What crypto currency can you trust? You don’t want to risk your business by investing in an altcoin that isn’t well established. Learn about why Solana, which launched its ICO on September 12th, could be the altcoin to watch in 2018 and beyond, and how it differs from some of the more well-known alternative coins out there today.
What is Solana?
Solana is a new scalable blockchain platform for reliable, decentralized and cost-effective data storage. A system like this has never been built before. Solana’s solution will change the world. With more people using its energy-efficient, low-latency platform, we can finally make strides towards eliminating the costly and time-consuming processes that have stifled our innovation in past decades. In other words, it’ll be game over for our trusty old systems of the past: inefficient Internet networks prone to breakdowns and failure that are subject to external censorship without fail; data centers fraught with maintenance issues; and even traditional file stores on which we can’t rely because they too are under human control. Now is your chance to invest in Solana’s future today! The startup doesn’t need any funding at the moment – but don’t wait until it needs funds or else you might miss out on some amazing gains! What if I told you there was a way to invest in Solana today so that you could enjoy those profits when Solana does get bought out by Google, Amazon or Microsoft? What if I told you there was a way to invest in Solana today so that you could enjoy those profits when Solana does get bought out by Google, Amazon or Microsoft? The best part is that it won’t cost you anything but ten minutes of your time. And how about this for a bonus? If you’re worried about what would happen if something went wrong, well then, Solana offers complete investor protection in case things go south. So there’s really no risk involved whatsoever!
You’re probably wondering what all these benefits mean for you personally. Well let me tell you why investing in Solana today is such a good idea: When all of your friends ask where you made your money from, just say Solana! (even though technically speaking, it wasn’t really from Solana).
The potential of the project
Altcoins are speculative investments and offer the potential for huge returns. However, they also come with a considerable risk. If you want to invest in altcoins it is important to be informed about the associated risks. Even more importantly, you need to invest based on your own personal risk tolerance. If you plan on owning the altcoin for a short period of time then your risk will be much lower than if you expect to hold it for five years or more.
*Here are some possible risks:
-Extreme price volatility of altcoins could make selling before maturity near impossible. -Pump and dump schemes can artificially inflate prices until buyers realize that the bubble has burst.
-Unregulated exchanges where crypto currencies trade carry counterparty risk, meaning that if something goes wrong with the exchange (e.g., shutdowns) your investment may be lost entirely. While this risk applies to all cryptocurrencies, the risk is greater with smaller coins which lack liquidity and larger coins which have higher daily trading volumes.
-Shortages of electricity in regions such as Venezuela and Syria can cause significant drops in mining profitability due to increased electricity costs.*
The team’s expertise with solar panels and green energy solutions: The team members at Solana are all experts when it comes to renewable energy. Many have graduate degrees from Stanford University, one of the top universities in renewable energy studies. With their knowledge of how solar panels work, we’re confident that this company will have no problems making its product work even when there’s not enough power available.
Risks involved in investing
-Solana doesn’t yet have a finalized whitepaper, which makes it hard to discern how they plan to use the blockchain or what platform they plan to develop. -The team only includes four people, which may make it difficult for them to scale if their project becomes popular. -All of the tokens will be locked up until 2020 (a full year) and all the tokens will be issued at once at that time, potentially crashing the market. -There is no clear-cut objective listed on their website other than build scalable blockchain applications, which could mean that there are plans for a token sale for marketing purposes or another blockchain project with no ties to this one. -Their blog posts do not mention any potential partnerships either, making it seem like the team has not reached out to anyone outside of their own network. -Another issue is that their roadmap only goes until Q3 2019 and does not list anything after that. Their roadmap also does not state whether the project will be open source or not, which means it’s possible they’ll keep everything proprietary. If this is true, then their development might lag behind other projects who are more transparent about developing in public and open source environments. All these risks combined with the lack of clarity from their website leads me to believe you should avoid investing in Solana at this point, especially without more information about their actual use case for blockchain technology. However, we don’t know if this project will become successful and help usher in a new era of scalable blockchains. The fact that their white paper is incomplete implies that it is too early to invest because so much of the information about the project remains unclear. That being said, I am cautiously optimistic about Solana because their blog post did provide more insight into what kind of application they’re looking to create. From reading over their post, I can see myself using a product like theirs because my data needs to be saved securely and I want to ensure that nobody can access my personal data except for myself. Another reason why I am optimistic about their project is because they explain how they would operate differently than Bitcoin and Ethereum. Since Bitcoin and Ethereum rely on Proof of Work mining, it takes 10 minutes per block to mine a transaction. It takes so long because every miner must compete against each other by guessing the right answer to win rewards. Solana focuses more on proof of stake mining instead where only miners who already hold coins need to compete against each other instead of everyone else vying for rewards.
