# How to Trade Perpetuals on Drift (Solana): Step-by-Step Guide

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**Publisher:** Decentralized Finance Publication
**Difficulty:** Intermediate · **Read time:** 10 min read

## Summary

To trade on Drift: connect a Solana wallet at app.drift.trade, deposit USDC as margin, select a perpetual market (SOL-PERP, BTC-PERP), choose long or short, set leverage and size, and submit your order. Monitor liquidation price and funding rates on the Positions tab. Withdraw USDC when done.

## Before you trade

Perpetual futures use leverage — losses are amplified and positions can be liquidated automatically. Drift on Solana offers fast execution but the same fundamental risks as any perp exchange. Only use capital you can afford to lose entirely.

## Step-by-step: First Drift trade

### Step 1: Open app.drift.trade

Connect Phantom, Backpack, or another Solana wallet. Drift uses your wallet address as your account — no separate signup.

### Step 2: Deposit USDC margin

Click Deposit and transfer USDC from your wallet into Drift's program. This USDC collateralises all your open positions.

### Step 3: Select a market

Choose SOL-PERP or BTC-PERP for deepest liquidity. Review mark price, funding rate, and open interest.

### Step 4: Place your order

Select Long or Short. Use Market for instant fill or Limit for a specific price. Set leverage (start low). Enter position size in USD. Confirm liquidation price before submitting.

### Step 5: Manage and close

Monitor unrealised PnL and funding payments on Positions. Close via Market or Limit order. Withdraw remaining USDC from the Withdraw tab.

## Drift vs Jupiter Perps

Drift uses an order book (DLOB) — better for limit orders and tighter spreads on majors. Jupiter Perps uses a JLP pool model integrated into the Jupiter swap interface. Active traders often prefer Drift; Jupiter users who want perps without leaving the aggregator use Jupiter Perps.
## FAQ

**Q: Does Drift require KYC?**

No — Drift is a non-custodial on-chain protocol on Solana. Connect a wallet and trade without identity verification.

**Q: What are funding rates on Drift?**

Funding is exchanged between longs and shorts periodically to keep perpetual prices aligned with spot. Check the funding rate sign — positive means longs pay shorts.

**Q: Drift vs Hyperliquid?**

Hyperliquid is a custom L1 with the highest global perp DEX volume. Drift is native to Solana with composability alongside Kamino and Jupiter.

**Q: What is Drift Earn?**

Drift Earn lets you supply USDC to the insurance fund and earn a share of trading fees — an alternative to active perp trading.

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