens because you think they will gain more in value in the future. This way, when you get around to cashing out your investment, you hope to do so at a higher price. 

To provide you some clarity - here is a basic example of how to invest in Solana:

  • You open your investment account with your chosen Solana broker. 
  • You make a deposit of $1,000 into your brokerage account and invest the full amount into Solana. 
  • Let's suppose that at the time of making the investment, Solana is worth $150 per token. 
  • You decide to hold these SOL tokens for five years. 
  • During this time, the value of Solana rises to $750. 
  • This means a price increase of 400%. 

In other words, on your original $1,000 investment in Solana, you make gains of $4,000. 

In practical terms, the value of Solana has increased by over 16,000% since the coin was launched in 2020. 

However, the market of this cryptocurrency is also prone to volatility. As such, you will want to look at the fundamentals and evaluate how this blockchain network stacks up against other digital assets before you make an investment. 

Reasons To Invest In Solana (SOL)

When you are considering investing in Solana, you are thinking in terms of the long-term prospects. In other words, you will be backing the wider project. 

That is to say, you will want to figure out if the SOL blockchain will have mainstream adoptions and how it will affect the value of its native digital asset. 

With that in mind, we will explore a few reasons why you might be inspired to invest in Solana. 

Solana is a Programmable Blockchain 

Solana is one of the many networks that is widely viewed as a potential successor to Ethereum

This is primarily because this is a programmable blockchain - made of smart contracts that can be designed to carry out certain actions when the specific conditions have been fulfilled. 

Although Ethereum was the first blockchain to introduce this feature, the network is experiencing heavy congestion due to increased traffic. 

It has also resulted in higher fees and slower transactions, along with a large carbon footprint. Among the several other projects that have emerged to address these drawbacks, Solana has proved to be the fastest of all. 

Moreover, the Rust programming language is easier to learn, which could help drive further community adoption of Solana. 

Solana has Reaped Profits from NFTs

2021 saw the market for Non-Fungible Tokens (NFTs) explode, and Solana has been amassing impressive gains due to this. Many NFTs are now being built on this blockchain, which has helped increase the value of the SOL coins. 

With the NFT market set to hit new highs in 2022, Solana stands to benefit significantly. The blockchain has built several projects - including, Solanart, Snailana, Lollapalooza, and more. 

If the demand for NFT projects launching on Solana is to rise, the price of SOL tokens could also increase. Although NFTs are available across different blockchains, the low gas fee of Solana makes this network an attractive alternative for collectors and investors. 

Similarly, for applications such as gaming and micropayments, Ethereum imposes a high fee structure. 

Although ETH2 might help to overcome this obstacle - it will be launched only by 2022. For now, this provides Solana a big opportunity to increase its market share. 

Solana has Some Interesting Partnerships 

Apart from its real-world utility, another aspect that is in favour of Solana is the partnerships being racked up by the blockchain. The network has already integrated with Chainlink in 2021. 

The rapidly growing community chat app Kik has also completed its migration process of SOL. 

In October 2020, Solana also partnered with Circle, one of the largest online payment systems, to facilitate immediate transactions using USD Coin, a digital asset with its value pegged to the US dollar. 

This makes way for a secure ecosystem of e-commerce and financial applications carried out at lightning speed on the blockchain. 

Circle has also partnered with VISA, meaning, Solana network is likely to obtain more reach, further boosting the value of SOL tokens. 

Solana is also a great choice for crypto adoption on a wide scale, as it is positioned to provide fast, secure, and transparent solutions for online shopping. This network allows businesses to get paid instantly while knowing that customer card details will not be compromised. 

With strong backers and a fast transaction network, Solana seems to have promising long-term prospects that can certainly be appealing to you as a cryptocurrency investor. 

Check Out: Should You Buy Solana (SOL)? 4 Pros, 4 Cons

invest in solana

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How To Invest In Solana (SOL) - Different Options Available

Given the rising popularity of Solana, it makes sense that there are several platforms that allow you to invest in this digital asset. 

However, the features offered, security, fees, and even the ease of making the investment differ substantially from one provider to another. 

In this section of our How to Invest in Solana Guide - we will discuss the two most popular ways to buy SOL tokens over the internet. 

Solana Exchanges  

When browsing the web to find out how to invest in Solana, you are likely to have come across the mention of cryptocurrency exchanges. These are platforms that function as a marketplace for buyers and sellers of digital assets. 

While the popularity of such exchanges can be tempting, there is a crucial aspect that you do not want to overlook. In the vast majority of cases, these platforms operate without an official license from a financial authority. 

Since cryptocurrency exchanges bypass any regulatory guidelines, you will be making your Solana investments in a potentially dangerous environment. 

Moreover, if your chosen firm is to fail, you might even end up losing access to the funds that are left on the platform. In other words, your capital will always be at severe risk. 

In addition to the lack of regulation, cryptocurrency exchanges often have a cumbersome investment process - which you might find difficult as a beginner. 

