The ever-growing crypto industry has been taking the world by storm for some time. Over 10,000 different cryptocurrencies have appeared so far, but this number keeps growing. Many of them already enjoy great popularity, but only a couple of cryptos rank in the world’s top ten. One of them is Solana.
Regardless of having been launched fairly recently, Solana quickly climbed the crypto popularity ladder and grabbed the attention of many investors globally. If you’d like to learn more about this virtual currency, including where and how you can buy it in Connecticut, stick around. This article will delve into these and other closely related topics in more detail below.
What Is Solana?
Solana is an open-source blockchain-based project launched in 2020. The project supports smart contracts, various decentralized applications (DApps), and non-fungible tokens (NFTs). It’s famous for its incredible scalability and very low transaction costs.
The current Solana CEO and COO, Anatoly Yakovenko and Raj Gokal, created Solana back in 2017. Their idea was to create a blockchain-based project that could parry brands like Visa and Mastercard in terms of their transactional speed.
At the time, cryptos could not process more than 15 transactions per second. So, the idea of competing with the mentioned payment companies seemed ludicrous. Nevertheless, Yakovenko’s 2017 white paper introduced a revolutionary concept that could make this idea possible.
The concept is called proof-of-history (PoH) consensus and represents the foundation on which Solana’s functionality rests. The next section goes into more detail on the role which PoH plays in this popular blockchain-based project.
Mechanics Behind Solana
Solana runs on a unique, hybrid protocol consisting of proof of stake (PoS) and proof of history (PoH) consensus mechanisms.
You might have already heard of the former. PoS stands for a mechanism that verifies transactions and adds new blocks to the network. It allows participants known as validators to lock set amounts of crypto tokens as stake in exchange for getting a chance to validate new transactions and earn rewards.
PoH is a new concept that introduces a cartographically safe source of time into the network to make Solana scalable. It allows the nodes in the network to verify transactions by measuring the order and passage of time between events occurring on it. Each validator (node) is assigned a slot in the network and spends the same, fixed amount of time on the process of finding the next block. This way, messages are sequenced between the nodes, creating a transactional chain.
Since nodes use the time component to verify transactions, each transaction has a timestamp. The other nodes can use this timestamp as a compass for ordering the next transaction within the block. This system significantly speeds up the entire transactional process and increases throughput.
Solana’s Native Token — SOL
Like other cryptocurrencies, Solana has a native token — SOL. You can buy, sell, trade, or invest in SOL. However, you can also use SOL to run smart contracts, pay transaction-related fees, and participate in the project’s governance. This function makes SOL a utility token, like DOT.
Solana is currently one of the top 10 cryptocurrencies in the world. Its price was $0.04 during the initial seed sale in 2018, but it reached its all-time high of $256.96 only two years after, in 2021. Solana’s worth while writing this article is $44.37.
There are currently over 305 million SOL in circulation. The crypto doesn’t have a market cap, as over 500 million SOL coins have been released thus far.
Crypto Laws in Connecticut
The Constitution State treats cryptocurrencies like fiat currencies — as a medium of exchange. In that sense, Connecticut makes the issuance, sale, and transmission of virtual currencies subject to its money transmission laws. It requires anyone (both organizations and individuals) involved in the mentioned activities to have a valid CT money transmitters license.
So, you can purchase, trade, sell, or invest in Solana in Connecticut completely legally. However, you must do so following the CT money transmission laws.
Where Can I Buy Solana in Connecticut?
You can purchase SOL in two ways in Connecticut — through a crypto exchange platform or directly from an individual. The following paragraphs will explore both of these options in more detail so you can decide what suits your needs and preferences more. Keep reading.
Crypto Exchange Platforms
Crypto exchange platforms are places where you can buy, sell, or trade cryptocurrencies for virtual or fiat money. They are divided into two general types — centralized and decentralized — based on the services they offer.
Centralized exchanges allow you to buy and sell cryptos for fiat currencies, so they’re especially popular with people looking to enter the crypto sector. They are also typically owned by a single company and licensed and regulated by a well-known authority, so you can trust they’re safe and reliable.
On the other hand, decentralized exchanges only allow the interchange of one digital currency for another. So, if you’re planning to purchase SOL using fiat currency like USD, you’ll have to stick with centralized exchange platforms.
The tricky thing is the crypto industry has witnessed quite an upsurge in the number of exchanges in recent years. The market is oversaturated, and choosing between these platforms is not easy. So, we suggest taking a look at the most important characteristics these exchanges feature to help you make the right decision. For your convenience, we’ve listed them below:
- Connecticut availability and license — Make sure you check whether the platform you’re interested in is available in Connecticut and has a valid CT money transmitters license. You won’t be able to use it to buy SOL legally otherwise.
- Solana and other crypto availability — Go through the list of cryptocurrencies the exchange you’re considering supports. The list should include Solana and several other popular cryptos to have the option of trading your SOL for other coins in the future.
- Security and privacy — Don’t forget to look into the security protocols the platform you’d like to join is using. The best exchanges leverage the latest technology and implement strict KYC procedures to keep your personal and financial information safe.
- Reliability — Remember to do some additional research on the crypto exchange you’re thinking about joining. You can get an impression of how trustworthy and reliable a platform is based on current and former customers’ reviews and comments.
- Liquidity — Take note of the trading volume the exchange you’re picking boasts. The better its trading volume, the better its transaction speed.
- Payment methods — Check what payment companies the exchange you’re considering works with. You want to be able to fund your account using your preferred payment method and have enough other options to choose from.
- Fees — Make sure to read about the fees your crypto exchange imposes. It’s important these fees are reasonable and don’t break your budget.
As mentioned, buying directly from an individual in possession of SOL is the other method you can use to purchase this crypto in CT. While this is a perfectly viable option, it’s not as safe as using a centralized crypto exchange. Buying crypto directly from an individual puts you at a higher risk of being scammed. So, we suggest you make sure the person you’re buying SOL from is trustworthy and holds a CT-issued money transmitter’s license.
Step-by-Step Guide to Buying SOL Using an Exchange
If you’ve decided to use a crypto exchange to buy SOL, you’ll be pleased to know the process is pretty simple. You can follow our guide below to make sure you’re not missing out on anything:
- Find a crypto wallet — Before you join a crypto exchange and buy your first coins, you should make sure you have a place to store them. Crypto wallets are secure digital addresses you can use to store virtual currencies like Solana. So, research, find a good one, and register.
- Choose an exchange platform — Once you have an e-wallet, you’ll be ready to pick a crypto exchange. You can use the tips above to help you find the best one for your needs and join it.
- Top up your exchange account — You cannot buy SOL if your crypto account balance is zero. So, make a deposit using your e-wallet address and top your account.
- Purchase SOL — Find Solana on the platform’s list of supported cryptos, and pick the payment method and the number of coins you’d like to buy. Submit your request and wait for the transaction to clear.
- Transfer or trade your coins — You can keep your SOL in your exchange account or send them to your e-wallet, depending on whether you’d like to trade them further. Choosing either of these options is fine, but you should know that storing cryptos in your e-wallet will keep them more secure.
Solana is currently one of the most popular cryptocurrencies in the world, and many are choosing to invest in it. If you’re one of them, the great news is that you can do so legally in Connecticut. Just pick a crypto exchange platform following our advice, and you’ll come by your first SOL quickly and hassle-free.