Solana Wallets
Solana Wallets
What is a wallet ?
A wallet can be defined as a software or hardware that is used to send, receive and store cryptocurrencies.
A wallet has the ability to display the prices of the user’s assets. There are soft and hard wallets.
Soft Wallet on solana
Soft Wallets are wallets that are in the form of applications or softwares which is downloaded into a device.
Examples of solana soft wallet:
Phantom wallet has a browser extension for chrome , firefox etc and mobile applications that users can download and use for free from their website.
Solflare was made by solana lab and was among the first wallets that was made for solana blockchain.Its functionalities surpass that of phantom because it possess some unique features. It has a web wallet , a mobile wallet ,a browser extension and an inbuilt browser tab which allow users to browse without existing the wallet .
It has a simple and unique User friendly Interface.
Hard Wallets on Solana
Hard wallets are the safest storage device for cryptocurrencies.They are equipped with a special kind of security which makes it impossible to be hacked . Hard wallets are multichain ,which means they can hold assets from different blockchains.Some are also equipped with Solana's SPL token standard in addition to ethereum standards.
Examples of Hard wallet
Ledger
A ledger is an offline hardware device that stores your private keys in a secure, offline environment giving user a certain level of peace of mind and complete control over their assets.
All Ledger wallets are mainly powered by an industry-leading Secure Element chip, together with its proprietary operating system that protects users crypto & NFTs from sophisticated hacks.
These technologies make it impossible to be hacked.
Centralized Exchanges
Centralized exchanges also known as Cex are centralized entities, meaning they manage user accounts and control private keys.
The idea of centralization means using an intermediary or third party to help conduct transactions.Cex do play a very vital role in the blockchain ecosystem.
While Cex typically implement harsh security measures, cex are more susceptible to large-scale hacks or possible insider attacks. The Users are reliant on the security protocols to safeguard their assets.
One of the most important functions of the centralized exchange is that they help users convert fiat to cryptocurrency.
This is vital because users who have fiat cannot directly deposit it to their wallet without the help of a centralized exchange.
Examples of a centralized exchange that supports solana are :
Binance
Binance Exchange is one of the leading cryptocurrency exchanges and it was founded in 2017. It features a strong focus on trading altcoin. Binance offers crypto pair trading in more than 350 cryptocurrencies and virtual tokens, including solana (SOL) , bitcoin (BTC), ether (ETH), litecoin (LTC), dogecoin (DOGE), and its own coin, BNB.
To start trading,users must pass basic requirement processes such as passing kyc.After which the user can fund the account with crypto or buy with fiat.
Bybit Exchange
Bybit exchange ranks among the top-three exchanges when it comes to volume and has more than 20 million users.
It was established in 2018 .Users can easily trade sol , btc and other altcoin including nfts.
Decentralized Exchanges In Solana
Decentralized exchanges also known as dex are marketplaces where tokens can be traded for other tokens.
As the name implies, it is decentralized in the sense that it has no central authority that governs or controls it.
It can be accessed by everybody that intends to buy and sell a token. Some of the dex offers lending services to users who intend to borrow a token from , provided that they have supplied the necessary collateral .
Trading on dex is very simple.
Steps :
Download a solana wallet such as solflare or phantom.
Create account or restore an existing account
Make sure that your wallet is funded with Sol.
If it’s not funded,then make sure to fund it.
Connect your wallet to the decentralized exchange
Select the desired token and swap.
After trading ,it is advised to disconnect your wallet.
Orca
Orca was one of the most user friendly dex that was built on the solana blockchain.
Token exchange on orca is very simple.
Users can exchange tokens with minimal transaction fees and lower latency than any DEX on Ethereum.
Users may provide liquidity to a trading pool to earn a share of trading fees.
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