How to buy Solana (SOL) in Canada

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How to buy Solana in 4 steps

1. Compare crypto exchanges
   The easiest way to buy Solana is from a cryptocurrency exchange. Comparing in the table helps you find a platform with the features you want, like low fees, ease of use or 24-hour customer support.
2. Create an account
   To create an account on an exchange, you will need to verify your email address and identity. Have some photo ID and your phone ready.
3. Make a deposit
   Once verified, you can deposit CAD using the payment method that best suits you – cryptocurrency, bank and card payments are widely accepted.
4. Buy Solana
   You can now exchange your funds for Solana. On beginner-friendly exchanges, this is as simple as entering the CAD or SOL amount you want to purchase and clicking "buy". If you like, you can then withdraw your Solana to a personal wallet.

What is the cheapest way to buy Solana?

Most exchanges let you buy as little as $5 worth of SOL, if not less. Just type in how much you want to spend in CAD and let the exchange work out the rest.

Some platforms only offer 1 way to buy Solana, while others provide several choices. The 2 most common ways to buy SOL are on the spot market or with an "instant buy" feature.

Instant buy

If it's your first time buying Solana, this will be the fastest method – but also the least cost-effective.

The instant buy section is usually located under a "Buy now" heading on the platform you've chosen.

It should feature a simple interface that lets you enter the amount of Solana you want to buy or Canadian dollars you want to spend.

This is usually the only option available for credit or debit card purchases, but you may also be able to make an instant buy if you've pre-funded your account with a bank transfer.

Be prepared to pay a markup on SOL's market rate in exchange for the convenience.

Spot market

If you see colourful charts with a range of prices, you're probably in the spot market.

The spot market is where buyers and sellers come together to place bids for SOL on the open market. It's usually the cheapest way to buy Solana because it lets traders set their own prices.

You'll find the spot market under a "Trade" or "Spot" heading on the site or app menu of the platform you've chosen to use.

There are several different order types that you can make on the spot market.

• Market order. This will buy you the amount of Solana you specify at the lowest possible price available. This makes it like an instant buy order but with much lower fees.
• Limit order. This is the most common order type and lets you purchase Solana at the price you specify. Traders use this to time the market and capitalise on price dips or increases.

How to find the best place to buy Solana in Canada

There are dozens of different trading platforms to choose from when buying Solana in Canada, so to help you find your best option, keep these factors in mind:

• Where it's registered. Using a locally registered exchange is a good idea. It's more likely to accept Canadian dollars and local payment methods , which helps avoid foreign exchange fees. Choosing from Canada-based exchanges also means it's likely to be registered with the Financial Transactions and Reports Analysis Centre (FINTRAC), which means it has to comply with local laws in Canada.
• Security. Look at the security features the platform has to offer, like 2-factor authentication and PGP-encrypted emails. Cold storage of user funds is considered industry standard, but insurance funds are less common and indicate good security practices.
• Fees. Check the fine print to find out exactly how much your transaction will cost. Depending on the platform you choose, these could include spreads, trading fees and deposit and withdrawal charges.
• Transaction limits. Are there any minimum or maximum limits on the amount of Solana you can purchase? Does the exchange restrict the amount of funds you can withdraw from your account in any 1 transaction or 24-hour period?
• Other platform features. Look out for other features that suit your investment or trading needs. For instance, many exchanges now let you earn yield on your holdings, while some issue crypto debit cards to help you spend your coins.
• Customer support. If you ever have a problem with a transaction, will you be able to quickly and easily get in touch with the customer support team? Are they based in Canada? Check what contact methods are available and find out how quick the team is at responding to enquiries.
• Insurance fund. A small number of exchanges now insure user funds. Beware that policies vary greatly between exchanges, so you'll need to research this thoroughly if insurance is important to you.
• Reputation. As a young industry, reputation can provide a lot of clues when choosing an exchange. For instance, who are the founders? Have there been any controversies? Are their business practices transparent? If you can't find any of this information, that may be a red flag.
• Range of coins. If you're thinking about adding other cryptos to your portfolio in the future, check to see what other coins you can buy through the platform.
• Read reviews. Finder's crypto exchange reviews include user feedback, which helps you get a better idea of what the exchange is like to use for other people starting just like you.

