New Hampshire is not a state often associated with crypto, but it’s certainly one where you can buy cryptocurrency like Solana.
The state legislature even attempted to enact a regulation that would get local agencies to accept crypto payments. Although this bill was voted down in 2020, it’s certainly one that hasn’t even been brought up in most other states.
Regardless, it’s easy to get Solana, or any other coin or token, in the Granite State. This guide will tell you more about the notable crypto, how and where you can buy it if you’re in New Hampshire, and everything else you need to know before entering the market.
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What Is Solana (SOL)?
Solana is an open-source blockchain platform and cryptocurrency developed by Anatoly Yakovenko in 2017. It uses a novel high-speed and entirely permissionless layer-1 type of blockchain with the goal of providing a better and more manageable platform for the creation of decentralized applications (DApps).
Solana uses a unique hybrid consensus model that combines two mechanisms:
- Proof-of-history (PoH) — It’s an entirely new and unique consensus algorithm that operates on time. In other words, it records the exact time transactions occurred.
- Proof-of-stake (PoS) — The old and prevalent consensus mechanism relies on people staking their coins and validating new transactions to get rewards.
This innovative model allows Solana to process as many as 710,000 transactions per second.
The blockchain architecture of Solana is very progressive and facilitates smart contracts, just like Ethereum. However, it goes a step further by enabling advanced DApp creation. This makes it perfect for creating and supporting DeFi platforms and NFT marketplaces.
SOL Token Explained
The Solana ecosystem is powered by a native cryptocurrency, as is the case with most blockchains. It’s called Solana or SOL for short. You can buy, sell, trade, and stake SOL, but you can also use it to pay gas fees on the network.
The most important aspect of SOL is staking. In other words, SOL powers the whole network, achieved by users staking their tokens. That allows them to be validators — users who verify transactions on the Solana network. The entire system makes Solana completely decentralized and 100% secure.
SOL is also an inflationary cryptocurrency, meaning it experiences inflation on a scheduled basis as it doesn’t have a max cap on the number of SOL tokens released. The annual inflation rate is set to 8%, but will continue to decrease each year until it reaches 1.5%, where it will remain forever.
What Makes Solana Unique in the Crypto World?
Solana was explicitly designed to solve the main issue cryptocurrency faces as a concept. It’s called the blockchain trilemma, first described by Vitalik Buterin, the creator of Ethereum. The problem is actually just the collection of three main issues every blockchain has:
Now, the obstacle is not that you can’t achieve these three — it’s that you can’t attain all three at once. For instance, Bitcoin is fully decentralized and very secure but not scalable enough. This is also true of Ethereum to an extent.
However, Solana seems to have gone the furthest in solving this issue. It has achieved incredible levels of security and fast speeds that lead to easier scalability, but at the cost of some decentralization.
This is evident in the fact that the Solana Foundation and its founders control around 60% of all SOL tokens on the market. Thankfully, this can change, and we hope to see more independent validators in the future so we can all finally say that one crypto project has solved the blockchain trilemma.
What Are the Downsides of Solana?
The main issue of Solana is the lack of independent validators, making the whole project vulnerable to centralization.
Becoming a Solana validator is not easy, as it requires a lot of computing power and resources. It’s similar to the challenge of being a Bitcoin miner. Since there are so many players on the market, there’s an increase in the amount of computing power needed to mine coins.
Another downside of Solana is that it’s still in the beta phase, meaning bugs and issues can still occur. Thankfully, no major incidents have happened, and the network has remained remarkably stable while constantly growing at a significant rate.
Where Can I Buy SOL in New Hampshire?
You can buy Solana using two distinct methods in any state in the US — through a crypto exchange or buying directly from a willing seller.
We’ll explain both methods and how they work in New Hampshire, but we first have to mention that we’ll only focus on centralized crypto exchanges.
In general, there are two types of exchanges — centralized and decentralized. The former is owned by specific organizations and must be registered in the country and state where it operates. The latter doesn’t have to follow regulations but doesn’t use fiat currency and usually has much lower trading volumes, so it’s hard to buy what you want.
As decentralized exchanges cater to experienced and advanced crypto users and those not looking to use fiat currency, we won’t cover them.
Centralized Cryptocurrency Exchanges
The US, specifically New Hampshire, has a number of centralized crypto exchanges. That’s why you can use the best ones in the business. The leading exchanges on the market have to cover the following aspects:
- Licensing — A crypto exchange needs a proper license so you can be sure you are using a legitimate and trustworthy platform.
- Security — Safety is crucial in the crypto market as many scammers and criminals try to trick and steal from honest users. Thus, the exchange must have top-of-the-line security protocols to protect your money and assets.
- Reputation — If an exchange is highly reputable, you can be certain it’s good for you. Check user feedback and online reviews to determine the credibility of the exchange you want to use.
- Available coins — Even though you’re looking to buy SOL, the exchange should offer a wide range of coins and tokens. This further proves its quality and ensures you have plenty of future trading options.
- Liquidity — The higher the liquidity, the better, as that means that a large volume of trading with SOL is happening on the exchange, which can only indicate that you’ll have an easy time buying or selling the token.
- Payment methods — Every centralized crypto exchange has a wide range of payment options, but you should still check to see that the ones you use the most are there. That way, you’ll have an easy time depositing and withdrawing.
- Fees — Centralized exchanges live on fees, so you’re bound to find some, most likely trading fees. However, some exchanges charge less than others, so check the pricing system to ensure the maker and taker rates are reasonable.
- User experience — You want the platform you’re using to be intuitive and highly functional, and the same thing goes for exchanges.
Buying the Token Directly From Someone
You can always buy Solana directly from a person. You only need to find a willing seller, agree on the price, transfer money to them, and they can send the tokens to your wallet.
However, this method is very risky if you don’t know and have no way of trusting the person. You will have to conduct the trade in public or with a mediator’s help to stay safe. Otherwise, you can easily fall prey to a scammer.
How to Buy SOL on an Exchange — Step-by-Step Guide
As you can see, using a centralized crypto exchange is the easiest, quickest, and safest method of buying Solana. Here’s what you need to do to buy the tokens on any exchange in New Hampshire:
- Get a crypto wallet — Find a good crypto wallet for Solana and set it up.
- Pick a crypto exchange — Choose one of the recommended exchanges or use our guidelines to find one on your own.
- Create an account on the exchange — Follow the instructions to sign up and make sure you’re using the correct personal information.
- Verify your identity — Provide the documents the exchange needs to confirm your identity.
- Make a deposit — When the account is ready, pick one of the available deposit options and follow the instructions to make a successful deposit.
- Buy SOL — Find the SOL/USD pair and input the amount you want to buy. The exchange should handle the transaction quickly, and you’ll get your first SOL tokens.
- Transfer SOL to your wallet — If you’re not planning on trading your tokens, it’s safer to take them out of the exchange and into your wallet for safe storage.
Getting your hands on your first Solana tokens in New Hampshire is incredibly easy. You only need to follow the recommendations and instructions from this guide, and you’ll buy the tokens in no time. If you’re ready to invest in this cryptocurrency, you’ll only need to register an account on a recommended exchange to buy the token.