For example, not every crypto exchange allows you to invest in SOL coins using fiat currencies. You might have to fund your account using a digital asset like Bitcoin in order to gain access to the Solana market. 

Furthermore, as you might not want to leave your Solana tokens in an unregulated exchange, you will have to transfer them to a private wallet. This can be both laborious and inconvenient for newbie investors. 

Although popular exchanges like Binance do facilitate fiat currency deposits via debit or credit cards, you will have to pay a hefty transaction fee to process the transaction. 

Solana Brokers

If you are wondering how to buy Solana in a safer environment, then look no further than a regulated online broker. 

While many brokers originally catered to more traditional asset classes such as stocks and commodities, these days - more and more platforms are entering the cryptocurrency markets. 

In fact, you will be able to find such trading sites that specialize in digital tokens and even leveraged crypto products. 

Choosing to invest in Solana through an online broker is both practical and convenient. The best platforms allow you to create an account within a couple of minutes and get started with your investment right away. 

The fees charged by brokers are also relatively lower compared to cryptocurrency exchanges. Moreover, a majority of these platforms also support direct fiat deposits. 

And most importantly, you will also be able to keep your Solana tokens via an in-house wallet on your chosen platform. This means that you will not be forced to transfer your SOL coins to a private wallet for safekeeping. 

Given that your broker is regulated, this will add to the safety and security of your investments while allowing you to readily cash out your SOL coins directly from your account. 

Read Also: Is It Worth Investing In Solana?

How To Choose A Broker To Invest In Solana (SOL)

By now, you know the best way to invest in Solana is by using a regulated crypto broker. That being said, finding a provider that is beginner-friendly without compromising on features can be a challenging undertaking. 

Here, we are outlining the three most important factors that you need to evaluate when choosing a trusted online broker to make your Solana investments. 

Licensing and Reputation

In the previous section, we mentioned that the lion's share of online cryptocurrency platforms that dominate the market are unregulated. 

As such, you will need to start your search by ensuring that your chosen Solana provider is in possession of a valid license issued by a respectable financial authority. 

  • For instance, if you are in the UK, you should be looking for online brokers regulated by the FCA. 
  • Similarly, US residents should keep an eye out for an SEC license. 
  • In the same way, most countries have their own governing bodies that are in charge of governing financial platforms - including CySEC in Cyprus, FSA in Japan, and ASIC in Australia. 

Moreover, some online Solana brokers might also hold licenses in multiple countries - making them even more secure and competent. 

Fees to Invest in Solana

As a complete beginner, you might be unaware that investing in Solana comes with other costs - excluding your stake amount. Your chosen broker will charge you a variety of fees for using their services. 

As you can imagine, this can vary considerably across different platforms. So in this section, we will discuss what kind of fees you need to keep an eye out for when learning how to invest in Solana. 

Commissions 

Most brokers allow you to invest in Solana by charging you a commission. This is often a variable fee that is calculated against your stake. 

  • For instance, if your broker charges you a commission of 3% on cryptocurrency investments and you invest $1,000 - this means that you will pay $30. 
  • You will pay this fee again when you are selling your SOL tokens. 

However, you will also be able to avoid this fee by choosing a commission-free broker. This means a considerable reduction in the cost associated with making Solana investments. 

Deposits and Withdrawals

Although a few platforms might allow you to evade commission, you will invariably end up paying some kind of administrative charges to your Solana broker. This primarily includes fees for processing your deposits and withdrawals. 

How much you pay in terms of these transactional charges is dependent entirely on the method you use. Generally, faster payment methods such as debit/credit cards and e-wallets come with a relatively high fee on most Solana brokers. 

If you want to reduce the fees for making deposits and withdrawals, a bank transfer might be more suited. But this will require you to wait for a few days for the payment to process. 

Minimum Solana Investment and Payments

In the majority of cases, online Solana brokers often have a minimum investment requirement in place. Considering how volatile this cryptocurrency is, you will want to find a platform that allows you to start with smaller amounts. 

This is crucial so that you can keep your stakes low and ensure that you only risk an amount that you can afford to lose. 

Additionally, your chosen Solana broker might also have conditions for the minimum deposit amount that you can make. This requirement might also vary depending on which payment method you choose. 

These days, online brokers facilitate payments via not only bank transfers but also debit/credit cards and e-wallets. 

Either way, we suggest that you consider what methods are supported by your chosen broker to process deposits and withdrawals. 

If you have a preferred mode of payment method in mind, you will want to make sure that your platform accepts it before creating an account.

Storage and Cashing Out

We mentioned previously that we do not suggest using unregulated cryptocurrency exchanges for several reasons. 

These primarily concern the safety of your investments. In other words, if you leave your SOL tokens on such a platform, there is every chance that your digital assets might be prone to hacking. 

To avoid this, you will want to move your Solana coins to a secure crypto wallet. This will require you to do thorough research to gain an understanding of wallets, private keys, and their safekeeping. 

