Like Ripple and the XRP cryptocurrency, Solana is a blockchain platform with a native currency called SOL. The project was launched in March 2020 in Geneva, Switzerland by the Solana Foundation.
Known for its relatively quick processing times for transactions and smart contract execution, SOL was priced at $54.99 at the time of writing, down almost 80% from its June 2021 peak of around $258.
These kinds of volatile price movements have prompted regulators in the UK to warn investors about the risk of crypto trading. The Financial Conduct Authority (FCA) says anyone who buys crypto assets should be prepared to lose their entire investment.
If you’re aware of the risks and still want to buy Solana, here’s how to do it.
Choose an exchange
To buy cryptocurrencies, you need to sign up with an exchange such as Coinbase or eToro. There are plenty of exchanges to choose from, each with its own pros and cons.
Here are some things to consider when making your decision.
Payment methods - check whether your preferred payment method is accepted by the exchange, and what fees it levies for it. For example, some exchanges don’t accept PayPal, while most charge a 3.99% fee for debit or credit card payments.
Wallets - check whether the exchange offers an integrated wallet to store your SOL in. If you’d prefer to store your crypto in a third-party wallet or an offline storage device, check whether the exchange allows transfers out, and what (if any) fees apply.
Available currencies - If you’re looking to buy SOL, make sure that the exchange you’re considering trades in it.
Choose a way to pay
The most cost-effective way to buy cryptocurrencies is usually direct bank transfer, because there are usually no fees applied.
It’s possible to pay by debit or credit card, but fees are sometimes applied. Not all credit card providers allow you to buy crypto. For example TSB, Virgin Money and Tesco Bank block transactions with crypto exchanges. Some providers may allow you to use your card to buy crypto, but beware of any fees they might add to the cost of the transaction.
Here’s how other lenders handle crypto purchases:
| Provider | Allows crypto purchases? | Transaction type | Fee |
|---|---|---|---|
| HSBC | Yes | Cash advance | 2.99% |
| M&S Bank | Yes | Cash advance | 2.99% |
| Barclaycard | Yes | Cash transaction | 2.99% |
| Revolut | Yes | Cash advance | Up to 2.50% |
| Tesco Bank | No | N/A | N/A |
| TSB | No | N/A | N/A |
| Virgin Money | No | N/A | N/A |
| Sainsbury’s Bank | No | N/A | N/A |
| NatWest | No | N/A | N/A |
| RBS | No | N/A | N/A |
PayPal isn’t widely accepted as a payment method by exchanges in the UK. eToro allows for PayPal deposits, but it’s something of an outlier, and it charges a $5 fee on withdrawals to your PayPal account.
Place your order
Once you’ve chosen an exchange and how you’ll pay, navigate to the Solana page within your exchange’s website or app and input the amount you’d like to invest.
Choose a storage method
You can keep your SOL in your exchange’s integrated wallet if you want, but you can hold it elsewhere if you prefer and your exchange allows transfers out.
You can store your Solana online in a ‘hot’ wallet or offline in a ‘cold’ wallet. Hot wallets are an easier target for hackers than cold wallets because the latter are storage devices like hard drives and flash drives that aren’t connected to the web by default.
However, if you lost your login credentials for a hot wallet, your exchange or wallet provider could help you recover them to reclaim access to your funds. If you lost your access codes for a cold wallet, however, or simply misplaced the drive, there would be nobody to help you but yourself.
Of course a third party hot wallet would have to be paid for, but so too would a hard drive or flash drive if you didn’t already own one.
