Bitcoin needs no introduction. Yet, just in case, Bitcoin is the venerable coin that kicked off the entire cryptocurrency market in 2009 and, 12 years later, is still the flag-carrier for its success (and occasional failure). The number one coin by market cap, by a huge distance, Bitcoin’s rising and falling presages the movements of the market as a whole. It’s health is seen as a marker for the current public appetite for crypto, and it is arguably the only cryptocurrency to have entered mainstream attention and everyday parlance.
What is wBTC?
Wrapped Bitcoin, or wBTC, is bitcoin that has been converted into an ERC-20 token so it can be deployed on the Ethereum network, thus unlocking the potential of Ethereum smart contracts that are otherwise missing from native Bitcoin. This includes, crucially, the nascent yet burgeoning DeFi market and the advantages of yields and collateral-staking it opens up.
Bitcoin runs on the Bitcoin network. Although stable and safe, the Bitcoin network is quite antiquated tech – in cryptocurrency terms – and, despite minor changes and some forks, it does not have anything like the potential and utility that Ethereum offers. By “wrapping” your bitcoin and turning it into wBTC, you can use it in much the same way as you can other ERC-20 tokens. You can use it to enter liquidity pools and other protocols on the Ethereum network where your Bitcoin can be put to more productive use. When you submit a Bitcoin for wrapping, it is locked away and you are granted a wBTC token instead.
Why Wrap Bitcoin?
The most common reason for wrapping your bitcoin is to take part in popular DeFi protocols that give you yield on your assets. Aave, for example, offers an APY of 0.21% for wBTC placed within its protocol, while Compound, another popular DeFi protocol, offers 0.48% at the time of writing.This calculator helps you work out where to get the best yield for your WBTC. Although these returns are not spectacular when compared to centralized alternatives, the protocols have proven resilient over time to market fluctuations and – as many people intend to hold their bitcoin until the heat death of the universe – it’s an excellent way to put the asset to work.
wBTC is also a way to borrow stablecoins on these platforms. It’s a popular and widely accepted form of collateral that lets you get hold of DAI or other similar tokens and use them as you see fit, without having to sell your underlying bitcoin asset to access the funds. In short, if you’re sitting on a lot of BTC (congratulations!), wBTC is the best way to turn your asset into something productive without having to surrender control of your keys to a centralized entity.
Are There Downsides to Wrapping Bitcoin?
There are fees for wrapping and unwrapping your BTC. If you’ve gained a yield in wBTC but don’t want to unwrap it just yet, or you are keen to safely store and use your wBTC for payment and transfer for other tokens without having to pay extensive fees, then Numio is a fantastic way to do this.
Numio is an ERC-20 token specialist that uses zkRollups to interact with the Ethereum main chain. By doing so, it allows for instant and low-fee transfers of your wBTC. It also provides a safe, non-custodial wallet for your wBTC and all your other ERC-20 tokens, with the possibility to use them for payments in a way they could not be used otherwise; or for trading between assets at a lower cost than is available on other platforms. As a secure ETH wallet with no KYC requirements, it’s a superb way to take control of your assets on Ethereum and use them with the fluidity and flexibility as you would expect from a traditional payment currency.
Furthermore, although there is no requirement to use the feature, it’s also possible to set up a digital identity that you can use to purchase and manage your crypto, as well as access a host of site logins with their secure 2FA sign-in. If you want a clean, powerful Ethereum payment wallet to hold and deploy your wBTC with maximum efficiency, whilst also effortlessly using it for payments or swapping for other ERC-20s at a fraction of the costs, Numio provides all needed resources.
Is wBTC Hard to Get?
If you are new to the world of digital assets then getting cryptocurrencies can be a confusing prospect. Everyone has heard of the top dog Bitcoin and Ethereum is becoming a household name with each passing day, but how can you actually get wBTC?
As described above, the BTC on Numio is known as Wrapped Bitcoin, or wBTC. It’s the same in every respect as Bitcoin, it just gives you access to more DeFi features than BTC does. The Numio mobile app is a frictionless way to send and receive your stored wBTC instantly and, if you are a bit more crypto savvy, then you can also trade and swap wBTC on Numio.
Download Numio to get Wrapped Bitcoin
How can I get wBTC?
Getting wBTC is easy on Numio. You can use your credit or debit card to purchase wBTC, you can swap or trade it for other ERC-20 tokens (up to 100x cheaper than other wallets), and you can send or receive it as a payment. Whatever way you choose you can be sure that you are always in full control of your wBTC.