Cryptocurrencies have spawned many stories of unexpected profits and success. One of these fascinating stories revolves around Solana.
Founded in 2017, Solana is a prominent player in the crypto space, known for its high throughput and low transaction fees. For some early investors, this has led to significant returns. In this article, we consider a hypothetical scenario where we look at the journey of an investor who bought Solana for 100 euros in January 2021.
What would your net worth be now?
Imagine that in January 2021, when the value of one Solana token was about $1.40, you decided to invest 100 euros. With that investment you would have been able to purchase approximately 71 Solana tokens.
Fast-forward to June 2023. The price of one SOL is now $16.98 (about 15.33 euros). If we apply this price to the number of Solana Tokens you own, your 71 Solana Tokens would now be worth approximately $1,088. That’s a significant profit of $988 from an initial investment of just $100.
What if you had sold the Solana tokens at the perfect time?
What if you picked the perfect time to sell your Solana Tokens? Solana hit its all-time high in September 2022 when the price hit a whopping $260.06. At that point, if you had sold your Solana Tokens, your 71 Solana Tokens could have earned you an astounding $18,444.
Since that peak, however, the price of SOL has fallen significantly. A major factor in this decline was the unexpected failure of FTX, a prominent crypto exchange heavily associated with Solana. This illustrates the risks and volatility in the cryptocurrency world, where high peaks are often followed by deep troughs.
Conclusion
Solana’s extraordinary trajectory highlights the potential returns of an early investment in cryptocurrencies. In this hypothetical scenario, a modest investment of EUR 100 in 2021 could have grown to a respectable EUR 1,088 in 2023, or even to an impressive EUR 18,444 at its peak in September 2022.
However, Solana’s significant price drop after reaching this high also illustrates the inherent danger of investing in cryptocurrencies. Getting rich quick can be a tempting prospect, but it is crucial to remember that the volatility of the crypto market also means that profits can disappear as quickly as they appear.
This was evident in the case of Solana where the failure of the FTX exchange had a significant impact on the value of the coin. It is a powerful reminder that despite the potential returns, investing in cryptocurrencies carries significant risk and that careful consideration and due diligence are essential when entering this market.
Free 20 euros worth of Crypto
Do you want to enter the crypto world and perhaps buy Solana? Then we have great news for you! Thanks to a special deal between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers are getting an exclusive offer.
If you sign up to Bitvavo via the button below, you will not only receive 20 euros for free, but you will also not pay any trading fees on your first 10,000 euros worth of transactions.