Using FINTRAC-registered exchanges

There are plenty of places to buy Solana, and people in Canada can choose from platforms registered here at home or in locations all around the world. Opting for a locally registered SOL exchange typically offers more convenience but may have some downsides, depending on your goals.

Pros

• Canada-based exchanges must comply with FINTRAC Anti-money Laundering (AML) and Counter-terrorism Financing (CTF) reporting obligations.
• You can usually buy Solana with CAD.
• Exchanges in Canada typically support local payment methods, such as .
• You may be able to access local customer support.
• Subject to local laws.

Cons

• You'll need to provide your personal details and proof of ID – a disadvantage if you want to trade anonymously.
• Overseas trading platforms may provide better liquidity.
• CAD-to-crypto prices are often slightly higher than USD-to-crypto prices, meaning you sometimes pay a premium for buying directly with Canadian dollars.
• Some features are simply not available on FINTRAC-registered exchanges. For example, high-leverage margin trading, DeFi features and some altcoins.

Recent Solana developments

2 November, 2023: Solana’s price climbed by more than 80% over the past month.
3 October, 2023: Last week SOL saw inflows of $5 million via investment into institutional funds, possibly due to excitement around its recent partnership with Visa.
1 September, 2023: Solana has integrated with Sophify, providing Solana Pay as a payment option for Shopify merchants.
June 16, 2023: Robinhood, eToro and Bakkt cease trading of Solana in the US, following actions by the SEC which alleged SOL was a security.

Is Solana safe to invest in?

You shouldn't invest in any asset, including SOL, without doing plenty of research first. Before you buy Solana, make sure you understand and weigh up these risks:

• Price volatility. Solana's price is largely based on speculation, which means it can rise or fall in a short time. It's not uncommon for SOL to lose more than 10% of its value in a single day.
• Perceived value. SOL is a unique asset that does not have any tangible value. It derives most of its value from utility and speculation.
• Exchange vulnerabilities. Leaving your Solana on a crypto platform exposes you to several counterparty risks, including:
  • Scams. Scammers frequently try to trick exchange users into handing over their username and password, often by phishing with malicious emails or fake website links. Use 2FA and encrypted emails to help protect your funds.
  • Hacks and theft. Exchanges are vulnerable to hacks and theft, so choose one with good security practices and a track record of safety.
  • Fiscal mismanagement. In mid-2022 a number of crypto platforms froze user funds after it was revealed they had engaged in irresponsible funds management.
  • Insurance. Unlike stocks, only a small handful of exchanges provide insurance on your cash deposits.
• Regulatory uncertainty. The regulatory environment for Solana and other cryptos is constantly changing. It's important to understand how international rulings have the potential to impact Solana's future – for better or worse.
• Novel technology. Solana was created in 2024, which makes it relatively new as a form of technology and as a currency. SOL doesn't yet have the same track record or performance history as some other asset classes.
• Technical learning curve. Evaluating the tech behind SOL before you invest is important, but requires a deep understanding of the blockchain and other aspects of decentralised finance. Be prepared to do plenty of research.
• Persistent outages. The Solana network has been known to go offline for hours at a time. While the network is offline, you cannot transact with your SOL – the native asset of the Solana blockchain – or even send it from wallet to wallet.
• Few validators. As of August 2022, Solana only has about 1,000 validators compared to Ethereum's approximately 350,000 validators. Fewer validators mean that a network is more centralised and therefore less secure.
• Novel consensus mechanism. Solana uses a novel proof of stake (PoS) consensus mechanism called Tower BFT on top of the novel proof of history (PoH) consensus mechanism. No other blockchain validates information this way, and as such Solana should be considered both new and experimental.

Where could Solana's price be heading?

Solana (SOL) is set to end 2022 at $35, according to Finder's panel of fintech specialists. Going forward, the panel is projecting SOL to be worth around $116 in 2025 before rising to $236 by 2030.

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Today's Solana price versus ATH

Compare today's price of Solana ($196.90 USD) against its all-time high (ATH) price of $263.21 USD on November 23, 2024. The closer the bar is to 100%, the closer SOL is to reaching its ATH again.

