Maryland is a crypto-friendly state with a continuously growing cryptocurrency market, similar to many other crypto-friendly states.
As of late 2021, Maryland has even started allowing cryptocurrency businesses and crypto exchanges to operate under the money transmission legal codes. Naturally, exchanges were able to function before and will continue working in the Free State in the future.
So, if you’re looking to buy Solana in Maryland, it’s clear that you won’t come across any obstacles. Keep reading to learn more about the token and how you can buy it from the comfort of your home.
What Is Solana (SOL)?
Solana is a relatively new and highly popular cryptocurrency and decentralized open-source platform that aims to improve the scalability of blockchain technology. It’s also used to design and run decentralized apps (DApps) and decentralized finance solutions (DeFi).
It tries to achieve all of that with the help of its unique consensus model that combines proof of history (PoH) and proof of stake (PoS) mechanisms. This hybrid model allows Solana to support as many as 50,000 transactions per second without issues.
It’s similar to Ethereum, as Ethereum also acts as a platform for running DApps and a cryptocurrency. Like Ethereum, Solana uses its SOL token to power the whole platform, and users get to stake it and pay transaction fees. What’s more, holders of SOL also get the right to vote on proposed changes in the Solana network, making Solana a fully decentralized blockchain platform and cryptocurrency.
How Is SOL Used?
As stated, SOL tokens are used in two main ways:
- Staking — Solana is secured via its hybrid consensus mechanism. Even though it’s a unique system, its underlying function is still to secure the network by letting people become validators. In other words, SOL owners can stake their tokens or lock them to keep the network safe and earn new SOL tokens in the process. This also opens up the possibility of voting on future changes in the Solana network.
- Paying transaction fees — Solana fees might be low, but they still exist. The network charges fees to enable transactions or to run smart contracts. Smart contracts are essential for the network as many more complicated DApps and finance solutions use them to operate.
Besides that, you can also be a Solana investor and trader like many other cryptocurrency investors. You can trade SOL to make a profit or make long-term investments and hope that this investment will eventually pay off considerably.
It’s worth noting that Solana is inflationary and has no max cap like Bitcoin and some other cryptos. Solana’s starting annual inflation rate is 8%, and it’s supposed to decrease by 15% every year. Once it reaches 1.5%, this will become the long-term inflation rate.
What Makes Solana Unique in the World of Crypto?
Let’s take a look at Solana’s special features and everything else that makes this blockchain and cryptocurrency unique:
- Proof of history (PoH) — This consensus model is unique to the network and allows for better scalability. That’s especially the case as it’s combined with the standard proof-of-stake mechanism.
- Very short processing times — Solana has incredibly short validation times for transactions and execution of smart contracts Solana-powered apps use.
- Non-changeable fees and taxes — Naturally, this cannot be a certainty, but Solana’s founders assure the community that fees and taxes will remain as low as they are now. Solana’s very design can ensure this, so there’s no reason to think anything will change.
- Up to 50,000 transactions per second — This has never been tested before as the network is still not sufficiently large, but the technology brings credence to this bold claim.
Where Can I Buy Solana in Maryland?
At the moment, there are two methods you can use to buy Solana in Maryland:
- Cryptocurrency exchanges
- Directly from a willing seller
We’ll explain both, but we have to clarify that we’ll only cover centralized crypto exchanges. Decentralized exchanges are not a viable option for several reasons, including the fact that they are often unsafe, don’t always have Solana, and only use cryptocurrencies, never fiat currency.
This makes them unsuitable for beginners and those interested in buying SOL for USD or other fiat currency.
Centralized Cryptocurrency Exchanges
Centralized crypto exchanges are businesses that legally operate in the US, meaning they have a license and are thus subject to specific standards and rules.
This makes them very safe and ideal for beginners and advanced crypto users alike. However, as always, you can’t just decide to use any cryptocurrency exchange — you need to pick the right one for your needs.
