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CN Solana (SOL), as a representative of the established public chain, is gradually recovering after FTX suffered a heavy blow. In the past 30 days, with the promotion of Bitcoin market, Solana token SOL has shown a strong rise, with an increase of as high as 69.96%. Its gains have surpassed other tokens above 90%. Currently, the price of SOL has exceeded $100, ranking fifth in the world’s cryptocurrency rankings. SOL continues to rise, and it is expected that in the next bull market, Solana will have the opportunity to create multi-millionaires and multiple thousand-fold coins will emerge. If you don’t want to miss this opportunity, then carefully reading this Solana investment tip will help you become the next successful investor in the cryptocurrency market!
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Introduction to SOL Coin
SOL coin is the native token of the blockchain Solana and is currently one of the most popular cryptocurrencies. On the Solana blockchain, SOL coins are used for functions such as governance, payments and transfer fees. Additionally, SOL tokens are staked to run nodes to verify transactions and ensure the security of the Solana chain.
If you want to conduct transactions or run smart contracts on Solana, you will also need to pay SOL coins as gas fees for nodes and validators. Therefore, SOL currency can be said to be an indispensable core element in the Solana blockchain.
Four major features of Solana coin
Highly decentralized
Bitcoin uses the traditional proof-of-work mechanism (PoW), while Ethereum moves to the proof-of-stake mechanism (PoS). Both mechanisms have a large number of users and more than 50,000 nodes worldwide to secure the blockchain. This consensus mechanism is currently the most decentralized and highly secure, but due to the large number of users, transmission speed has always been a serious problem.
Solana also uses the DPoS mechanism based on Ethereum's PoS mechanism. Although Solana currently has nearly 2,000 nodes worldwide, although it has not reached the level of decentralization of Bitcoin and Ethereum, it is far more than other public chains that also use the PoS mechanism.
Proxy Proof of Stake (DPoS)
DPoS is the same as PoS in that they obtain the qualification to verify transactions by staking tokens. In PoS, the more tokens staked, the higher the chances of getting verification and accounting. In DPoS, the better and more stable the performance, the more opportunities you will get.
The concept of DPoS can be understood as an election. The SOL coins mortgaged by users are votes. Vote elects validators (Witness) to be responsible for verifying and accounting for blocks, and there are representatives responsible for supervision (Delegates). Maintain the stability and performance of the Solana chain.
The number of validators (super nodes) that can be elected is small. If a validator performs poorly, voters can vote to remove the validator and replace it with a better validator to maintain Solana's performance.
Proof of History (PoH)
One of the reasons why Solana can outperform other blockchains in transaction processing speed is the introduction of the innovative Proof of History (PoH) mechanism.
Proof of History (PoH) works by creating historical records to prove that a transaction occurred at a specific time. PoH will first record the order in which transactions occur, and then each node will update and synchronize the status.
The historical proof mechanism can be compared to a restaurant that issues number plates. It first records the order of guests arriving first, so there is no need for a large group of people to wait in line at the door.
Through the historical proof mechanism (PoH), Solana can pass the transaction without waiting for verification by all nodes, saving resources and time. This enables Solana to achieve its goal of high transaction speed.
High transmission efficiency
As a third-generation blockchain, Solana can be said to be one of the public chains with excellent performance. By combining different consensus algorithms, Solana can reduce the confirmation time required for transactions.
Solana can process thousands or even tens of thousands of transactions per second, which greatly exceeds other mainstream blockchain platforms. This makes Solana a high-throughput and low-latency blockchain solution.
In addition, Solana also uses a consensus algorithm called Tower BFT, which can quickly propagate transactions and blocks in the network, thereby further improving transmission efficiency.
What is the future of Solana coin?
Although Solana entered the market relatively late, it has attracted the attention of a large number of developers due to its various advantages. According to data, there are more than 180 decentralized applications (DApps) on the Solana chain, covering decentralized finance (DeFi), non-fungible tokens (NFT), games and other fields.
In addition, according to data, Solana’s total locked value (TVL) has reached US$275 million, ranking fifth among all public chains. There are 108 application protocols in the Solana ecosystem, ranking fifth in this indicator.
The prospects of SOL coins depend on the development of the Solana blockchain, somewhat like stocks depend on the performance of the company. If the Solana ecosystem develops well, it will further increase the demand for SOL coins and potentially create additional revenue. Based on Solana’s current development trends and its advantages, it is expected to make further breakthroughs in the future, especially in applications in the NFT field.
Analysis and prediction of future trend of SOL currency
In terms of short-term and medium-term technical form, the resistance position SOL encounters around $27-32 will determine the future trend of bullish power. The next key resistance level is the previous flag consolidation high of $48. Looking below, $13 is the low support of the range, followed by $8. At present, it seems that SOL is likely to fluctuate within the above range ($13-32) in the next 6-12 months. Whether it breaks through or falls below key resistance or support levels, there is a lack of fundamental and news support.
From a longer-term perspective, whether Bitcoin can bring about a new bull market in cryptocurrencies will affect the direction and performance of SOL. Considering the current large number of hold-ups and the fact that the market pays more attention to new projects than old projects, it is expected that the price of SOL will be difficult to recover above $75. Therefore, if there is a suitable high, choosing to sell on the rallies may be a good option.
Is Solana Coin Worth Investing in the Future?
Regarding the question of whether SOL coin is worth investing in, one thing needs to be made clear: the decline of SOL coin is not due to its own reasons, but the entire cryptocurrency market has entered a bear market, and it can even be said to be the lack of liquidity caused by the global economic crisis.
There is a difference between the two situations. If the decline is due to internal factors, such as technology, mechanism or human factors, then you should stay away from such projects. FTX is a typical case, and it is inevitable that its currency price will return to zero. But if the decline is due to external factors such as industry, cycle or economic crisis, then there is no need to panic too much, because the market will always get better.
