We all know that cryptocurrencies gain in popularity every passing day. The situation is similar throughout the US, and Alabama is certainly not an exception.
Even though crypto is not regulated in the Cotton State, it’s perfectly safe and legal to buy any cryptocurrency available on a licensed exchange. This is the law on the federal level, so if you’re interested in buying Solana in Alabama, you have nothing to worry about, and you’ll have plenty of options.
In this guide, we wanted to dig deeper into what Solana is and how it works so you know what you’re investing in. However, we’ll also explain where and how to buy this cryptocurrency, so you can choose the platform that works best for you.
Table of Contents
What Is Solana?
Solana is a cryptocurrency and an open-source platform that aims to use blockchain technology to allow users to offer decentralized finance and other decentralized solutions.
The main feature of Solana is its incredible scalability. This is also one of the project’s main goals, as Solana can improve blockchain scalability through its unique combination of proof-of-stake (PoS) and proof-of-history (PoH) consensuses. This means that the blockchain can provide a record of what transaction occurred and when it occurred.
Furthermore, Solana can support 50,000 transactions per second, more than most cryptos and more than traditional payment methods like Visa. And the cherry on top — the platform doesn’t sacrifice decentralization to achieve this.
Due to this remarkable speed, Solana also has low gas fees of just $0.00025 per transaction. This fee is one of the lowest in the entire crypto market.
Solana Token and Similarities to Ethereum
The best way to understand Solana is to compare it to Ethereum because both are flexible platforms for decentralized apps (DApps), which also act as cryptocurrencies.
Solana also has its native token bearing the same name, or the acronym SOL. This token is the one you will be buying if you’re interested in investing in Solana. You can buy it, sell it, stake it, keep it as an investment, and trade it like other cryptos.
However, unlike Ethereum, Solana doesn’t suffer from the same scalability and congestion issues due to its incredible speeds. You’ll always have a quick time buying and selling SOL.
SOL doesn’t have a max cap, and already, more than 511 million SOL tokens have been released. Around 334 million of those are currently in circulation, while Solana’s market cap makes it one of the world’s top 10 cryptos.
Founders of Solana
The main guy behind Solana is Anatoly Yakovenko, a Russian computer engineer who grew up in the Soviet Union but moved to the US to build a new life. He had a fruitful professional career at Qualcomm, where he eventually became a senior staff engineer.
Later, he moved to Dropbox but quickly decided to work on something independently. The project eventually became Solana. Together with former Qualcomm colleague Greg Fitzgerald, Anatoly created Solana Labs.
After getting more former colleagues to join them, they launched the Solana protocol and the SOL token in 2020.
Where Can I Buy Solana in Alabama?
In Alabama, just like in most other states, you can buy Solana using two methods:
- On a cryptocurrency exchange
- By buying directly from another person
We’ll cover both options in detail, but it’s important to mention that, when it comes to exchanges, we’ll only be dealing with centralized ones. These exchanges are regulated, safe to use, and let you buy crypto with fiat currency.
On the other hand, decentralized exchanges are more in the spirit of crypto, but you can rarely be sure they are safe, and crucially, they don’t allow the use of fiat currency.
Centralized Crypto Exchanges
Centralized exchanges are usually easy-to-use platforms that act as crypto and fiat currency exchanges. You only need to create an account and verify your identity, and you can begin trading.
You can make deposits and withdrawals in fiat currency using many different payment methods, and you’re always protected by strict security measures.
Naturally, you still have to choose a platform like Kraken, FTX, Coinbase, Binance, Gemini, or another high-quality alternative. To choose one, you need to consider the following features and aspects of crypto exchanges:
- SOL availability — The most important thing you need to check is whether the exchange covers Solana. Even though this is one of the most popular cryptos on the planet, it’s not a given that every exchange will have it.
- Availability in Alabama — Most crypto exchanges that work in the US operate in Alabama, but you should still check just in case.
- Security — Security is the biggest issue for exchanges, so most make sure to offer state-of-the-art safety features. However, you should check what these are and, more importantly, check how the platform handles breaches.
- Liquidity — Not all exchanges have high trading volumes with Solana, and the lower the trading volume, the slower the transactions will be. That’s why you need to look for an exchange with high liquidity.
- Reputation — The exchange you’re looking to join needs to have an excellent online reputation. Check online reviews, user feedback, complaints, and how they were handled.
- User interface — If you are a beginner, it’s best to go for a beginner-friendly platform, but even if you’re not, you should still choose a modern and well-designed platform that makes trading easy.
- Payment systems — Exchanges support many payment methods, but you should still check which ones. Your platform of choice should have one or more payment options you’re used to using online.
- Fees — Exchanges are funded by fees, most notably maker and taker fees. You should check the pricing as some platforms charge many different fees, like fund transfer and transaction fees. So, make sure to check all of them before joining.
As is the case with any other cryptocurrency or asset, buying SOL directly from someone is always an option. However, this can be very risky, especially if you’re making the trade online with someone you don’t know.
Naturally, it’s not easy to find somebody trustworthy who is willing to sell SOL tokens. So, when making a deal with a person you don’t know, it’s best to either do it in public or with the help of a trustworthy mediator.
How to Buy SOL — Step-by-Step Instructions for Any Exchange
Since buying Solana via an exchange is the easiest and most convenient method, we’ve prepared a quick step-by-step explanation of what you need to do to buy your first SOL tokens. The process is pretty much the same on any exchange, and these are the general steps you need to take:
- Get a crypto wallet — Find a good wallet for Solana like Phantom Wallet, Exodus Wallet, Atomic Wallet, or Solfrare Wallet. Create an account and set it up to be ready to accept its first SOL tokens.
- Choose a crypto exchange — Pick a platform from our list and visit the official website. You should base your decision on the exchange’s features and aspects we’ve discussed but also on your own research.
- Register an account — Follow the instructions for creating an account. You’ll likely have to input your personal information and be asked to verify your identity per the latest US regulations.
- Make a deposit — Once your account is ready, you can pick a payment method and follow the instructions to make a deposit. Make sure you deposit enough to account for the SOL you’ll buy and the underlying fees and exchange margins.
- Purchase SOL — Pick the right pair. For instance, you should choose SOL/USD, if you want to buy SOL for US dollars. Input the amount you want to buy, confirm the exchange, and wait for the SOL to land in your account.
- Withdraw SOL to wallet — If you want to store your newly acquired SOL tokens or stake them at some point, you should withdraw them to the wallet you’ve previously set up.
Solana is one of the biggest cryptocurrencies on the planet. It’s both a crypto token and a platform that focuses on enabling decentralized apps, making it a compelling project for crypto enthusiasts, investors, and developers.
You can invest in Solana easily on many major crypto trading platforms operating legally in Alabama. You only need to pick one, create an account, make a deposit, and buy SOL. This process should take you no more than 20 minutes, so all you need to do is decide if this is the right investment for you.