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Wrapped BTC is a cryptocurrency that combines the power of Bitcoin with the flexibility of an ERC-20 token. In other words, Wrapped Bitcoin (WBTC) is an ERC-20 token supported 1:1 by Bitcoin. It is stated to be entirely transparent and 100% verifiable.
In this article, we will look into topics such as “buying WBTC, buying Wrapped Bitcoin, where to buy Wrapped Bitcoin?”
What is WBTC?
WBTC is a cryptocurrency supported 1:1 by the original Bitcoin.
WBTC brings more liquidity to the Ethereum ecosystem, including decentralized exchanges (DEXs) and financial applications. Today, most of the trading volume occurs with Bitcoin on centralized exchanges. WBTC changes this by moving Bitcoin’s liquidity to DEXs, making it possible to use Bitcoin for token trading.
WBTC standardizes Bitcoin into the ERC20 format, creating smart contracts for Bitcoin. This makes it easier to create smart contracts that integrate Bitcoin transfers.
According to the platform’s statements, maintaining various nodes to support multiple currencies and managing transaction types can be cumbersome. With Wrapped BTC, exchanges, wallets, and payment applications only need to maintain a single Ethereum node.
On the other hand, the platform describes itself as “the first token to make Bitcoin compatible with the Ethereum chain, jointly initiated by Kyber, Ren, and BitGo.” It’s also stated to be quite easy to use. To buy WBTC, a user requests a token from a seller. The seller then performs the necessary KYC/AML procedures and verifies the user’s identity. Once this is completed, the transaction is processed quickly.
Additionally, the burning process, defined as “the act of using Bitcoin for WBTC tokens,” is said to be only possible for sellers. The amount to be burned is deducted from the seller’s WBTC balance on the chain, thereby reducing the WBTC supply.
What is Wrapped Bitcoin (WBTC)?
As mentioned above, Wrapped Bitcoin is an ERC-20 token. Being backed by Bitcoin, it has recently attracted a lot of investors, leading to questions like “buying WBTC, buying Wrapped Bitcoin, where to buy Wrapped Bitcoin?”. It is beneficial for those who want to buy WBTC to look at the numbers.
At the time of preparing this article, WBTC, trading at $10,214, ranks as the 33rd largest cryptocurrency with a market volume of $566,860,382 USD according to CoinMarketCap. Also, WBTC has been seen in the market at a record level of $40,826 on August 28, 2019, and at its lowest at $3,330 on February 6, 2019.
In addition, there are currently 55,498 WBTC in circulation, and like the original Bitcoin, a total supply of 21 million is planned.
Wrapped Bitcoin Review
It can be said that Wrapped Bitcoin, being BTC-backed and rapidly increasing in market value, has received significant attention from investors. It’s also stated that WBTC is fully backed by BTC reserves and any losses to investors can be compensated in adverse situations. Thus, investors consider this cryptocurrency to be reliable.
However, being a replica token raises various concerns. Nevertheless, looking at the numbers, WBTC appears to be preferred by investors.
How to Buy Wrapped Bitcoin?
You can buy WBTC through Binance, the world’s largest cryptocurrency trading platform in terms of trading volume.