Alternatively, you might want to consider using a regulated broker with an in-built custodial wallet. 

Moreover, when it comes to cashing out your Solana tokens, you will be able to do so at the click of a button - directly from your brokerage account. In other words, there will be no need for you to move your SOL coins to and from an external wallet. 

invest in solana

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How To Invest In Solana (SOL) Today - Step-by-Step Walkthrough

To conclude our guide, we will now cover the entire process of making an investment in Solana in more detail. 

As we have already covered, you will have to find a regulated broker that gives you access to SOL tokens at a reasonable fee. 

Once you have found the right cryptocurrency provider, you can follow the steps outlined below to learn how to invest in Solana in less than 10 minutes. 

Step 1: Open an Account

To get things started, you can head to the website of your chosen broker and open an account. This will require you to create a username/password and provide your email address. 

You will then have to fill in some personal information - such as your full name and country of residence. Once you have confirmed your contact details, you can proceed to the next step. 

Step 2: Provide Some ID

A crucial aspect of choosing a regulated broker is that you will have to go through an identity verification process - otherwise known as KYC. 

Although this might sound complicated, most platforms have this step automated, so you will be able to complete the process almost instantly. 

In summary, you will be asked for both your government-issued ID and proof of address. For the latter, you can submit a recent utility bill or tax letter. 

Step 3: Deposit Funds

Many online brokers support a wide selection of payment methods that cater to the preferences of a large spectrum of investors. 

If you want to make a deposit to invest in Solana instantly - you can opt for a debit or credit card payment. You will also find that e-wallets such as PayPal, Neteller, and Skrill also process transactions right away. 

On the other hand, you can also make a deposit into your account with a bank wire transfer. But this might delay the process by several days. 

Step 4: Search for Solana

Your chosen broker is likely to offer support for several assets other than Solana on the platform. So you will first need to find the trading page for SOL tokens to start making investments. 

On most platforms, this can be done easily by searching for Solana on the website.

Step 5: Complete Solana Investment

Once you have landed on the Solana trading page, you can set up your 'buy order.' 

This will require you to specify how much you wish to invest in Solana. Based on the requirements of your chosen broker, you might also need to meet a minimum trade value. 

When ready, you can confirm the order to complete your Solana investment. You will then have the option to leave your SOL coins in the in-house wallet of your brokerage platform or move them to a private wallet. 

Step 6: Cash Out Your Solana Investment

Although you might not be looking to cash out your Solana investment any time soon, it will be good to have a firm grasp of how to sell your SOL tokens. 

When the time arises, you can head over to your online brokerage portfolio and locate Solana. Most platforms will feature a 'Sell' button that you can use to cash out. You can either choose to dispose of all of the SOL coins you own in one go - or just a small portion of your investment. 

As soon as you confirm the 'sell order,’ the broker will execute it for you, and the cash will be reflected on your account balance. You will then be able to withdraw it to your original payment method. 

That said, bear in mind that if you have kept your Solana tokens in a private wallet, you will first need to transfer them to your brokerage platform before you can sell them. 

How To Invest In Solana (SOL) - Conclusion

Solana can be a worthwhile consideration for those who want to make a long-term investment in the cryptocurrency space. However, like all other digital tokens, the value of SOL can fluctuate during market ups and downs. 

Adding Solana to your crypto portfolio means that you will have to actively monitor its price movements. Regardless, when thinking of how to invest in Solana, you will need to make sure that you have a regulated broker by your side. 

By choosing the right platform, you will not only be able to make safer and cheaper Solana investments - but you can also store your SOL coins in an in-house wallet for free. 

eToro – Best Cryptocurrency Platform To Buy Solana

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

FAQs

Is Solana a good investment in 2022?

Solana has real-world relevancy by facilitating faster and safer blockchain transactions. However, this cryptocurrency is also a volatile asset. Therefore, before you make an investment, it is necessary that you educate yourself about the market and the risks involved.     

How to invest in Solana?

To invest in Solana, you can find a regulated broker that provides access to this digital asset. You can then open an account with your chosen platform, make a deposit, and complete the investment in under 10 minutes.     

How much should I invest in Solana?

It is always best that you invest only small sums into Solana that you can afford to lose. That said, you will also need to check whether your chosen broker has any minimum investment conditions that require you to put up a certain amount.    

How to store my SOL tokens?

You will need to find a crypto wallet to keep your Solana tokens for the long term. Another option is to sign up on a regulated brokerage platform that provides an in-house wallet for storing your SOL tokens safely.     

How can I sell my Solana investment?

If you have stored your SOL tokens on a regulated brokerage platform, you will be able to cash out your investment directly from your account. If not, you will have to move the digital coins from your external crypto wallet to the trading site before you can sell them.  

Read More:

Could Solana Be a Millionaire Maker Coin? 

Is Solana a Good Buy?

Why Solana Is Going To Explode

When Is The Right Time To Invest And Sell Solana (SOL)?