Solana : Beginner’s Guide on Getting Started

Solana

Solana, which will be launched in March 2020, promises to overcome the scalability concerns that existing smart contract blockchains, such as Ethereum, encounter. While Solana is still in its early phases of development, users may already take benefit of a slew of capabilities.

Why Should You Use the Solana Ecosystem?

The main benefit of utilizing Solana for the ordinary user is the network’s fast speed and low cost. The costs for engaging with dApps are negligible, with transactions priced in fractions of cents. Other sophisticated transactions are likewise substantially less expensive. Even during times of significant network congestion, the cost of minting NFTs, which might cost users an excessive amount of gas on Ethereum, is much decreased on Solana.

Solana’s consensus method also aids in addressing one of the most serious issues that competitor blockchains face: transaction frontrunning. Transactions are time-stamped and processed in the order they are submitted for validation with Solana’s Proof-of-History consensus, making it practically difficult for other users to profit from stacking transactions. The frontrunning protection enhances the end user experience and makes Solana a more appealing platform for future advancements such as tokenized stock trading.

Selecting a Wallet

To get started using Solana, you must first create a compatible wallet. Phantom and Solflare are the two greatest options on the market now for individuals searching for an in-browser Web3 wallet akin to MetaMask. Both wallets are non-custodial and include SOL staking, in-wallet token swaps, and NFT compatibility with full video and audio support and capability. Phantom is compatible with Google Chrome, Brave, Firefox, and Microsoft Edge, but Solflare’s browser extension is only accessible for Firefox.

Options for mobile wallets are somewhat restricted. The Exodus wallet may be the finest solution available for now, in part because it supports SOL staking. However, as Solana increases in popularity, more wallets should begin to provide mobile versions; Solflare has already announced plans to launch a mobile app.

After you’ve chosen on a wallet, download the extension or app from the wallet’s website and proceed with the procedures to establish a new wallet. Make a note of your seed word and save it somewhere secure. If you already have a seed phrase from a previous Solana wallet, you may import it into Phantom or Solflare after downloading the browser extension. 

After you’ve created your wallet, the following step is to fund it so you can begin accessing the network. SOL is Solana’s native coin, and it is required to pay transaction fees. To purchase SOL using fiat, the simplest method is to utilize a centralized exchange like as Coinbase or Kraken. Following the purchase of SOL, proceed to withdraw the coins to your Solana wallet. You may locate your wallet’s address at the top of the Phantom and Solflare browser extensions; click it to copy the address to your clipboard and paste it immediately into your withdrawal transaction.

Trading on Solana

Once you’ve created a wallet and transferred some SOL, you’ll be ready to begin exploring Solana’s expanding DeFi ecosystem. All DeFi apps in Solana’s ecosystem can use Serum, a central limit order book (CLOB) exchange. Serum, made possible by Solana’s lightning-fast block timings, lets any app on the network to share its liquidity. Serum, unlike dApps like Uniswap, does not employ liquidity pools to enable deals; instead, it connects sellers and buyers like a traditional exchange. When utilizing Serum, this implies less slippage and fewer price swings for the end customer.

Serum trading is straightforward. After visiting the website, launch the app by selecting the “Trade on Serum DEX” option. Connect your wallet next by clicking the button in the top right corner of the website. Whether you’re using Serum or another app, the connect button is generally in the same spot on every site.

You can begin making transactions once your wallet is linked. First, choose your trading pair from the selection box on the site’s left. Then, using the fields on the right, construct an order. In the example below, Crypto Briefing purchases SOL on the SOL/USDT exchange. Choose your trading pair, enter the price at which you wish to purchase or sell the asset in the top box, and then enter the quantity in the box below. A final box to the right should automatically populate and display the total amount of your order.

After double-checking that everything is right, click the purchase or sell option to send the order. The button in this example says “Buy SOL.” You may need to navigate through permissions depending on whatever wallet you’re using before your trade becomes live. Make sure you only allow trusted sites to interface with your wallet; otherwise, you might lose your money. Once your order has been filled, go to the bottom of the page and select the “Settle” button for your newly acquired item. Funds will not show in your wallet until they are settled, so remember to do so after each transaction.

When it comes to Solana, trading on Serum is only the top of the iceberg. Check out Mango Markets if you’re seeking for more advanced trading choices. The user interface is similar to Serum, and it also supports on-chain margin trading and perpetual contracts for certain assets.

Raydium is another of Solana’s most popular applications. While Serum just employs an order book to enable transactions, Raydium uses both. Raydium may route through both Serum’s order book and its own liquidity pools to locate the best transactions with the least slippage. Furthermore, because Raydium employs liquidity pools, users may offer liquidity while earning interest on the protocol’s fees. Users can currently make 15.93% APY through the SOL/USDC pool on Raydium.

Conclusion

Following crypto’s first “NFT summer,” Solana’s NFT ecosystem has grown as well. Solanart is perhaps the finest marketplace for Solana-based non-fungibles today. NFTs have exploded on Solana in recent weeks, with floor costs for popular projects like Degenerate Ape Academy skyrocketing. A Solana Monkey Business NFT sold for $2.1 million last week after being coined for 2 SOL only a few weeks before.

While Solanart is not as well-designed as the main NFT marketplace OpenSea, it provides all of the essential functions for buying, selling, and discovering NFTs on Solana. Getting to know Solana early on can provide users with a significant competitive advantage over other market participants. The network is rapidly expanding and will most likely become more extensive and popular as the crypto space grows in the future. 

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