Phantom Wallet Review – Pros, Cons, Safety Revealed

Crypto ownership has doubled since the last bull run, and user-friendly wallets are in high demand. Phantom Wallet provides a popular choice, offering a non-custodial, multichain solution. In this Phantom Wallet review, we’ll examine the wallet’s features, security, and usability to help you decide if it’s the right fit for your crypto needs.

Phantom has expanded its coverage in recent years to include Bitcoin and the Base Layer 2 blockchain, giving users access to a wider selection of tokens across Solana, Ethereum, Bitcoin, Polygon, Base, and Sui blockchains. Whether you’re a meme coin trader or stack the hottest utility altcoins, Phantom brings you the biggest networks. Let’s start with an overview before we explore Phantom Wallet in more detail.

What is Phantom Wallet?

Phantom Wallet is a non-custodial, multichain wallet that enables users to store, send, and receive digital assets across multiple blockchain networks. As a non-custodial wallet, Phantom gives users full control over their private keys and assets, providing a secure way to manage their cryptocurrency portfolios.

The mobile application supports iOS and Android devices, while a Phantom Wallet extension supports Firefox and Chromium-based browsers.

Phantom Wallet was founded in 2020 and has since gained popularity among cryptocurrency enthusiasts due to its user-friendly interface and multichain support.

The wallet is backed by Phantom Technologies, a company that utilizes technologies like Blockchain, Kubernetes, and PWAs (Progressive Web Apps) to power its services. With investments from notable firms like Paradigm and Solana Ventures, Phantom is well-positioned to continue developing and improving its wallet and related services.

What Type of Wallet is Phantom Wallet?

The Phantom Wallet crypto wallet is a self-custody wallet, meaning that users have full control over their private keys and assets. The private keys control your crypto assets on the blockchain, in contrast to custodial cryptocurrency wallets, where a third party holds the private keys and controls the assets.

A non-custody wallet like Phantom gives users complete ownership and responsibility for their assets. The private keys are stored locally on the user’s device, and the user is responsible for keeping them safe. This approach provides an additional layer of security and privacy, as users don’t have to rely on a third party to manage their assets.

In a custodial wallet, the third party has access to the private keys and can freeze or seize assets. With a wallet like Phantom, users have full autonomy over their assets and can make transactions without needing permission from a third party.

Phantom takes security a step further by supporting Ledger hardware devices such as the Ledger Flex. These wallets allow you to store your keys offline while maintaining easy access to your favorite decentralized apps (dApps). We’ll discuss hardware wallets and their support in more detail later.

Supported Chains & Cryptocurrencies

Phantom Wallet supports a growing range of popular blockchain networks, allowing users to manage their crypto across multiple ecosystems. However, while it supports the most popular networks, Phantom still lacks support for some blockchains that users may need.

While Phantom Wallet offers a solid range of supported networks and tokens, other wallets like Best Wallet offer more extensive support. By comparison, Best Wallet, a popular multichain crypto wallet, supports more than 60 blockchains and countless tokens, giving users even more flexibility and options for managing their digital assets.

Phantom Wallet Features & Tools

Phantom Wallet offers a range of features and tools to enhance the user experience. While its feature set may not be the most extensive, it provides a solid foundation for managing crypto.

In-App Swaps and Trading

Users can swap tokens within the same blockchain network, as well as access cross-chain token swaps through partnerships with third-party providers. This enables the swapping of assets across different blockchain networks, such as swapping BTC for SOL.

Buying and Selling Crypto

The Phantom wallet allows users to purchase cryptocurrency directly within it through partnerships with third-party providers like MoonPay and Ramp. These providers offer fiat-on-ramp services, enabling users to buy cryptocurrency using traditional payment methods.

NFT Support and Marketplaces

Non-fungible tokens (NFTs) are supported on the Solana blockchain and Ethereum network, allowing for the buying, selling, and storage of digital collectibles. The wallet also features an NFT gallery, supporting NFTs on Solana and Ethereum, making viewing and managing your digital art and collectibles easy.

