Is Solana a good investment? It will be one of the best investments in 2022

What is Solana?

The cryptocurrency platform is Solana, while an individual unit is the SOL. Solana was created by Anatoly Yakovemko. He later released it in April 2019. As expected, the coin started trading at less than $1 per coin. Over a short time, the price of Solana has risen fast, trading at more than $200 as of November 2021. According to CoinMarketCap.com, Solana ranks among the ten largest cryptocurrencies by value. Therefore, we will discuss if Solana is a good investment for the next few year.

Moreover, Solana operates on a decentralized network that uses the blockchain ledger. The blockchain database tracks, manages, and records every transaction occurring. The computer records the transactions to verify the integrity of the data. The setup thus makes the network stronger without needing an intermediary. Solana regards itself as the fastest blockchain. It can verify up to 65,000 transactions within a second. The coin’s speed has thus reduced the cost of transacting with the coin. 

Although many people think of crypto coins as a currency, investors can still power other platforms. Below is a list of applications that Solana could power:

Smart Contracts

Solana’s smart contracts have modes that differ significantly from the traditional blockchains. The traditional contacts are EMV-based. So, they combine logic and state into a single on-chain contract. On the other hand, a Solana smart contract remains stateless. The contract contains the program logic only. Thus, deployed the platform from external accounts can access competent contacts. All these concepts make Solana coin a worthwhile investment.

Is Solana a good investment

Currency

You can use your Solana currency to pay for goods and services with a cryptocurrency wallet. You may need a cryptocurrency wallet to hold and protect your Solana like a regular wallet. However, the crypto exchange may offer you a primary wallet. A specialized wallet will increase the security features. It will also decrease type chances of losing your coins.

Decentralized finances

By inventing Solana, you can use payments that do not need permission from the government. In this case, you can avoid centralized control.

Non-fungible tokens

NFTs, commonly used in digital art, can be powered by Solana. This allows the artists to sell them to customers quickly. Most importantly, non-fungible tokens are a fast-growing segment. Digital speculators hope to buy and sell them for more in the future. The NFT could represent several digital properties. They are also built with the same technology as cryptocurrency blockchains. 

Proof of history approach

Aside from validating transactions, Solana will timestamp these transactions. Thus, malicious reordered transactions will not be recorded.

History summary

Solana began trading in March 2020 at about $0.22, and it increased to $1.5 on the first day. However, it dropped back to $0.05 before the end of the first month. By August of 2020, Solana was at $5.10.

1st January to 1st December 2021

The New Year got off to a new start as the SOL price tripled in January 2021. At this point, the Solana cap market surpassed $1billion. As of November 2021, about 302 million Solana coins were in circulation. Like other coins, Solana limits the annual coin issuance. This is because the coins are often awarded to individuals who support cryptocurrency. Solana began with an 8% yearly increase in supply, and the figure has declined annually to reach the current 1.5%. Compared to the previous years, Solana has been trading at an excellent price of up to 232.57.

YearHighest PriceLowest Price
 2020 $ 4.44 $ 0.59
 1st Jan – 9th Dec 2021 $232.57 $4.23

Comparison between Solana and other Cryptocurrencies

Is Solana a good investment VS. Is Polkadot a good investment

Solana was launched in 2017 and provided fast transaction speed in their network. On the other hand, Polkadot uses diverse blockchain technology. So, the coin does not claim to be a new blockchain network.

  Solana   Polkadot
 This coin supports 50,000 transactions per second. It supports up to 1000 transactions per second.
 The market cap is $61.53 billion. The market cap is about $45.28 billion.

Is Solana a good investment VS. Is Ethereum a good investment

The competition between Solana and Ethereum has increased. Although Ethereum was significant in 2020, Solana has created severe competition. Moreover, the frenzy around decentralized apps and non-fungible tokens has aided both coins.

         SolanaEthereum
    Proof of history is used chiefly mostly in Solana. The coin heavily relies on proof of work.
 The processing speeds in Solana are very high. Ethereum has a relatively low speed of processing transactions.
 It has a stateless architecture. Transactions are recorded in one state.

Is Solana a good investment VS. Is Binance a good investment

Both Binance and Solana are famous for their exceptionally high transaction speeds. However, there are many differences between the two cryptocurrencies: 

     Solana     Binance
Solana supplies 508 million coins.Binance supplies up to 200 million coins.
The coin cannot be mined.It supports a single type of mining.
The development of the coin was conducted in 2017.Binance was introduced in 2020.

Is Solana a good investment VS. Is Litecoin a good investment

The Lite coin is an open-source blockchain whose code is copied from Bitcoin. The currency was founded in 2011. Litecoin does not aim at changing the architecture. Instead, Litecoin’s high transaction speed aims at lowering transaction costs. However, the price of a transaction on Solana is still lower and is more efficient. 

     Lite coin     Solana
The coin has an average of $0.04 in transaction fees. The average transaction fee is $0.00025.
Litecoin has a fewer number of 84 million coins.Salona has over 489 million coins in circulation.
Litecoin has a block time of 2 minutes and 19 seconds.The block time is 800ms.

Is Solana a good investment VS. Is Cardano a good investment

Cardona is a blockchain organization used in Zug and Switzerland. The core mission of this cryptocurrency is to protect the Cardona protocol technology. On the other hand, Solana is a decentralized blockchain. It was built to enable scalable and user-friendly apps. Some of the differences between Solana and Cardona are:

     Solana     Cardona
Solana coin is not mineable.Cardona is mineable.
The coin was developed in 2017.This coin was developed in 2016.
Salona’s coin supply is 508 million.Cardona has a supply of up to 45 billion coins.

