Solana is one of the top-rated cryptocurrencies in the industry. Since Pennsylvania doesn’t prohibit owning cryptos, you don’t need special permission to buy them. All you have to do is decide to purchase it, find a proper marketplace, and get familiar with the purchase process.
For that purpose, our guide will explore the ins and outs of the Solana project and what makes it special. Plus, it’ll explore how and where you can purchase it in Pennsylvania. Stay with us and discover everything you need to know.
What Is Solana?
Solana is an open-source blockchain network that supports cryptocurrencies, smart contracts, DeFi solutions, and non-fungible tokens (NFTs). It quickly gained recognition in the crypto community due to its unique design. It allows Solana to achieve high scalability and keep transactional costs low without sacrificing its decentralization or security.
The network owes its functionality to its innovative consensus mechanism combo. The hybrid consensus model comprises proof-of-stake (PoS) and proof-of-history (PoH). PoS is not a new concept in the industry. It’s a protocol that allows message sequencing between the nodes with the help of validators. PoS chooses validators who stake their coins to support the network.
PoH is a protocol that establishes the order of events and the passage of time between them in Solana’s ecosystem. The proof-of-history sequence of transactions starts with the leader node and continues on to other nodes down the line. Thanks to PoH’s ledger, all nodes know when to begin their tasks and how much time they can take to complete them. This organization reduces latency and boosts throughput. It makes the entire system more efficient, secure, and scalable.
Solana Token (SOL)
Solana’s ecosystem is powered by its native cryptocurrency, known as SOL. You can buy, sell, and trade this token like other cryptos in the industry. However, that’s not all you can use it for. SOL is also a utility token, so you can stake it to support the network and earn a passive income.
The process of staking involves becoming a validator or finding trustworthy validators to whom you can assign your tokens. Validators lock up the coins and add blocks to the network, increasing its security. Those who support the system in this way get rewards in return. They receive SOL and get voting rights on the project’s governance.
There are currently over 511 million SOL in total and 346 million in circulating supply. This crypto doesn’t have a max cap, so the number of coins can grow into infinity. With an annual inflation rate that started at 8%, that doesn’t sound great. However, this percentage should decrease every year until it reaches 1.5%.
Where Can I Buy Solana in Pennsylvania?
As mentioned in the beginning, virtual currencies like Solana are not prohibited in Pennsylvania. So, buying, selling, and trading them doesn’t require an MTL license like in some other US states. You can purchase this crypto without worrying about any particular regulations.
There are two popular ways you obtain Solana in the Keystone State — through a crypto exchange platform or direct purchase. We’ll explain how these options work in the following sections. Keep reading.
Buying Solana Through Crypto Exchanges
Crypto exchanges are platforms that allow their members to sell, buy, and exchange cryptocurrencies for other assets. They can be decentralized and centralized. Decentralized exchanges are less popular because they don’t accept fiat payments, and they’re more complex and less secure. So, we’ll focus on the former category in this guide.
Centralized crypto exchanges are owned and operated by a single authority or organization. They’re usually regulated and licensed, and they work with a variety of fiat currencies. So, they’re our top recommendation, especially if you’re a newbie in the crypto community.
Centralized exchanges are much more numerous than their counterparts. You should have no trouble finding a suitable one in Pennsylvania. Feel free to use the list of tips below if you need help during your search.
- Availability — Certain exchange platforms don’t operate in every US state despite their popularity. So, make sure that the one you’re interested in is available in Pennsylvania.
- Supported cryptos — Don’t forget to check what cryptos your platform of choice supports. The list should include Solana and other popular tokens like Bitcoin, Ethereum, Dogecoin, Ripple, and so on.
- Reputation — Not every crypto exchange you come across will be of the same quality. Since you cannot rely on PA licensing to single out reliable platforms, you’ll have to do extensive research. Go online and read as many reviews and comments as you can to learn about your exchange’s reputation.
- Security — All exchanges use security measures to protect their users and their funds. The difference is that they aren’t equally strict. Check out the protocols your platform is implementing and learn whether it has experienced any security breaches in the past to decide if it’s safe enough to join.
- Payment options — Exchanges typically partner with several payment companies. So, users have a choice between several methods when they want to tap their accounts. Make sure your platform works with payment processors whose services you tend to use to make depositing and withdrawing funds more convenient.
- Liquidity — A platform’s liquidity level tells us how fast its transactions are. To ensure your transactions process quickly, look for an exchange with a high SOL trading volume and many active users.
- Fees — Fees are an indispensable part of every centralized exchange — that’s how these platforms make a profit and survive on the market. However, not all of them impose the same fees. So, remember to check whether the fees your platform imposes seem reflective of the services it provides.
- User experience — The interfaces and layouts that exchange platforms feature differ from one another. Visit your exchange’s website before you register to see how well it works for you.
The second way you can obtain SOL in Pennsylvania is through direct purchase. You need to find an individual who owns SOL and is willing to sell it to you. While this method has its advantages — like price negotiation — we don’t recommend it to everyone. Scams are not a rare occurrence in the crypto industry, and novices in the industry are easy targets. If you don’t know the person you’re buying from personally, it’s best to stay away from this type of trade. Consider centralized exchanges instead.
How to Buy SOL Through a Crypto Exchange — Step-by-Step Guide
The process of buying cryptos like Solana on centralized exchanges doesn’t differ much between platforms. Follow our step-by-step guide below, and you’ll become a member of one in no time.
- Choose a crypto wallet — Crypto wallets are digital addresses that allow you to store virtual currencies like Solana. The market abounds with various kinds, so you should do thorough research to find a suitable one for you.
- Open an account on a crypto exchange — The advice we’ve provided above should be enough for you to choose the right exchange platform. Once you’ve done that, you can visit its official website and complete the registration form. This process will require you to provide some personal information and verify your email address.
- Make an SOL purchase — You’ll be able to buy your first SOL as soon as your account is active. Navigate the page to find the Deposit section and tap your account. When the money appears on your account balance, find the Purchase section, choose a USD/SOL pairing, and enter the number of coins you want to buy. The transaction shouldn’t take too long.
- Decide what you’ll do with your coins — There are two ways you can use your SOL coins. You can trade them for another crypto or stake them to support the network. If neither of these options interests you, send the coins to your crypto wallet to keep them secure.
Solana’s unique architecture and innovative functionality made this project a success in a short amount of time. Investors from around the world, including the Keystone State, are still interested in investing in it. If you’d like to do the same, there’s nothing stopping you. Simply select a centralized crypto exchange, use our guide to open an account, and purchase your first coins. Good luck!