How to Buy Solana Coin in the US
A Beginner’s Guide to Buying and Trading Solana Cryptocurrency in the US
A relatively new cryptocurrency project, Solana Network, promises to solve one of the most complicated problems in the Defi world - scalability. Along with the growth of the network, the time required to confirm each transaction decreases. Solana introduces a new Proof of History consensus, which, together with Proof of Stake, can tackle this problem. Since its launch, this crypto has already seen significant growth in value and shows a good recovery after the recent crypto prices crash.
So, if you are based in the US and want to get some Solana coins, this guide intends to help you get all the answers. We'll explore the Solana project, discuss its goals and price history. We'll also take a look at Solana's price predictions and provide you with a complete guide on how to buy Solana coins in the US.
What's in This Guide?
- QUICK GUIDE: HOW TO BUY SOLANA IN THE US
- What is Solana Coin?
- How Solana Coin Works and What Affects its Price?
- Is Solana Coin A Buy Right Now?
- How to Buy Solana Coin online in the US - A Step by Step Guide
- How to Trade Solana Coin in the US - A Step by Step Guide
- Solana coin Advantages and Disadvantages
- What is Solana Coin Price Prediction?
- How Do I Mine Solana Coin in the US?
- What is the Total Supply of Solana Coin?
- Things to Consider Before You Invest in Solana Coin in the US
QUICK GUIDE: HOW TO BUY SOLANA IN THE US
- Open an account with a cryptocurrency exchange.
- Verify your account.
- Go to the deposit section
- Go to the platform and select Solana
- Enter how many Solana coins you want to buy.
- Check the details and confirm your purchase.
What is Solana Coin?
The so-called scalability problem is common for all cryptocurrencies. It's the capability of cryptos to cope with the vast amount of transactions at a particular time. When the cryptocurrency network grows and the amount of transactions increases, the blockchain needs more capability to handle all of that. Right now, bitcoin for example can handle only 7 transactions per second, while in the case of Ethereum, it's 30. However, Ethereum network 2.0 promises to be more competitive, enabling 100 transactions per second in the future.
From this perspective, Solana is in the race with Ethereum. Hence, if the project could not attract several users into its community before ETH 2.0 solves the problem, Solana's success will be questioned.
In terms of the company's history, Solana's primary developer, former Dropbox and Qualcomm software engineer Anatoly Yakovenko founded the project in 2017. He teamed with his former colleague at Qualcomm, Greg Fitzgerald, to build a code that can withstand the scalability of the blockchain. They launched Solana's first testnet in 2018, while in 2020, the Solana Mainnet Beta version was established due to the funds raised by the sales of Yakovenko's private SOL tokens.
Eventually, they have developed a third-generation blockchain that enables smart contracts and allows the building of fast, secure, and scalable decentralized apps on its network. Users pay for transaction fees through the SOL token, which is Solana's native currency. Solana's primary focus is to provide fast transactions and high throughput, and it uses its unique innovation, Proof of History consensus, to make this a reality.
Read Also: Could Solana Be a Millionaire Maker Coin?
How Solana Coin Works and What Affects Its Price?
To understand how Solana's Proof of History protocol works, let's look at different protocols that other cryptocurrencies use to run their blockchain.
One of the most famous consensus mechanisms is Proof of Work, which dates back to 1993. It was innovated and used by Bitcoin to validate transactions and add new blocks to the blockchain. Several other cryptocurrencies adopted this consensus to their blockchains later. This protocol requires miners to use expensive computer hardware and vast amounts of electricity to solve complex computational puzzles, mine and add a new block to the blockchain, and get rewarded for that.
An alternative for the Proof of Work mechanism is Proof of Stake, which does not require costly resources as long as you have lots of coins and can lock them. This process is known as staking. The blockchain that runs on this mechanism selects its block validators according to the number of coins they lock into it.
