Why Is Solana a Great Way to Invest?

By statistics, more than 6,000 cryptocurrencies are on the crypto market nowadays. That's why some dealers have problems when selecting the most reliable one. That's particularly true for beginners in the investing field. Proficient traders recommend such investors put their funds in the top 30 cryptocurrencies. These cryptos are just easier to analyze and predict. On the other hand, trading little-known coins requires definite skills from traders. So, beginners risk losing their money in this case.

One of the cryptocurrencies among those with the hugest capitalizations is Solana (or SOL). This crypto project is quite young but has already gained numerous experienced investors' respect. Dealers may view the actual SOL rate, e.g., by the link https://cryptotracker.com/price/solana. Today, this crypto is quite cheap to buy and pretty promising to sell in the future.

Primary Solana Peculiarities

The idea of the specified crypto project appeared in 2017. The concept was developed by proficient programmers from Dropbox, Intel, as well as Qualcomm. So, they analyzed the most successful competitors and created a much more advanced algorithm called Proof-of-History.

SOL Development Features

In 2018, Solana's founders posted a white paper. Next, they began to create the blockchain base. After that, the founders:

• held ICO in the same year;
• launched the mainnet that allowed external developers to run their own projects in 2020;
• uploaded specific tools for instant money exchange, loan processing, and profitable farming performance.

Nay, they simultaneously held an effective marketing campaign. The latter assisted in convincing skilled traders of the Solana platform's effectiveness. As a result, the investors forthwith purchased nearly 80 million coins. Besides, dealers may create a crypto wallet for Solana coins, e.g., on CryptoTracker.com.

Main Solana Specifications

SOL has an internal clock on its blockchain that shows the same time on all nodes. Yes, actually, the Solana script doesn't imply block existence. However, this crypto's creators apply the term 'block' to avoid SOL holders' confusion. So, such a specific blockchain helps to significantly accelerate the transaction execution speed. The other essential parameters are:

1. Low internal fees. Solana's tax is 0.000005 SOL. Currently, it's less than 1 cent. To compare, ETH has a fee of $10-20.
2. Huge emission. Nowadays, its circulated number is about 358 million coins. And the total supply presently equals nearly 508 mln tokens. Theoretically, the SOL emission limit is one billion coins. This is under several sources. Furthermore, Solana supports mining through staking.
3. High transaction processing speed. It is 50,000 transactions per second, with the possibility of rising to 700,000.

Also, it should be noted that more than 400 startup apps have been created during the SOL platform's existence. This includes lending protocols, NFT, DeFi, DEX exchanges, and metaverses.

Solana Investing Features

The crypto platform shows constant growth. Among the other trading SOL characteristics, experts note:

1. Ability for traders to earn additionally up to 10% per annum on Solana staking;
2. Increase in percentage terms greater than BTC and ETH in a growing market. However, dealers should sell SOL at the peak when the price reverses.
3. Suitableness for any trading style. If dealers plan long-term investments, they have to store such assets in hot or cold wallets. And for active trading, SOL should be bought on crypto exchanges.

Nay, specialists believe that the number of applications on the Solana blockchain will increase. This is due to the development of the metaverses and GameFi sector. Thus, the crypto platform will only get stronger with time.

With extensive research and study, Simon passionately creates blogs on divergent topics. His writings are unique and utterly grasping owing to his dedication in researching for distinctive topics.