Beginners Guide to Solana and Trading Solana NFT

SOL crypto price prediction

If you know anything about cryptocurrency, you’ve probably heard of terms like Bitcoin and Ethereum; maybe even Dogecoin too. However, unless you’ve got a pulse on the latest and greatest developments in the world of crypto, you might have missed the news about Solana. Touted to be the next big thing, this cryptocurrency is expected to go head to head (or even surpass) Ethereum in the coming days.

Solana’s launch back in April 2020 may have been lackluster, but within a year and a half, it has managed to gather enough interest that it is now being considered one of the top dogs in the industry. In this guide, we will talk about the origins and fundamentals of the Solana network, its relation with NFT, its impact on the blockchain network, and eventually on the investors and traders.

What is Solana Coin?

Solana coin or SOL is a cryptocurrency, and like all decentralized finance, its native cryptocurrency (Sol tokens) exists exclusively online. More specifically, on the Solana network blockchain. It’s an open-source project created by Anatoly Yakovenko, built by Solana Labs in San Francisco, and managed by Solana Foundation in Geneva. The Solana ecosystem has been built for decentralized finance applications and smart contracts on which you can trade, lend, or borrow crypto assets.

According to CoinMarketCap.com, it is currently one of the top 10 cryptocurrencies globally with a market cap of approximately $72 billion and has a current trading value of $194.04 US as of 6 December 2021. For something that started with a trade value of less than $1 per coin in 2020, it was traded for well over $200 in 2021. That is a growth of approximately 13,300%!

Like all products of blockchain technology, Sol also takes out the need for a middleman. To verify transactions and keep its network safe for investing, Sol uses a proof of stake (PoS) and proof of history (PoH) method rather than proof of work (PoW) that Ethereum and Bitcoin uses.

What makes the Sol network different from others is its efficiency, which makes transactions relatively cheaper. Since Ethreum’s crypto space has become heavily congested, the transaction fees have gotten significantly more expensive.

Those who trade Sol, however, are enjoying the fruits of the newer blockchain platform that allows tens of thousands of secure transactions per second compared to less than 100 for Ethereum. Solana crypto is currently the fastest blockchain in the world, with the ability to process transactions by as many as 65,000 per second, costing less than a penny each.

Where to Buy Solana Crypto?

If you want to buy or trade Solana coins or make any cryptocurrency investments for that matter, you can consider any of these popular cryptocurrency exchanges:

  1. Binance
  2. Coinbase
  3. Kraken
  4. FTX
  5. Uphold

Users can head over to the respective websites and learn more about them before deciding with exchange to stick with.

Solana Crypto Price Prediction

Even though Sol crypto has dipped below $200 now, it recorded an all-time high of $218.73 and is expected to only increase in popularity in the future. In 2020, we saw a steep rise in the price due to extensive Decentralized App adoptions. Many investors also saw it as a great time to spend money there with the hope of seeing it turn into a good investment.

There are over 400 projects running on the network, and with strategic partnerships, alliances, developer support, we could see this currency boom. By the end of 2021, most cryptocurrencies will have seen a strong comeback after the market corrected over the summer. So, going into 2022, serious investors and stake holders should be looking at significant developments in the world of crypto.

Is Solana the Next Bitcoin?

Currently, even with Solana’s market cap, it is best considered as a rival of Ethereum, not Bitcoin. And there are thousands of new coins flooding the market right now. If Sol can genuinely compete and build out its infrastructure before Ethereum migrates to Proof of stake, we might see this rising digital currency compete with Bitcoin.

As of now, Ethereum remains the #1 pick as a Bitcoin competitor. It runs on a decentralized platform that enables decentralized applications (dapps) and smart contracts that are censorship resistant to be built and managed with no fear of fraud, third-party interference, or downtime. Sol’s market value can go up for sure, but there are many other factors that determine if it can go head to head with Ethereum.

Can Solana Overtake Ethereum?

Ethereum, being the second-largest cryptocurrency, has many good things going for it-including reputation. While Solana has over 400 projects in its ecosystem, including decentralized finance (DeFi) apps, NFT projects, gaming apps, and others, Ethereum’s network has the first mover advantage. Many developers feel confident in it and its programming language.

