What is Phantom? How to Use This Crypto Wallet & Its Pros and Cons

Phantom is a powerful crypto wallet designed for seamless transactions, staking, and swapping across multiple blockchains. It started as a Solana wallet but has grown to support Ethereum, Polygon, and even Bitcoin.

With an easy-to-use interface and strong security features, it’s perfect for managing digital assets and exploring DeFi.

Want to know how to use Phantom, its pros and cons, and whether it’s the right wallet for you? Keep reading to find out!

Key Takeaways

1. Phantom is a multi-chain wallet supporting Solana, Ethereum, Polygon, Base, and Bitcoin, making it great for diverse crypto portfolios.

2. Users can swap, stake, and trade tokens directly in the wallet, with built-in support for decentralized exchanges and NFT marketplaces.

3. Strong security features like phishing protection, spam NFT burning, and hardware wallet integration keep funds safe.

What is Phantom?

Phantom is a non-custodial cryptocurrency wallet introduced in 2021, initially built for the Solana blockchain.

It enables the secure storage, sending, and receiving of Solana-based tokens such as Official Trump, Pudgy Penguins, Bonk, and Dogwifhat.

Users can also access decentralized applications and NFT marketplaces like OpenSea and Magic Eden directly through the wallet.

Originally launched as a browser extension, Phantom expanded to mobile with an iOS app in January 2022 and an Android version in April 2022.

In May 2023, support for the Ethereum blockchain and Polygon scaling framework was added, followed by integration with the Bitcoin blockchain in December 2023, allowing compatibility with Ordinals and BRC-20 tokens.

How to Use Phantom

Installing Phantom

Phantom is available as a browser extension for Chrome, Brave, Firefox, and Edge. To install, download the official extension for the preferred browser and follow the setup process.

Setting Up a Phantom Wallet

After installation, the wallet setup requires either an email address or a seed phrase. Users choosing the seed phrase option receive a 12-word recovery phrase that must be stored securely, as it is essential for regaining access to the wallet.

If using an email, Phantom supports authentication via Apple ID and Google/Gmail. Once the recovery method is selected, the wallet setup is complete.

Receiving and Sending Tokens

Phantom supports Solana, Ethereum, Base, Polygon, and Bitcoin. While fiat withdrawals are not available, users can send, receive, buy, and swap cryptocurrencies within the wallet.

Phantom is also compatible with decentralized exchanges such as Uniswap, Jupiter, Mango, and Sushiswap for trading tokens.

Buying Cryptocurrency in Phantom

Open the Phantom wallet and select “Buy.”

Choose the preferred token.

Enter the amount in USD.

Complete the transaction using PayPal, Coinbase, Robinhood, or Stripe.

Sending and Receiving Crypto

Funds can be received by generating a QR code or sharing the wallet’s address. To send crypto, select the token, input the recipient’s address, and confirm the transaction. Phantom allows custom wallet handles, simplifying transactions and minimizing errors.

Trading Solana Meme Coins

Phantom facilitates the purchase and trading of Solana-based meme coins, including Moo Deng (MOODENG), Star Atlas (ATLAS), Drift Protocol (DRIFT), JITO (JTO), and Jupiter (JUP), leveraging Solana’s high-speed, low-cost transactions.

Swapping Tokens on Phantom

Phantom features cross-chain swaps for Bitcoin, Solana, Ethereum, Base, and Polygon, enabling direct token exchanges within the wallet without relying on external platforms.

Staking SOL with Phantom

Users can stake SOL through Phantom to contribute to network security while earning rewards. Before staking, researching validators is recommended to avoid scams.

How to Stake SOL

Select Solana (SOL) in the wallet.

Tap “More” and choose “Stake SOL.”

Pick a validator and enter the stake amount.

Review the estimated APY, commission, and total stake.

Confirm by selecting “Stake.”

Note: Currently, staking is only available for SOL.

Phantom Security: Is It Safe?

Phantom incorporates multiple security features, including:

Transaction Previews: Ensures transparency before approving transactions.

Open-Source Blocklist: Protects against phishing scams.

Spam NFT Burning: Removes unwanted NFTs from the wallet.

Hardware Wallet Integration: Supports offline storage for enhanced security.

In 2023, Phantom reportedly scanned 85 million transactions and blocked over 18,000 wallet-draining attempts, demonstrating its commitment to security.

Pros and Cons of Phantom

Pros

User-friendly interface with built-in swaps and staking.

Low transaction fees on Solana.

Seamless transition between desktop and mobile versions.

Native NFT integration with a smooth UI.

Expanding multi-chain support beyond Solana.

Cons

Limited Ethereum ecosystem support compared to MetaMask.

Minimal functionality for the Bitcoin ecosystem outside of Ordinals.

Fewer DeFi integrations than Ethereum-based wallets.

Conclusion

Phantom is an all-in-one crypto wallet that balances ease of use, security, and functionality. It’s ideal for users who want to trade, stake, and swap tokens without relying on third-party exchanges.

With growing multi-chain support, it remains a top choice for those engaged in DeFi, NFTs, and Solana meme coins.

While it still has some limitations for Bitcoin and Ethereum-based DeFi, its user-friendly design and expanding features make it a solid option.

Whether you’re a beginner or an advanced user, Phantom offers a smooth and secure way to manage digital assets.

Visit the Bitrue Blog for more information on cryptocurrency, market trends, and investment strategies. Bitrue is dedicated to providing safe, convenient, and diversified services to meet all crypto needs, including trading, investing, purchasing, staking, borrowing, and more.

FAQ

Is Phantom Wallet safe to use?

Yes! Phantom includes security features like transaction previews, a phishing blocklist, and NFT spam burning. It also supports hardware wallets for added protection.

Can Phantom store Bitcoin?

Yes, Phantom added Bitcoin support in December 2023, allowing users to hold, send, and swap BTC, Ordinals, and BRC-20 tokens.

Does Phantom support Ethereum and Polygon?

Yes! Since May 2023, Phantom has been compatible with Ethereum and Polygon, allowing users to store and trade assets from these blockchains.

Can I stake SOL with Phantom?

Yes, Phantom allows SOL staking with validators to earn rewards. However, staking for other cryptocurrencies is not yet available.

How does Phantom compare to MetaMask?

Phantom is great for Solana-based transactions and has an intuitive UI, while MetaMask offers broader support for Ethereum-based DeFi. Each wallet serves different needs depending on the blockchain focus.