Buy Wrapped Bitcoin
About Wrapped Bitcoin (WBTC)
Think of Wrapped Bitcoin as regular Bitcoin’s proxy on the Ethereum network.
Ethereum is ground zero for the bulk of the decentralised finance (DeFi) ecosystem.
Bitcoin holders, via wrapping, can participate in a wide array of the network’s myriad DeFi applications and smart contracts. Wrapping creates a bridge between the Bitcoin and Ethereum blockchains. Wrapped tokens such as WBTC share similar properties and functionality to stablecoins.
A partnership involving REN, Bitgo, and Kyber Network led to the creation of WBTC, which began trading in January 2019. To facilitate transparency, Bitgo keeps an accurate, updated record of the number of WBTC in circulation.
Wrapping and unwrapping come down to two central processes: minting and burning.
Minting occurs when a market participant sends BTC to the custodian and receives an equivalent amount of WBTC in their Ethereum wallet. Burning is when the participant swaps that WBTC back into BTC.
WBTC minting has really taken off in tandem with the widespread adoption of Defi apps.
According to Defi Pulse, the total value locked (TVL) in WBTC surged by 943% between May and August of 2020.
This trend has emerged as additional market participants seek to avoid trading BTC on centralised exchanges, opting instead to wrap their tokens and trade them on DEXs.
What is the price of WBTC?
Since the ratio between the value of BTC and WBTC is maintained at 1:1, their moves track closely – as of early February, BTC was trading between $35,000 and $38,000. WBTC moved in lockstep, more or less. Sometimes, not often though, this ratio gets thrown out of whack and when it does, arbitrage opportunities ensue.
The DeFi revolution has powered up WBTC. During the first half of 2020, the token’s market cap was only about $10 million. But once Bitcoin took off, in mid-July, and more DeFi apps began supporting it, investors began piling into WBTC. As of January 2021, WBTC had a market cap of $4.3 billion. It trades on most exchanges.
How to buy Wrapped Bitcoin (WBTC)
With Uphold, you can set up an account, verify your identity and buy crypto with ease.
Here is how:
1. Go to Uphold.com and click ‘Sign up’
2. Enter your email address, phone number and your personal details
3. Tell us how you plan to use Uphold and provide some basic financial information (e.g., employment status and source of funds)
4. Verify your identity by providing an ID document and taking a ‘selfie’
… and you’re off to the races!
Just start trading.
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Uphold Europe Limited (FRN: 900577) is registered under the Financial Conduct Authority’s Temporary Registration Regime for cryptoasset firms and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The purchase, sale and custody of cryptoassets is regulated by the FCA for anti-money laundering purposes but this does not indicate any approval by the FCA of Uphold’s cryptoasset activities. Uphold Europe Limited is also an EMD agent of Optimus Cards UK Limited which is authorised and regulated by the Financial Conduct Authority to issue e-money (FRN: 902034) pursuant to the Electronic Money Regulations 2011.
The e-money services are regulated by the Financial Conduct Authority. E-money is not a deposit or investment account which means that your e-money will not be protected by the Financial Services Compensation Scheme. User funds will be held in a designated safekeeping account with a regulated financial institution. E-money will not earn any interest. Additional Risk Warning in Uphold’s Terms & Conditions.
This content is correct as of September 2021
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