Best Solana DEX aggregator

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Learn to start trading on Jupiter, the best Solana DEX aggregator. A beginners guide into DeFi trading on the Solana eco system.

Tired of centralized exchanges (CEXs) holding your hand (and your precious KYC data)? Welcome to the wild world of Decentralized Exchanges (DEXs), where you swap crypto directly from your own wallet. But hold on, this new concept of decentralized trading(DEX) can be challenging for newbies. That’s where Jupiter Exchange, the ultimate Solana DEX aggregator, comes into play to guide you into this new world of DeFi trading.

Say goodbye to account creation, KYC headaches and local residence blocks! Jupiter lets you connect your wallet and jump straight into the action. Want to swap some SOL for a hot new token? Boom, one click and you’re done. It’s that seamless. But Jupiter isn’t just for impulsive swappers; it’s a playground for professional traders, too.

By continuing to read this guide you learn the very first step by entering the DeFi space.

  • A deeper understanding of a DEX aggregator
  • How to use and setup Phantom wallet(Solana)
  • Learn to use limit orders, DCA and bridge assets

Jupiter: The Solana DEX Aggregator Explained

Imagine a supermarket that finds the best deals for your groceries from all the shops in town. That’s a DEX aggregator for crypto! It searches different exchanges(DEX’es) to find the best price for your token swap. It’s like a price-hunting champion, saving you time and money. No more hopping around for special tokens on different exchanges, you can make the swap at one place here.

In technical terms Jupiter is the key liquidity aggregator for Solana. Meaning, they are offering the widest range of tokens and best route discovery between any token pair. On top of that they provide a friendly UX for users and some powerful tools for developers. All this allows them to easily access the best-in-class swap in their application, interface or on-chain programs.

New Coins Listings and DEXes

One of the big benefits of this Solana DEX aggregator is that it automaticly detects new coins and markets. Firstly, Jupiter automatically lists any tokens as long as their projects have reached enough liquidity. This means you can be assured that you’ll be able to trade new tokens as they launch on Solana.

Additionally, Jupiter automatically picks up any market or pool for any of the DEXes it currently aggregates. This ensures that Jupiter always has the latest liquidity for any token that is listed as soon as it is available.

Jupiter DEX smart routing system

The Basic Flow for Every Trade or Request

For initiating a transaction or trade over several DEX’es, Jupitor uses the following steps:

  1. User enters in the tokens they want to trade.
  2. User enters in the amount of tokens they want to trade for.
  3. It calculates out all the possible routes for the token trade.
  4. Jupiter fetches the quotes for each of those routes and returns the amount of tokens you will receive per route. This includes all fees.
  5. It ranks each route by the most tokens you will receive.
  6. You can select any route but the first route offers the most tokens.
  7. User clicks to trigger a swap.
  8. User approves the Jupiter transactions from their wallet.
  9. Jupiter executes the trade.

Install Phantom: The Web3 wallet for the Solana Ecosystem

First, to be able to use the Jupiter platform you need a Web3 wallet like Phantom. In short, Phantom is a next-generation crypto wallet designed specifically for the Solana blockchain. It’s more than just a storage solution for your digital assets; it’s a gateway to the exciting world of DeFi (decentralized finance) and NFTs (non-fungible tokens).

Visit https://phantom.app/download and select your browser type. Follow the steps in your respective extension store to add Phantom to your browser. After installing, you should see Phantom start-up in a new tab. Basicly, setting up a new wallet goes as follows:

  • create ‘New Wallet‘ and ‘create a password
  • write down or store the seed phrase
  • finish the setup and start Phantom from within the browser
Installation of Phantom is finished

Finally, if you are using Chrome, it will be on the top right-hand side of your browser. If you don’t see it look for a “puzzle piece” icon and click on it to access a list of installed extensions.

Fund your Wallet

Below the steps for depositing SOL Tokens into Phantom Wallet:

  1. Open the Phantom Wallet app and tap on “Deposit“.
  2. From the list of suggestions, select “SOL“.
  3. You will see a large QR code displayed on the screen. This QR code represents your wallet address.
  4. Below the QR code, you will find your wallet address in text format. Tap on the copy icon to copy the address to your device’s clipboard.
  5. Now you have your SOL deposit address ready to share with the platform or individual sending you the SOL tokens.
Deposit Solana(SOL) on Phantom Wallet
Deposit Solana(SOL) on Phantom Wallet

The Main Features of the Solana DEX Aggregator

Consequently, when you have installed and funded Phantom or any other Solana compatible wallet, you are ready to go.

