How to buy Solana (SOL) in Australia

Cryptocurrency continues to capture the interest of investors around the world, with budding investors looking for the next big opportunity beyond Bitcoin and Ethereum. Solana (SOL), launched in 2020, is a promising blockchain platform with high transaction speeds and low fees.

What you’ll learn about Solana in this article:

• What Solana is and why it has gained popularity quickly

• How to trade Solana step-by-step with CMC Invest

• Benefits and risks of investing in Solana

How to buy Solana in Australia with CMC Invest 

If you’re an investor in Australia looking to buy cryptocurrency, CMC Invest offers access to Solana and a selection of other coins through its integrated investing platform, providing an accessible way to start investing. Below is a step-by-step guide for new and existing CMC Invest customers on how to invest in Solana: 

1. Open a CMC Invest account: Get started by opening a CMC Invest account. You’ll get access to a wide range of investment products, including unregulated Solana and other cryptocurrencies like Bitcoin and Ethereum, as well as traditional asset types. 

2. Opt-in for cryptocurrency investing: Once your account is set up, you’ll have access to over 45,000 stocks and ETFs as standard. If Solana or other crypto interests you, you’ll need to opt-in to access unregulated blockchain assets like Bitcoin. 

3. Research Bitcoin: Before investing, you’ll want to give yourself a solid base of understanding Bitcoin’s fundamentals and general market trends. CMC Invest has a range of educational resources and powerful charting tools to help investors make the best decisions for their portfolios. 

4. Start investing in Bitcoin: Once you’ve opted in, you can start buying Solana directly from the CMC Invest platform via the mobile app or desktop version. 

If you’re interested in learning more about Solana, why it’s quickly gained popularity, and how to trade Solana with CMC Invest, this beginner’s guide is for you. Whether you’re new to the world of cryptocurrency or looking to diversify your existing portfolio, here’s how to start investing in Solana. 

What is Solana? 

Solana is a high-performance blockchain platform used to develop and execute decentralised applications (dApps) and crypto-related projects. Like other cryptocurrencies, Solana works on blockchain technology – a distributed ledger system that records transactions across a network of computers. This technology helps guarantee transparency and security without the need for intermediaries like banks or payment processors. 

Solana stands apart from other blockchains, particularly Ethereum, in its scalability and speed. Solana’s Proof of History (PoH) consensus mechanism means it can process thousands of transactions per second, making it one of the fastest blockchains available. Given its high transaction speed, it’s no wonder Solana’s popularity has grown in leaps and bounds among developers and investors. 

Why invest in Solana? 

Solana's features and potential applications are just some of the reasons investors have shown interest in this cryptocurrency. Let’s take a closer look at what makes Solana stand out: 

• High transaction speed and low fees: One of the biggest drawcards of Solana over Ethereum is its much lower transaction fees. While Ethereum’s popularity has led to network congestion and high gas fees, Solana promises faster transactions at a fraction of the cost, making it more attractive for developers and users alike. 

• More sustainable: Unlike some blockchains that burn through large amounts of energy, Solana is known for its energy-efficient protocol (a single Solana transaction consumes just 0.00051 kWh). This makes it one of the most eco-friendly crypto options, which can be appealing to investors who are concerned about the environmental impact of cryptocurrency mining. 

• Diversify your portfolio: Investing in Solana allows Australian investors to diversify their portfolios beyond traditional assets like stocks and bonds. However, while investing in cryptocurrencies may offer diversification, it also comes with significant risk. As more institutional and retail investors open themselves to cryptocurrency, Solana’s unique position within the market may offer a long-term investment opportunity and the benefit of diversification. 

• Real-world use cases: Decentralised finance (DeFi) projects have leveraged Solana’s infrastructure to develop more innovative financial services, such as lending, borrowing, and trading without intermediaries. Non-fungible tokens (NFTs) and gaming platforms have also used Solana because of its ability to process high volumes of transactions quickly and at a low cost. Moreover, some businesses in Australia are beginning to explore the potential of blockchain solutions to improve supply chain management, adding a layer of real-world utility to platforms like Solana. 

