Wrapped Bitcoin (WBTC): forum reviews and current rates. Where and how to buy the currency, how to start profiting from it, and how does an exchange work?
WBTC is the most well-known Bitcoin token. It was created for users of the Ethereum network and is subject to the same laws as other ERC20 tokens. WBTC’s market capitalization has recently reached $1.58 billion! Are you wondering if it is worth investing in this cryptocurrency? Or is it better to buy Bitcoins?
Before we answer these questions, it won’t be out of place to explain a few terms. Not every reader needs to know how tokens differ from other cryptocurrencies and how the tokenization process works. Wrapped Bitcoin is an advantageous example of this type of digital asset. On the one hand, it’s still good old Bitcoin (in a way), and on the other, it’s an entirely new cryptocurrency. WBTC does not use the Bitcoin network blockchain – in this respect. It is completely dependent on its little brother, Ethereum. While discussing WBTC, we will introduce you to the concepts of token, coin, and tokenization, shedding more light on how WBTC works.
Description and information about Crypto Currency Wrapped Bitcoin
Wrapped Bitcoin is, as it was said, the most popular token of the most popular cryptocurrency in the world. It is not the same as BTC because it operates within a different network (Ethereum). In economics, the term token refers to any numismatic object other than coins and banknotes. They can be tokens (used in casinos, for example), gift cards, or vouchers. In the crypto world, the term means, strictly speaking, virtual “tokens” used within a given network in place of “real” money, or, in this case, instead of the official Ethereum currency – ETH.
The official currency used by users of the system is a coin. Thus, BTC is a coin, and so is ETH or XRP. WBTC, on the other hand, does not have its own blockchain. It uses the Ethereum platform – so it is a token. The process of issuing tokens through a network that already has its own coins is called tokenization of a cryptocurrency. The Ethereum platform, by the way, supports not only WBTC, but also many other tokens.
But why would someone buy Wrapped Bitcoin (WBTC) when they can purchase Bitcoin? What are the benefits of owning a token?
It is well known that Ethereum creates new blocks much faster than Bitcoin (every few seconds, BTC every 10 minutes). Owning WBTC, therefore, allows you to approve transactions faster and cheaper. They will be deemed irreversible faster on the Ethereum network than on the Bitcoin system. They will also generally be cheaper (due to lower transaction fees).
Also noteworthy is the possibility of using WBTC in smart contracts and building decentralized financial products. Making money with Bitcoin is trivial: you buy it, then wait a few months or even years to sell it for more or less profit eventually. During this time, however, your BTC is not generating any income. But it could! All you have to do is convert it into WBTC. You can place the token in a Compound deposit and earn interest. That’s just a drop in the ocean of possibilities.
Wrapped Bitcoin has 100% Bitcoin backing (the value of one WBTC token equals one Bitcoin). Anyone can verify this because Bitcoin’s blockchain is completely transparent. This is how WBTC differs from many stablecoins based on traditional money. Stablecoins supposedly have coverage too, but no one can check it at the present moment. In some cases, it is declared rather than real. WBTC’s Bitcoin coverage can be verified by anyone at any time, as both the source and follower currency are listed on the publicly available blockchain. All one has to do is use the appropriate tools, such as the block explorer for Bitcoin and Ethereum.
Where and how to start investing in Wrapped Bitcoin Crypto Currency?
Once you have acquired the token, you can use it in a variety of ways. Wrapped Bitcoin is compatible with most decentralized exchanges (DEXs) where you can easily exchange it for other ERC-20 tokens like ChainLink or Synthetix. With WBTC, you can also enter into smart contracts (BTC does not offer this possibility). Moreover, Wrapped Bitcoin allows you to use Ethereum-based decentralized applications. Using the latter, you can borrow tokens from other users and earn interest from sharing your tokens with others.
Reviews for Wrapped Bitcoin Crypto Currency. What do they write in the forum and in the press?
The press comments about the launch of WBTC are pretty much one-sided. The token has opened up new possibilities for Bitcoin users. It is far more flexible than traditional Bitcoin, allowing the use of DEXs and decentralized applications such as compound.finance. The 1:1 coverage keeps its holders safe and allows them to exchange it for the same amount of real Bitcoin at any time. These are perks that have generated a positive response across the industry, and of course, the press has not failed to mention them.
Similar opinions can be found on cryptocurrency discussion forums. Internet users recommend each other to exchange Bitcoin for WBTC as a great way to make easy money. With all these advantages, it is not surprising to see a lack of criticized posts. For many cryptocurrency enthusiasts, WBTC is a dream come true.
Where and how to buy Wrapped Bitcoin? What Stock Exchange will be the best?
You can buy Wrapped Bitcoin primarily on DEXs, or decentralized cryptocurrency exchanges, such as Uniswap. Some centralized exchanges and online exchange offices also offer it. You can pay for Wrapped Bitcoin with either traditional or digital currency (including BTC) depending on the given trading platform’s rules.
Where to check the Wrapped Bitcoin (WBTC) rate? Reliable sources
We recommend the biggest cryptocurrency exchanges – both DEXs and centralized alternatives. You can definitely trust such services as binance.com or uniswap.org. We advise against checking the exchange rate in exchange offices because – as you know – the prices are set there by the owners, which can be problematic in the case of tokens. It is better to check the exchange rate on a stock exchange.