How Does Phantom Trading on Solana Work?

When we say “phantom trading on Solana,” it refers to on-chain token interactions initiated through the Phantom wallet. 

Because Phantom is available as a connection option within Velto, you can interact with Phantom while maintaining full self-custody and transparent execution. This setup gives Solana users flexibility in how they manage SPL token swaps and DeFi interactions.

Let’s dive deeper on how Phantom trading works on Solana, what features Phantom supports, how liquidity is sourced, and how users can trade using Phantom through Velto.

What Is Phantom?

Phantom is a non-custodial Solana wallet designed to help users store assets, connect to decentralized applications, and sign on-chain transactions. It does not custody funds, execute trades, or act as a trading venue. Instead, Phantom serves as a wallet interface, which means private keys are controlled by the user; transactions are signed locally; and execution happens on Solana through smart contracts.

Phantom supports SPL tokens, NFTs, and DeFi protocol connections across the Solana ecosystem.

Trading on Phantom for Solana Users

When users refer to Phantom Solana trading, they are typically describing SPL token swaps or protocol interactions that are initiated from Phantom’s interface; executed by Solana DeFi liquidity sources; and settled directly on-chain.

No assets are ever held by Phantom itself. Users remain in full control of funds at every step.

Trading Features Phantom Offers

Phantom provides tools that support on-chain trading workflows, including:

• In-wallet token swap interface for SPL tokens
• Direct connections to Solana DeFi protocols
• Transaction previews showing expected outputs and fees
• Custom slippage tolerance settings
• Full transaction history with on-chain proof

All activity is user-signed and transparent.

Supported Tokens and SPL Assets

Phantom supports SPL token swaps across a wide range of Solana-based assets, including SOL itself, stablecoins (i.e., USDC on Solana), governance tokens, and DeFi protocol tokens.

Token availability usually depends on liquidity existing on Solana, not on Phantom itself.

How Phantom’s Built-In Swap Feature Works

Phantom’s swap feature allows users to review and sign a swap transaction directly from the wallet interface. However, it’s good to note that Phantom does not provide liquidity; Phantom does not set prices; and Phantom does not execute trades.

The wallet simply routes the transaction to underlying Solana liquidity sources and presents the details for user confirmation.

How to Trade Tokens in Phantom via Velto: Step-by-Step Guide

Velto allows users to connect Phantom as a wallet option, offering a streamlined interface for reviewing and signing Solana transactions. Here’s how you can trade through our platform:

1. Open Velto and select Phantom as your wallet.

Velto acts as a non-custodial Web3 interface. When Phantom is connected, all assets remain in the Phantom wallet.

2. Choose the token pair.

Select the SPL tokens you want to interact with. Velto displays on-chain transaction details clearly before confirmation.

3. Review execution details.

This includes estimated output, slippage tolerance, and network fees.

4. Sign the transaction in Phantom.

Phantom signs the transaction locally. Execution occurs on Solana.

5. Confirm on-chain settlement.

Once confirmed, the transaction appears on Solana and in your wallet history.

Network Fees and Slippage Settings

Solana network fees are typically low, but you should still review the SOL balance for transaction fees, slippage tolerance, especially for low-liquidity tokens, and higher slippage increases execution likelihood but also raises price impact risk.

Checking Swap History and Transaction Proof

All Phantom trades are recorded on-chain. You can view your transaction history in Phantom; inspect transaction hashes on Solana explorers; and verify timestamps, fees, and execution paths.

This transparency is fundamental to non-custodial trading.

Common Trading Errors and Fixes

Here are some of the most common trading error and fixes:

Error: Insufficient SOL balance 

Fix: Ensure enough SOL is available for network fees

Error: Slippage too low 

Fix: Adjust tolerance cautiously and review output estimates

Error: Network congestion

Fix: Retry when Solana network conditions stabilize.

Security Tips When Trading on Phantom

Security should be a top priority when trading on any platform. Here are some things to keep in mind:

• Use trusted interfaces like Velto for clear execution review
• Always verify token contract addresses
• Avoid signing transactions from unknown sources
• Review all transaction prompts carefully
• Store recovery phrases offline
• Control and responsibility remain with the user.

Connecting Phantom to Solana DEXs

While Phantom can connect directly to Solana DeFi protocols, using an interface like Velto can improve transaction clarity, reduce interface switching, and present execution details in a structured format.

But Velto does not custody assets or execute trades; it simply provides a controlled environment for on-chain interaction.

Final Thoughts

Phantom is widely adopted for Solana activity because of its native SPL support, broad DeFi compatibility, and straightforward transaction signing.

Velto complements Phantom by offering execution designed for clarity and speed, without replacing wallet custody or control.

FAQs

Can you trade tokens directly in the Phantom wallet?

Yes. Phantom allows users to review and sign SPL token swaps executed on Solana.

Does Phantom support Solana DEX trading?

Phantom connects to Solana liquidity protocols but is not a DEX itself.

Which tokens can I trade on Phantom?

Any SPL token with available on-chain liquidity.

Is Phantom swap safe to use?

Safety depends on user verification, token selection, and transaction review. Phantom does not guarantee outcomes.

What fees apply when trading on Phantom?

Solana network fees apply. Additional price impact depends on liquidity and slippage.

Does Phantom use Jupiter or Raydium for swaps?

Yes. Routing may include Jupiter, Raydium, Orca, or other Solana liquidity sources.

Do I need SOL to trade in Phantom?

Yes. SOL is required to pay network fees.

Can Phantom connect to DEXs like Orca or Raydium?

Yes, via on-chain protocol connections.

Is Phantom good for beginner traders on Solana?

Phantom is accessible, but users should understand non-custodial responsibility before trading.