1H % ROI
24H % ROI
7D % ROI
1H % ROI
24H % ROI
7D % ROI
378 189 567 €
205 921 WBTC
205 921 WBTC
Wrapped Bitcoin (WBTC) is a tokenised version of Bitcoin running on Ethereum, making it an ERC-20 token fully compatible with DeFi. WBTC is backed 1:1 by Bitcoin. It was first unveiled on the 26th October 2018, and officially launched on the 31st January 2019. Wrapped Bitcoin is a joint project between BitGo, Kyber Network and Ren.
When you first see the word Bitcoin next to another word in the Crypto Markets page on CoinTribune, you may think “is this another Bitcoin fork?” Don’t worry, it’s not! However, Wrapped Bitcoin is not one bitcoin nicely wrapped and gifted to you as a present either… shame right? Essentially, all that Wrapped Bitcoin is, is Bitcoin replicated on the ERC-20 standard. For those new to the crypto world, this means it’s a Bitcoin that can be traded and used on the Ethereum network.
So who came up with such an idea? This is the brainchild of the potent trio of BitGo, Kyber Network and Ren (formerly Republic Protocol) as well as other community partners. Seeing an issue with the ever slowing Bitcoin blockchain, they decided to jointly launch Wrapped Bitcoin (WBTC) on 26th October, 2018.
BitGo is famous in the crypto space for providing an insured custody of digital assets to the tune of $100 million (~£72 million). Since its inception in 2013 it has played a big role in development of securing crypto assets and is considered one of the most trusted solutions on the market.
Kyber Network on the other hand, can be summarised by its tag line “connecting the fragmented tokenised world”. By this it means Kyber helps create liquidity of any crypto asset whether that be bitcoin (BTC), ethereum (ETH) or litecoin (LTC). By unlocking the liquidity of the crypto world’s biggest assets it releases funds for the whole ecosystem to grow even bigger.
The Ren Project helps in the same way that Kyber does, allowing any token to be offered on any blockchain, you may see renBTC in the top 100 cryptocurrencies by market cap on our Crypto Markets page!
However, what’s the point of Wrapped Bitcoin (WBTC) I hear you asking? Let us explain!
While you can go on a centralised exchange like Coinbase or Binance and trade your BTC for any ERC-20 tokens such as Basic Attention Token (BAT) and Maker (MKR). You cannot exchange BTC for another crypto in a decentralised manner without using complex techniques.
The main mission of WBTC is to bring Bitcoin’s high liquidity to the decentralised ecosystem while improving decentralised applications (dApps) too.
In the majority of cases related to ERC-20 tokens, most decentralised exchanges face low transaction volume as well as low liquidity. Introducing Wrapped BTC means traders can benefit from increased liquidity and participation by allowing Bitcoin enthusiasts to be integrated into this type of ecosystem as well.
Since the Ethereum blockchain processes transactions faster than the Bitcoin blockchain, Bitcoin HODLers can use this solution to save time. That being said, the real advantage of using the Ethereum blockchain will be seen once ETH2 is released. Then using WBTC to transfer bitcoins between platforms will be much, much faster and cheaper.
Direct WBTC transfers between users incur no costs, except for network charges that vary depending on the solutions used. Of course, any intermediaries in the network can set the fees they wish, such as:
burns wrapped tokens
To get WBTC started, Kyber Network and Ren provided an initial amount of WBTC tokens from their own bitcoin pool to ensure initial liquidity and to make WBTC immediately available to exchanges and users.
In summary, one WBTC token will always correspond to the price of one bitcoin (BTC). Users can exchange their BTC for WBTC through an authorised partner such as Kyber Network, 0x or MakerDAO. To do this, users need to go through the provider’s KYC process. These providers will then give the bitcoin (BTC) to BitGo, the sole custodian, who goes on to mint the equivalent amount of WBTC. Ultimately this WBTC will then be distributed to the original requester.
The most important factor of this project is transparency. Every movement in relation to the minting and burning of WBTC is recorded on the blockchain making it possible to control the 1:1 ratio between minted WBTC tokens and bitcoins (BTC) stored by BitGo.
In the other direction, once WBTC token holders exchange their tokens back into bitcoins, these are then burned. The merchants are thus able to recover the initial BTC by completing the process in reverse, essentially deleting the WBTC tokens forever.
The burning and minting of tokens are recorded and verified on the Ethereum blockchain. This means the entire Wrapped Bitcoin (WBTC) transaction history and its technical details can be found on Etherscan.io.
You may have heard of other wrapped tokens, most notably Wrapped Ether (WETH). In fact due to the increasing gas fees on the Ethereum network both WBTC and WETH were launched on the Tron blockchain at the beginning of 2021.
WBTC is not as readily available as some other cryptocurrencies notably missing on the likes of Coinbase. It is of course much more popular on decentralised exchanges (DEXs) such as Uniswap and Sushiswap. However, if DEXs seem too complicated for you, the easiest and cheapest way to purchase WBTC is on Crypto.com or Binance. If you have not used either of these exchanges before be sure to read our guides on how to buy cryptocurrency in our Ultimate Buying To Guide section. Also use the code TCT50 when signing up to Crypto.com to get a free card and $25. Alternatively use this referral link on Binance to get a discount on trading fees.
On Crypto.com you can buy WBTC using BTC, USDT or their native token CRO. Simply click on Trade then Buy.
You then need to use the search bar to find WBTC, once you have clicked on it and selected Crypto Wallet, choose either BTC, USDT or CRO. Click buy once you have your desired amount. You then have 15 seconds to Confirm the trade!
On Binance, you can buy WBTC with only BTC or ETH.
Once you have found your chosen pairing i.e. WBTC/BTC through the Markets tab at the bottom of your app, select it and then click BUY. Here you can choose the price you wish to purchase WBTC at and the total amount you wish to spend in the cryptocurrency you have chosen (in this case BTC). Once you have decided all this click Buy WBTC. Your order will be submitted. If you chose a market order it will be executed immediately, if you chose a limit order your order will only be executed once the price has been reached.
Wrapped BTC is just another proof of why Bitcoin’s future is so great. In fact, it is projects like Wrapped Bitcoin that actually increase the value of Bitcoin for the rest of the world. With fiat currencies being printed more than any other point in history, HODLing Bitcoin has never been so important!
What Wrapped Bitcoin offers is the removal of the need for bitcoin (BTC) to be a peer-to-peer digital currency and instead a store of value, like gold has been for many centuries. It is projects like Wrapped Bitcoin that will make Bitcoin many more times useful that the yellow metal that people have trusted since the beginning of time!