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Phantom Wallet: A Complete Guide to Setting Up and Securely Using the Solana Wallet

Mar 28, 2024
Phantom Wallet: A Complete Guide to Setting Up and Securely Using the Solana Wallet
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Phantom Wallet is a cryptocurrency wallet which runs on the network Solana, a coin created by Anatoly Yakovenko in 2017. Its main advantage is the ability to perform fast transactions without sharding. Solana processes thousands of transactions per second, with a maximum throughput of up to 50,000 transactions and a cost of less than 1 cent per transaction. It is currently popular due to its support for DeFi applications, NFTs, and Web3. Solana coin holders include developers, community participants, traders, and crypto enthusiasts. For small amounts of coins, cryptocurrency exchanges are suitable, while large volumes are better stored in hardware wallets or digital like Phantom Wallet, which provide high security and enable transactions.

Contents:

Phantom Wallet: Complete Guide to Setting Up and Securely Using Solana Wallet - news

What is Phantom Wallet

Phantom Wallet is the leading coin management application on the Solana network, supporting multiple blockchain networks. This wallet, characterized by its easy-to-use interface, is designed for storing, sending, and receiving coins, including NFTs on the Solana platform. Phantom is non-custodial, meaning that users manage their private keys themselves, excluding access to their assets by the service or third parties. However, losing keys leads to the inability to access funds.

The main use of Phantom Wallet is managing SOL and USDC tokens. It is suitable for those actively engaged in the Solana ecosystem, offering features such as:

  • SOL staking with rewards in new coins;
  • exchange via built-in swap between SOL and USDC;
  • access to decentralized applications;
  • hardware wallet support;
  • personal data protection;
  • biometric entry.

Phantom Wallet stands out in the Solana ecosystem, where blockchain games, decentralized applications, and metaverses are evolving. This wallet has become the preferred tool for participants in these projects to manage and store tokens and view NFTs.

How to Create a Phantom Wallet

To start using Phantom Wallet, you'll need to download the mobile app or browser extension. It's crucial to do this exclusively from the official website at phantom.app to avoid scams. On the website, select the "Download" option to see the available download options.

To install the Phantom Wallet on your smartphone, use the App Store or Google Play, where the app is listed as Phantom - Solana Wallet. It's recommended to follow a direct link from the official website to ensure you download the correct app.

This is convenient, especially for those who travel frequently or are on the move, as the mobile wallet provides access to funds from anywhere.

For those actively working on a computer, a browser extension is more suitable. It is supported on Google Chrome, Mozilla Firefox, Microsoft Edge, and Brave, but the best compatibility is observed with Chrome and Firefox. After visiting the official Phantom website through your chosen browser, find the extension icon and click on it to navigate to the extension store, where you can install it by clicking the "Install" button.

To create a new wallet in the Phantom app, select the "Create Wallet" option, then enter and confirm your password, which should include uppercase and lowercase letters, numbers, and special characters. Accept the terms of use, after which you will be presented with a 12-word mnemonic phrase in English that you need to write down and securely store, as it is the key to recovering access to your wallet.

After writing down and confirming the mnemonic phrase, your Phantom Wallet will be created, and you can start making transactions using Chrome as your primary tool to access the world of cryptocurrencies.

Phantom Wallet: Complete Guide to Setting Up and Securely Using Solana Wallet - news

Principles of Using a Cryptocurrency Wallet

Using the Phantom Wallet involves a series of steps and requires attention to detail for secure transactions. It's important to start with setup and familiarization with the app's features. Ensure that a green indicator appears in the top right corner, signaling the wallet's connection to the network and readiness for use.

Key control elements are located at the top of the interface:

Element Description
Connection Indicator Shows the status of your wallet and its readiness for operation.
Menu Button Provides access to functions such as adding a new wallet or locking an existing one.
Wallet Address Located in the center, allows you to copy the address for exchanges with other users.

