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What Is Phantom Wallet? How to Use DeFi & NFTs on Solana

What Is Phantom Wallet? How to Use DeFi & NFTs on Solana
Written by publisher team

You may have heard of Ethereum, a network infrastructure that recreates banking functionality without banks. Instead, Ethereum uses smart contracts. Solana offers the same service, but only better – very low fees, and much faster transactions.

However, since the blockchain networks are separate from each other, they each use different crypto wallets. The best wallet to use with Solana is the Phantom. Effectively, this wallet is the starting point for interaction with Solana, the so-called Ethereum killer.

Phantom: Solana Crypto Trading in your web browser

There are many ways in which we can split cryptocurrency wallets. For example, we can break it down by connection (cold vs. hot), by platform (hardware vs. software), or by ownership of your private key (custodian vs. non-guardian). A dummy wallet falls under the category of hot and non-wallet software, meaning the following:

  • not imprisoned It means that you have not given a third party ownership of your wallet’s private key. For example, when you create an account on a crypto exchange, this is a custodian wallet. Although it is suitable for quick cryptocurrency trading, giving a company your private key for a long time is important. As it is often said in cryptocurrency, “Not your keys, not your coins.”
  • Programming Wallet means that Phantom is an application installed on your computer as a browser extension.
  • hot It means that you can connect to the Internet at any time. More precisely, with any DApp available in the Solana ecosystem.

Although the mobile version of Phantom Wallet is slated to appear in 2022, for now it’s only desktop, and available for download here. It supports all four major browsers: Chrome, Brave, Firefox, and Edge.

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The dummy wallet is similar to Solana’s MetaMask

The concept of cryptocurrency wallets being integrated into web browsers is fairly new and was popularized by MetaMask for Ethereum.

Phantom Wallet is Solana’s answer to MetaMask, as part of Web 3.0. Web 3.0 attempts to bridge the decentralized nature of Web 1.0, where people and businesses own their own website, with the modern functionality and interactivity of Web 2.0. To be clear, when you go to Solana’s ecosystem of hundreds of DApps and launch the blockchain game, Aliens vs. People, you will see an option in the top right corner to connect your Phantom wallet.


strangers
Image credit: Aliens VS People

This is the core of Web 3.0. Once you connect the DApp to your Phantom, you will be able to transfer crypto assets between the two freely. For example, by playing some blockchain games, you can earn tokens, which you can withdraw to the Phantom Wallet.

After that, you can exchange these tokens for fiat money (in US dollars) by launching another DApp like Raydium. This is a decentralized exchange where you can exchange tokens. Currently, the Phantom wallet supports the following coins: SOL, USDT, USDC, Raydium (RAY), Serum (SRM), along with every other utility token launched with Solana’s DApps.

How to fund or withdraw funds from the Phantom Wallet

You may have noticed that we did not include the US dollar in the list of supported currencies. This is because you cannot swap symbols directly. This is the sole purpose of stablecoins like USDT or USDC. It is worth its value in US dollars and is effectively paper money. In other words, stablecoins are the bridge between digital currencies and cryptocurrencies.


Here is how this bridge works. Let’s say you want to buy an NFT from the Solanart marketplace, Solanart. There are many NFT suites available, but let’s pick one from Aurory, which is a new blockchain game.


Separation
Image credit: Solanart

To purchase NFT, you must first fund your Phantom wallet.

  1. Create a crypto exchange account, such as FTX, Crypto.com, Gate.io, or Binance.
  2. Once verified, you can add funds (in USD) via your bank/credit/debit card to your account.
  3. When you add the US dollar to a cryptocurrency exchange, use it to buy the USDC stablecoin. The value will be equal minus the transaction fee.
  4. Now, it’s about sending the purchased USDC to Phantom. First, you need to get your Phantom wallet address by clicking on the Phantom wallet icon in the top right corner, then selecting deposit.
    deposit
  5. Next, type USDC in the search bar to get the address of the specific crypto-origin. Once you type it, you will see the prompt on the first line. Click on it.
    usdc- phantom
  6. And here you are. You will receive your Phantom wallet address as a QR code and a hash (alphanumeric string). Copy the hash.
    USDC . address
  7. In the cryptocurrency exchange account where you bought USDC, go to the send option and paste the copied address.


Depending on the crypto exchange account you are using, you will have to confirm the transaction via SMS or email. This is the last step to add funds to your Phantom Wallet. Once received, you can then exchange USDC for any cryptocurrency that the wallet supports, such as SOL needed to purchase NFT.

Likewise, if you want to withdraw money from the wallet, you will first have to exchange it for a stablecoin and send it to a cryptocurrency exchange, lock it where it can be converted back into fiat money and withdrawn to your bank account. Of course, the process will be the other way around.

How to use SOL with Phantom Wallet

SOL is Solana’s native cryptocurrency, just like ETH for Ethereum. You can use SOL across hundreds of DApps to mint, sell NFTs, pay fees, and everything else. Moreover, you can also participate in SOL. What does this mean exactly?


Since Solana is a Proof of Stake (PoS) blockchain, it uses economic validators rather than miners (as is the case with Bitcoin) to secure the network.

Therefore, when you reserve (share) your SOL funds, you are providing a valuable service. You receive bonuses as an interest rate in the exchange, just as you would when depositing money in a traditional bank. This is how decentralized blockchain networks work – they incentivize and reward inclusion.

Staking SOL for passive gain is very easy. Simply click on the SOL balance in your Phantom wallet, then click on Start Earning SOL. Here, choose the checker and the amount you want to bet on, and confirm the choice with the “Stake” button.

You can also try staking DApp tokens themselves. For example, the previously mentioned Aurory, a metaverse (P2E) game played for profit, has a very generous payout when installing its AURY tokens, from 30% to 115% APR (Annual Percentage Rate) for a locked install. The latter refers to making your money unavailable for withdrawal for a specific period, which is why it yields so much more.


amazing strike
Image credit: Aurory

With the AURY earned, you can then exchange it back into USDC, send it to your cryptocurrency exchange account, convert it to USD, and back to your bank account. Whether through P2E, trading or betting, the opportunities to earn income in the Solana ecosystem are countless.

Phantom makes it easy to use Solana

Phantom Wallet is your gateway to Solana’s DApps. If you’ve never used Ethereum with MetaMask, you can count yourself out. The difference in transaction fees is quite large: $0.00025 per Solana transaction compared to hundreds of dollars on Ethereum.

It is very likely that Ethereum transaction fees will change in the future as the network completes its ETH 2.0 upgrade. Whatever happens, Solana is a massively funded project with a market capitalization of $55.7 billion and extensive use cases provided by DApps. So, if you are into crypto, metaverses, P2E, and NFTs, Phantom is a must-have wallet.


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