Decentralized Application (dApp) Integration

WalletConnect is also supported in the Phantom app. This enables users to connect to decentralized applications (dApps) in a separate browser. However, users can also explore a curated selection of popular dApps using Phantom Wallet’s built-in browser. Connect to decentralized finance (DeFi), iGaming, and trading platforms in two clicks.

Ledger Hardware Wallet Support

For added security, Ledger hardware wallets, including devices with Bluetooth connectivity like the Ledger Flex and Ledger Stax, are supported for Android and iOS devices. This allows for managing digital assets in multiple wallets on the go while maintaining the security of private keys offline. Alternatively, Ledger devices can be connected via USB when using the browser-based Phantom Wallet extension (e.g., Chrome).

Other Features and Tools

Additional features include transaction history, address book management, QR code scanning, and the NFT gallery, making sending, receiving, and managing digital assets easy.

Security – Is Phantom Wallet Safe to Use?

According to estimates, hackers have stolen over $1 billion from cryptocurrency wallets and exchanges in the past year alone, highlighting the importance of robust security measures. Phantom Wallet has implemented various security features to protect user assets and prevent such losses.

Phantom Wallet has undergone audits from reputable security firms, including a recent Least Authority audit, to identify and address vulnerabilities, demonstrating a proactive approach to security.

The wallet also has a bug bounty program, which rewards “white hat” hackers up to $50,000 for finding potential risks that could compromise user funds. This program encourages responsible disclosure of vulnerabilities, allowing Phantom to address and fix issues before they can be exploited.

As a non-custodial wallet, Phantom does not store users’ seed phrases or private keys, giving users complete control over their digital assets. This approach reduces the risk of compromised assets due to a third-party breach.

Phantom also prioritizes user privacy, not tracking personally identifiable information or asset balances. The wallet obscures IP addresses from RPC providers using a privacy proxy, which prevents validator operators and other parties from associating transactions with specific users or IP addresses. This added anonymity layer helps protect user identity and maintain the privacy of their financial transactions.

Additionally, Phantom supports hardware wallets, such as Ledger devices. These devices provide an additional layer of security by storing private keys offline, making it even more difficult for hackers to access users’ assets.

While no wallet is completely immune to security risks, we found during our Phantom Wallet review that the team has demonstrated its ability to respond quickly and effectively when vulnerabilities are discovered. For example, in 2021, the company promptly addressed the “Demonic” vulnerability and implemented fixes to enhance the security of its browser extension. This proactive approach to security and its features provide a great foundation for protecting digital assets.

Unfortunately, Phantom Wallet does not offer scam token detection, which could help users avoid pitfalls due to honeypots or other crypto scams.

Phantom Wallet Fees

As a non-custodial wallet, Phantom Wallet doesn’t charge fees for holding or managing your cryptocurrencies. However, when you buy or sell cryptocurrencies through the wallet, you’ll encounter fees from third-party providers. Additionally, you’ll need to pay network fees for transactions and smart contract interactions, which are determined by the blockchain network and can fluctuate based on demand.

These providers offer various payment types, including credit/debit cards, bank transfers, and digital payment methods like PayPal and Venmo. Phantom Wallet provides a list of providers ranked by value, allowing you to choose the provider that gives you the most coins for your money.

It’s essential to note that these fees can change over time and may vary depending on the specific cryptocurrency, payment method, and market conditions. To get the best deal, check the current fees and rates before making a transaction.

The third-party providers integrating with Phantom Wallet use a spread pricing mechanism. This mechanism adds a margin to the current market price to account for factors like market volatility, liquidity, and risk. Thus, depending on the provider and market conditions, the price you pay for a cryptocurrency may be higher or lower than the current spot price.

Example Fees

Let’s consider an example to give you a better idea of how these fees work. Suppose you want to buy Solana (SOL) for $150 USD through a third-party provider.