What do other People think about Solana?

Solana is a fast-growing type of cryptocurrency. So, it has been intriguing to investors in the short time it has been around. The model of acquiring Solana combines proof-of-stake and consensus algorithms. Through the consensus, transactions are processed according to the order they come in. This model thus helps to speed up the transaction times for the whole network. It also keeps the fees lower than $0.01 per transaction.

Solana has overdone other strong cryptocurrencies like Ethereum. Thus, it has become popular among many people. Also, the popularity of NFTs has been the attractive nature of Solana.

The wide acceptance of a cryptocurrency drives the retail investor’s interest in it. For Solana, ease in exchange has increased its value. Thus, obtaining other currencies has increased its popularity. The coin is currently one of the best investments.

FAQs

Where to Buy Solana?

Solana is one of the fastest-growing blockchain platforms because of its fast transaction speeds. The value of Solana has skyrocketed because of the hype around NFTs. In order to make investment on Solana, you have several options, including:

Coin base

As a result of its popularity and excellent services, Coinbase is an excellent place to buy Solana. Thus, buying Solana on a Coin base is very easy. A crypto wallet and a USD wallet are free of charge like other crypto exchanges.

Kraken

Solana is available on Kraken, which is another major crypto exchange. Moreover, you can buy cryptocurrencies for as little as $10 on Kraken. Also, Kraken features popular pairs which allow you to purchase USDT and convert it to Solana.

Binance

Notably, Binance is one of the best places to buy Solana. Like the coin base, you will also need to create an account to purchase Solana on Binance. However, Binance is a reliable way to buy Solana, and it allows you to stake your Solana. Therefore, you can trade them on Binance for Solana if you already have crypto holdings.

Uphold

Uphold deals with more than just cryptocurrency. You can use your Solana to buy precious metals. One of the reasons uphold is a popular choice for purchasing is that you can consequently buy the crypto against the dollar.

FTX

Due to the many convenient features, FTX has increased in popularity. As a result, a wide range of analytical data is available on the FTX. This makes it a choice for individuals who wish to research before purchasing Solana.

How to Buy Solana?

Most importantly, you need to know that most websites require you to create an account before purchasing Solana. For instance, you can use the following process for Coinbase:

  • First, create an account. As expected, most websites where you can buy Solana require you to create an account. So, the first step will be to download the site and follow the signup process. This will subsequently require your ID and proof of address. As a result of these processes, the verification may take a few minutes. 
  • Secondly, you should select a payment method. Tap on the payment method box because you need to choose a favorable payment method. You can therefore use a bank account to initiate a wire. You can also use a debit card.
  • Next, you should start your trade by clicking the buy option. Despite the high number of cryptocurrencies to purchase, select Solana from the list of assets on the app. Finally, you are expected to enter the amount you want to purchase and the amount you want to spend.
  • Finalize your purchase.  

How to Mine Solana?

You cannot mine Solana regardless of how powerful your software is or how much money you have. However, this cryptocurrency offers ways that could help the website for rewards:

  • This method allows you to stake Solana. Correspondingly, a validator is necessary in order to earn rewards. Evidence illustrates that the banks pay interest for your deposits in the same way that a validator in the Solana network pays your rewards. Therefore, the rewards are paid, allowing your coins to be staked for other transactions. That’s why Solana is an ideal investment for long-term investors.
  • This is where you will run a high-powered server in a data center. You can still earn commissions as a validator. Consequently, these commissions are the rewards generated by others who stake their coins. So, startup costs could be challenging for many.

Should I Buy Solana?

Solana has subsequently been an excellent performer in 2021. Despite being listed among the youngest cryptocurrencies, the coin has risen through the ranks. It has thus become the fourth most valuable cryptocurrency. After a year in the market, the coin’s value eventually reached $64.2 billion. As a result, Solana’s community of investors is very excited about its increased value. As a result of its high transaction speed, the coin has an advantage over other cryptocurrencies. Because of its speed, Solana is a direct competition for Ethereum. Solana can also verify thousands of transactions per second. In addition, Solana has a lower fee than other cryptocurrencies. The transaction cost for Solana is less than a cent for each transaction.

If you want to buy Solana with the hope of another 100% jump in the next month, you may want to reconsider. Solana is, therefore, an excellent long-term investment. However, it may not be favorable for individuals who wish to make quick returns. Although Solana is a new currency, it has strong leadership and reputable investors. Indeed all cryptocurrencies are risky. Finally, you should avoid investing more than you can afford.

Solana Price Trend Predictions

Owing to the constant shifts in the market, it is clear that the coin will witness a lot of growth from the cryptocurrency. Consequently, the price of Solana is expected to go high. Below is a table indicating the expected trends:

       Year    Highest price   Lowest price
2022$361$274
2023$377$449
2024$520$591
2025$563$623

For more details, please read this article: Solana price prediction

Summary

In summary, Solana is an excellent investment if you want to make and continue making money. Although it has been around for a concise, it has snowballed. The rapid growth is often attributed to exchange trade. Thus, individuals who have purchased recently have gained a significant amount of money. Therefore, individuals need to step up. The people should also take advantage of the coin’s commendable growth through investments. Thus, it is essential to understand what you are buying and how its growth will benefit you.

Instead of speculating about Solana or other types of crypto, we should try to grab these opportunities. We should invest in cryptocurrencies. So, you can trade Solana or invest in companies that stand to profit from cryptocurrency. So, before you invest in Solana, you must assess the risks and potential losses. This assessment is because cryptocurrency is volatile and is not backed by cash flow or assets.