So, besides the fact that the exchange needs to be operational in Maryland and that it has SOL tokens you can buy, you also need to take a look at a few other important features and aspects:
- Licensing — A crypto exchange needs to have all the necessary licenses and certifications to operate in the US as a crypto exchange. It also needs permission to offer its services to Maryland residents.
- Reputation — Reputation is essential for any crypto exchange, thus confirming its behavior toward users. Reading user feedback and online reviews will help you note any exchange’s reputation.
- Available coins and tokens — The more cryptos the exchange supports, the better. This shows that it’s a major platform, one you should use as well. This also allows you to buy other coins in the future.
- Security — If the exchange has proper licenses, it likely has proper security measures as well. But it’s still better to check those, as exchanges that go one step further represent the better choice for any crypto buyer.
- Payment methods — Centralized exchanges typically offer a myriad of payment methods, including various bank transfers, credit and debit cards, e-wallets, and more. Check if your favorite payment systems are included for easier and faster depositing and withdrawing.
- Fees — Various fees let exchanges stay in business, but you’ll mostly have to worry about trading fees as they are charged whenever you buy or sell something on the exchange.
- Liquidity — You should opt for an exchange with high Solana trading volumes. Good examples are Binance and Coinbase, but many other reputable exchanges are good too. It’s best to stick to such exchanges as high trading volumes mean you won’t have to wait too long to buy or sell SOL tokens.
- User experience — You want the exchange to be easy to use, especially if you are new to crypto exchanges. Plus, this will make the trading process more seamless down the line.
- Customer service — Crypto exchanges are not really known for having the best customer support systems. However, as you’ll likely need the help of a customer service agent at some point, it’s best to go for an exchange that has a better reputation in this regard than others.
Buying SOL Directly From a Person
Buying Solana from a person is always possible, just like buying anything online or offline from anyone. However, if you’ve ever made trades like this, you know how much of a hassle it can be.
On top of that, the crypto world is filled with scammers, so it’s imperative to buy from someone you can trust. If not, then make sure to make the trade in public or with the help of a mediator, which should make things safe for both sides.
However, since crypto exchanges facilitate trades between buyers and sellers, it’s always better to use their services than go through the risk and the hassle of buying directly. Exchanges don’t charge a lot for this service, so they are rarely a bad choice for most crypto traders.
How to Buy SOL on a Crypto Exchange — Step-by-Step Guide
As you can see, buying SOL via a good crypto exchange is the easiest option. That’s why we’ve prepared this quick step-by-step guide that explains how to buy your first SOL tokens:
- Obtain a Solana wallet — Find a good crypto wallet that supports Solana, as you’ll likely have to store your tokens on it if you want to use them outside of the exchange. Some of the best choices for Solana are Phantom Wallet, Exodus, Atomic Wallet, Sollet, Ledger Nano X, and several others. After choosing one, follow the instructions to set it up.
- Choose an exchange — Pick a good exchange using what you’ve learned in this piece.
- Register an account — Visit the official site of the exchange and register an account by inputting the necessary personal information. Also, verify your identity.
- Make a deposit — Pick one of the available deposit methods and follow the instructions to make a successful deposit. Make sure you deposit enough money to account for both the price of Solana tokens you want to buy and the trading fees.
- Buy Solana — Pick the right pair, in this case, SOL/USD, and buy the desired number of SOL tokens.
- Transfer tokens to your wallet — Once the tokens reach you, you can keep them on the exchange if you want to continue trading them. However, if you want to use them for something else, you’ll have to transfer them to your wallet.
Solana is an interesting player in the cryptocurrency realm, one that’s gained a lot of success in such a short time. It has potential — one of many crypto investors’ favorite assets.
If you want to become one of the many SOL holders while being a resident of Maryland, you can do so with ease by using any notable and secure crypto exchange platform operating in the state. Just pick one, create an account, deposit, and buy your first SOL tokens.