I am animating font styles with the "source text" method but it was not smooth. How can I make that transition smooth because there is no easy ease option for this?
You can't. Depending on what you actually wnat to do it would probably make a lot more sense to have separate lines and apply whatever effects and transitions. Otherwise you can of course always try to use text animatiors to disguise the transitions with blurs or text animating in and out.
As Mylenium said, AE doesn't support the specific keyframing between font styles that the website demo you posted can do.
But you can fake it a bit, with limitations, by converting your text to a shape layer and animating stroke width and skew to artificially bold and italicise your text. I've attached a simple project with exactly that to show you what I mean.
AE doesn't natively support variable fonts or stuff similar to CSS transitions as used by that web site, so you can't do it easily. You have to convert the text to outlines and use "morphing", i.e. copy & pasting different shapes into different shape path or mask keyframes.
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