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Solana Price: When Is the Best Time To Buy SOL?

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There’s no great mystery when it comes to making a profit on Solana trading. The instructions are simple:

If you’ve followed these instructions carefully, you should find yourself with some extra money. That’s the profit.

Of course, making a profit isn’t as easy as it sounds – especially in the fast-changing world of cryptocurrency. Market volatility sends the SOL price up and down more often than an elevator – with no warning and no obvious cause. When you buy Solana, last week’s 100 € purchase may be worth 200 € today – or 50 €.

That’s one reason it’s so hard to make profits with day trading, where investors make money by predicting peaks and valleys in the rapidly changing Solana exchange rate and timing their transactions accordingly. Those peaks and valleys are nearly impossible to predict because the SOL value rises and falls according to market dynamics, speculation about international regulatory changes, tweets from billionaires and entertainers, and many other factors. Timing the market amid all these influences is extremely difficult. That’s why almost all day traders lose money.

What’s special about Solana

Launched in 2017, Solana (SOL) was from the very beginning intended to serve as a high-performance foundation for decentralized finance (DeFi) applications and other decentralized apps (dApps). 

Solana is best described as an extensible infrastructure for building scalable blockchain-based dApps. The architecture is censorship resistant, fast, and secure, and designed to facilitate global adoption. 

To keep time on the blockchain, Solana employs an innovative process known as Proof of History. PoH is not a consensus mechanism, but it does play an important role in Solana’s Proof of Stake consensus mechanism.

The result of PoH and Solana’s other key innovations is a network that is highly scalable – in fact, Solana boasts a maximum throughput of 50,000 transactions per second. 

Other benefits to building on Solana include audited, enterprise-grade security and the flexibility to code in popular languages such as C, C++, and Rust.

Solana’s native coin, SOL, supports transactions on the Solana blockchain and serves as a tempting target for investors.

Like Ethereum, the Solana blockchain supports smart contracts. But its consensus mechanism is much faster. Because consensus is so speedy, Solana has not found it necessary to support application performance with sharding and other Layer 2 scalability solutions. The main chain maintains a single state around the world, simplifying development and making the blockchain more secure for apps and users.

The Solana blockchain’s efficiency also makes transactions very inexpensive. At a time when Ethereum gas fees can be hundreds or even thousands of euros, the transaction fee for Solana is just 0.00024 € per transaction. 

For these reasons, Solana has emerged as a rival to Ethereum as a platform for blockchain-based applications. Solana is especially strong in the field of decentralized finance, or DeFi.

That, in turn, has made Solana attractive to investors, especially those who believe blockchain technology will play a key technical role in the Web3 ecosystem. 

Investing in Solana

Industry observers believe Solana has a bright future in the long term. In the meantime, the Solana exchange rate rises and falls dramatically in the short term. This market volatility makes Solana spot trading tricky. But it takes place within the context of an overall long-term rising trend.

In a sense, purchasing Solana may be considered an investment in the future of fast, secure, worldwide fintech.

Learning From the Past

What if you had purchased Solana a month ago or a week ago? If you had purchased 100 € worth of SOL a month ago, what would you have now?

There’s no need to speculate. The Kriptomat what-if calculator displays precise answers to these questions based on price data that is refreshed around the clock. The calculator can tell you exactly how much your 100 € investment would be worth today using actual historical data.

In fact, the calculator can display results for any of the 350+ cryptocurrencies on sale at Kriptomat.

The calculator demonstrates that despite the short-term volatility, crypto has generated eye-opening returns for long-term investors.

One good way to take advantage of long-term upward trends is to use the Kriptomat Recurring Buy feature, which lets you set a schedule of regular purchases on a weekly, bi-weekly, or monthly basis. For the price of a daily cup of Starbucks, you can slowly but steadily build up your crypto portfolio in support of long-term goals like retirement, purchasing property, or paying for an expensive university education.

The Bottom Line

The world is full of impoverished day traders who can testify that there is nothing easy about predicting high and low prices in the crypto market. The factors influencing the Solana exchange rate are too numerous and obscure to track.

This volatility has made life difficult for day traders, but its effects are small compared to long-term Solana price trends. There is no such thing as a “sure thing” in crypto investing, but many happy Solana owners have found success by thinking of their crypto holdings as a long-term investment.

About Kriptomat

Founded in 2018, Kriptomat revolutionized the cryptocurrency world with the introduction of the simplest platform in Europe. Kriptomat makes digital finance so simple that everybody everywhere can access the freedom, fairness, and fulfillment that crypto represents.  Hundreds of thousands of customers across Europe and in 120 countries worldwide trust Kriptomat when they buy, sell, swap, earn, share, and invest in crypto.