Easy way to Buy WBTC(WBTC) Online with Wigwam crypto app

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How to buy and hold WBTC with Wigwam

1. Choose a token number that you want to buy

2. Create a wallet, where to store your crypto

3. Pay with credit card

4. Check your crypto in the created wallet

Why Wigwam is the best crypto wallet for WBTC (WBTC) storage

Ultimate security, only you have access to your WBTC tokens

Send, Receive, Store your WBTC tokens free and without limitations

Check the real-time value of your crypto tokens

Buy, Sell, Exchange WBTC (WBTC) directly in the wallet

Stake WBTC (WBTC) by connecting Wigwam to the popular DeFi dApps

No KYC or personal data collected

Why Wigwam is the best crypto wallet for WBTC (WBTC) storage

WBTC token review

WBTC or Wrapped Bitcoin is an ERC-20 crypto token on the Ethereum blockchain that is backed 1:1 with original Bitcoin. It means that custodians store the same amount of BTC for every WBTC in circulation.

History

WBTC is a collaborative project between BitGo, Kyber Network, and Ren and was created in 2019 to bring liquidity from Bitcoin to the Ethereum ecosystem with the possibility of including BTC tokens in participation in Ethereum decentralized finance applications.

From the start, WBTC became popular on different DeFi protocols, was included on the most popular crypto exchanges, and reached a significant capitalization of 6.1 billion dollars.

Technical review

WBTC is an ERC-20 token on the Ethereum that is created by the following procedure:

A user who wants to convert their BTC into WBTC should interact with a WBTC merchant by sending tokens to the Merchant’s Bitcoin address.
The Merchant is authorized to initiate a minting process of WBTC. Once they receive the BTC, they request a custodian to mint the equivalent amount on WBTC.
After receiving the request and verifying the Bitcoin deposit, the custodian mints the equivalent amount of WBTC and sends these tokens to the Merchant.
The Merchant transfers these funds to the user’s Ethereum address.

The burning process is conducted in the same order:

A user sends WBTC to a merchant’s Ethereum address.
The Merchant verifies receiving WBTC and requests the custodian to burn these WBTC and release an equivalent amount of BTC from reserves to the Merchant.
Finally, the Merchant transfers this BTC to the user’s Bitcoin address.

Regular independent audits are conducted to ensure that all WBTCs in circulation have the BTC equivalent in the reserves.

Use cases

Use in DeFi. The most common case is to transfer BTC value to Ethereum and use WBTC in DeFi projects: lending, borrowing, yield farming, etc.
Trading on DEXes. Because WBTC is equal to BTC, it is often used in trading on Ethereum, Polygon and other EMV-compatible blockchains.
Storage value. WBTC is used to hedge risks in the crypto portfolio by converting altcoins into WBTC as a more reliable alternative.

Challenges

Centralization - because a small group of entities regulates WBTC circulation. It’s always concerned about trust in custodians, the possibilities of blockage of some BTC on their accounts, etc.
Smart contract risks - it should be noted that smart contracts are involved in the process of WBTC issuance. All security risks associated with Ethereum smart contracts are applied here.
Market risks - BTC price fluctuations directly impact WBTC, and there is always the risk of losing these tokens in DeFi because of liquidation, swaps in low liquidity pools, etc.

Conclusion

WBTC is the innovation solution that allows the transfer of value from Bitcoin to Ethereum to participate in different DeFi applications. Despite WBT benefits, challenges around trust, centralization, and security remain critical discussion points within the community.

Disclaimer

This article is for informational purposes only and should not be interpreted as financial or investment advice. The views expressed herein represent solely the opinion of the author and are not intended to provide specific trading or investment recommendations. We do not guarantee the accuracy, completeness, or reliability of the information contained in this article. The cryptocurrency market is known for its high volatility and unpredictable fluctuations. Investors, traders, and anyone engaging with cryptocurrency are advised to conduct thorough research, consider a variety of perspectives, and acquaint themselves with applicable local regulations prior to making any investment decisions.

FAQ

You may buy WBTC directly from the Wigwam crypto extension in a few minutes with the aid of your credit card. Also, you may use traditional ways of getting these tokens, such as crypto exchanges (Binance, Coinbase, Huobi, etc.) or specialized crypto applications.

WBTC is a regular ERC-20 token on the Ethereum network, and it means that you may use any Ethereum blockchain explorer to track your activities. Some of the most popular options are Etherscan and Ethplorer.

Firstly, you need to be sure that your wallet supports the Ethereum blockchain and ERC-2o tokens.

Secondly, you need to transfer some WBTC to your wallet address. In many cases, these tokens will appear in your wallet automatically. If you don’t see them, try to add information about WBTC manually. For this, click “Add a custom token” in your wallet, enter a WBTC contract address (for Ethereum, it is: 0x2260fac5e5542a773aa44fbcfedf7c193bc2c599), token symbol and decimals (usually 18).

There are many risks involved in buying WBTC; some of them are:

Marketing risks - WBTC is a highly volatile asset; because of the price fluctuation, you may significantly reduce your funds or even lose your tokens by stacking them in DeFi applications.
Regulatory risks - new regulations may force custodians to stop WBTC issuance or start conducting extra user validation before WBTC conversion into BTC.
Audit and Compliance Risks - regular auditing is required to ensure that an equivalent amount of BTC backs each WBTC.
Smart Contract Risks - because WBTC is a regular ERC-20 token, it is subject to the risks of smart contract vulnerabilities.