The ability to create and use a Web3 on-chain wallet, purchase popular on-chain tokens, and perform basic on-chain analysis has become a crucial skill for capturing opportunities in the cryptocurrency world.
Recent data highlights the growing importance of decentralized platforms. For example, Solana's decentralized exchange (DEX) volume recently hit a record $33.6 billion in a single day. This surge reflects increasing user participation in on-chain ecosystems. Additionally, over the past week, the total supply of stablecoins on Solana increased by $3.13 billion, indicating strong market confidence.
This guide is designed for two types of users: those familiar with centralized exchanges (CEXs) looking to move assets on-chain, and complete beginners needing to understand wallet creation and on-chain trading.
Why an On-Chain Wallet is Essential
Unlike centralized exchanges, engaging with on-chain token trading requires a self-custody wallet. This is the first step for anyone entering the decentralized crypto space. Phantom Wallet and OKX Web3 Wallet are two popular choices. Phantom, for instance, has even surpassed Coinbase in the U.S. iOS App Store rankings, demonstrating its widespread adoption.
Since most new users operate primarily from mobile devices, the following steps focus on mobile wallet creation. The process is similar for desktop users.
How to Create a Phantom Wallet
Step 1: Download the Phantom app from your phone's app store. Open the app and select "Create New Wallet," then choose "Seed Phrase Wallet."
Step 2: Securely store your secret recovery phrase (seed phrase). Write it down by hand and store it offline. This phrase is the only way to recover your wallet; never share it with anyone.
Step 3: Locate and copy your public wallet address for receiving assets.
How to Create an OKX Web3 Wallet
Step 1: Open the OKX app and navigate to the "Web3 Wallet" section. Tap on "Create Wallet."
Step 2: Select "Manual Backup" and carefully write down your secret recovery phrase.
Step 3: Access your new public wallet address from the wallet interface.
It is paramount to securely store your secret recovery phrase. Losing it means losing access to your funds permanently.
Transferring Crypto from an Exchange to Your Wallet
Withdrawing SOL to Your On-Chain Wallet
The common method to acquire on-chain tokens is to first buy SOL on a centralized exchange and then withdraw it to your personal wallet.
- Log in to your chosen centralized exchange (e.g., OKX, Binance).
- Navigate to the "Withdraw" or "Withdraw Crypto" section.
- Select SOL as the asset you wish to withdraw.
- Paste your personal wallet address from Phantom or OKX Web3 Wallet.
- Carefully confirm the network is set to Solana (SOL). For other tokens like USDT, ensure you select the correct network (e.g., Solana SPL for Solana-based USDT).
- Complete the security verification and confirm the transaction.
What to Do If SOL Withdrawals Are Suspended
During periods of high demand, such as a major meme coin launch, centralized exchanges may temporarily suspend SOL withdrawals. Knowing how to use a cross-chain bridge is an essential workaround to ensure you can move capital on-chain quickly.
👉 Explore more strategies for seamless cross-chain transfers
A popular cross-chain solution is the Portal Bridge.
Step 1: Withdraw a stablecoin like USDC from your CEX to a different blockchain network, such as Avalanche (AVAX), Arbitrum, or Optimism. Avalanche is often recommended for its faster transaction finality.
Step 2: Use the Portal Bridge website to bridge your USDC from Avalanche (or another supported chain) over to the Solana network.
Step 3: Once your USDC has arrived on Solana, you can easily swap it for SOL using a decentralized exchange (DEX) like Raydium.
How to Buy Popular On-Chain Tokens
Trading Directly on a Decentralized Exchange (DEX)
Raydium is a leading DEX on the Solana blockchain. It has even reported higher 24-hour fee revenue than major entities like Tether, underscoring its high trading volume.
To use Raydium:
- Navigate to their swap interface.
- Connect your Web3 wallet (e.g., Phantom).
- Select the token you wish to swap from (e.g., SOL or USDC) and the token you want to buy.
- Review the transaction details, including slippage tolerance, and confirm the swap.
However, during extreme network congestion, a standard DEX interface might be slow or fail to execute trades. Furthermore, new on-chain projects lack fundamentals, making investment risky. Success often depends on analyzing factors like token distribution, smart money movement, and potential team manipulation.
Using Advanced On-Chain Tools like GMGN
For a significant advantage, tools like GMGN are recommended. GMGN functions as both a meme coin data dashboard and a trading terminal. It can provide deeper insights and more reliable trade execution during volatile launches.
To use GMGN:
- Go to the GMGN website and connect your wallet.
- Paste the contract address of the token you're interested in into the search bar.
- The interface will display key data and a trading panel where you can input the amount you wish to buy or sell.
Frequently Asked Questions
What is the difference between a CEX and a DEX?
A Centralized Exchange (CEX) is run by a company that holds your funds for you. A Decentralized Exchange (DEX) is a non-custodial protocol that allows you to trade directly from your personal wallet, giving you full control of your assets at all times.
Why is my SOL withdrawal from the exchange paused?
Exchanges can suspend withdrawals during periods of extremely high demand to manage their hot wallet liquidity. This is a common occurrence during major on-chain events and is why learning cross-chain bridging is so useful.
Is it safe to buy any token I see on a DEX?
No. On-chain trading carries high risks, especially for new tokens. Always conduct due diligence. Be aware of "rug pulls" and scams. Never invest more than you are willing to lose.
What is a secret recovery phrase, and why is it so important?
Your secret recovery phrase (or seed phrase) is a series of 12-24 words that generates all the private keys for your wallet. Anyone who has this phrase has complete control over your assets. It must be stored securely and offline.
Can I use the same wallet address on different chains?
No. Each blockchain has its own addressing format. Your Solana address will be different from your Ethereum or Bitcoin address. Always ensure you are sending assets to an address on the correct network.
What are the gas fees on Solana?
Transaction fees on the Solana network are typically very low, often a fraction of a cent. These fees are paid in SOL to process and secure transactions on the network.