The interest in Solana and other cryptos keeps rising across all US states, including Hawaii. The Aloha State may be among the last states to jump on the bandwagon to create a legal framework for cryptocurrencies and digital assets, but it’s slowly getting there. The state formed a specialized task force in March 2022, indicating that blockchain and cryptos have a bright future.
You might be wondering how and where to buy Solana in Hawaii. Fortunately, potential SOL owners have many options, and we’ll discuss them in this piece. We’ll answer all the burning questions you might have about this crypto, including what Solana is, the safest way to buy it, and what makes it unique. Buckle up.
What Is Solana (SOL)?
Solana is an open-source blockchain platform created in 2017. As a public blockchain, the network is not controlled by a central authority, making it decentralized and self-sufficient. This network went live in 2020, and in just two years, it has surpassed many other cryptos on the market. Since then, it has been ranked among the top ten cryptos by CoinMarketCap.
Anatoly Yakovenko, partnered with Greg Fitzgerald, created this crypto as a direct competition to Ethereum. Solana got its name after Yakovenko’s favorite beach near San Diego.
How Does Solana Work?
Aside from using proof-of-stake, Solana also uses proof-of-history. This hybrid model keeps a record of every transaction, and every transaction has a built-in timestamp. This model aligns with Solana’s goal of scalability and the ability to process up to 65,000 transactions per second. Solana makes this possible without sharding solutions and cheap transactions of $0.01.
Due to the built-in timestamp, network nodes don’t have to wait for confirmation from other validators. Instead, they instantly organize transactions. PoH can verify the chronological order of blockchain transactions and the time interval among them. Additionally, this system is very fast because nodes don’t have to communicate with each other to verify transactions.
Aside from allowing you to create your own blockchain solution, Solana’s platform also utilizes smart contracts. Consequently, developers who use this blockchain network to develop new applications or solutions can also develop their own tokens.
Thanks to smart contracts, developers can create decentralized applications (DApps). However,
decentralized finance (DeFi) is the real attraction of this platform. DeFi, which uses decentralized apps for financial transactions, benefits from Solana’s ecosystem and its fast transactions.
SOL Token Explained
Solana has a native cryptocurrency called SOL. Its design allows a twofold use. The first is a payment method, and the second is a fee to pay for the cost of running the network. It also allows its owners to earn more SOL if they decide to participate in the verifying activities across the network. This is called staking.
Solana in Numbers
Solana is one of the fastest-growing cryptos on the market, judging by the numbers. Considering it was launched in 2020, it more than tripled during the summer of 2021. Starting with the price of $0.8 in April 2020, this amazing crypto managed to reach its all-time high of $285 in November 2021.
The current circulating SOL supply goes over 339 million tokens, while its total market value exceeds $15 billion.
Solana investors hold 37% of the SOL tokens. Another 25% is divided between Solana’s team and the Solana Foundation, while the remaining 38% is kept in the Solana Foundation’s fund reserve.
Investing in Solana
Solana, just like all the other cryptos, is highly volatile. Its price fluctuates constantly, and it is impossible to know which path it will take. However, by looking at its data, Solana seems to be a good investment in the long run. Here is why you should consider purchasing this coin:
- Solana allows staking — SOL owners can delegate their tokens to validators, enabling a more significant effect in processing and securing the network. As a result, these stakes are evidence of the trustworthiness of validators voting on a consensus on a network. Your participation in securing the network earns you SOL tokens as a reward. In the current market, Solana staking offers a nominal annual percentage yield of 7.23% without factoring in the validator commission. Another important thing is that although you delegate your SOL coins to validators, you are still trier owner 100%, meaning that you can withdraw them and pledge to another validator.
- Solana quickly adapts to technology — Solana hosts numerous projects on its network through DApps, DeFi platforms, and DEXs. It even features an NFT marketplace, Solonart, facilitating NFT trading for investors. More than 400 DApps projects run on its network thanks to Solana’s highly advanced infrastructure, including Serum, Defi Land, Open Ocean, and others.
- Solana is eco-friendly — Unlike BTC and ETH tokens, Solana has a less environmental impact. This network is highly energy-efficient, as it does not involve intensive mining. The Solana team has also developed a bridge allowing transferring assets from Ethereum to Solana. By doing so, a more eco-friendly environment is created.
Crypto Laws in Hawaii
Hawaii’s Department of Commerce and Consumer Affairs created a two-year pilot program in 2016 that would allow 15 exchange vendors to operate within the state legally. According to this program, cryptos were recognized as money transmitters, and you could not trade them. Therefore, crypto owners mostly used them for investing.
However, the same program attracted 61,000 local investors and resulted in $1 billion in transactions. The only issue is that it ends on June 30, 2022, and lawmakers have been urged to pass a new regulation.
