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 expanded its coverage in 2024 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. 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.

Our Verdict on Phantom Wallet

As we explore Phantom Wallet, we find that while it is better than some crypto wallets, it still has some limitations. Phantom Wallet now supports six popular blockchains: Solana, Ethereum, Bitcoin, Polygon, Base, and Sui. It also offers a user-friendly interface, a built-in DEX, and NFT support, making it a solid choice for many crypto users.

However, Phantom Wallet has some weak points, including mixed customer reviews, a 1.7 out of 5-star rating on Trustpilot, and limited customer support options. Additionally, the software wallet’s functionality may not be suitable for all users, particularly those who require support for a broader range of blockchains, even if Phantom is slowly adding new chains. Later in our Phantom Wallet review, we’ll discuss alternatives with more expansive blockchain support.

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, including the Solana network, Ethereum, Bitcoin, Polygon, and Basei.

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 that 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 wallets. 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.

The supported networks include:

• Solana
• Ethereum
• Bitcoin
• Polygon
• Base
• Sui

Note that Sui was previously in testing, but it is now live. Meanwhile, Monad is currently in testing on Testnet, indicating that Phantom is continually expanding its support for new blockchain networks.

Phantom Wallet also supports a variety of tokens on these networks, such as:

• Native assets like SOL, ETH, and BTC
• Popular tokens like USDC, USDT, and WETH
• Emerging tokens like Ordinals and BRC-20 tokens on the Bitcoin network

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 Nano X, 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.

When using Phantom Wallet to buy or sell cryptocurrencies, you’ll work with third-party providers like:

• Moonpay
• Ramp
• Robinhood
• AlchemyPay
• Wyre

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 = $124.86 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 $150 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 Trust Wallet is its wide range of integrated providers. While fees may be similar for most wallet providers, Phantom’s larger network of providers gives 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.

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 and easy 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 Trust 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 installs use the same seed phrase.

How to Setup a Phantom Wallet Account

Setting up a Phantom Wallet account is straightforward and can be completed in a few minutes. The process is similar for the browser extension. In this example, we’ll use the mobile app.

Here’s a step-by-step guide to help you get started:

1. Download the App

Download the Phantom Wallet app. Phantom’s download page provides links to the official listings on Apple App Store and Google Play Store.

2. Agree to Terms and Create Wallet

You must agree to the terms and conditions and create a new wallet. At this step, you can also import an existing wallet.

3. Choose Seed Phrase for Privacy

Choose to create a wallet using a seed phrase, which provides an additional layer of privacy and security. Phantom will show you the seed phrase later in the process, so you can save it securely offline.

4. Enable Biometric Security or PIN

Enable biometric security, such as facial recognition or fingerprint scanning, to protect your wallet when your mobile device is unattended. Alternatively, if you create your wallet using a Google or Apple ID, you can also choose to use a PIN for added security.

5. Back Up Your Recovery Phrase

Back up your secret recovery phrase (most important!), which will restore your wallet in case you lose access to it. Store it in a safe and secure offline location and don’t share your seed phrase with anyone.

6. Create a Username

Create a username, which allows you to sync settings across devices, and allows others to easily send you cryptocurrency without managing unwieldy wallet addresses.

7. Explore the App and Fund Your Wallet

Explore the Phantom Wallet app, and learn how to fund your wallet with cryptocurrency. You can also check out the Crypto 101 learn section to get started with learning about cryptocurrency and blockchain technology. This is a great resource for beginners to learn about the basics of cryptocurrency and how to use the Phantom Wallet app.

Is Phantom the Best Crypto Wallet?

Phantom Wallet is a solid choice for crypto users, but it may not offer the same features and flexibility as other wallets. For example, Best Wallet supports over 60 blockchains, compared to Phantom’s more limited support.

Best Wallet also offers a built-in DEX, NFT gallery, and advanced security measures, making it a more comprehensive option.

Some of the key features that set Best Wallet apart include:

• Support for over 60 blockchains
• Built-in DEX for easy trading
• NFT gallery for showcasing digital art and collectibles
• Advanced security measures, such as multi-factor authentication and encryption
• New token launchpad for accessing newly listed tokens
• Cross-chain token swaps for seamless trading across different blockchains
• Advanced anti-fraud protection to ensure user safety
• Scam token detection

The wallet also has a strong focus on user protection, with measures in place to prevent fraud and protect users’ funds.

The Best Wallet app welcomes new wallet users with its user-friendly interface and intuitive features. Upcoming features include advanced trading options, derivatives trading, and a staking aggregator, making it ideal for users with different experience levels in the cryptocurrency space.

Get 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 1.7 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.

Get Best Wallet

FAQs

Is Phantom Wallet any good?

Phantom Wallet is a well-established and reputable, secure wallet that supports 6 popular blockchains, including Solana network, Ethereum, Bitcoin, Polygon, Base, and Sui. 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.

References:

• Phantom lands $150m funding to challenge traditional finance with blockchain solutions (fintech.global)
• Set up and use Phantom to access your Ledger Solana (SOL) account (ledger.com)
• Least Authority Audit (github.com)
• Bug Bounty (phantom.com)
• Halborn MetaMask “Demonic” Vulnerability Discovery (halborn.com)
• phantom.app (trustpilot.com)