Cryptocurrencies have been trending for years, and now there is a kid on the block. Solana went live in 2020 as a fresh cryptocurrency with an innovative and unique business model. It immediately attracted many passionate crypto buffs and investors worldwide, including those from Montana.
So, if you’re interested in learning more about Solana, you’ve landed on the right page. The following article will introduce you to this cryptocurrency, explain the basics, and show you how to buy it in Montana. Let’s begin!
What Is Solana (SOL)?
Solana is an open-source project that employs an innovative, permissionless, and super fast level-1 blockchain. The network was created in 2017 by Anatoly Yakovenko, a Russian engineer who moved to the US. Thanks to his previous experience in companies like Dropbox and Qualcomm, Yakovenko successfully built the network, partnering with several colleagues.
Solana is most similar to Ethereum as it aims to enable decentralized finance solutions (DeFi) and decentralized apps (DApps). However, the Ethereum network has trouble meeting the high demand, while Solana boasts more power and speed, allowing it to process more transactions and provide more stability.
Although the network appeared in 2017, the Solana cryptocurrency did not take shape until 2020. Despite being a new crypto on the market, Solana already poses a serious threat to other, more famous cryptos.
How Does Solana Work?
Although they have several differences, Solana and Ethereum are quite similar. So, if you know anything about the latter, you’ll have less trouble understanding how Solana works. The most important thing to know is what makes Solana so special.
The open-source project uses a unique consensus — a combination of proof of history (PoH) and proof of stake (PoH). With this, Solana can catalog earlier events in the blockchain, showing what and when they happened.
Solana is also known for its fantastic scalability and speed. Unlike Ethereum, which processes only 15 transactions per second, Solana can receive and register around 50,000 transactions.
Solana is becoming a more popular option among crypto investors thanks to this and many other elements. If the business continues to flourish, this new network threatens to surpass even the most famous cryptocurrencies, including Ethereum.
Solana has a unique ecosystem and carries its own native token called SOL. So, what BTC is to Bitcoin, SOL is to Solana. So, besides buying and selling coins, you can also use them for other purposes.
We mentioned that Solana has a unique consensus system that also uses tokens to improve the overall crypto performance. Therefore, as you increase the number of SOL coins on your balance, you’ll have more power to participate in the network’s governance.
Solana also has an unlimited number of tokens, meaning the number of coins will grow as long as people invest in Solana. Currently, over 500 million SOL coins exist, with 342 million SOL in circulation.
Although the current inflation rate is 8%, it will decrease yearly. Once it reaches 1.5%, it will stay like that, which is good news for all crypto buffs looking to invest in Solana.
Where to Buy Solana in Montana?
Montana still hasn’t regulated the crypto market, so you’re free to purchase as many SOL tokens as you’d like. You can essentially choose between two options — centralized crypto exchanges and direct purchase.
The first is more secure and popular in the global crypto world, so this article will primarily focus on buying crypto from an exchange. The following paragraphs will help you understand how these platforms work and how you can get started with one. Let’s dive in.
Centralized Cryptocurrency Exchanges
As mentioned, two types of exchanges work with cryptos, but the centralized ones are a far better and safer option. Licensed companies and organizations own them, meaning they operate within the legal landscape in Montana.
Most cryptocurrency trading is happening in these exchanges. You might have heard of several popular platforms like Kraken, Gemini, Coinbase, Binance, and several others.
Finding a suitable crypto exchange requires research. While that may be overwhelming for those new to crypto, it’s an essential process that directs you towards good and trustworthy exchange platforms.
We’ve taken the matter into our hands and created a checklist of the elements you must explore before signing up with an exchange platform. Take a look below:
- Presence in Montana — Most exchanges operate across the US, meaning they are likely available to Montana residents. However, you should always check whether the specific platform caters to Montana crypto enthusiasts.
- Solana availability — The other essential aspect is seeing whether the exchange supports Solana transactions. Fortunately, Solana is among the most popular cryptos, so it’s present in most exchanges.
- Security — Centralized exchange platforms boost their security with cutting-edge encryption and firewalls. That way, all transactions and sensitive data are safely stored and kept private.
- Liquidity — Check the platform’s liquidity before joining. The higher the liquidity, the faster the transactions.
- User interface — Even if you have experience with exchanges, you should find a platform with a neat design and smooth navigation. If you’re new to the entire concept of buying cryptos, make sure the platform has a beginner-friendly layout.
- Fees — Exchanges operate thanks to the fees. So, while you cannot avoid them entirely, you could find a platform with lower transaction and conversion costs.
- Payment methods — If you want to purchase SOL with a fiat currency, you’ll have to top up your account. Luckily, centralized exchanges usually support various payment methods, from credit/debit cards to e-wallets and bank transfers. Make sure the chosen platform accepts your preferred banking option.
- Reputation — Check out online reviews and forums, and read the user experiences. That way, you’ll know whether the exchange had significant problems in the past and how it deals with them.
As we previously mentioned, another way of buying Solana is a direct purchase. The process involves finding another SOL owner willing to sell his tokens and negotiating the price. Although it sounds simpler and faster, it comes with certain risks.
These transactions are mostly irreversible, so you won’t be able to get your money back, especially if you run into a scammer. However, if this is the way you want to purchase SOL, make sure you find someone trustworthy and reliable, possibly a friend or an acquaintance.
How to Buy SOL Using an Exchange — Step-by-Step Guide
If you’ve decided to dip your toes in the crypto world and purchase Solana, you’ll have to jump through several hoops before accessing the crypto token. Luckily, the process is simple, and the guide below will walk you through the most critical steps.
Here’s everything you need to do to become the newest SOL owner:
- Find a suitable crypto wallet — Before buying tokens, you’ll have to find a place to store them. Pick a crypto wallet where you can keep your SOL coins. Some of the best options include Phantom, Exodus, Sollet, Solflare, Atomic, and Math.
- Choose the right SOL exchange — Explore the above-mentioned exchanges and find the one you like the most. Make sure it checks the items on the list above and offers SOL transactions.
- Create an account — Fill out the registration form to become the newest exchange member. Verify your account, and you’ll be ready to purchase SOL tokens.
- Make a deposit — Select one of the available payment options, insert the amount you wish to deposit and complete the transaction.
- Buy SOL — Once the funds appear on balance, load the exchange page, select the correct pair (for example, USD/SOL), and make the purchase. SOL coins will quickly appear on your account.
- Send SOL to your crypto wallet — If you want to store your newly bought coins, you can send them to your wallet. However, if you wish to stake or trade them further, you should keep them on the exchange.
Solana has made quite an entrance into the global crypto scene. The innovative business model, incredible scalability, and fantastic speed make Solana an excellent option for both seasoned investors and beginners. So, if you’re ready to start the crypto adventure and buy SOL, you know what to do — find the best exchange, set up an account, and get some tokens.