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BULLSAGE guides

What is Solana (SOL)? How it works, risks and trading

Solana is a blockchain designed to be fast and cheap; SOL is its cryptocurrency. It is widely followed, very volatile, and its history includes network outages. Here is what you need to understand before trading it, even in simulation.

BULLSAGE Trader by MyBotIA · Published on · Educational content prepared with AI assistance, calculations checked. No personalised financial advice.

Solana in brief

  • The project was launched by Anatoly Yakovenko in 2017; the main network went live in March 2020.
  • Solana is a blockchain on which other applications are built: decentralised exchanges, payments, tokens.
  • SOL is used to pay transaction fees and to secure the network: those who “stake” SOL (lock them up as a guarantee) take part in validating blocks.
  • The network combines proof of stake with its own timestamping mechanism, “proof of history”. The project highlights very high throughput and minimal fees: these are its own figures, and should be taken as such.

Risks specific to Solana

  • Outages: in 2022, the network suffered several interruptions, sometimes lasting several hours, caused in particular by floods of automated transactions. During an outage, you cannot always act as planned.
  • Volatility: SOL generally moves more sharply than Bitcoin, both up and down.
  • Competition: other blockchains target the same uses; Solana’s position is not guaranteed.

Trading SOL: the landmarks

SOL trades day and night against USDT (a cryptocurrency that tracks the dollar) on exchanges. Its liquidity is lower than Bitcoin’s: spreads (the difference between the buying and selling price) and slippage (the gap between the expected price and the price you actually get) can be larger. As with any cryptocurrency, funding on perpetual contracts (a periodic payment between buyers and sellers) and US economic announcements weigh on price moves.

Fictitious example

  • SOL at 180 USDT. Short-selling scenario (SHORT, which profits when the price falls) below a broken support level, stop at 188 USDT: a distance of 8 USDT.
  • Risk accepted: €100 (about 112 USDT). Quantity: 112 ÷ 8 = 14 SOL, i.e. 2,520 USDT committed.
  • If the price climbs back to 188 USDT, the scenario is wrong and you exit; the planned loss is about €100, before fees.

Learn before you buy

Before buying SOL, ask yourself what would invalidate your idea and how much you are willing to lose. The trading plan, the stop-loss and the position size apply exactly as they do elsewhere. On BULLSAGE, SOL is one of the assets in Paper Trading (€10,000 virtual on real prices), with an engine decision explained in plain language.

If you switch to real money, check that the platform is authorised in France (lists published by the AMF, the French financial markets regulator; outside France, check with your own regulator) and only commit what you can afford to lose. For comparison, read what is Bitcoin. Sources: official Solana documentation (in French). This article is not investment advice.

Free kit

Get the trading plan kit (PDF)

The plan to fill in, the eight questions to ask before acting, the position size calculation and a journal template. You will also be told when the platform opens, on 1 January 2027.

For now, the confirmation email and the PDF kit are in French.