Fortunately, the state of Hawaii passed Senate Bill 2695 in March 2022 and supported the formation of the specialized task force — the Commerce and Protection (CPN) and Ways and Means (WAM). Its goal is to provide insight and regulate the blockchain and crypto ecosystems and eventually expand them into the private and public sectors.
Where Can I Buy Solana in Hawaii?
You can rely on two distinct methods to buy Solana in the Aloha State — via a crypto exchange or directly from another person. The former is preferred as it is much safer, and you always know what you’ll get. Let’s discuss both.
Centralized Crypto Exchanges
Centralized crypto exchanges are undoubtedly the safest way to buy SOL tokens in Hawaii. These platforms allow you to buy and sell cryptos and other digital assets. Some popular exchanges are Gemini, Binance, eToro, and Kraken.
Each exchange will require you to go through the KYC procedure and verify your account. Furthermore, a third party gets involved in these exchanges, thus becoming responsible for monitoring and securing transactions.
On the other hand, decentralized cryptocurrency exchanges (DEX) are a good choice for remaining anonymous. Just remember that many of them don’t have licenses, so using them may not be entirely safe. Aside from that, they’re rare, and it is hard to find those offering SOL. Also, you can’t use fiat, only other cryptocurrencies.
Ensure that a CEX meets all the following requirements before choosing it:
- Hawaii-friendly — Naturally, the first thing to check is whether an exchange operates in Hawaii. The fact that you can enter its website doesn’t mean it is available in your state.
- Solana support — If an exchange is legal in the US, it will likely be legal in Hawaii. Nevertheless, you should verify that the exchange is licensed to operate in Hawaii just to be on the safe side.
- Security and privacy — Being safe when trading and utilizing cryptocurrencies is paramount, so the exchange must have the most advanced security features and may even offer insurance to protect specific portions of your assets.
- Reputation — Many factors contribute to the popularity of exchange, but it’s useful for you to look at customer feedback, online reviews, and more to assess the overall reputation.
- Fees and limits— Although cryptocurrency exchanges are free to use, they always charge a commission or fee. These usually include deposit fees, withdrawal fees, and transaction fees. Some exchanges also limit how much you can trade, buy, or sell in a given timeframe. It’s good to compare several platforms and select one with reasonable fees and limits.
- Liquidity — Sometimes, offering SOL isn’t enough if there is poor liquidity. To complete most of your trades on time, you want the exchange to have a large quantity of SOL available.
- User Interface — If you are new to cryptos and exchanges, you should seek out a trading platform that offers an exceptionally easy-to-use interface.
- Payment methods — Exchanges provide multiple options for deposits and withdrawals in fiat currencies. Bank transfers, credit/debit cards, e-wallets, and more fall under this category. Be sure your preferred payment method is included.
Buying Directly
It is also possible to purchase SOL directly from another owner rather than through an exchange. Essentially, this is a straightforward method as you only need to transfer the cash, and the seller must transfer the SOLs.
However, if you are not confident you can trust this person, we don’t recommend doing it. Scammers are a thing, and it’s impossible to know whether or not their intentions are genuine. If you decide to perform a trade like this, make sure you and the seller are in a public place or include a mediator you and the seller both trust.
How to Buy SOL on an Exchange — Step-by-Step Guide
When purchasing cryptocurrencies for the first time without using an exchange platform before, you may not know what to expect. Don’t worry about anything. We’ve created this step-by-step to assist you through the entire process.
- Create a wallet — Although you can keep your SOL tokens on the exchange, transferring them to your wallet is safer. Just ensure that it supports Solana.
- Pick and exchange — Read our instructions for finding a good cryptocurrency exchange where you can acquire your first tokens.
- Register an account — Go to the exchange’s official website and click on the Sign Up/Register/Join button. Make sure you provide all the information necessary for registration.
- Make a deposit — Choose your preferred payment method and add money to your account in fiat currency (for example, dollars). Be sure to fund your account sufficiently to cover all possible fees.
- Purchase SOL — Find the SOL on the exchange and purchase as many coins as you want.
- Withdraw SOL coins to the wallet — After you purchase DOT coins, you can transfer them to your wallet. However, if you intend to further trade with them and leave them on the platform, you should ensure that the platform is equipped with an offline cold storage feature that is secure from cyber-attacks.
Final Thoughts
Solana is among those cryptos that have advanced immensely since its inception. Compared to its two biggest rivals, BTC and ETH, Solana is eco-friendly, it is super fast, and has meager transaction costs.
Although many crypto experts see Solana as an excellent long-term investment, it is not stable, and its price fluctuates within seconds. Thus, if you are thinking about investing in SOL coins, get acquainted with how the crypto market works.
We hope this guide has helped you understand what Solana is, where to buy it, and what makes it so unique. Do your homework and invest smartly.
