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The Solana Blockchain: Trade NFTs at Speeds That Rival Mastercard
Eric Esposito
Mar 23rd, 2023
.5 min read
Solana is a colossal force in the NFT space. Currently ranked 10th in market cap across crypto, it offers high speed and low fees, and even surpasses Visa in transactions per second.
It's no wonder, then, that the blockchain attracts countless NFT artists, collectors, and traders. In fact, NFT sales activity on Solana (SOL) often rivals Ethereum's NFT trading volume. Even during 2022's "crypto winter," monthly trading sales on Solana averaged more than $100 million.
So it's time to demonstrate what makes SOL so powerful in the NFT space, and shed light on how you can start trading NFTs on Solana.
Why collect NFTs on Solana?
Solana is Web3's "speed demon." With max confirmation times of 50,000 transactions per second (TPS), few crypto networks hold a candle to Solana's processing power. Even credit card companies aren't as fast as Solana, with Visa clocking in at a max 24,000 TPS and Mastercard an average of 5,000 TPS.
Although Solana NFTs attract collectors with their unique aesthetics and vibrant communities, this blockchain is best known for its fast speeds. NFT traders love the near-instant transfer finality of Solana's NFT markets. Ethereum, on the other hand, has an average TPS of about 25.
Another benefit of using Solana over Ethereum is its low gas fees. On average, it costs roughly $0.00025 to process a Solana transaction. By contrast, Ethereum's gas fees range from a few dollars to more than $25 during extreme network congestion. The cheaper costs and quicker confirmation speeds make Solana NFTs more accessible to new collectors.
Plus, Solana often ranks second to Ethereum in total NFT sales, making it one of the most liquid in the NFT space. Put another way, Solana traders have an easy time finding buyers and sellers for their digital collectibles.
How to start trading Solana NFTs: Three simple steps
Jumping into Solana's NFT space is straightforward. In fact, all you need is a compatible crypto wallet and SOL coins to start your Solana NFT collection.
Download a Solana crypto wallet
First, you need a Solana-compatible crypto wallet to mint, buy, and collect NFTs. While there are many spectacular SOL-friendly wallets, Phantom is the most popular option. Plus, Phantom's beginner-friendly user interface is ideal for novice NFT traders.
Today, Phantom is available as a mobile app on iOS and Android, in addition to a browser extension on the following networks:
- Brave
- Chrome
- Firefox
- Edge
To get a Phantom wallet, visit phantom.app and click "Download" in the top right-hand corner. Choose your preferred mobile device or browser extension and install the Phantom app. After you confirm the download, click "Create a New Wallet" to set up your Phantom account.
First, you need to create and confirm a password. Next, you'll see a list of words called the "seed phrase." Take plenty of time to write down these words in order and double-check there are zero misspellings. This "seed phrase" is your only backup in case you lose access to the phone or PC your Phantom wallet is on. Keep your Phantom seed phrase in a secure place only you know about. After completing these steps, your Phantom wallet is ready to use.
Note well: You can use this strategy to set up any Solana crypto wallet. So, if you'd prefer to use a competing wallet like Exodus, Slope, or the Coinbase Wallet, please follow the guidelines listed above.
Buy and transfer Solana cryptocurrency
SOL is Solana's native cryptocurrency, so you need this coin to pay for NFTs and gas fees. Thankfully, since Solana is a mega-cap crypto project, it's easy to find SOL on centralized cryptocurrency exchanges (CEXs). Every big-name CEX (e.g., Coinbase, Binance, and Gemini) offers SOL trading pairs. To find a full list of exchanges with SOL coins, click "Solana" on CoinMarketCap or CoinGecko and review the "Markets" tab.
After setting up a CEX account, transfer fiat currency to your trading platform and buy as much SOL as you want. Here's how you transfer your Solana coins out of a CEX to your Phantom wallet:
- Select your "Solana" tab in your preferred CEX.
- Click "Withdraw SOL."
- Enter how much SOL you want to take out.
- Open your Phantom wallet and copy the SOL address.
- Paste your Phantom address in your CEX.
- Confirm the transfer.
Since the Solana blockchain is so fast, you should see the SOL in your Phantom account in a few seconds. However, you can paste your wallet address in the Solana Block Explorer to monitor your transfer's progress.
Besides sending SOL from a CEX, you could buy SOL coins directly from wallets like Phantom. Click the "Buy" tab on your Phantom wallet's home account and select a fiat-to-crypto service like MoonPay. After entering personal info like your name and phone number, you can add SOL to your Phantom account with a card transaction.
Link to a Solana NFT market
Now that you have funds in your Solana wallet, it's time to start trading NFTs. Most NFT markets have a "Connect Wallet" tab on the top right corner. Click this button to link your account and choose the appropriate wallet (e.g., Phantom, Exodus, or Slope).
There are many NFT markets in Solana's ecosystem, but Magic Eden is a popular place to start. Also, OpenSea now integrates with the Solana blockchain, so feel free to explore what's happening on this hot multi-chain market.
Is the Solana blockchain safe for NFT trading?
It's no secret that the now-bankrupt centralized exchange FTX invested heavily in the Solana ecosystem. Also, Solana has experienced a few headline-grabbing network outages and hacks in the past few years. Understandably, when new NFT traders learn about these issues, they may feel hesitant to hop into markets like Magic Eden.
Although FTX made significant investments in the Solana ecosystem, please remember Solana isn't an FTX subsidiary. Solana is a separate decentralized blockchain, so it's not involved with the alleged criminal activities at FTX.
As for the network outages and hacks, Solana's leadership is aware of these issues and working on long-term solutions. But it's also important to recognize that other blockchains (including Ethereum) suffered significant cyberattacks. Plus, the Solana network is technically in beta mode.
As long as NFT collectors work with trusted wallets (e.g., Phantom) and markets (e.g., Magic Eden), Solana is a safe blockchain. Just be sure to take plenty of standard Web3 precautions to protect your crypto and NFTs.
See what else Solana has in store!
Solana's ecosystem is growing nearly as fast as its average transaction speeds. On top of NFT trading, many Solana users are diving into decentralized finance (DeFi) applications, metaverses, and play-to-earn games. The Solana Foundation is even working on an Android smartphone called “Saga.” For more, navigate to Solana's official "Ecosystem" tab to discover the latest dApp developments on this blockchain.
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