Table of Contents
1. Choose a crypto exchange
First things first, you need an exchange that both has Wrapped Bitcoin, and is trustworthy!
You can find our top 3 exchanges for buying Wrapped Bitcoin here, alternatively you can also check our comparison of the best Australian crypto trading platforms, if you’re generally interested in seeing which exchanges work for Australians.
2. Sign up with the crypto exchange
Once you’ve chosen your crypto exchange, it’s just a matter of signing up and getting your account verified. Most exchanges have streamlined this process very well so it shouldn’t take long.
3. Fund your account
The next step is to transfer AUD or another cryptocurrency into your account. Most top crypto exchanges offer various payment methods. From bank transfer to PayID, POLi pay and credit cards, it’s very straightforward.
4. Buy Wrapped Bitcoin
And of course, the final step is to find Wrapped Bitcoin on the exchange and buy it. A lot of exchanges offer different ways of buying cryptocurrencies, like market orders and limit orders.
Where to Buy Wrapped Bitcoin (WBTC)
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How to Sell Wrapped Bitcoin
- Sign into the exchange
- Find where you stored your Wrapped Bitcoin, either on a hardware wallet or on the exchange.
- Transfer your Wrapped Bitcoin to the right place on the exchange, it could just be the same wallet or a dedicated trading account.
- Sell Wrapped Bitcoin.
Considerations when looking to buy Wrapped Bitcoin.
Wrapped Bitcoin (BTC) is a tokenized Bitcoin version that runs on Ethereum (ETH).
WBTC conforms to ERC-20, the basic compatibility standard for the Ethereum blockchain. This allows it to fully integrate into the Ethereum blockchain's ecosystem of decentralized financial (DeFi) applications, including prediction markets, decentralized exchanges, and crypto lending services.
WBTC can also be backed by Bitcoin in a 1:1 ratio through a network automatically monitored merchants/custodians. This ensures that the price of WBTC remains constant at Bitcoin. It also allows users to transfer liquidity between the BTC networks and the ETH networks in a distributed and autonomous way.
Wrapped Bitcoin was officially launched on January 31, 2019, after being first announced on October 26, 2018.
Bitcoin is the most popular cryptocurrency and the largest on the market. It has a large user base and a liquidity pool that can hold several dozen billion dollars. Its blockchain functionality is however, quite basic according to modern standards.
Ethereum, unlike Bitcoin, was designed from the ground up for more advanced use cases. It uses smart contracts technology to create a whole industry called "decentralized finance".
Ethereum and the products that are derived from it provide advanced financial instruments such as insurance and lending, without the need for trusted intermediaries.
WBTC allows full integration of Bitcoin-like assets into the advanced financial decentralized environment by "wrapping" BTC according to the ERC-20 standard. This brings along the enormous liquidity associated with BTC markets.
Wrapped Bitcoin also makes it much easier for wallets, exchanges, and payment services that use Ethereum. Instead of running two separate nodes for ETH or BTC networks, they can now support WBTC operations using just one Ethereum node.
The average blocktime of Ethereum blockchain is about 15 seconds, compared with 10 minutes, which increases the speed at which WBTC can transact, as compared to actual bitcoins.