In the past, many have perceived cryptocurrencies as something shrouded in secrecy. This is one of the reasons for the absence of a legal framework for regulating them in the US. The fact that Nebraska’s legislature has already jumped on the bandwagon to start regulating cryptocurrencies demonstrates how important they could be for the state’s financial future.
The Cornhusker State wants to regulate cryptocurrencies for tax opportunities and stop illegal activities. This means that Nebraskans will be able to trade Solana and other cryptos and digital assets with peace of mind.
Let’s discuss what Solana is, where to buy it, and whether you should consider investing. Buckle up!
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What Is Solana (SOL)?
Aside from being a cryptocurrency, Solana is an open-source blockchain supporting smart contracts. It also utilizes new technologies to facilitate fast and scalable NFT marketplaces, decentralized applications (DApps), and enable decentralized finance (DeFi) solutions.
The creator of Solana is Anatoly Yakovenko, who once worked for Qualcomm and Dropbox. With the help of Eric Williams, Greg Fitzgerald, and Raj Gokal, Yakovenko started working on Solana.
The Solana project started in 2017, and the coin was launched in March 2020. It is already regarded as a leader in open-source blockchain projects due to being completely decentralized, highly scalable, and incredibly secure. Solana has raised more than $25 million through several public and private sale rounds since it started in 2017. This is where it captured the attention of several notable crypto companies, such as Multicoin Capital, Serum, CMCC Global, and others.
How Does Solana Work?
Solana doesn’t only use proof-of-stake but also proof-of-history. Yakovenko had the vision to synchronize time in a decentralized network and created this hybrid model that keeps track of every transaction across the network thanks to a built-in timestamp. As a result, Solana is highly scalable and capable of performing up to 65,000 transactions per second. Solana achieves this without sharding solutions and at almost no cost since the price per transaction is $0.01)
Thanks to the built-in timestamp, network nodes can instantly organize transactions without waiting for other validators to confirm them. In addition to the chronological order of blockchain transactions, POH can verify the time interval between them. Also, nodes don’t need to communicate to verify transactions, making this system extremely fast.
Along with allowing you to create your own blockchain solution, Solana’s platform also features smart contracts. Additionally, developers using this blockchain network to develop new services or products can create their own tokens.
SOL Token Explained
Solana’s native token is called SOL. It can be used as a payment method or for covering the cost of running the network. Additionally, you can use SOL for staking. This means that the network also offers its owners the chance to earn more SOL if they partake in verification activities.
Investing in Solana
Despite its constant price fluctuations, Solana saw a growth of over 10,000% in its SOL token value during 2021. Although it’s impossible to predict which way it will go, investing in the SOL token can be beneficial in the long run. Here are a few points that back up this statement:
- Solana’s ecosystem hosts numerous projects — Solana may be only one-tenth the size of Ethereum. Still, it has a considerable growth potential due to hosting countless new projects and high transaction speeds. The projects running on its network include DEXs, DApps, and DeFi platforms. Solana also features an NFT marketplace, Solonart, which facilitates NFT trading for investors. It is estimated that more than 4,000 apps run on the Solana network, thanks to its highly developed infrastructure. These include Open Ocean, Serum, Defi Land, and many others.
- Solana is environmentally friendly — Solana’s network is highly energy-efficient and has a low environmental impact. Unlike BTC and ETH, Solana’s token doesn’t involve mining. The Solana team went a step further, creating a bridge that allows transferring assets from ETH to Solana for an even more eco-friendly environment.
- Solana allows the staking of SOL tokens — Owners can pledge their tokens to validators, thereby enhancing network processing and security. By putting these stakes in their hands, they show the trustworthiness of validators who vote on a network consensus. As a result, you earn SOL tokens by participating in the network’s security. Solana stakes currently offer a nominal annual yield of 7.23%, excluding the validator commissions. Also, although you delegate your SOL coins to validators, you remain 100% in control of them, which means you can withdraw them and pledge to another validator at any time.
Crypto Laws in Nebraska
In an effort to turn Nebraska into a major hub for digital asset companies, Governor Pete Ricketts signed Legislative Bill 649 — the Financial Innovation Act — in May 2021. The bill will become effective on October 1, 2022, allowing banks to trade cryptocurrencies within the state. Signing the bill made Nebraska the second state to let banks handle cryptos, after Wyoming.
Moreover, the banking industry collaborated extensively with lawmakers before the proposed bill advanced out of committee. Nebraska’s Department of Banking and Finance will oversee the new financial sector and other regulations. The banks in the Cornhusker State will be able to open accounts to clients who own Solana and other cryptocurrencies.
