The flow of the Solana ecosystem is somewhat halted, as the meltdown of Sam Bankman-FTX Fried’s empire proceeds to cause chaos in the larger crypto ecosystem. Solana (SOL) has been strongly affected by the FTX blunder, and many people have voiced support and hope that its community can heal. People are also looking to short or trade solana. SOL has suffered greatly as a result of the FTX breakdown, as it was one of many coins backed by FTX CEO Sam Bankman-Fried (SBF).
The overall value locked on the Solana chain has dropped by 32.4% as of November 10. The SOL token has lost roughly fifty percent of its value, dropping from $38 on November 5 to $17 at the time of writing. Yet, this could be a lucrative opportunity for investors to make a profit by trading or shorting SOL on other crypto exchanges such as Bybit. This article is all about how to trade Solana on Bybit. Let’s take a look at it in more detail.
What is Solana (SOL)?
Solana is a blockchain network with lightning-fast transaction speeds and, as a result, tremendous scalability. Solana’s blockchain can process up to 50,000 transactions per second. This high speed is enabled by the specialized proof-of-history consensus mechanism.
Solana is a cryptocurrency that first appeared in 2017 and experienced rapid price growth during the 2021 bull market. The Solana Blockchain is swift and customizable. This is ascertained by the highly specialized proof-of-history consensus mechanism. This modern consensus method allows for lightning-fast transactions.
How to trade Solana on Bybit?
Bybit has an easy-to-use interface that eliminates the perplexing Solana (SOL) purchasing process. You can get SOL quickly with Bybit in a few ways:
- Using a Credit/Debit Card, Purchase SOL: Sign up for or log in to your Bybit account to buy stablecoins or BTC with your credit or debit card. Then, on Bybit Spot, swap the purchased coins for SOL.
- Purchase SOL through Peer-to-Peer (P2P) Trading: Choose a preferred advertiser with your ideal USDT prices listed on the Bybit P2P platform, then finish the payment process. Once the seller has satisfactorily issued the coins, the bought coins should appear in the asset wallet. The bought coins can then be utilized to buy SOL on Bybit.
- SOL Trade: Choose from a wide variety of cryptocurrencies to deposit on Bybit, which you can then exchange for SOL at an extremely competitive rate.
Steps to Purchase and Trade Solana Using Bybit
On Mobile App
- Download the Bybit App from the App Store or Google Play.
- Create an account and confirm it (or log in to your current Bybit account).
- Click the Buy Crypto button, then the Express button.
- Enter the number of stablecoins you like to buy with your selected fiat currency.
- Move with the payment after you’ve selected your best payment method.
- Fill out the order by entering your card info after finishing the KYC process.
- Utilizing the stablecoins you bought, buy SOL via Bybit Spot/Derivatives.
- Register your account and verify it, or log in to your Bybit account.
- Tap the Buy Crypto button in the menu, then choose Express from the drop-down menu.
- Enter the amount of USDT you would like to buy in your favored fiat money.
- Request to make after you’ve selected your preferred method of payment.
- Complete the Formalities and proceed with your buy.
- By using the stablecoins you bought, buy SOL via Bybit Spot/Derivatives.
What Can You Do With Your SOL on Bybit?
- Hold/Store SOL: You can purchase SOL and hold it for a longer period as its value goes up. SOL can be stored in your personal Bybit account and taken at any time via the Bybit mobile app or web page.
- Trade SOL: Bybit provides a diverse range of trading pairs on the spot and in derivatives markets. On Bybit’s trading platform, you can exchange SOL for over 100 cryptocurrencies.
- Stake and Earn SOL: Widen your digital assets. Significantly raise the value of your assets by earning an assured APY with Bybit’s high-yield adaptable savings scheme.
How to Short SOL for Profit During Crashes and Retracements?
Shorting is a strategy for profiting from an asset’s drop in value. When traders genuinely think the market value of a coin will drop, they might use shorting. Shorting cryptocurrency is volatile because markets are commonly turbulent. Of course, there is profit potential, but given the market’s fluctuation, massive losses are also possible.
When you hold a long position in a currency, the price may drop, but it will nearly never reach zero. You keep your initial investment even if you don’t earn anything. When you short a coin, the price can keep rising endlessly, exacerbating your losses. That is why, before taking the plunge, you must conduct extensive research. If you are confident in your research and believe the price will fall, go ahead and take the calculated risk because it could result in thousands of dollars in earnings.
The SOL price is currently $17 at the time of writing. The cryptocurrency markets are characterized by volatility. A coin that is increasing today may experience a drop tomorrow that you could not have anticipated. The value of many coins goes up and down during the day. Crypto volatility, coupled with federal regulations or events like FTX vs Binance, creates fear-driven booms and busts and slight retracements. To avoid taking a loss when this actually occurs, you can use a process known as short selling, which enables you to benefit when prices are falling — even if you do not own cryptocurrency.
Before using any methodology to short-sell SOL, you must first recognize a trend. Because the market is so turbulent, a range of variables could end up causing it to travel in either direction. Politics, hype culture, and the impact of prominent individual people, such as CZ, can all disturb the crypto market.
- Now you intend to short one SOL when its value is $17 since you expect its price to fall in the next few days.
- You borrow one SOL from a broker and sell it for $17.
- A few days after you borrow the SOL, SOL’s price drops to $14.
- You buy one SOL for $14 and return it to the broker.
- Now you’ve made a profit of $3, minus any interest that you have to pay the broker for borrowing the SOL.
When looking to short SOL or any other cryptocurrency, this is the first method most people come across. Simply put, you borrow cryptocurrency from an exchange and then sell it.
Then you sit back and wait for the price to decline. When the exchange takes place, you buy the currency and return the borrowed coins. In this way, you obtain the difference between the two price levels. Profits are generated using cryptocurrency exchanges such as Bybit.
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