Buying cryptocurrencies in the Badger State has never been easier. Despite the lack of a legal framework around cryptocurrencies, Wisconsinites are free to purchase Solana or any other crypto within the state. Aside from a slew of crypto exchanges at their disposal, they can also obtain crypto coins via ATMs located in all major shopping malls and retail stores.
If you want to know more about Solana, you have come to the right place. This guide covers everything you need to know about the history and evolution of this impressive crypto.
What is Solana (SOL)?
Solana is an open-source blockchain-based platform capable of processing smart contracts and decentralized, scalable applications known as DApps. In addition to incredible speeds, this crypto offers higher transaction capacities compared to Bitcoin, for example.
Anatoly Yakovenko, a former Qualcomm executive and Russian computer engineer, developed the idea for Solana in 2017. Then, by publishing a white paper, he introduced a completely new concept into the crypto industry — the proof-of-history consensus mechanism (PoH). This mechanism accomplishes verifying and timestamping transactions using the passage of time and the order of events.
The Solana platform uses this protocol together with its proof-of-stake mechanism. The PoS mechanism allows validators to verify transactions based on the number of coins they hold. At the same time, the PoH system ensures that transactions are verified within the shortest amount of time.
Geneva-based Solana Foundation runs the project built in Solana Labs in San Francisco.
How Does Solana Work?
Creating a scalable and decentralized network is one of the biggest challenges for crypto developers today. Generally, decentralized blockchains cannot handle as many transactions in a short period and keep the overall safety of the network.
Solana’s creators used the hybrid consensus mechanism we mentioned earlier to solve this problem. One leader node is selected to carry out the task of sequencing messages between other nodes. Combining the output of one transaction with the input of the next also facilitates the creation of the chain of transactions. Therefore, the network can increase throughput while reducing workload.
What Makes Solana Unique?
Solana is focused on developing decentralized apps, and speed is a vital component of its success. Solana’s network has much faster transaction speeds than Ethereum, for example. The Ethereum network can process about 15 transactions per second, whereas Solana can handle more than 65,000.
Thanks to Solana’s excellent scaling capabilities, tens of thousands of decentralized app users can run their apps simultaneously without a hitch.
Ultimately, Solana can do all of this without using any sharding or third-party technology. This is impressive since few blockchains can match these speeds without introducing additional features.
Investing in Solana
All cryptocurrencies are highly volatile, including Solana. Despite its constant fluctuation, it is impossible to predict its future path. However, Solana seems to be a sound investment long term. The following are some reasons why you should consider purchasing the SOL token:
- SOL owners can stake their tokens — By delegating their tokens to validators, SOL owners can significantly influence the processing and security of the network. Therefore, stakes are proof of validators’ trustworthiness when voting on a network consensus. Staking of SOL coins currently yields 7.23% annually without incorporating validator commissions. It’s worth noting that even though you delegate your SOL coins to validators, you stay 100% their owner, meaning you still have the option to withdraw them and re-pledge them to another validator. However, staking results do not occur overnight because this is a long-term process.
- Solana adapts to new technologies — Solana network hosts a wide variety of projects using DEXs, DApps, and DeFi platforms. In addition, it provides investors with a platform for trading NFTs, Solonart. Thanks to its highly advanced infrastructure, its network runs around 350 DApps, including Serum, Defi Land, Open Ocean, and others.
- Solana has a minimal environmental impact — As opposed to Bitcoin and Ethereum, Solana has a low environmental impact. Furthermore, it is highly efficient because this network does not require mining. In addition, the Solana team has developed a bridge that can transfer Ethereum assets to Solana. It contributes to the creation of a more friendly environment.
Solana in Numbers
Solana is currently ranked among the top ten cryptocurrencies in the world. The price of Solana at the time of its ICO was $0.04, but it reached its all-time high of $256.96 in November 2021. Currently, Solana is worth $42.06 (as of August 2022).
Over 348 million SOL tokens are currently in circulation out of approximately 511 million created. According to CoinMarketCap, Solana’s market cap is close to $15 billion. Around 60% of the token’s total supply is controlled by the Solana Foundation and its founders, while investors own approximately 38%.
Crypto Laws in Wisconsin
Unlike some other states, the appellate courts in Wisconsin have not passed any law that explicitly relates to cryptocurrencies or blockchain. However, that doesn’t mean that legislators and the general public are not interested in this innovative technology.
The fact that the consumer interest in digital currency constantly grows is evident in the number of crypto ATMs popping up around the Badger State. People can quickly obtain crypto coins by simply inserting cash into the machine. They can be found around major shopping malls, gas stations, and convenience stores. There are currently around 500 such machines within the state.
Aside from many companies in Wisconsin accepting payments in cryptocurrencies, people can also use them to make donations to charities and even to support some political campaigns.
