Although it holds the status of a newer cryptocurrency, Solana has garnered significant attention rapidly. Today, Solana is among the ten most popular cryptocurrencies, despite being launched in 2020.
Due to its popularity, Solana has caught the attention of many passionate investors and crypto buffs worldwide, and Massachusetts is no exception. The Bay State doesn’t have any laws regarding virtual currencies, so trading, buying, or selling cryptocurrencies, including Solana, is becoming increasingly popular.
So, read on if you want to know more about this new crypto and uncover the best ways to buy it. We’ll introduce you to Solana and tell you how you can get your hands on its coins from Massachusetts.
What Is Solana?
Solana is a new open-source project that runs using blockchain technology. The project’s primary goal is to enable decentralized finance solutions (DeFi) and decentralized applications (DApps).
Both already run on Ethereum, but as they grow in popularity, they are making it more difficult for Ethereum to meet the high volumes and customer demand. Since Solana uses a similar business model, it might help alleviate the pressure from the Ethereum platform and facilitate the blockchain operation.
Solana went live in 2017, while the crypto became available in 2020. It became one of the most prominent open-source projects in the blockchain world in a short time. On top of that, it boasts incredible scalability and high-grade security and is entirely decentralized.
How Does Solana Work?
Explaining Solana to those new to cryptocurrencies might be overwhelming, as the entire project is rather complex. However, one factor easily explains how the platform operates. Solana uses a unique combination of proof of stake (PoS) and proof of history (PoH) consensuses. It also introduced a time element, an entirely new concept in the blockchain world.
Simply put, the PoH system catalogs earlier events in the blockchain, specifying what happened and when. According to Anatoly Yakovenko, Solana’s founder, the network nodes have internal clocks that give them the power to verify events and track time progression.
This is just the tip of the iceberg, as Solana offers much more. However, getting into technicalities and specifications might not appeal to the general public. Therefore, the only thing that matters is Solana attracts high volumes of investors, traders, and crypto enthusiasts.
Solana also boasts incredible processing power. For instance, Ethereum can process up to 15 transactions per second, while around 50,000 transactions go through the Solana network. With fantastic scalability, Solana threatens to surpass some of the most popular cryptocurrencies, including Ethereum.
We mentioned that Solana is similar to Ethereum. The project operates as both a blockchain and a cryptocurrency. So, in addition to the unique platform, Solana has a native token called SOL.
Aside from transactions and smart contracts, Solana users can also use the token to support the network and improve its security. Of course, these actions will result in additional SOL rewards. Once the platform goes out of its beta version, staking SOL will help you take part in the network’s governance.
Solana has an unlimited supply of tokens. According to the latest reports, over 500 million tokens exist, while 333+ million are in circulation.
Like any other cryptocurrency, Solana is available for purchase. You can use fiat currency or other cryptos to buy it, trade it, keep as an investment, or sell it.
Where to Buy Solana in Massachusetts?
If you’re in Massachusetts and want to become an SOL owner, you have two options — a centralized crypto exchange or an in-person purchase. Decentralized exchanges are also a thing, but they operate without licenses and are hard to come by. So, we’ll primarily focus on their centralized counterparts as the best option to purchase Solana in Massachusetts.
We’ll also mention direct purchase as an option and discuss it in the following paragraphs.
Centralized Cryptocurrency Exchanges
Centralized cryptocurrency exchanges are where the trading action is. Even if you’ve never purchased or traded cryptocurrencies, you’ve probably heard of some of the biggest platforms, like Binance, Kraker, Coinbase, eToro, and others.
They are centralized, meaning established organizations or companies own them. They also hold valid licenses that allow them to operate in certain jurisdictions. That makes them the best and safest place to buy different crypto coins, including Solana.
Choosing a suitable exchange requires some research on your part. Here are several guidelines to help you pick the right Solana centralized exchange platform:
- Solana availability — The first thing you should check is the SOL availability. You shouldn’t join a platform if it doesn’t offer Solana. Luckily, due to its popularity, Solana is present in all major crypto exchanges. Also, see which other cryptos are accepted. It’s always a good idea to have a backup.
- Accessibility from Massachusetts — Most platforms operate across the US, meaning they are likely available to the Bay State residents. Of course, it doesn’t hurt to check.
- Security — Centralized platforms offer high-grade protection, making them the most popular and safest way to purchase Solana and other cryptos. See which security measures the platform uses and how it deals with potential breaches.
- User experience — If you’ve never used a crypto exchange, you’ll want a beginner-friendly interface to help you get started. The design shouldn’t be cluttered, even if you have experience in exchanges.
- Payment methods — Exchange platforms support various payment systems, allowing you to use the ones you’re comfortable with. Common banking methods include credit/debit cards, e-wallets, and bank transfers. So, ensure the platform accepts your preferred payment option.
- Reputation — Reputation is of utmost importance, so read online reviews, experiences, and potential complaints to help you understand how the exchange deals with certain situations.
- Fees — While you won’t have to pay to use a crypto exchange, you’ll have to cover fees, as they help the business stay afloat. Of course, compare the fees and choose the platform with the lowest charges.
- Liquidity — Look for platforms with high liquidity volumes. The higher the volume, the faster the SOL transactions are.
Besides buying SOL using exchange platforms, you can purchase it directly from another owner. For example, you can find a person with SOL tokens willing to sell them and make a direct purchase. However, this option comes with the risk of being scammed. So, if you decide to go this way, find a reliable person or a friend.
Alternatively, you can find a peer-to-peer exchange platform where people can directly purchase cryptocurrencies. That way, you can minimize the risk by doing the exchange with people with a good reputation. Also, make sure all transactions occur on the platform. That way, even if something happens, you have proof and some coverage.
How to Buy SOL Using an Exchange — Step-by-Step Guide
Now you know everything there is about exchanges. All that’s left to do is choose the platform and make your first SOL purchase. Here’s a detailed guide to help you get started:
- Find a crypto wallet — Find a good wallet where you’ll store SOL tokens after purchase. Create an account and set it up for use.
- Choose an exchange — Pick one of the mentioned Solana crypto exchanges. Check the elements we discussed above and make an informed decision. The important thing is that the exchange meets your needs.
- Set up an account — Load the exchange’s official website and opt to join. Complete the registration form with the required details and verify the account.
- Make a deposit — Choose one of the available payment methods, specify how much you want to transfer, and complete the transaction.
- Buy SOL — Once the deposit goes through, find the right pair (SOL/USD if you use dollars to buy SOL) and input the amount you’d like to purchase. Confirm the transaction and wait for the coins to appear on balance.
- Send SOL to your wallet — Send the SOL tokens to your wallet. Alternatively, keep them on the exchange if you want to trade or sell them.
Solana brings a new and exciting concept to the ever-evolving crypto world. Due to its popularity, it’s become a frequent choice for crypto investors and enthusiasts in Massachusetts. Therefore, if you’re ready to invest in Solana, follow our guide and get in on the action. Remember to do proper research before choosing an exchange platform and committing. As popular as it is, Solana is still a cryptocurrency — don’t forget that.