The current market price of SOL is 1 SOL = $220 USD. Let’s use this as a basis for comparison.

If you were to buy SOL on a crypto exchange like Binance or Kraken, you would get approximately 1.2 SOL for $264 USD, based on the current spot price. However, when using Phantom Wallet’s third-party providers, the amount of SOL you receive may be lower due to the fees charged by these providers.

Here’s a breakdown of the fees you might pay with different providers:

As you can see, the fees for buying SOL or other cryptocurrencies can vary significantly depending on the provider. However, once you’ve funded your wallet, you’ll primarily pay network fees, generally lower as a percentage of the transaction amount. And, of course, storing your cryptocurrencies in Phantom Wallet is free.

It’s worth noting that crypto exchanges often have much lower fees, particularly when using advanced trading platforms. For example, Binance’s spot trading fee is around 0.1%, while Kraken’s fee is around 0.2%. This means that buying cryptocurrencies on an exchange and then transferring them to your Phantom Wallet can be a more cost-effective option, especially for larger transactions.

Wallet apps like Phantom Wallet provide a convenient way to buy major cryptocurrencies. However, due to the fees and spreads charged by third-party providers, they can be considerably more expensive. However, they can still be a good option if you need to top up your balance on the go or prefer not to use exchanges.

One thing that sets Phantom Wallet apart from competing apps like Zengo Wallet is its wide range of integrated providers. While fees may be similar for most wallet providers, Phantom’s rich features give users more options and flexibility when buying or selling cryptocurrencies. This can be particularly useful for users who want to compare prices and find the best deal. Learn more about the security-first Zengo Wallet in our review.

Phantom Wallet App User Experience

The Phantom app is designed to provide a seamless and intuitive user experience. A clean, modern design makes it easy to navigate. Let’s explore some of the key aspects from a user perspective.

Onboarding Process

The onboarding process for Phantom Wallet is straightforward to follow. New wallet users are guided through a series of steps to create a wallet, set up a password, and configure security settings. The app also offers optional tutorials and guides to help users get familiar with its features and functionality. We’ll discuss how to get started in a later section of the Phantom Wallet review.

User Interface

When you open the Phantom app, you’re presented with a dashboard that shows your wallet balance for each chain, recent transactions, and a list of assets. The dashboard also provides one-click access to key features, such as sending and receiving assets, swapping tokens, and accessing decentralized applications.

Asset Management

Phantom Wallet allows you to manage multiple assets, including cryptocurrencies, tokens, and NFTs. The app provides a clear overview of the user’s portfolio, including balances, current prices, and market trends. Users can also swap tokens within the app, using third-party liquidity providers to find the best rates. Built-in dex support provides easy access to new tokens and can offer a cheaper way to reallocate your portfolio.

Security Features

Security begins at setup, where you can enable a PIN or biometric authentication to secure the app. Similar to competing wallet apps, Phantom Wallet provides encryption and a secret recovery phrase to restore the wallet in case of loss or theft. The app encourages users (twice) to back up their secret recovery phrase during setup.

Token Management

Phantom Wallet provides a user-friendly chain and token management process.

The wallet automatically displays tokens that you receive on supported networks, but you can also manually add custom tokens by inputting the token’s mint address, token name, and token symbol. This feature is especially useful for new tokens not yet on the standard lists.

Additionally, Phantom Wallet provides a “manage token list” feature, which allows you to hide spam tokens or enable tokens that may not be immediately displayed. This process is similar to competing wallets such as MetaMask or Binance Wallet.

Mobile and Browser Extension Experience

Phantom Wallet is available as both a mobile app and a browser extension, providing users with flexibility and convenience. Both the mobile app and browser extension support the same blockchains, including Solana, Ethereum, Bitcoin, Polygon, Base, and the recently added Sui.

This means that users can manage their assets and interact with decentralized applications on these blockchains using either the mobile app or the browser extension if both installations use the same seed phrase.