Different ways to invest in Solana 

There are several ways to gain exposure to Solana. It’s important to thoroughly research each option before investing, as they can carry varying levels of exposure and risk: 

• Buy Solana (SOL) directly: One way to invest in Solana is to purchase it directly through a broker like CMC Invest, allowing you to gain exposure to its price movements. 

• Investing in Solana-related companies: Another way to gain exposure to Solana is by investing in companies that hold, partner with, or offer Solana-related services. For example, Coinbase (COIN:US), a prominent cryptocurrency exchange, could benefit from the growth of Solana. However, it's important to note that Solana represents only a small portion of its overall activities.  

Things to consider when buying Solana 

• Consider fees 

Fees can vary depending on the platform you use to buy cryptocurrency. For example, CMC Invest charges a flat 0.90% brokerage fee on the total value of Solana (SOL) and other cryptocurrency trades, plus an FX spread for currency conversion. 

• Choose a payment method 

When buying cryptocurrency, there are several ways to fund your account. When buying crypto with CMC Invest, you can fund your account using a credit or debit card, bank transfer, PayID or PayPal. 

Risks of investing in Solana 

While Solana could seem like a promising investment opportunity, it’s crucial to thoroughly evaluate the risks involved. 

• Volatility: Solana’s value can fluctuate greatly over short periods of time, driven largely by factors like market sentiment, regulatory news, market cycles and even geopolitical events. Investors must be prepared for unexpected price swings, so consider whether you have the risk appetite for such volatility. 

• Regulatory risks: As Solana and other cryptocurrencies have gained popularity, they have faced regulatory scrutiny. Changes in regulations could impact Bitcoin’s price and long-term viability as an investment. 

• Speculative nature: Solana is still a relatively new asset, and its long-term role in the global financial system remains to be seen. As a speculative investment, you should only commit capital you are willing to lose.

Why buy Solana with CMC Invest

• One platform. One account

Build your portfolio in one place with shares, ETFs and crypto.

• Easier and clearer

No wallets. No transfers. Just crypto investing like buying a share.

• Trusted platform

Invest in crypto on the award-winning platform backed by 30 years' experience.

• Transparent, flat-fee pricing

A flat brokerage of 0.9% applies to all cryptocurrency orders. As cryptocurrency ETFs available on CMC Invest are traded in USD, an FX spread will also apply to your order. With no ongoing fees, there are no surprises, and you only pay when you trade.

Conclusion 

Given the unpredictable nature of the cryptocurrency markets, only invest capital you are willing to lose. Risk management and diversification strategies should be an essential part of any investment strategy when dealing with digital assets like Solana. 

Solana offers a relatively new opportunity for investors who want to diversify their portfolios with crypto. However, like all cryptocurrencies, investing in Solana comes with risks. 

To get started with Solana, sign up for a CMC Invest account today and see how this innovative cryptocurrency can fit into your overall investment strategy. 

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information and education purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment, tax or other advice on which reliance should be placed and is warranted to be complete, accurate, or timely. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. 

All investment involves risks. Past performance is not a reliable indicator of future results. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination. The content of this article may contain information based on materials published by third parties. CMC Markets makes no representations as to the accuracy or completeness of such information and accepts no responsibility or liability in connection with any reliance on such information. 

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein. It is important to verify the Information before making any investment decisions and refrain from doing so solely based on this Information without seeking advice from a professional financial adviser. 

The provision of cryptocurrency services and products will not be treated similarly to the provision of regulated financial services or products and you are not afforded the same client protection provisions offered by the Corporations Act 2001 (Cth) as you would trading regulated financial products or receiving regulated financial services. Cryptocurrencies are held with a sub-custodian.  

Investing in cryptocurrencies carries significant risks and is not suitable for all investors. You may lose all your money you paid. Consequently, you should consider the information in light of your objectives, financial situation and needs and do your own research. It’s important for you to consider the relevant Digital Assets Terms of Service and other associated disclosure documents on the CMC Markets Invest website before you decide whether or not to acquire any of the Cryptocurrencies. Please also note that you are not currently able to send Cryptocurrencies to or from your trading account, or use Cryptocurrencies purchased on CMC Markets’ Platform to pay for goods or services.