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:
Steps to Purchase and Trade Solana Using Bybit
Bybit login
On Mobile App
Desktop
What Can You Do With Your SOL on Bybit?
Trade Solana
How to Short SOL for Profit During Crashes and Retracements?
Short Solana
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.
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.
Trade Solana
- 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.