Where Can I Buy Solana in Nebraska
You can purchase Solana and almost all major cryptos on sites that operate in the US, including Nebraska. Such sites are called crypto exchanges, and they are usually centralized. Another way to buy Solana is directly from another SOL owner. Let’s discuss both ways.
Centralized Crypto Exchanges
Centralized crypto exchanges are platforms for buying, selling, and trading cryptos. They are owned by specific organizations that have licenses to operate. They have much higher trading volumes and allow you to buy Solana and other cryptos with fiat currencies. You have probably heard of the most popular ones, such as Coinbase, Gemini, Binance, and Kraken.
On the other hand, decentralized crypto exchanges are more in tune with the nature of cryptocurrencies. Although they sound like a better option because they allow you to trade cryptos anonymously, they aren’t licensed by any authorities, so it is hard to find one that is entirely safe. That’s why we’ll focus more on centralized exchanges.
Nebraska is home to many centralized crypto exchanges, and choosing one may not be the easiest thing to do. We’ll help you by highlighting the significant aspects you should focus on before committing to any exchange.
- Availability in Nebraska — The most important thing is that SOL is available on the exchange. Although it’s unlikely that a popular exchange won’t have Solana, you should still check.
- Crypto selection — Most exchanges that operate in the USA will also work in Nebraska, but you should still make sure before creating an account so that you don’t waste any time.
- Security and privacy — Security is paramount when trading cryptocurrencies, so the exchange should have top-notch security features and provide insurance for your assets. It is also vital that your chosen exchange doesn’t share your data with various third parties.
- Reputation — Reading online reviews and user feedback will give you a good idea of the exchange’s reputation. Only then can you be sure of what to expect.
- Fees — Crypto exchanges are free to use, but they make money by charging fees. So be sure to check the pricing system, especially the deposit/withdrawal fees.
- Limits — Each exchange limits the amount you can trade, deposit, or withdraw. If there are other limits, make sure they fit your needs before committing.
- Liquidity — An exchange with more traffic will have better liquidity, which means you can trade cryptocurrencies any time you want.
- Payment methods — Exchanges offer a wide selection of payment methods for depositing and withdrawing fiat currencies. You can transfer funds by bank transfer, credit/debit card, e-wallet, and many other ways. Make sure your preferred method is available.
- Ease of use — A beginner-friendly exchange platform is best for those new to crypto. But a platform should be easy to use and have a straightforward design regardless of how experienced its users are.
You can always buy directly from a seller if you don’t want to pay fees or participate in complicated exchange procedures.
Still, we cannot recommend this method as it is seldom safe. It is impossible to know if the seller will give you the SOLs once you have bought them, so you just need to trust the person you are trading with. If you still want to do it this way, try to do it in a public place or through an intermediary you trust. Stay safe and always keep an eye out for scammers in the cryptocurrency world.
How to Buy SOl on an Exchange — Step-by-Step Process
The best way to purchase Solana in Nebraska is through a centralized cryptocurrency exchange. Here is the rundown of what that process entails for a complete beginner:
- Set up a wallet — Find a crypto wallet that supports SOL. Choosing an online wallet requires creating an account, while choosing a hardware wallet requires purchasing it and setting it up.
- Select an exchange — Select the one that fits your needs from the recommended crypto exchanges list, and study all the information.
- Register an account — Go to the exchange’s official website and click the “Register/Join/Sign Up” button. Fill out all the information necessary to complete the registration process.
- Verify your account — After creating an account, you must verify it according to the exchange’s guidelines. You may need to show some ID later, but that’s all the platform needs to verify your identity, age, and place of residence.
- Make a deposit — As soon as your account is ready, you can select your preferred payment method and make a deposit.
- Buy SOL — Once your new account is funded, you can purchase the desired amount of SOL.
- Transfer SOL to your wallet — If you plan on storing or hodling your tokens for the long run, consider transferring them to your new SOL wallet, as that’s a much safer option than keeping them on an exchange.
With its low costs and lightning-fast transactions, Solana is often perceived as a cheaper Ethereum alternative. Aside from offering its users the possibility to stake SOL tokens and featuring multiple projects in its ecosystem, it is no wonder this promising crypto ranks among the top 10 cryptocurrencies worldwide. However, being highly volatile like other cryptos, Solana is a high-risk investment.
If you are considering investing in SOL tokens, we advise you to first acquaint yourself with the crypto market and the latest trends, especially if you are a beginner. Don’t invest more than you can afford to lose and ask for a professional opinion.