It’s also worthwhile to note that Solana is currently still in Beta. Sure, all experimental blockchain projects are in Beta to some degree, but if you’re planning on investing, it is good to know the cons. Solana’s super-fast speeds come at a high price, though.

The validator computers that help run the Sol network have very high requirements. Meaning the cost of building and running such a machine is not something every user can afford. And that makes (at least theoretically) the network less decentralized.

Things haven’t always been smooth for Solana anyway, as a massive outrage disrupted transactions for 17 hours back in September this year. That incident left a somewhat of a bad impression on the supporters of this cryptocurrency while diehard backers of Bitcoin and Ethereum reinforced their belief of sticking to their respective platforms.

So, as of now, we have good reason to believe that Solana will not overtake ethereum any time soon.

What is Solana NFT Marketplace?

Solana NFT marketplace is precisely what it sounds like– a place to buy and sell NFT. Like other popular NFT marketplaces based on Ethereum, such as OpenSea, SuperRage, and Nifty Gateway, the Solana blockchain also has many marketplaces created by developers. Like the ones we discussed before.

The current state of NFTs on Solana is optimistic as there are self-hosted NFT storefronts made using Metaplex and Holaplex that allow artists to make more transactions at highly cheap rates. Pretty much any developer can start their own NFT website using Metaplex, and options are so much more due to Solana still being a rather new crypto platform.

Some other NFT marketplaces on Solana are Solanaart.io, Solible.com, Solsea.io, Digitaleyes.market, Nft.solar, and others. Solana-based NFT marketplace development platform amplifies functionalities like speed, security, and scalability for both the marketplaces and decentralized apps. Since Solana has the ability to validate transactions over 65,000 per second, it has managed to overcome some major network congestion that hinders other blockchains.

Also, to create new marketplaces in Solana crypto, users need not be highly tech-savvy or know all the ins and outs of smart contracts. It is easy to use and offers greater flexibility to developers compared to other networks.

How do I Sell NFT on Solana?

NFTs or Non Fungible Tokens are often associated with digital art and can be powered by Solana. This allows artists to trade directly to their consumers and make fast transactions at lower rates. If you’re an NFT artist and want to try your hand at selling some of your digital creations, Solana-based marketplaces are a great choice!

Even though this section of the guide cannot be 100% comprehensive because there are many ways you can deal with NFT transactions, we’ll lay out an essential step-by-step outline for the newbies out there. This time around, we’ll take SolSea.io as an example.

Step 1: To do anything on the platform called Solana, you have to first buy some SOL and then transfer to an appropriate wallet such as Phantom.

Step 2: Open SolSea.io, create an account using a valid email address and connect your Phantom wallet to the marketplace. Once done, you’ll be able to deposit an amount of your choice- limited to the balance you have on the Phantom wallet.

Step 3: Go ahead and choose ‘Create NFT’ and upload all the required files with the Title, Tags, Traits, etc. You will be charged pennies to store your art, but it’s negligible.

Step 4: Once you’ve filled out everything on the page, click on ‘Mint NFT’ button. You’ll then have to approve the transaction via the pop-up box for the NFT to be minted. You’ll be charged a small amount for minting.

Step 5: Now, to sell what you uploaded, click on Wallet> NFTs in My Wallet> List NFT. Set the price according to what you think is fair. Again approve the transaction, and you’re done listing.

Step 6: Wait for sale.

The process should be more or the same for other secure platforms.

Final words

If you’re interested in buying Solana coin or dealing in NFT, know that any form of crypto investment is risky and could be extremely volatile. So, be prepared to ride the wave of rises and dips and only invest as much as you can afford to lose. Maybe 5%-10% of your overall portfolio is a reasonable estimate.

That being said, now is as good a time as any to get involved in Solana or other cryptocurrencies as we’re moving towards a future that’ll benefit from decentralization.

At Solutiontales we make it easy to understand the throes of cryptocurrencies, but our words should not be taken as a financial advice. Remember, a wise investor can make money in a bull or bear market when given the right data.