If a cyrptocoin shows the slightest hint of rising in value, investors are all over it – Solana is no exception
Cryptocurrencies are considered high risk investments due to the unpredictable and volatile nature of the market.
As the already volatile cryptocurrency scene gradually becomes ever more unpredictable, investors are looking for new coins to invest their real-world money in, in the hopes of making a good return.
The latest to catch people’s eye is Solana, which has recently enjoyed several spikes in price, against the trend of widespread crypto crashes.
So, what exactly is it, and what is the price of Solana?
Here is 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 sets it apart from others – like Ethereum – is its ‘proof-of-history’ concept.
Essentially, ‘proof-of-history’ is a method of synchronising time between computers that do not trust one other.
When Bitcoin was created more than a decade ago, it addressed a difficult problem: how to allow strangers from all over the world to conduct financial transactions over the internet without the involvement of financial intermediaries or payment processors such as Visa or Mastercard.
Blockchain was the technology that allowed for decentralised transactions – but blockchains have always had one key disadvantage: they are slower.
Developers observed that the established blockchains of the time ran without clocks, and as a result were unable to handle more than 15 transactions per second.
Centralised payment systems like Visa require peaks of 65,000 transactions per second, and so these blockchains would never be able to 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 journalist Joanna Ossinger dubbed the cryptocurrency “a potential long-term rival for Ethereum,” noting faster transaction speeds and reduced transaction fees.
The Solana Foundation published a statement clarifying that her platform selection was not “part of any Solana-led initiative.”
What is its price?
As of 20 June, Solana’s current price is listed as £28.96 – a 1.73% increase over the past 12 months.
That’s nothing compared to the all-time high of £212.11 it enjoyed in November 2021.
The price of Solana has been on a bit of a rollercoaster ride since its inception, and is currently pricing 2,636.61% up from its initial value.
It’s also enjoyed a +9.6% increase over the past 24 hours.
But while it’s currently on an upward trajectory, it – like many other coins at the moment – remains a volatile investment.
How can I buy cryptocurrency in the UK?
If you’re undeterred by the volatility of the crypto market and want to get your hands on a cryptocoin, you will need a ‘wallet’ – an online app to hold your crypto.
You can do this by creating an account on an exchange likeCoinbaseor Crypto.com.Here, you can trade real money for cryptocoins.
You will need to decide whether to go for a ‘hot’ or ‘cold wallet’.
On a ‘hot’ wallet, crypto is stored by the exchange or provider through an app or your computer.
Every exchange will offer a free wallet where your purchases will be stored. Be warned, though – they’re easy to set up and use, they are vulnerable to hackers and, if an exchange closes, traders will be left with no rights to recover funds.
In contrast, a ‘cold’ wallet is a portable encrypted device such as a USB stick that allows you to physically carry your bitcoin. More secure against hackers than ‘hot’ wallets they can be very expensive.
If you are planning on 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 large returns, this is a scam.
Always ensure the seller is registered with the UK Financial Conduct Authority (FCA). Many cryptocurrency sellers are not. A list of registered traders can be found on theFCA website.