Today, Coin98 will show you how to:
- Purchase and store SOL.
- Transfer funds to Solana blockchain by transferring SOL coins from an exchange (CEX) or using a cross-chain bridge.
- Seek Investment Opportunities on Solana
Let's jump right into the Solana Blockchain!
Solana is a third-gen blockchain platform that is specifically designed for decentralized applications (Dapps) such as DeFi or NFT projects. The Solana blockchain is an open-source project that uses Proof-of-History (PoH) consensus.
Solana’s unique technologies can be up to 50,000 TPS (Transactions Per Second) with high security and scalability. The Solana network can practically handle a maximal bound of 710,000 TPS as more validators participate in the blockchain.
Similar to other blockchains, to participate in DeFi on Solana, you also need the native token of the corresponding chain for a fee, also known as "gas fee" (the fee you need to pay to the network). The gas gwei level on the Solana is currently around $$0.0008 - $0.0009/transaction. So, to make transactions, only 0.05 SOL (~$5) can go a long way.
Step 1: Prepare tokens
Since nearly all CEXs currently support SOL, you have complete freedom to choose where to make your SOL purchase(s). The most popular Solana-supported exchanges include Binance, Huobi, Gate.io, KuCoin, and many more.
In the following section, I'll go into greater detail about which exchange you should use to purchase SOL.
Step 2: Prepare your SPL wallet to store tokens
It is necessary to have a non-custodial wallet after you buy tokens on CEX to store tokens and interact with DeFi. At this time, many different wallets, including the Coin98 Super App, can store SOL coins.
First, you should have an Solana Wallet to store your SOL, this article will be usefull for you: How to create & use Solana Wallet
Following these simple steps, you can store SOL and other SPL tokens.
- Step 1: Click on a Solana wallet on the main screen.
- Step 2: Select "Receive".
- Step 3: Copy the wallet address or scan the QR code address and send your assets to this address
Step 3: Transfer tokens from other Blockchains to Solana Blockchain (SPL)
After buying SOL and having a Solana wallet (SPL), you can participate in events or skin in the game in the Solana Ecosystem, such as joining lending, yield farming or staking activities on this chain.
Typically, there are two methods for transferring tokens to the Solana Blockchain.
- Option 1: Buy SOL Coins from CEXs and transfer them to a Solana-supported wallet.
- Option 2: Convert tokens from other blockchains to the Solana blockchain using the Cross-chain Bridge.
To make it easier for you to visualize, I'll walk you through the process for the two methods listed above.
Option 1: Buy tokens on CEXs & withdraw to a SPL Wallet
Transfer and withdrawal fees will vary depending on the exchange. If you want to transfer your assets, you should pick the CEX that is most convenient for you to use. I'll recommend a few exchanges here, such as Binance, KuCoin, Huobi, Gate, etc.
To begin, you'll need USDT or USDC stablecoins in order to purchase SOL. US dollars (USD) or other currencies in your country can be used to buy USDT if you don't have stablecoin yet.
Step 1: Login to the Binance Mobile App. I recommend reading this "How to use Binance'' article
Step 2: Choose “P2P Trading” in your Binance Homepage
Step 3: In this step, you will see:
- Number 2 indicates which fiat currency you have now to buy USDT.
- Number 3 indicates which token you want to buy (e.g. USDT, BTC, BUSD, etc.).
- Number 4 displays a list of sellers who will sell you USDT in exchange for your fiat currency.
After you've decided on your preferred sellers, simply follow the Binance instructions to complete the transaction (Remember to read the instructions carefully).
Now that you have USDT, you can purchase SOL from any exchange, such as Binance, Kucoin, Gate, etc. and transfer the tokens to the Coin98 Wallet by doing as follows:
Step 1: On Binance exchange, use USDT to purchase SOL.
Step 2: Transfer SOL to the Solana wallet by typing in your Coin98 wallet address.