At the bottom of the interface are the main tabs:

  • The "Funds" tab (symbol "$") displays your balance and allows you to send or receive coins.
  • "NFT" or "Collectibles" for managing your non-fungible tokens.
  • Swap, which facilitates the exchange of SOL for other cryptocurrencies.
  • "Recent Activity" shows transaction history.
  • "Settings" for adapting the wallet to personal needs.

Once you've mastered the interface, you can move on to detailed wallet setup to meet your requirements and preferences.

Transferring Cryptocurrency to Phantom Wallet

The Phantom cryptocurrency wallet is used to perform transactions for sending and receiving coins. To get started, go to the “Funds” section and select the “Deposit” option to top up. Determine the type of token you want to use and follow these steps:

  • Use the "Copy" function to save the wallet address and share it with the recipient.
  • To deposit via a mobile wallet, scan the QR code displayed on the screen.

Additional deposit methods are available in this section:

  • Purchase via MoonPay, allowing you to buy cryptocurrency using bank cards (note that this service may be unavailable in some countries).
  • Transfer funds from any crypto exchange.

Expect funds to be credited to your account, which may take some time. After depositing, you can proceed to transfer funds. Follow these steps:

  • In the main menu, select "Send".
  • Determine the type of currency for the transfer.
  • Enter the recipient's address and the transfer amount.
  • Confirm the transaction to complete it.

To expand the list of supported currencies, go to the token management section. Add a new token, such as USDC, by entering the necessary details including the address, name, and decimal places. This way, your wallet will be configured to work with the new token.

NFTs (non-fungible tokens) have become the latest trend in the cryptocurrency world. These unique digital assets, ranging from images and music tracks to GIFs and collectibles, find applications in various areas including cryptocurrency applications and games, as well as being sold at auctions. In some countries, NFTs are recognized legislatively as digital assets. An additional benefit for Phantom Wallet users is that the Solana blockchain supports storing these tokens.

Phantom Wallet: A Complete Guide to Setting Up and Securely Using the Solana Wallet - news

Cryptocurrency exchange function in Phantom wallet

The integrated exchange function in the Phantom wallet makes the process of converting cryptocurrencies easier, eliminating the need to turn to external, sometimes unreliable, platforms. This is convenient as transactions are conducted directly within the wallet, reducing fees. Here's how the exchange in the wallet works:

  1. Open the "Exchange" section in the app.
  2. Select the cryptocurrency you want to exchange and specify the amount.
  3. Choose the type of currency you want to exchange into.
  4. Set the slippage parameter to prevent execution of the exchange at excessively high network fees.
  5. Check the transaction fee.

Confirm the operation if the exchange terms are acceptable to you. It's important to remember the spread – the difference between buy and sell rates, which affects the final exchange cost. Despite the relatively low exchange fees in the Solana network, always carefully evaluate the transaction terms.

Wallet Security

After familiarizing yourself with the cryptocurrency wallet's features, it's important to focus on security aspects, as the cryptocurrency sector attracts scammers seeking to steal assets. Don't assume you won't become a victim. To protect your assets, follow proven security methods:

  • Before installing the wallet, conduct a full antivirus scan of your computer to avoid the risk of phishing programs that can steal passwords and keys.
  • Create a complex password combining letters, numbers, and symbols.
  • The mnemonic phrase should be written down and stored in a secure place, such as laminated, to prevent damage.
  • Use the wallet's automatic locking function in case of your absence to prevent unauthorized access.
  • Never share your private keys or mnemonic phrase with third parties; this information should remain confidential.

Following these rules will help secure your assets.

In conclusion, Phantom Wallet is a specialized application for working with the Solana blockchain, ideal for users actively interacting with SOL cryptocurrency. It is considered an alternative to Metamask due to its functionality and ease of use. The app is suitable for both experienced users and beginners who can quickly master its features. It's important to note that Phantom Wallet and Fantom are different technologies despite the similarity in names. With security measures in place, Phantom Wallet provides reliable cryptocurrency storage.

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