Despite being the smallest US state, Rhode Island is home to many passionate crypto buffs. Although the state hasn’t passed any particular laws or regulations regarding cryptocurrencies, it recognizes centralized crypto exchanges. Rhode Island also allows its residents to invest in the most popular virtual currencies, including Solana.
Solana may be new to the blockchain game, but it’s already one of the leading cryptos out there. If you’re interested in learning more about Solana and its native token (SOL), read the following article. We’ll also show you the safest and easiest way to become the newest Solana investor.
What Is Solana (SOL)?
Solana is a relatively new yet immensely popular blockchain platform known for speedy transactions and efficiency. The newly introduced open-source project enforces high-speed, innovative, and permissionless layer-1 blockchain. Essentially, it means other apps, protocols, and networks can develop and build on top of it.
Anatoly Yakovenko, a computer engineer who discovered his interest in cryptocurrencies and blockchain after moving to the US, founded Solana in 2017. Before partnering with Raj Gokal, Eric Williams, and Greg Fitzgerald, Yakovenko worked at Dropbox and Qualcomm.
After many successful testnet phases, Solana officially hit the market in 2020.
Solana’s primary aim is to solve the blockchain trilemma, a term introduced by Vitalik Buterin, the Ethereum founder. The trilemma revolves around three major elements all blockchain platforms fail to balance — scalability, decentralization, and security.
However, Solana achieves it through a hybrid consensus model that fuses a proof-of-history algorithm and synchronization engine (type of proof-of-stake). This combination allows Solana to process over 700,000 transactions per second on a standard network — something a blockchain has never done before.
The platform’s design allows the creation of DApps (decentralized apps) and smart contract implementation. Additionally, Solana supports NFT (non-fungible token) marketplaces and DeFi (decentralized finance) platforms.
Solana’s native cryptocurrency is SOL, a token that transfers blockchain security and value through staking. SOL was first launched in 2020 and quickly rose through the ranks, becoming one of the most popular cryptocurrencies globally.
If you have experience with the Ethereum token, you’ll understand how SOL operates. However, in contrast to ETH, SOL holders must stake the coin to validate the transactions through the unique PoS system. On top of that, investors and holders can pay transaction fees and obtain rewards through the token. As a result, they can participate in the platform’s management and governance.
The current SOL supply is over 511 million, with 300+ million currently in circulation. However, out of all tokens, only 38% are available to the Solana community. The Solana Foundation and its founders control over 60% of all SOL tokens.
Where Can I Buy Solana in Rhode Island?
Rhode Island residents who want to acquire Solana can pick between two options — centralized crypto exchanges or in-person buying. The former represents a website that facilitates SOL purchases, while the latter involves finding someone willing to sell their SOL tokens.
However, many crypto enthusiasts deem the direct purchase unsafe, so we won’t discuss it much.
The following paragraphs will explain how centralized exchanges work and why they are a favorable solution for buying Solana in Rhode Island.
Centralized Crypto Exchanges
At the moment, centralized crypto exchanges are the only legal way to purchase Solana. Unlike their decentralized counterparts, these platforms have the necessary licenses and offer increased stability and security.
The most popular Solana exchanges in Rhode Island are Gemini, Kraken, Coinbase, eToro, Uphold, and Binance. Once you’ve chosen the right platform for your needs, you’ll have to create an account, deposit funds, and purchase as many SOL tokens as you wish.
Of course, it’s up to you to decide which exchange suits you best. Here are a few pointers to help you pick the right platform:
- Availability in Rhode Island — You should first see whether the specific exchange operates in your state.
- SOL availability — Another essential element to check is whether SOL is available for purchase. You should also check its quantity and ensure there are enough tokens to purchase.
- Security — Most centralized exchanges operate using highly secure encryption protocols and firewalls. However, it’s best to double-check, as you don’t want to compromise your safety.
- User interface — Explore the platform, and see whether you can navigate it easily. The layout shouldn’t be complex because it could overwhelm inexperienced people.
- Liquidity — Some exchanges have lower trade volumes, meaning the transactions are slower. If you don’t want to waste time, find an exchange with higher trading volumes.
- Reputation — Read other users’ reviews and learn more about the company’s online reputation. Better be safe than sorry!
- Fees — These platforms exist and continue to operate thanks to these costs. Although you won’t be able to avoid them, you could find a platform with lower transaction and conversion fees.
- Payment methods — Check out the accepted payment methods you can use to transfer fiat currency to your exchange account. Typically, these platforms accept credit/debit cards, digital wallets, and bank transfers. However, you could also use other cryptocurrencies to buy SOL.
If you don’t want to use crypto exchanges for one reason or another, you can always opt for a direct purchase and buy Solana from someone willing to sell it. You can get in touch with them, negotiate the right price, and strike a deal that benefits both of you.
Another benefit of making a direct purchase is that you won’t encounter additional fees and transaction costs. However, this option is heavily frowned upon because it can be highly unsafe. People have been scammed after making a deal with someone they don’t know without performing the necessary security checks.
Therefore, if none of your friends or acquaintances want to sell SOL, you should rethink the decision and opt for a reputable and secure crypto exchange.
How to Buy Solana — Step-By-Step Guide for Any Crypto Exchange
If you’ve never dealt with crypto coins, you might be overwhelmed by all the possibilities and technicalities. However, once you go through the basics, you’ll be able to understand how buying Solana works, and we’re here to help. We’ve created a simple guide to lead you through the most important steps of buying Solana (or any other cryptocurrency).
Here’s what you’ll have to do:
- Get a crypto wallet — Choose a safe wallet that supports Solana. You’ll later use it to store your crypto coins. Create an account, follow the instructions, and it will be ready for use.
- Find a suitable exchange platform — Check out the platforms we’ve recommended earlier and pick the one you like the most. Make sure it supports both SOL and USD transactions.
- Set up an account — Complete a registration form to create an account and verify it to begin the process of buying SOL.
- Make a deposit — Select one of the available payment options to make a deposit and transfer USD to your exchange balance. You can opt for various banking methods, including credit/debit cards, digital wallets, and other cryptocurrencies.
- Acquire Solana with USD — As soon as the money appears on your profile, you can opt to buy Solana — simply specify how much you wish to purchase and confirm the transaction.
- Send tokens from the exchange platform to the crypto wallet — Your Solana coins are automatically stored on the exchange. However, you can transfer them to your wallet for safekeeping, especially if you don’t want to make further transactions.
Overall, purchasing Solana in Rhode Island isn’t rocket science. After finding a suitable centralized exchange, all other steps will be straightforward, including buying SOL tokens and sending them to your wallet.
If you’re ready to explore the ever-evolving world of Solana and cryptocurrencies, you know what to do. Find a suitable exchange and jump straight into the action.