Option 2: Use Cross-chain Bridges to transfer tokens to SPL Tokens
For Solana blockchain, there are currently two most prominent cross-chain bridges that support transfer tokens back and forth to Solana. You are free to select any bridge that makes you feel at ease.
Allbridge provides an easy and reliable way to transfer assets between different blockchains. It acts as the bridge between EVM and non-EVM chains. Allbridge supports up to 13 chains and more to be announced in the future
The mission of Allbridge is to remove any borders among different blockchains, which maximizes the capital efficiency in the DeFi ecosystem. Therefore, if you need to move assets from any network to the Solana blockchain, Allbridge is a good option.
2. Coin98 Super App SpaceGate
The Coin98 Super App currently supports cross-chain bridges with popular blockchains such as Ethereum (ETH & ERC20), Solana (SOL & SPL), Avalanche (C-chain & X-chain), Boba Network, Arbitrum (Ethereum's L2), Optimism, C98 on BNB Chain, and Tomo Chain.
Step 4: Add tokens to the Coin98 Super App
Because SOL is the native token of the Solana blockchain, it will be displayed by default in multi-chain wallets. If you need to add a new token to this multichain wallet, follow these simple steps:
Step 1: On the homepage, select More → Custom Tokens.
Step 2: Fill in the following information:
- Select Blockchain.
- Enter the token's Contract Address.
- Token symbols.
- Token name
You can check this information on block explorers.
Users only need to select Blockchain and enter the Contract Address of the token they want to add to the wallet. The remaining data will be automatically updated after users enter the correct contract address.
In case the system fails to extract the data, you can manually fill in the remaining data into the required cells.
Select “Create” and you're done.
Step 5: Transfer Solana tokens (SPL) from the Coin98 Super App
To transfer tokens from a decentralized wallet to another, follow these simple steps. I'll show you how to transfer SOL from your mobile wallet.
Step 1: Click a Solana wallet.
Step 2: Choose Send.
Step 3: Select the token, the number of tokens you want to send & the wallet address to send to. Adjust the Gas fee slider to suit your needs → Slide the Send bar to confirm.
In addition, you can also click Send on the main interface, then select the Solana wallet you want to send from.
- The gas fee for each transaction is paid with SOL, approximately 0.000126 SOL
- The default gas fee on the Coin98 Super App has been set at the standard rate that offers the most optimized speed at a reasonable cost.
Step 6: Skin in the game with Solana blockchain
After transferring SOL to Solana Blockchain Network, you can skin in the game in Solana Ecosystem and earn interests.
Learn more: Solana Ecosystem Overview
Disclaimer: The information in this article is provided solely for informational purposes and should NOT be considered as investment advice. Investing in cryptocurrencies involves a high level of risk, and you should only invest what you are willing to lose.
Farming is a method of providing liquidity for AMMs in order to receive rewards. Farming produces much higher profits than lending and staking, but there is a risk of impermanent loss.
You can also choose Yield Aggregators as they offer different strategies to find the best yields for farming/staking assets. This is one of the most important sectors in DeFi as it helps users gain a massive amount of profit, which is one of the main reasons why anyone would want to participate in DeFi.
Some notable Yield Agreggator projects on Solana include Sunny, Tulip Protocol, Quarry, etc.
Gaming & NFT
The NFT and gaming sectors are two of the important sectors on Solana. Star Atlas, SolPunks, Solible, and FARKT are just a few of the notable gaming and NFT booms that have helped Solana thrive in 2021.
In addition, there are numerous NFT game projects built on this platform, which indicates that the Solana system has potential traction to growth. Don't forget to follow the Solanians on Twitter if you're interested in the SOL ecosystem.
If you're interested in learning more about Solana blockchain and the investment opportunities it offers, I recommend checking out this article. Hopefully, this will be beneficial to you!
So far, I've shown you how to transfer coins to the Solana blockchain in order to skin in the game. Hopefully, after reading this article, you will have a better understanding of the DeFi market and find suitable ways to maximize your profits.