How to minimize risk and be prepared for downside scenarios
-Do your research. Research a coin before you invest to know how the coin works and what it is used for. If it is not a good match for your interests, don’t invest any money. We want to make sure we are investing our money into something that benefits us and that we are passionate about. As always, know the risks so if you want to invest the amount of money in Solana be prepared for losses on that investment or other investments. Remember: do not invest more than you can afford to lose! -Invest in things that interest you. Make sure the coins you buy have things you care about because then at least some part of your investment will benefit you personally. -Pay attention to all aspects of a potential investment. Watch out for scams like hidden fees, trading platforms with no customer support or hackers being able to access private information like account numbers and login credentials. What to avoid when investing in cryptocurrency: -Don’t fall for schemes, false ads or quick rich-get-richer schemes. -Don’t believe everything you read online. Websites often list stocks and token prices without giving important facts such as whether they’re actually traded anywhere
-Stay away from multi-level marketing schemes (pyramid schemes)
-Watch out for initial coin offerings (ICOs) using celebrity endorsements instead of substantial data to support their claims.
-Don’t panic sell when there’s a dip in value. Sometimes markets go down but they eventually come back up again – even higher than before!
-Never use funds you need for day-to-day living expenses to invest in cryptocurrencies, especially ones that are unproven and volatile like Bitcoin. The potential upside is high but the risk factor should also be considered carefully before making an investment decision. Keep in mind that this is a very new technology, and many investors will look at this as high risk due to volatility.
Final tips for taking the plunge
Before you decide to risk invest in Solana, be sure to read the coin’s website and white paper. Understand what differentiates this coin from other altcoins. Consider joining the Reddit community for more information about the coins development. Beware of social media influencers who are simply invested and not experts on the subject. If you’re still unsure about taking a chance on this investment, that’s OK – it might not be for everyone. Just make sure you don’t put all your eggs in one basket and don’t forget that if something seems too good to be true, it probably is!
We hope we’ve been able to help shed some light on whether or not now is a good time to buy into Solana. On balance, we think you should at least consider investing a small amount of money into SOL after conducting your own research. That said, if you have any reservations or concerns we’ve laid out above, it would be wise to wait until such time as they have been addressed before making any final decisions. Remember that getting started with cryptocurrency can seem intimidating at first but really isn’t so hard when broken down into manageable steps by following simple guides like ours. Good luck with your future crypto-investments! 🙂
We hope we’ve been able to help shed some light on whether or not now is a good time to buy into Solana. On balance, we think you should at least consider investing a small amount of money into SOLC after conducting your own research. That said, if you have any reservations or concerns we’ve laid out above, it would be wise to wait until such time as they have been addressed before making any final decisions. Remember that getting started with cryptocurrency can seem intimidating at first but really isn’t so hard when broken down into manageable steps by following simple guides like ours. Good luck with your future crypto-investments! 🙂
We hope we’ve been able to help shed some light on whether or not now is a good time to invest in altcoins as a whole. While you may have taken note of Solana in particular due to its newness and eye-catching technology, rest assured there are many more alternative coins available for investment. Consider reading through our other guides for inspiration: Cryptocurrency Investment Basics and How to Read an ICO White Paper. And don’t forget that all alternative coins are still highly volatile and risky – never invest more than you’re willing and able to lose.