How is Solana taxed?

Solana is considered a digital asset by the Canada Revenue Agency (CRA) and is taxed like an investment. This means you'll be taxed when you dispose of Solana (i.e. sell, gift, exchange or trade it).

For individuals, profits or losses are reported as capital gains or losses. For businesses, Solana earnings are reported as income or capital gains, depending on how a business classifies cryptocurrency.

Learn more in our guide to crypto tax in Canada.

After you've bought Solana

Once you own some SOL, you have 2 options – keep it on an exchange or move it to a personal wallet. Each comes with its own set of pros and cons.

Keeping your Solana on an exchange

Pros

• Convenience. Keeping your Solana on an exchange is convenient because you can buy and sell at any time.
• Security. Holding Solana on an exchange does come with significant counterparty risks, but reputable platforms also invest heavily in security, so you don't have to worry about the pitfalls of self-custody.
• Insurance. A small handful of exchanges now operate insurance schemes. These can range from insuring user deposits held in cold storage to reimbursing customers if a hack occurs.
• Earn yield. Many exchanges let you earn yield on your Solana. This is done in 1 of 2 ways: the exchange will either stake your SOL on your behalf, or lend it to other users. Each carries its own set of risks, though lending is generally associated with higher risk. Make sure you understand which method is being used to generate yield before handing over your assets.

Cons

• Phishing. Exchange users are frequently targeted by scammers trying to steal login information through malicious emails and fake website links.
• Hacking. Exchanges are major targets for hackers. While security practices have improved substantially, hacks still occur from time to time.
• Account freezing. Exchanges have been known to occasionally freeze user accounts, whether due to security concerns, technical issues or market turbulence. This could see you temporarily lose access to your crypto.

Moving your Solana to a non-custodial wallet

Pros

• Self-custody. A mantra repeated by crypto investors is "Not your keys, not your coins." This comes from the idea that the only way to guarantee ownership of your Solana is to own the private key — which isn't the case when you hold on an exchange.
• Security. Solana and cryptocurrency wallets vary greatly in their features and security. For the most secure experience, consider purchasing a hardware wallet, which is usually a small USB device that keeps your private keys offline at all times for an extra layer of security.
• Utility. If you plan to use your Solana for transactions, daily spending or decentralised finance (DeFi), then storing it in a wallet rather than an exchange will be more convenient.
• DeFi. When you hold the private keys to your SOL and other tokens on the Solana network, you can partake in the world of decentr'alise'd finance (DeFi) on Solana. For example, you can stake assets or yield farm with your assets via decentralised apps (dapps) such as Raydium.
• Web3 apps. Beyond the DeFi apps on Solana, you can also use your assets on the network to buy NFTs. Plus, you can use your tokens to play upcoming games like Star Atlas or Monkey League.
• Cheap transaction fees. Compared to other major blockchains like Ethereum, transacting on Solana is very inexpensive. For example, a transaction on Ethereum will likely cost you at least a few US dollars, while a transaction on Solana will only cost you a fraction of a cent.

Cons

• Learning curve. It's no secret that learning how to use a crypto wallet takes some time and effort. Spend some time learning how Solana wallets work before transferring any of your funds.
• Personal responsibility. Owning your own money can be liberating, but it also means the responsibility is all yours. If you lose your private key, the only way to regain access to your wallet is through the seed phrase. Make sure to store both of these privately and securely.
• Inheritance. A challenge presented by crypto wallets is how to pass access on in the event of death or disability. Several companies are experimenting with ways to solve this problem, like the Trezor Model T wallet's Shamir backup feature.
• Still in beta. The Solana network is still running on a mainnet beta version. In other words, it isn't a finished product and still has its share of glitches to iron out.

Bottom line

If you want to buy Solana, start by comparing a range of crypto brokers and exchanges available in Canada. Look at their features, fees, security and overall reputation to decide which platform is right for you. Use an exchange registered with FINTRAC for added peace of mind.

Remember that owning and using Solana is not without its risks. Carefully consider investing in SOL as part of a wider strategy, and talk to a financial advisor if you have any questions.

Once you've bought some SOL, think about your short and long-term goals. This will help you decide whether to keep it on an exchange or move it to your own wallet.

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