Is Phantom the Best Crypto Wallet? Try Best Wallet Instead

Phantom Wallet is a solid choice for crypto users, but it may not offer the same features and flexibility as other wallets. Best Wallet is a great alternative, especially if you are new to crypto or want a reliable multi-chain crypto wallet solution.

Best Wallet is a non-custodial crypto wallet built for both beginners and experienced traders. It features an in-built DEX aggregator that scans multiple decentralized exchanges to find the best token prices, lowest network fees, and fastest routes for onchain swaps. Users retain full control of their assets, with private keys stored locally for maximum safety and ownership. The wallet also supports multi-chain access, staking, and an integrated token launchpad that gives users early access to new crypto projects—making it one of the most versatile and secure crypto wallets available today.

Read our Best Wallet review to learn more about this user-friendly crypto wallet.

Best Wallet Key Features

Pros & Cons: Best Wallet

Phantom Wallet Customer Support

Phantom Wallet gives customer support through various channels, including email, Twitter, and Discord. Users can contact the support team for assistance with wallet-related issues, such as account setup, transaction problems, and security concerns. However, it’s worth noting that Phantom Wallet has received mixed reviews, with some users reporting positive experiences and others encountering issues. User-submitted Phantom Wallet reviews net the app a 1.5 out of 5-star rating on Trustpilot.

The wallet’s website also features a comprehensive FAQ section and a blog with tutorials and guides on using the wallet. Additionally, Phantom Wallet has a community-driven forum where users can connect with each other, ask questions, and share knowledge.

Within the app, users can access the “Learn” section, which includes a library of Crypto 101 articles and other educational resources. This section provides users with basic information on cryptocurrency and blockchain topics.

The Verdict

Phantom Wallet has established itself as a reputable digital asset wallet, prioritizing security and reliability. However, its customer support has received mixed reviews, and the wallet’s functionality may not suit all users. Additionally, the limited number of supported blockchains may be a drawback for some investors.

Alternatives like Best Wallet offer broad support for more blockchains. With 60+ chains, robust security features, and an integrated DEX that automatically finds the best value, Best Wallet caters to many investors.

While Phantom Wallet has its strengths, Best Wallet may be a better choice for crypto investors who value ease of use combined with powerful features.

Phantom Wallet

7.4

Ease of use

8.5/10

Fees

7.0/10

Online Reputation

6.0/10

Compatability

7.5/10

Security

8.0/10

Pros

• Decent blockchain support
• Onramps and partnerships
• Non-custodial
• Custom token support

Cons

• Chain support could still be better
• Limited customer support
• Mixed user reviews

FAQs:

Is Phantom Wallet any good?

Phantom Wallet is a well-established and reputable, and secure wallet that supports popular blockchains, including the Solana network, Ethereum, Bitcoin, Polygon, Base, Sui, and Monad Testnet. It is known for its security, reliability, and user-friendly interface, making it a good option for those looking for a solid crypto wallet.

What are the cons of Phantom Wallet?

Some of Phantom Wallet’s cons include mixed customer reviews—it has a 1.7 out of 5 star rating on Trustpilot—and limited customer support options. Additionally, the wallet only supports 6 blockchains, which may not be sufficient for investors who hold a diverse portfolio of cryptocurrencies.

Why is Phantom Wallet so popular?

Phantom Wallet is popular due to its strong focus on security, reliability, and user experience. It has gained a reputation as a trustworthy, easy-to-use, secure wallet, particularly among Solana and Ethereum users. Its support for popular blockchains and user-friendly interface have contributed to its popularity among crypto investors.

Is Phantom Wallet legal?

Yes, Phantom Wallet is a legal wallet that operates in compliance with relevant laws and regulations. It is developed by Phantom Technologies Inc., a company headquartered in San Francisco, CA, and is available for download and use in many countries around the world.

Can you withdraw money from Phantom?

You can withdraw money from Phantom Wallet by sending cryptocurrencies to an exchange, where you can then sell them for fiat currency. However, Phantom does not currently offer a way to sell crypto for cash.

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