Solana is based on this protocol too but it also uses its unique Proof of History protocol. PoH allows creating long and unbroken chains of hushed transactions with added timestamps to each transaction according to the sequence they occur before being validated. These timestamps cannot be changed by validators, while in the case of the PoW protocol, block miners can add the time and date to their mined block. In addition, the ordering of the transactions in sequence allows the validators to process less information, thus significantly reducing the time needed to confirm a new block.
Proof of History protocol allows Solana to validate 50,000 transactions per second. But we should admit that Solana is quite a new crypto project and has not yet outperformed its rivals in the market. Still, Solana needs to attract many investors and users to prove that its unique mechanism of running blockchain can work. If Solana can prove this, it can attract more users to its network, resulting in the SOL token value increase.
Is Solana Coin A Buy Right Now?
The Solana project aims to solve one of the complex problems in Decentralized finance - the problem of scalability and fast transactions. Solana has already proven that its consensus works and boasts of handling over 50,000 transactions per second. From this perspective, then yes, Solana can be an excellent long-term investment.
Still, investing in it takes some risks, as Solana has rivals in the market, including the second-largest cryptocurrency, ETH. So, if Ethereum could tackle this issue before Solana can attract many users and become well-established crypto, it can be a massive threat to Solana's success. But, for now, Solana proves to be a good competitor, plus its prices showed a good recovery after the recent drop in the crypto market, which shows the confidence that investors in the crypto market have for this project.
Looking at the coin's historical price behaviour starting from the release date - When the first transaction with the SOL token occurred in April 2020, it was traded below $1. Solana value slowly increased during 2020 and hit the maximum of the year in September, when it was traded at $4.4. SOL token experienced significant growth starting from January 2021. After getting reputable investors and being listed on some of the largest crypto exchange platforms, Solana even increased above $50 and hit its all-time maximum on May 18, 2021.
SOL token price history. Source: coinmarketcap.com
Another good thing about SOL value is its fast recovery after the recent market crash, mainly associated with its fast-growing ecosystem. This has shown the resilience of this project and the faith crypto investors have in the Solana coin. At the time of writing, Solana is the 13th largest cryptocurrency in terms of market capitalization.
Check Out: Why Solana Is Going To Explode
How to Buy Solana Coin Online in the US - A Step by Step Guide
If you think of having some SOL tokens, it's the right time to get them as cryptocurrencies currently trade at low prices. In case you still don't know how and where to purchase it, here is a step-by-step guide on buying Solana coins in the US online.
Find a US Regulated Crypto Exchange that Supports Solana coin
Presently, many of the leading cryptocurrency exchanges still do not support buying the Solana cryptocurrency. So, you don't have a large selection of exchange platforms. However, this may change in the near future. Before that, here are two of the most well-known exchange platforms to buy Solna coin in the US.
Coinbase: Founded in 2012, the San-Francisco-based exchange platform already won the hearts of several investors. It's one of the largest crypto exchange platforms, with 56 million verified accounts from over 100 countries. Coinbase has an extremely easy user interface and offers 25 cryptocurrencies to buy, sell and trade. The platform requires a minimum deposit of $50 to allow buying coins and charges high fees, but you can switch to Coinbase Pro, where fees are relatively low.
Gate.io: Here is another large crypto exchange platform with a simple interface for beginners while providing advanced tools for experienced traders too. Gate.io offers a huge selection of altcoins for buying and charges low fees.
Register for an Online Account and Fund Your Account
Signing up for an account on an online exchange platform is an easy and simple process. The platforms usually require you to fill in some personal information and create a password. Meanwhile, to allow more advanced trading, some platforms also require that you go through the "know your customer" process. It requires you to verify your account with a copy of your passport or driver's license and provide proof of address documentation such as a utility bill or a bank statement.
As long as you verify your account, you can link a credit or debit card to your account and deposit funds on it. Some platforms also allow other payment methods, such as E-wallets or bank accounts.
Buy Solana coin
If you have a verified account and transferred money on it, you can then complete your purchase. Just look for the Solana coin on the platform, fill in the amount you want to buy, and make your purchase. In some cases, crypto exchanges allow you to purchase coins with fiat currency. However, in the case of SOL coin, you will probably have to buy another coin at first and then swap it with SOL or buy SOL with stablecoins like Tether.
