With the rapid development of blockchain technology, cryptocurrencies have gradually become a focus of global investors' attention. From Bitcoin to Ethereum, more and more people are beginning to recognize the potential of cryptocurrencies and hope to gain returns through investment. However, for beginners, how to purchase cryptocurrencies safely and conveniently remains a challenging issue. This article will provide you with detailed steps for buying cryptocurrencies through on-chain methods, helping you prepare thoroughly when entering this emerging market. We will use the SOL chain as an example.
Purchasing SOL
Before participating in Solana's DeFi ecosystem or investing in on-chain tokens, you typically need to obtain some SOL, the native token of the Solana network. This is because SOL serves dual purposes in the Solana network: it is both the necessary token for paying network transaction fees (gas fees) and the base token required for token swap operations. Any operation you perform on the Solana network, such as interacting with smart contracts, trading on decentralized exchanges (DEX), or making transfers, will consume SOL as fees. Therefore, holding a certain amount of SOL is a prerequisite for smooth network usage.
There are many decentralized exchanges (DEX) in the Solana ecosystem, such as Raydium and Orca, which are the main platforms for token trading between users. Additionally, there are DEX aggregators like Jupiter that integrate liquidity from multiple DEXs to help users find the best trading routes and prices, thereby improving trading efficiency and reducing slippage. Using these platforms, users can conveniently exchange tokens on the Solana network.
To begin operating on the Solana network, you first need to withdraw SOL from a centralized exchange (CEX) to your personal wallet. This is necessary because when trading on DEX platforms, you need to interact directly with smart contracts through your wallet. Centralized exchanges like Binance and Coinbase support users in buying SOL and withdrawing it to personal wallets. Furthermore, Jupiter provides a way to purchase SOL directly with fiat currency, simplifying the process for new users entering the Solana ecosystem, making it possible to participate in on-chain activities without first buying SOL through a centralized exchange.
Performing Token Swaps
After entering the Jupiter page, you can find the wallet connection button in the top right corner. Clicking this button allows you to connect your preferred Solana wallet, such as Phantom or Solflare. This step is essential because all token transactions require authorization and signatures through your wallet.
In the center of the page, you'll find the token exchange interface. Here, you can select the token you want to sell and the token you want to buy. Jupiter supports trading various tokens, so you can choose common tokens from the dropdown menu. If you want to trade less common tokens, you can manually enter the token's Contract Address (CA) in the search bar to ensure you're purchasing the correct token and avoid buying the wrong ones.
As a DEX aggregator, Jupiter automatically finds the best trading routes and prices for you by integrating liquidity from multiple decentralized exchanges, helping you complete token swaps under optimal conditions. After selecting your tokens and confirming the transaction details, you only need to sign the transaction through your wallet to complete the operation.
