If a cryptocoin shows the slightest sign of increasing in value, investors are everywhere – Solana is no exception
Cryptocurrencies are considered high risk investments due to unpredictability and volatility nature of the market.
As the already volatile cryptocurrency scene gradually becomes increasingly unpredictable, investors are looking for new coins to invest their real money in, hoping to earn a good return.
The latest to catch people’s attention is Solana, which has seen several price spikes recently, bucking the trend of widespread crypto crashes.
So what exactly is it, and how much does Solana cost?
Here’s everything you need to know about it.
What is Solana?
Solana (or SOL) is the native cryptocurrency of the public blockchain platform of the same name.
What the developers of this platform hope to set apart from others – like Ethereum – is its “proof of history” concept.
Essentially, “proof of history” is a method of synchronizing time between computers that don’t trust each other.
When Bitcoin was created more than a decade ago, it solved a difficult problem: how to allow strangers around the world to conduct financial transactions over the Internet without the intervention of financial intermediaries or payment processors such as as Visa or Mastercard.
Blockchain was the technology that enabled decentralized transactions – but blockchains have always had one major drawback: they are slower.
Developers observed that the established blockchains of the time operated without a clock and, therefore, were unable to handle more than 15 transactions per second.
Centralized payment systems like Visa require peaks of 65,000 transactions per second, and therefore these blockchains could never compete.
Solana is one of many innovative crypto solutions that use a variety of sophisticated technologies to make crypto networks faster.
Solana’s first block was created in March 2020, and just over a year later, Bloomberg reporter Joanna Ossinger called the cryptocurrency “a potential long-term rival for Ethereum,” noting faster transaction speeds and lower transaction fees.
The Solana Foundation released a statement clarifying that its platform selection was “not part of any Solana-led initiative.”
What is the price ?
As of June 20, Solana’s current price is £28.96, an increase of 1.73% over the past 12 months.
That’s nothing compared to the all-time high of £212.11 it enjoyed in November 2021.
Solana’s price has been on a bit of a rollercoaster ride since its inception and is currently priced at 2,636.61% from its initial value.
It also saw an increase of +9.6% in the last 24 hours.
But while it is currently on an upward trajectory, it – like many other coins right now – remains a volatile investment.
How can I buy cryptocurrency in the UK?
If you aren’t put off by the volatility of the crypto market and want to get your hands on some cryptocurrency, you’ll need a “wallet” – an online application to hold your crypto.
You can do this by creating an account on an exchange likeCoinbaseWhere Crypto.com.Here you can exchange real money for cryptocurrencies.
You will need to decide if you want to go for a “hot” or “cold” wallet.
On a “hot” wallet, the crypto is stored by the exchange or provider through an app or your computer.
Each exchange will offer a free wallet where your purchases will be stored. Be warned, though – they’re easy to set up and use, they’re vulnerable to hackers, and if an exchange closes, traders will have no rights to recover funds.
In contrast, a “cold” wallet is a portable encrypted device such as a USB flash drive that allows you to physically transport your bitcoin. More secure against hackers than “hot” wallets, they can be very expensive.
If you are considering investing in cryptocoins, please note:
The value of investments is variable and can go down as well as up.
If you’ve been approached by a “trader” promising big returns, it’s a scam.
Always make sure that the seller is registered with the UK Financial Conduct Authority (FCA). Many cryptocurrency sellers are not. A list of registered traders can be viewed on theCAF website.