Get Started with Wrapped Bitcoin (WBTC) - A Beginner's Guide 2023
What is Wrapped Bitcoin (WBTC)?
WBTC stands for Wrapped Bitcoin, merely associate degree ERC-20 token that represents Bitcoin—one WBTC equals one BTC.
A BTC will be reborn into a WBTC and vice-versa. Being associate degree ERC-20 token makes the transfer of WBTC quicker than traditional Bitcoin, however the key advantage of WBTC is its integration into the globe of Ethereum wallets, suburbanized apps (dapps), and sensible contracts. At time of publication, there ar over 280,000 WBTC in circulation.
Wrapped Bitcoin (WBTC) combines the benefits of bitcoin, such as decentralization, transparency, and instant payments with the perceived stability of fiat currencies like the USD, EUR, and GBP to create a cryptocurrency that would be accepted by mainstream businesses.
WBTC can be traded on any cryptocurrency exchange as well as fiat currency exchanges like Coinbase Pro or Gemini.
How do you wrap a Bitcoin to WBTC?
The process is similar to converting any cryptocurrency into a token on a blockchain, and you can do it with BTC and ETH. First, you'll have to create a smart contract on Ethereum or ERC20 compatible blockchain network.
Then, you need to deposit your coins in that contract address, which will convert them into WBTC tokens by a one-to-one ratio. From there, take your WBTC tokens and move them onto another network or platform of your choice.
That’s all there is to it! Now that you know how easy it is to turn bitcoin into wrapped bitcoin, go ahead and give it a try. Happy trading!
If you're wondering why someone would wrap bitcoins to WBTC, it's because they want to use specific features offered by new blockchains and cryptocurrencies.
The most common reason people choose to wrap their funds is so they can issue an ICO without having to worry about getting sued or creating new security tokens from scratch.
In fact, many companies are choosing to raise funds using innovative alternative methods like equity token offerings (ESTOs). With ESTO technology provided by firms like Polymath and Neufund, issuing these types of digital assets just got easier than ever before!
But now let's get back to what we were talking about: wrapping bitcoins using a smart contract. So if you're ready for some action, scroll up and click that link for step-by-step instructions.
How can I earn from WBTC?
To get started, we'll need to create a WBTC wallet and deposit some BTC. On Coinbase, you can open a new account by clicking sign up in your account dropdown and providing an email address.
Follow the prompts to complete your registration, then confirm your email address from within your inbox.
To deposit BTC into Coinbase, click Accounts at the top of your dashboard and select Coinbase Wallet.
This will be listed as either a BTC or USD wallet depending on what is currently showing in your dashboard; click Deposit to display its Deposit Address.
From there, you may scan that address into our TREZOR One hardware wallet or copy and paste it into another software client like Electrum or Mycelium for free transactions.
Can I convert BTC to WBTC?
Yes, you can convert BTC to WBTC. You simply have to deposit it into your wallet and then exchange it at Kraken.
Please note that you can only exchange between BTC and WBTC; if you want to deposit or withdraw other currencies, then they must first be converted in either Bitcoin or US dollars. For more information on how to do that, please see our documentation page. You may also find useful information here .
If you have any questions or need any additional assistance, contact us . Finally, here are some helpful resources from other communities: Reddit FAQ , Twitter , Discord Channel . We hope that helps! Let us know if there’s anything else we can help with.
Is Wrapped Bitcoin worth it?
Getting started with wrapped bitcoin is simple. The first thing you’ll need to do is open an account on a cryptocurrency exchange, as well as choose a wallet provider in order to hold your new tokens.
This process isn’t complicated for those who have experience buying crypto on exchanges like Bitstamp, Binance or Kraken. But what about new traders?
How easy is it to buy wrapped bitcoin if you have no idea how cryptocurrencies work?
Fortunately, we’ve put together a guide that walks new users through every step of wrapping their bitcoin, so you can start trading right away!
Which is better bitcoin or Wrapped Bitcoin?
Many people have questioned if bitcoin is better than wrapped bitcoin. There are pros and cons to each type of currency. But which is best?
Well, it depends on who you ask! Let’s break down what each one has to offer so you can decide for yourself
How Does it Work?
The concept behind WBTC is simple: it’s a special token that represents a certain amount of bitcoin (in whole numbers—you can’t own 0.5 bitcoin). Instead of moving around bitcoins, you move around WBTC.
It’s worth 1 BTC and backed by reserves held by Paxos, one of many cryptocurrency exchanges backing WBTC.
The advantage to using WBTC over bitcoin is you can trade it on different platforms than just an exchange and convert it back into BTC if you want to take your assets off-platform.
For example, when BitGo announced support for custody services in July 2018, they also revealed support for wrapping and unwrapping Ethereum ERC20 tokens like BNB or BAT.
Who Accepts WBTC?
If you’re already familiar with accepting bitcoin, you might be wondering who accepts wrapped bitcoin and how to get started. If you’ve only just heard of it, then where do you sign up?
Don’t worry; we’ll cover those topics in more detail later in our beginner’s guide. But first let’s take a look at what WBTC is and
why it exists.
Getting a Wallet for WBTC
First, you’ll need a wallet in order to start using WBTC. If you don’t already have one, create a Jaxx wallet. This is because WBTC is an ERC20 token and can be stored on any ERC20-compatible wallet. Find out more about Ethereum wallets here .
Once you’ve selected your preferred ERC20-compatible wallet, you’re ready to purchase some WBTC from Binance or KuCoin .
The Advantages of WBTC
Wrapped bitcoin is a trust-minimized solution, which means there’s no way to buy and sell wbtc on an exchange.
The only place to purchase wbtc is directly from a market maker or on CoinLaunch, which issues them through their software platform.
CoinLaunch does not charge for issuing wbtc as long as you hold onto your WBTC for at least one year after its issuance date. However, you may need to pay a fee when transferring WBTC from CoinLaunch’s wallet over to another wallet in order to cover transaction fees associated with moving digital assets around.
For more information about how much your transaction will cost, check out any fee schedule listed on CoinLaunch’s website before purchasing WBTC tokens.
Where Can I Learn More About WBTC?
One of our favorite resources for information on WBTC is The Block by cryptoclub24. They have a great explainer piece that provides an overview of how it all works, and even has links to download their app so you can buy/sell on a mobile device!
If you’re new to cryptocurrency, there are also more detailed guides on setting up accounts and buying/selling for you to explore. Check out Coinbase , Gemini , or Kraken .
Finally, if you want some easy-to-understand advice from real people who know what they’re talking about – check out cryptocurrency Twitter. There are loads of great sources, but we like Token Economy and CryptoCoin News. Enjoy!