For beginners in DeFi trading, the main features of Jupiter are:

Feature 1: Swap Crypto(against best price)

Swapping crypto is the most used feature of the Jupiter platform, because it’s easy and very straightforward. First, you have to connect your wallet to the platform by clicking ‘Connect Wallet‘.

In order to swap crypto’s on the Solana blockchain you must find the pairs you want to exchange among each other. Simply enter the token and amount in the ‘You’re paying‘ field. Next, select the tokens you want to receive in the ‘To receive‘ field.

Swap crypto Jupiter exchange
Swap crypto Jupiter exchange

Finally, Jupiter will find the best price routes for you amongst all the majority DEXs and AMMs in Solana. To finish the swap, confirm the transaction or pop-up that appears in Phantom and the tokens will be instantly added to your wallet.

Feature 2: Limit Orders

The Jupiter Limit Order is a service that simplifies the process of placing limit orders in Solana. It offers a vast selection of token pairs and utilizes all the available liquidity across the Solana network. With Jupiter Limit Order, you have the flexibility to buy or sell any token pair at a specified price limit.

Setup a Limit Order on Jupiter DEX
Setup a Limit Order on Jupiter DEX

With the Limit Order you execute orders based on the price that you have set by matching with the available liquidity on-chain across Solana. Once the order is placed, keepers will constantly monitor the liquidity landscape and execute the limit order when the market price reaches your limit price.

Example:

  • A Limit Order is placed to buy 1 $SOL with 10 USDC at a rate of 10 USDC per $SOL.
  • The keeper will monitor the price on-chain
  • If the keeper detects that the on-chain price of $SOL hits 10 USDC, it will proceed to get execute and fulfill the order
  • Executed order (or any partial amount) will be transfer directly to your wallet automatically.

However, if the order size is too large (and there is insufficient liquidity on-chain), the keeper will try to execute the order with a smaller chunk order size. In addition, it attempts to partial fulfill the order (to ensure the best price with minimal price impact), and will continue to attempt to do so until the order is fully executed.

Feature 3: DCA

In short, dollar-cost averaging (DCA) is like saving up a fixed amount of money to buy something regularly, no matter the price. Instead of trying to time when to buy in the market, you invest the same amount at consistent intervals. It is a very popular crypto trading strategy for beginners.

On Jupiter, when you create a DCA order, your tokens will be transferred from your wallet to a program owned associated token account. The first order takes place immediately after your DCA position has been created, and the remaining orders will take place regularly at your selected interval.

As an example, if you choose to use 1000 $USDC to DCA into $SOL, daily over 10 days. Next, the very first order of 100 $USDC into $SOL will be executed right after the DCA has been successfully created. Additionally, there would be 9 more remaining orders of 100 $USDC into $SOL to be executed daily.

Feature 4: Bridge Assets

Finally, the bridge feature of this Solana DEX aggregator. Jupiter’s bridge acts like a magic portal for your crypto. Stuck with ETH but need SOL for Solana’s DeFi scene? The bridge lets you zap your ETH over to Solana in a flash. Think of it like swapping currencies at the airport, but for your digital coins.

Bridging basically means transforming your ETH into a special “wrapped” version that works on Solana (like wETH), letting you trade and play with it there. When you’re ready to leave, swap your wETH back for real ETH using the bridge again. It’s like renting a Solana costume for your ETH to explore all the cool DeFi stuff!

Related: How to buy Solana without KYC(using Phantom)

Final Words: Best Solana DEX Aggregator

At the time of writing Jupiter is one of the best Solana DEX Aggregator platforms around. I think beginners in DeFi really can benefit from the basic features Jupiter has to offer. Remember that trading in DeFi doesn’t differ much from trading on CEX’s like Binance or Coinbase. Meaning, for every trade or swap you do on this platform you have to pay 0.1% in fees. Happy trading!

Related: How To Buy Jupiter(JUP) on Kucoin Exchange


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