Furthermore, many crypto companies want to use Wisconsin’s old plants located near power sources and turn them into mining facilities. By doing so, crypto mining can boost new renewable energy projects as a catalyst or market drivers. Currently, a hydroelectric dam in Hatfield, Wisconsin, generates enough electricity to power 400 mining computers for one New York company, and rumor has it that the Park Falls paper mill in Wisconsin’s Northwood may become one soon.
Where Can I Buy Solana in Wisconsin?
A centralized crypto exchange is the safest place to obtain SOL tokens. A second option is to find another SOL owner and purchase directly from them.
Centralized Crypto Exchanges
Users can trade, buy, and sell Solana on crypto exchanges. There are two types of such exchanges – centralized and decentralized.
Centralized crypto exchanges are required to hold licenses. Owned and operated by companies, they impose their own rules and fees. In addition, all their users must complete a KYC process and submit the necessary documentation to verify their accounts. They act as middlemen because they handle all the work for you. If you live in Wisconsin, you can check out these popular CEXs — Gemini, Coinbase, Kraken, and Binance.
Conversely, decentralized crypto exchanges do not require verification and allow you to trade anonymously. Due to this, minor cryptos may not be listed on some DEXs. Additionally, they are not reliable, secure, and definitely not a good option for beginners.
Whenever possible, use CEXs since they offer higher levels of security. When selecting one, you need to consider the following:
- Availability in Wisconsin — Despite most crypto exchanges being regulated nationally, they must have a license from Wisconsin.
- Solana support — Solana is not yet available everywhere, even though it’s a major cryptocurrency. Therefore, knowing what assets are available on each exchange is essential.
- Security and privacy — Security is another crucial aspect of any exchange. Ensure the site you choose protects your financial and personal information with cutting-edge encryption and firewalls.
- Overall reputation — Find out if the platform has had any security flaws. See what other users think about it by checking reviews and feedback.
- Fees — Fees vary from exchange to exchange. Many charge a flat rate, while others charge based on the trade amount. Additionally, most marketplaces charge conversion and transaction fees.
- Limits — Each CEX charges fees when you trade, transfer, and withdraw funds. To avoid losing money, choose exchanges with low trading fees.
- Liquidity — The fact that SOL tokens are listed on an exchange doesn’t guarantee liquidity. Without enough trading volume, you will be unable to execute any trades.
- User interface — The interface should be intuitive and straightforward for desktop and mobile users. A website with easy navigation and a good user experience will be easier to use for beginners.
- Payment methods — Exchanges offer different payment methods. In some cases, you can transfer money through bank transfers or credit/debit cards, while in others, you can only use cryptocurrency. Decide which payment method is most suitable for you by examining the options available on these platforms.
Buying Directly
Using a crypto exchange to purchase SOL tokens may sound too complicated for some people. However, there is an alternative. You can find another SOL holder and ask them to sell you the SOL coins directly. This way, you don’t have to go through the verification process and reveal your identity.
But you have to be aware that this method carries a risk, as there is no chance for you to know if the other person’s intentions are genuine or not. If you still decide to go this way, try to get to know the person you are buying from and perform the trade in a public place as a safety precaution.
How to Buy SOL Tokens on an Exchange — Step-by-Step Guide
After establishing that a centralized exchange is the best and safest method for purchasing Solana, let’s look at the process in more detail. It is easy to buy SOL on exchanges, regardless of the platform you use. The following steps will guide you through the process.
- Choose a crypto wallet — You’ll need a wallet for storing SOL coins once you’ve purchased them. There are many good options, including Atomic, Sollet, Solflare, Exodus, and Phantom. Choose one that suits your needs, create an account, and you’ll soon be receiving SOLs.
- Select a centralized crypto exchange — Browse through our suggestions and pick the one that appeals to you. Look at the official website to see if it meets your requirements and expectations.
- Set up an account — Follow the instructions to create an account. It is usually necessary to provide personal and contact information. Before purchasing SOL, you must also verify your identity.
- Make a deposit — You can fund your account when you have everything set up. Select your preferred banking option from the payment page. Once there, click the deposit option. You should transfer enough money to cover any additional fees and exchange margins imposed by the exchange.
- Buy Solana — You’ll need the SOL/USD pair if you use USD. Specify the amount to be purchased and confirm the transaction. You should see coins in your account shortly.
- Send SOL to your crypto wallet — You can withdraw your SOL coins safely to a wallet if you don’t wish to stake or exchange them. However, if you have other plans, transferring crypto back and forth is not recommended.
Final Thoughts
Solana is more than a cheaper Ethereum alternative. Some might even say it threatens ETH. Solana’s unique approach and projects have made it one of the world’s top 10 most popular cryptos, attracting many crypto enthusiasts and investors alike.
All you have to do is find a suitable exchange platform, sign up, and you’re ready to try it out. Don’t invest in Solana without thinking it through, weighing the risks, and then deciding if it is a good investment.
