Cryptocurrencies are gathering a larger following day by day throughout the world, and Colorado is no exception. The steep growth in popularity prompted the state government to introduce specific laws and regulate the mysterious crypto market.
Colorado is one of the few US states with a positive attitude towards cryptocurrencies. In fact, the state governor, Jared Polis, signed the Colorado Digital Tokens Act into law in 2019. This move allowed cryptocurrencies, including Solana, to be exempt from the CO securities regulations.
Colorado residents can freely purchase Solana and other cryptocurrencies now that the entire market is regulated. If you’re interested in learning more about Solana and the process of buying it in Colorado, read the following guide.
What Is Solana?
Solana is not your typical cryptocurrency. It also operates as an open-source platform relying on blockchain technology to offer a more scalable and fast marketplace and decentralized applications (DApps).
One of Solana’s main features that separates it from other cryptos is its fantastic scalability. The main goal is to boost blockchain’s scalability by combining two main consensuses — proof of history (PoH) and proof of stake (PoS). Essentially, it means this blockchain type can give insight into various transactions, including when they occurred.
Another Solana feature is outstanding speed. Unlike other crypto and traditional payment options, Solana can process up to 50,000 transactions per second, all the while remaining decentralized.
If you know how Ethereum operates, you’ll have no trouble understanding Solana. Both of these cryptos are platforms that host decentralized apps. Solana’s native coin is SOL, a token you can buy, invest in, sell, stake, or trade.
Unlike Ethereum, Solana doesn’t have scalability or speed issues. All transactions are super fast, meaning you won’t have to wait long when buying SOL. There is no SOL max cap, meaning the number of tokens will continue to grow as long as people buy or trade them. Currently, over 511 million SOL coins exist, with 334 million already in circulation.
Who Founded Solana?
Solana was created in 2017 by Anatoly Yakovenko, a Russian computed engineer who moved to the US and uncovered the world of cryptocurrencies. Yakovenko is a former Dropbox and Qualcomm employee.
He later partnered with Eric Williams, Greg Fitzgerald, and Raj Gokal and created Solana. The first Solana block was launched in March 2020 by the Geneva-based Solana Foundation.
Where Can I Buy Solana in Colorado?
The Centennial State has a regulated crypto market, meaning you don’t have to sneak around to purchase Solana or any other cryptocurrency. Essentially, you have two options at your disposal:
- Centralized cryptocurrency exchange platform
- Direct purchase from a person willing to sell SOL
The market has another type of platform, a decentralized one, but you’ll rarely find it safe and reliable. More importantly, these exchanges don’t allow you to use fiat currencies to buy crypto.
Therefore, we’ll discuss the two main options in the following paragraphs. Afterward, you can decide which one is better for you.
Centralized Crypto Exchanges
Unlike their counterparts, centralized exchange platforms abide by the state and federal laws and are more common. Most of them support several crypto coins, including SOL.
You can easily set up an account, fund it with USD, and purchase as many SOL coins as possible. If you’re in Colorado, you can choose one of these popular Solana exchange platforms — Binance, Kraken, Gemini, or Coinbase.
As you can see, you have many options to choose from. It can be challenging, especially if you have no previous experience. We’ve created a list of items you should check when searching for the right exchange platform.
- SOL availability — The first thing to check out is the SOL availability in the chosen exchange platform. Finding an exchange that supports many crypto coins usually means it’s a safe and reputable site.
- Presence in Colorado — Colorado residents might not have access to every exchange platform. So, make sure you can use the crypto exchange from the Centennial State.
- Security — Before starting the registration process, you should check whether the platform uses adequate privacy and security measures. You should also see whether the site faced any security issues or breaches in the past.
- User interface — If you’re just starting to learn about the crypto world, you will benefit from a neatly designed and beginner-friendly exchange platform. Even if you’re not a newcomer, you should pick a site that allows smooth navigation.
- Reputation — Read other users’ reviews and check the site’s overall reputation. See if there were any significant complaints and how the platform chose to deal with them.
- Payment options — Since these platforms allow you to exchange fiat currency (USD) for Solana, they should accept various payment methods. Credit/debit cards, e-wallets, and bank transfers are the most common options.
- Liquidity — Look for high liquidity platforms, as it ensures faster transactions. If a site doesn’t have high SOL trading volumes, the transactions will be slower.
- Fees — Most exchange platforms survive thanks to fees. However, they vary between sites, so check which one has low fees but still offers an excellent overall product.
Apart from purchasing SOL on a centralized exchange platform, you can choose another option — buying it directly from a person wanting to sell it. While it’s easier and quicker than finding the right exchange platform and going through the entire process, it’s also unsafe.
It’s a double-edged sword — you can strike a lucrative deal and profit from it or encounter a scammer and lose everything you have. Therefore, if you’re thinking about a direct purchase, make sure it’s from someone you trust, possibly a friend or someone with rock-solid references. Also, arrange the meeting in a public place to minimize the risk of anything going wrong.
How to Acquire Solana — Step-by-Step Guide
Now that we’ve established that buying Solana through a centralized exchange is the best and safest option, it’s time to explain how the entire process works. Buying SOL through an exchange is simple, regardless of the platform you choose.
Below is a step-by-step guide to walk you through the procedure. Take a look:
- Choose a crypto wallet — Find a wallet where you’ll store your SOL coins after purchase. The best options are Atomic, Solflare, Exodus, Math, Phantom, Sollet, and others. Once you pick a suitable one, create an account, and you’ll be ready to accept the incoming SOL coins.
- Select a centralized crypto exchange — Scroll through some of our suggestions and choose the exchange you like the most. Go to the official website and see whether it meets your expectations and needs.
- Set up an account — Follow the on-screen instructions to register an account. The process usually requires personal and contact information. You’ll also have to verify your identity before proceeding with the SOL purchase.
- Make a deposit — Once you set everything up, top up your account. Go to the payment page, choose the option to deposit, and select the preferred banking option. Make sure to transfer enough money to cover the SOL price and any additional fees and exchange margins.
- Buy Solana — If you’re using USD, you’ll have to choose the SOL/USD pair. Enter the amount you wish to buy and confirm the transaction. Coins should appear in your account within moments.
- Send SOL to your crypto wallet — If you don’t want to stake or exchange your SOL coins, you can withdraw them safely to your wallets. Of course, if you have other plans, you shouldn’t waste time transferring the crypto back and forth.
Many regard Solana as a cheaper Ethereum variant, but it’s much more than that. In some ways, it even poses a threat to the ETH. Solana is among the top 10 most popular cryptos worldwide, thanks to its unique approach and projects that attract many crypto buffs and investors.
Now that you know how to buy SOL, you can easily find a suitable exchange platform, sign up, and get in on the action. Remember to think it through, assess the risks, and decide if investing in Solana is good.