As the crypto market keeps flourishing worldwide, more US citizens are becoming interested in digital currencies. Utah residents are no exception. In fact, the Beehive State has recently introduced three new bills that should help regulate its crypto market. So, if you’re interested in buying Solana in this state, don’t let anything stop you.
You can learn all you need to know about Solana in Utah (including where and how you can buy this crypto) in this guide. Check it out, and you’ll be all set!
Table of Contents
What Is Solana?
Solana is a blockchain-based project that was launched in 2020. It was designed to support decentralized applications (DApps), smart contracts, and non-fungible tokens (NFTs). It became well-known for its high transaction speed, which allegedly reaches over 65,000 transactions per second (TPS) without the help of a scaling solution.
The secret to Solana’s functionality lies in its innovative architecture. Namely, the network uses a unique mix of two consensus mechanisms to function. One of them is called proof-of-stake (PoS), and it’s already used by several other blockchain networks. The other is named proof-of-history (PoH), and it was created specifically for Solana.
PoS sequences messages between the nodes in the system by choosing one to be the leader. PoH keeps track of the order of events in the network and records the passage of time between them. The nodes use this data as a universal clock when processing transactions, so they have no need to consult other validators working in the network.
This system saves time and significantly increases transactional speed. It also keeps costs low and doesn’t affect the network’s decentralization. Moreover, it makes Solana the first blockchain project to solve the so-called blockchain trilemma — the idea that blockchains cannot be decentralized, secure, and scalable at the same time.
Solana Token (SOL)
Like other blockchain projects, Solana has a native token known as SOL. You can buy, sell, and trade it for other cryptos and fiat currencies or use it to pay fees for performing transactions or running smart contracts on the network. However, that’s not all. SOL is also a utility coin, so you can stake it to support the network.
If you’re not familiar with staking, it’s a process where someone who holds SOL delegates those coins to validators who process transactions and run the network. This system keeps Solana secure and allows it to progress, so SOL holders get rewards for their participation. They receive SOL coins and get to take part in project governing by voting.
There are currently over 346 million SOL coins in circulation, but the total supply surpasses 511 million. This crypto doesn’t have a max cap, and it was launched with an 8% annual inflation rate. Nevertheless, that number is set to drop by 15% each year until it settles on 1.5%. SOL’s current price is $40.37.
Solana’s founders are part of the reason why investors have so much confidence in this project. The main figure behind the network is Anatoly Yakovenko — a systems engineer who worked at both Qualcomm and Dropbox.
He started working on Solana back in 2017, when he published a white paper explaining its architecture and functionality. Greg Fitzgerald and Stephen Akridge, who were both former Qualcomm colleagues, helped him establish Solana Labs shortly thereafter. A few others joined them later on, and they officially launched Solana in 2020.
Crypto Laws in Utah
Utah doesn’t include blockchain tokens in its money transmitters laws, unlike many other US states. However, it recently passed three bills that will help regulate its crypto market.
These bills have established the creation of the Blockchain and Digital Innovation Task Force unit, whose members will make policy recommendations in relation to cryptos. Furthermore, they have authorized the UT Division of Finance to handle digital currency payments according to its own rules while working with third parties. Finally, they have also provided a framework of ownership for digital access.
The bills have already been signed into law, and they are slowly going into effect.
Where Can I Buy Solana in Utah?
Buying Solana in Utah isn’t a complex procedure. The first step is deciding on the method you’d like to use:
- Through a crypto exchange marketplace
- From another person directly
We’ll discuss both of these approaches in more detail in the following paragraphs. Make sure to read them carefully to choose the one that is the most convenient for you.
Crypto exchanges are platforms that specialize in trading digital currencies. You can use them to sell, buy, or exchange your cryptos — as long as you become their member. All crypto exchanges are divided into two major categories: they can be centralized and decentralized.
Centralized exchanges are typically owned by specific organizations, they’re licensed and regulated, and they work with fiat currencies. Decentralized platforms, on the other hand, are not owned or operated by any organization. As a result, they don’t have to follow any specific rules, so they’re less secure and more complex to use. Plus, they don’t support fiat currencies.
If you’re not a veteran in the crypto world, we recommend sticking with the former option. It’s safer, more widespread in Utah, and more popular among users. Here are some tips on how you can pick the perfect centralized exchange platform for you:
- Be sure it’s available in Utah — There are a ton of quality centralized exchange platforms in the US. However, not all of them will be available to Utah residents. Check whether the exchange you’re interested in operates in the Beehive State before deciding to register.
- Check what tokens it supports — When it comes to virtual currencies they support, crypto exchanges mostly differ. You want to be able to trade your SOL for other coins in the future, so the more cryptos an exchange includes, the better.
- Find out its liquidity level — All crypto exchanges have a certain liquidity level. Those with high liquidity will enable faster transactions. So, you should verify that the platform you’re joining has high SOL trading volumes beforehand.
- Make sure it’s reputable — Not every exchange out there will be equally reputable. To ensure the platform you’re considering is trustworthy, read about it online. Past and current users’ comments and reviews will tell you all you need to know.
- Look through its payment method list — Crypto exchanges usually work with a lineup of payment processing companies. However, that doesn’t mean much if they don’t support the payment method you like to use. So, remember to check the list of payment options before you join the platform you like.
- Check the fees it imposes — All centralized exchanges charge fees for their services. These aren’t particularly high, but they do vary between platforms. Make sure the fees your exchange imposes fit your budget and are comparable to the rest of the market.
As mentioned, the other way of purchasing Solana in Utah is by buying it directly. This approach requires you to find an SOL holder willing to sell you the coins and strike a deal with them.
The process might seem simple at first, but there’s a catch. You must also ensure that person you’re buying from is completely trustworthy and reliable. The crypto industry is not the safest place on earth, and there’s a chance you’ll be scammed, especially if you’re new to the crypto realm. For your own safety, we recommend forgoing this option and purchasing from a centralized exchange.
Step-By-Step Guide for Buying SOL on an Exchange in Utah
If you’ve decided to take our advice and use an exchange to buy SOL, you might be wondering what that process involves. We’ve created a step-by-step guideline to help you out. Take a look at it below:
- Find a crypto wallet — Before you join an exchange and buy SOL, you need an e-wallet where you can store those coins. There are many crypto wallets on the market, so you should do some research to find the best one. Once you do, create an account.
- Choose an exchange and join it — The next step in the process is picking the right crypto exchange for you. Go through our tips above and use them to select a reputable and safe platform. Visit its official website, complete the registration form, and verify your identity.
- Make a deposit — Find your preferred method from the exchange’s available payment options list and make a deposit. Ensure you have enough money in your account to purchase the coins and cover the fees.
- Purchase SOL — Select the right fiat/crypto pairing, enter the desired number of coins, and confirm the purchase. The coins should appear in your account in no time.
- Send SOL to your wallet — If you’re not planning to trade your coins further, it’s best to withdraw them to your crypto wallet immediately. The wallet will keep them as safe as possible while you’re deciding on your next move.
Solana became one of the most popular and sought-after cryptos on the market shortly after it was launched. Its unique design and high transactional speed have helped it remain in the world’s top 10 cryptocurrencies list even today. A large number of investors around the world are already supporting this innovative project, and thanks to Utah’s laws, you can do the same. Read through our guide, follow our advice, select a crypto exchange, and make your first purchase!