Currently, the entire market is in a bear market, and other coins such as Cardano (ADA) and Ripple (XRP) are also at low prices. In addition, SOL coin has a good reputation in terms of technology, ecosystem and community consensus, so it is a cryptocurrency worth investing in and has future potential.
How to Invest in Solana Coin
There are many channels and methods to choose from when investing in SOL coins. Here are some common investment methods:
Spot buying and hoarding coins
Investors can choose to buy SOL coins on centralized exchanges (CEX) or decentralized exchanges (DEX) and hold them. This method is simple and straightforward, and investors can freely manage and trade their coins at any time.
Staking and depositing coins to earn interest
Investors can pledge SOL coins on the corresponding platform to obtain additional income. Staking can participate in the verification and security of the network while receiving corresponding rewards. In addition, some platforms also provide the function of depositing coins to earn interest. Investors can deposit SOL coins on designated platforms and obtain a certain interest return.
Mortgage and reborrow
Advanced investors can obtain loans by mortgaging SOL coins to carry out more complex investment strategies. This approach can provide higher or smoother returns, but requires deeper understanding and risk management.
contract trading
Investors can trade Bitcoin-like contracts using leverage. In addition to currency exchanges, many foreign exchange platforms now also provide contract trading, and the leverage ratio may be higher. This method requires higher risk tolerance and professional knowledge, and investors should treat it with caution and understand the risks of leveraged trading.
Solana Investment Strategies and Tactics for 2024
1️⃣Research the Solana ecosystem: Understanding Solana’s ecosystem and its position in the blockchain industry is an important step before investing. Study Solana’s technical features, scalability, security, and its applications in DeFi, NFT, games and other fields.
2️⃣Consider Solana’s development prospects: Assess Solana’s development prospects and potential, including its competitive position in the market, partnerships, developer community activity, etc. These factors can help you judge the long-term growth potential of Solana Coin.
3️⃣Watch Solana’s market cap and trading volume: Observing the Solana coin’s market cap and trading volume can provide an indicator on the market’s interest and liquidity in the token. Higher market capitalization and trading volume generally mean wider market participation and better trading opportunities.
4️⃣Consider portfolio diversification: When investing in Solana Coin, consider diversifying your funds into different crypto assets to reduce risk. A diversified portfolio can help you stay stable during market fluctuations and reduce the risk of a single asset.
5️⃣Track market dynamics and news: Keep an eye on the dynamics and news of Solana and the entire cryptocurrency market. This can help you understand market trends, project updates and potential risk factors to make more informed investment decisions.
6️⃣Choose the trading platform carefully: Choose a trustworthy and safe trading platform to trade Solana coins. Make sure the platform has a good reputation, compliance and user support to keep your funds safe.
How to buy Solana (SOL)?
To buy Solana (SOL), there are multiple avenues to choose from. For those new to cryptocurrency, the most common and relatively safe way is to purchase through a well-known trading platform, such as the Binance cryptocurrency exchange. Binance provides a third-party solution for purchasing Solana (SOL), allowing users to easily purchase Solana (SOL) in just 1 minute.
Here are the steps to buy Solana (SOL) on Binance:
- Register a Binance account and complete identity verification.
- Add payment methods such as bank cards or credit cards.
- Choose the appropriate third-party service provider. These service providers will provide you with channels to purchase Solana (SOL).
- Follow the instructions on the Binance platform to purchase Solana (SOL).
It should be noted that different third-party service providers may charge different fees and have purchase restrictions. Please carefully understand and compare the fees and limitations of each third-party service provider before making a purchase.
SOL Coin Frequently Asked Questions (FAQ)
1) Is SOL currency suitable for long-term holding?
Although SOL coin is a relatively young cryptocurrency, it has a large market capitalization and strong consensus, and is held by many institutions. This means that its demise is very unlikely. Therefore, long-term investors can consider allocating SOL coins, but they should not concentrate all their funds on it and should pay attention to moderate diversification of investments.
2) Which wallets support SOL coins?
Currently, wallets such as Binance, Huobi, etoro, BYBIT, etc. all support the storage of SOL coins. However, Huobi and Binance are more popular and well-known, so you can give priority to using them.
3) What is the future of SOL coin? Will the next round return to the all-time high of $260?
Usually, the prices of mainstream cryptocurrencies in the new round tend to exceed the previous round, such as Bitcoin (BTC), Ethereum (ETH), etc. Of course, there are also some cryptocurrencies that cannot return to historical highs, such as Ripple (XRP), EOS, etc. We still hold a relatively optimistic attitude towards the future prospects of SOL currency.
Where can I buy Solana (SOL)? Best Cryptocurrency Exchange Recommendations
SOL tokens can be purchased on most exchanges. Choosing the right cryptocurrency exchange is very important, not only to reduce the handling fees incurred when trading, but also to sign up to receive newbie discounts!
| Best Cryptocurrency Exchange in Malaysia | score | handling fee | Bonus offers |
| Huobi | 3.8/5 | 0.20% | Get $700 + 90,000 SHIB |
| Huobi | 3.8/5 | 0.20% | Get $700 + 90,000 SHIB |
| MEXC | 3.8/5 | $0 | Get 1,000 USDT bonus |
| Binance | 4.9/5 | 0.10%-4.5% | no promotion |
| KUCOIN | 4.7/5 | 0.1% | Receive $500 bonus |
| BYBIT | 4.0/5 | 0.1%-0.3% | Get 50USDT bonus |
| BingX | 4.1/5 | 0.1% | Get 30USDT |
| etoro | 3.9/5 | 1% | Get a $10 bonus |
