Buy Solana in Canada

A free beginner guide on how to buy Solana in Canada.

What is Solana?

Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (DeFi) solutions. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland.

The Solana protocol is designed to facilitate decentralized app (DApp) creation. It aims to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.

Because of the innovative hybrid consensus model, Solana enjoys interest from small-time traders and institutional traders alike. A significant focus for the Solana Foundation is to make decentralized finance accessible on a larger scale.

1. Create accounts

In order to buy Solana in Canada you will need both a Canadian (local) exchange account and a global exchange account. You will need to buy one of the main cryptocurrencies on the Canadian exchange and then transfer that to the global exchange you registered with which trades Solana.

The first step in this process is to gain the ability a mainstream cryptocurrency with Canadian dollars. For this you will need a local exchange account, currently we recommend Newton or Shakepay.

If you want to buy Solana right now, without going through the full verification process, and if you want to buy only a small amount ($375 CAD or less) consider using Coinbase.

For a more comprehensive guide and comparison of the various exchanges, see the Exchanges Guide.

Next, you will need to create an account on a global exchange. This will allow you to trade the cryptocurrency you bought in the previous step for Solana. Unfortunately, it's not possible yet to do it all on the same exchange. Which is why you need to use multiple exchanges.

We recommend using Binance

For a more comprehensive guide and comparison of the various exchanges, see the Exchanges Guide.

In order to fund your local exchange accounts you will need to verify your identity. This often involves sending in copies of your drivers license, a utility bill, and in many cases a selfie of you holding your ID. This is normal ask for verification on exchanges.

As for verification on global exchanges, the verification is usually faster and less intense, as long as you are strictly using cryptocurrencies and not doing fiat transactions. For example on Binance you do not need to verify if you are withdrawing 2 BTC or less.

2. Buy your cryptocurrencies

Now that you have both a local exchange account and a global exchange account it's time to make your purchases. You need to buy XRP or ETH, transfer it to a Global exchange, and then place an order to trade it for Solana.

The first step is buy one of the main cryptocurrencies that you can trade for alt coins. If you are on Newton I'd buy XRP, if you are on Shakepay buy BTC.

If you are not using Binance, it is a important to verify that your global exchange will trade the cryptocurrency you are buying in this step for Solana.

Login to your local exchange and buy your desired amount of Solana in XRP or ETH. We currently recommend buying with XRP as it provides a faster network transfer time and cheaper network fees than Bitcoin/Ethereum. BTC is ok if you are using Shakepay as they will cover the network fees to transfer to Binance or another exchange.

The next step is to transfer your XRP or BTC from your local exchange account to a global exchange. For example, from your Newton or Shakepay account to your Binance account.

This involves getting the funding wallet address from Binance account and withdrawing to it from your Newton or Shakepay account.

You will need to wait for the transaction to complete. Once you see the funds appear in your global exchange account you are ready to proceed to the next step.

The next step is to actually buy Solana. In your Binance (or similar) account place an order to trade the crypto currency for Solana.

Binance has a trading pair for both USDT and BTC.
- If you bought BTC originally you can now trade it for Solana at the SOL/BTC trading pair.
- If you bought XRP originally, first you need to trade it for USDT and then you can trade it for Solana at the SOL/USDT trading pair.

The fastest way is to place a market order which buys Solana for the current market price on the exchange. However, consider using a limit order to get a better price, but remember if the market price does not hit your limit price your order will not be filled.

3. Storing your Solana

If you just bought some Solana you are currently storing it on the exchange you bought it on. This is OK if the value is small. However, if you own a significant amount it is best practice to transfer your cryptocurrencies to a wallet that is not an exchange.

If you are just getting started you will probably want to use a software wallet. They are typically free and are considered more secure than leaving Solana on a exchange.

Feel free to do a google search to research what wallets are available and know what the options are.

Once you have decided on a wallet, follow the instructions to get it setup then withdraw your Solana from your exchange account. It is common for a small network fee to be associted with the withdrawal.

The safest way to store Solana, or any cryptocurrency, is with a hardware wallet that is not connected to the internet. This is to prevent it being stolen or hacked from a exchange or a wallet connected to the internet.

Consider looking at the Ledger line of hardware wallets. They have been in the industry a number of years and offer one of the widest selections of devices.

This is generally not recommended. However, you might want to do this if you are actively trading Solana. Be aware you are taking an extra risk. Exchanges have been known to get hacked or disappear, search QuadrigaCX scandal.

The main advantage of doing this is instant access to your Solana, and saving the fees associated with transactions and withdrawing.

Always consider the reputation and size of the exchange if you are storing a cryptocurrency asset on it.

Generally speaking, I do not keep a balance on any of the local exchanges. If I am going to hold a balance of a cryptocurrency coin/asset on an exchange it will be Binance as they have the most robust platform. However, use this information at your own risk. The safest place for your crypto assets is a hardware wallet like Ledger.

Regardless of the exchange, if you are holding assets on the exchange, make sure you enable two factor authentication and use a separete secure password on the account.

Summary

  1. Create an account on a local exchange.
  2. Create an account on a global exchange.
  3. First, buy XRP or BTC on the local exchange and transfer it to Binance.
  4. Next, trade XRP or BTC for Solana
  5. Store your Solana, consider getting a software or hardware wallet.