Serum is the first decentralized exchange built on the Solana blockchain, enabling faster, more efficient trading and fully trustless cross-chain transactions. It was created by Project Serum in collaboration with top cryptocurrency traders and experts in the DeFi space.
This guide will walk you through the entire process of making your first trade on Serum, from setting up your wallet to executing orders.
Before we begin, here are a few important points to note:
- Serum operates on the Solana blockchain, which uses SPL token standards. These are not directly compatible with the more common Ethereum ERC-20 standard.
- Your Solana wallet, Sollet, requires a small amount of SOL to add new token types to your account.
- Every transaction on Serum consumes a minuscule amount of SOL to pay for gas fees. Roughly $10 worth of SOL can power approximately one million transactions. A small trading fee is also deducted from the currency you receive, similar to centralized exchanges.
- Currently, the FTX exchange is a primary gateway for converting ERC-20 tokens into the SPL format. To trade on Serum, you often need to first deposit your tokens into FTX and then withdraw them to your Sollet wallet.
For example: To trade USDT on Serum, you would first send your ERC-20 USDT to your FTX wallet address. Then, from FTX, you would withdraw it to your Sollet wallet's SPL address.
Note: When withdrawing from FTX to a Sollet SPL address, the tokens are automatically converted to the SPL standard. To convert them back, you simply send them back to your FTX deposit address.
How to Set Up Your Sollet Wallet
Your gateway to the Solana ecosystem and Serum is the Sollet wallet. It is designed to hold SOL and other SPL-standard tokens.
- Navigate to the Sollet website.
- Create a new wallet.
- Securely store your Seed Phrase: This is the most critical step. Your seed phrase is the master key to your wallet and funds. Write it down on paper and store it in a safe place. It is only shown once upon creation.
- Set a strong password for your wallet.
- Your wallet is now ready.
Adding Funds and Tokens to Your Wallet
To interact with the blockchain, you need SOL for transaction fees.
- Acquire SOL: Purchase SOL on a supported centralized exchange (e.g., Binance, FTX, Gate.io).
- Deposit SOL: Withdraw your purchased SOL from the exchange to your main Sollet wallet address.
Once you have SOL, you can add other tokens to your wallet's interface. There are two main ways to do this:
- A. Popular Tokens: The wallet interface has a list of common SPL tokens (like SRM, USDC, USDT). Simply click "Add" next to the token you want. A tiny amount of SOL will be deducted as a fee to add it to your view.
- B. Custom Token: For tokens not on the list, you can manually add them using their contract address, token name, and symbol. This is an advanced feature and requires you to verify the contract address carefully to avoid scams.
❗Important: The token contract address is not the same as your deposit address.❗
Executing Your First Trade on Serum
With a funded wallet, you are ready to trade.
- Go to the Serum DEX website.
- Ensure the network is set to
mainnet-beta. - Click "Connect Wallet" and select Sollet. Authorize the connection. You can keep your wallet tab open in the background to confirm future transactions.
Let's use the SOL/USDT trading pair as an example to sell 0.1 SOL for USDT.
- Select the SOL/USDT market.
- In the order book interface, you can place a limit order by setting your desired price, or a market order to execute immediately at the best available price.
- Enter the amount you wish to sell (0.1 SOL).
- Click "Sell SOL."
- A confirmation prompt will appear in your Sollet wallet pop-up. Review the details and click "Approve."
After your order is filled, there is one final step unique to Serum's design.
- Settle Funds: The proceeds from your trade (USDT) are not automatically credited to your wallet balance. You must click the "Settle" button for that market. This action, which also requires wallet confirmation and a small SOL fee, finalizes the transaction and moves the USDT into your available balance.
Congratulations! You have successfully completed a trade on the Serum DEX.
Funding Options for Trading on Serum
Since Serum uses SPL tokens, funding your wallet requires a specific approach. Here are the primary methods:
- Using SOL: The simplest method. Buy SOL on any major exchange that supports it and withdraw it directly to your Sollet wallet's main address.
- Using SPL Tokens via FTX: FTX acts as a bridge. You can deposit common tokens like USDT, USDC, BTC, ETH, and others into your FTX account. Then, withdraw them to your Sollet wallet's corresponding SPL deposit address. FTX automatically converts them to the SPL standard upon withdrawal.
- Using SRM: Note that SRM on other exchanges is usually the ERC-20 version. To get SPL SRM, you must buy it on FTX or another supporting platform and withdraw it to your Sollet's SRM address.
👉 Explore more strategies for cross-chain trading
Frequently Asked Questions
What is the main advantage of using Serum over other DEXs?
Serum's core advantage is its speed and incredibly low transaction costs, thanks to the Solana blockchain. It offers a trading experience that is as smooth as a centralized exchange but with the self-custody benefits of decentralization.
Is it safe to use the Sollet wallet?
Sollet is a non-custodial wallet, meaning you alone control your private keys and seed phrase. Its security is as robust as your practices. Always safeguard your seed phrase, never share it, and double-check website URLs to avoid phishing sites.
Why do I need to "Settle" my funds after a trade?
The settlement process is a feature of Serum's underlying order-matching engine. It helps optimize network efficiency by batching operations. It's a simple one-click process that finalizes the movement of funds into your wallet after an order is executed.
Can I use MetaMask with Serum?
No, not directly. Serum is built on Solana, while MetaMask is designed for Ethereum Virtual Machine (EVM) compatible chains. You need a Solana-compatible wallet like Sollet, Phantom, or Solflare to connect to Serum.
What happens if I send an ERC-20 token directly to my Sollet SPL address?
This will likely result in a loss of funds. The Solana blockchain cannot process Ethereum-based transactions. Always use a supported bridge like FTX to convert ERC-20 tokens to SPL tokens before sending them to your Sollet wallet.
Are there any deposit fees on Serum?
Serum itself does not charge deposit fees. However, you will pay minimal gas fees in SOL for every action you perform on the blockchain, including adding tokens to your wallet and settling funds.
Final Thoughts on the Serum Experience
After using Serum, its most striking features are its ease of use and breathtaking efficiency. The trading interface will feel familiar to anyone who has used a modern exchange. The transaction speed is nearly instantaneous, and the cost is negligible, especially when compared to the high gas fees often seen on Ethereum.
The current limitation is the need to bridge assets from other chains through FTX, which adds a step for users whose assets are not already on Solana. However, as the Solana ecosystem grows, more direct bridges and native SPL tokens are becoming available, making this process increasingly seamless.
Serum presents a compelling vision for the future of decentralized finance—one that is fast, cheap, and accessible. It is undoubtedly a project worth watching as it continues to expand its ecosystem and onboard new users.