Transfer Your Funds to a Hardware Wallet
Usually, people buy cryptos as a short-term or long-term investment. If you use your coins after a short time for short-term trading, you had better keep them on your exchange wallet. However, if you keep it as a long-term investment, it's strongly recommended to store your coins in a personal wallet. Personal wallets can be of two kinds - hardware and software. A hardware personal wallet is a physical device that you can buy and store your coins on it offline. This is the most secure way to keep your coins. Software wallets are mobile apps that you download and transfer your cryptos on.
How to Trade Solana Coin in the US - A Step by Step Guide
This part of the article intends to help you in trading SOL token, providing a step-by-step explanatory guide on how to trade Solana coin in the US.
Find an Online Trading Platform that Supports Solana coin
If you plan to do regular short-term trading, the most crucial thing to consider in selecting an exchange platform is the transaction fees. Try to choose the one with lower prices to not lose too much money on each transaction. Among the other factors to consider are how fast and straightforward it operates, what trading tools it offers, etc.
Fund Your Account
As long as you register for an account on the exchange platform you will trade on, you must verify it and transfer funds to start trading Solana coin.
Develop a Trading Strategy
Before you make your first purchase, it's a good thing to adopt a trading strategy to lower your risks. You can choose among the active or passive strategies. If you don't have too much time to explore the market, follow the news and prices, you can select a passive method like "Buy and Hold" and wait until the prices increase and harvest your profits. More active traders can choose day trading to generate profits during the same trading day or scalping that allows them to make a profit within some seconds.
Start Trading Solana coin
Finally, when you have a trading account, deposited funds on it, and selected the appropriate trading strategy, you can start trading Solana coin in the US.
Solana Coin Advantages and Disadvantages
In case you still have some doubts about whether to buy or not to buy SOL token, here are some of the advantages and disadvantages of the Solana project that can help you make up your mind.
- The existence of unique long-term goals.
- Quick recovery after the recent cryptocurrency market crash.
- Tries to solve the problem of crypto scalability.
- Attracted lots of investors and gained fundraising managed by Andressen Horowitz
- Has well-established rivals in the market, including Ethereum
- Needs to attract more users to prove its blockchain running protocol.
What is Solana Coin Price Prediction?
When we consider Solana's price predictions according to some of the famous algorithms, Solana is an excellent long-term investment that can bring you a fertile harvest in the future. For example, Wallet Investor predicts that the long-term earning potential in one year is equal to +248.99%, while the prices can reach up to $483 in 2026.
Digital Coin Price foresees that SOL token won't hit $100 till 2025, but it'll cost $108 in 2025, will increase to $131 in 2026, again drop to $125 in 2027 and reach $160 only in 2028. Meanwhile, Long Forecast predicts that Solana will have slow growth and hit $100 only in July 2025.
SOL token price predictions, according to Digital Coin Price
Don't Miss: Solana Price Predictions
How Do I Mine Solana Coin in the US?
You can mine SOL tokens due to the Proof of Stake protocol, locking in the pool a certain amount of SOL to validate transactions and be rewarded with SOL tokens. There is no strict minimum amount of SOL to stake, but you must find a crypto wallet/exchange that supports Solana staking.
What is the Total Supply of Solana Coin?
Solana project founders announced that a total of 489 million SOL tokens will be released in the future. At the moment of writing, almost 470 million SOL tokens are already in circulation.
Things to Consider Before You Invest in Solana Coin in the US
In a nutshell, Solana is a cryptocurrency project founded by two former Qualcomm software engineers. The bright minds standing behind the project and the unique long-term goals they have, hint to us that Solana has a lot to offer in the future if the project succeeds. From this perspective, buying Solana can be a good decision as it can bring high profits later.
Meanwhile, Solana has become one of the largest crypto assets in the world, and thus, it has a high trading volume. This clearly makes this coin also a great asset for short-term day trading.
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