Buy Wrapped Bitcoin in Australia

Buy Wrapped Bitcoin (wBTC): Why do investors buy Wrapped BTC? Here we explain the process in easy-to-understand language. Wrapped Bitcoin, often abbreviated as wBTC, is a fascinating concept that combines the best of both worlds: Bitcoin (BTC) and Ethereum (ETH).

What Is Wrapped Bitcoin?

You’ve probably heard of Bitcoin (BTC) – the pioneer cryptocurrency that started it all. It’s decentralised, secure, and widely recognised as digital gold. However, Bitcoin primarily operates on its own blockchain, which limits its compatibility with other platforms.

Ethereum (ETH), on the other hand, is a versatile blockchain that supports smart contracts, decentralised applications (dApps), and various tokens. It’s like a bustling city where developers can build all sorts of innovative projects.

Now, imagine if we could bring Bitcoin’s value and liquidity to the Ethereum ecosystem. That’s where Wrapped Bitcoin comes in.

How does wrapped BTC (wBTC) work?

Wrapped Bitcoin is essentially tokenised Bitcoin created on the Ethereum blockchain using the ERC-20 standard. Here’s how it works.

Tokenisation

When someone wants to convert their BTC into wBTC, they deposit their Bitcoin with a custodian (a trusted entity). The custodian then mints an equivalent amount of wBTC tokens on Ethereum. Each wBTC token represents a specific amount of Bitcoin (usually 1:1).

Backed by real BTC

The beauty of wBTC lies in its backing. For every wBTC token in circulation, there’s an actual BTC held in reserve. So, if you hold 1 wBTC, it’s backed by 1 BTC locked away somewhere.

Wrapping and unwrapping

CoinJar simplifies the process by allowing you to buy wBTC directly without going through the complex “wrapping” process. While CoinJar doesn’t provide an “unwrapping” service, you can always convert your wBTC back to regular BTC using the CoinJar app when needed.

You can check the live Wrapped Bitcoin price at the top of this page.

Use cases for wBTC

DeFi (Decentralised Finance)

wBTC enables Bitcoin holders to participate in DeFi protocols. You can lend, borrow, or trade wBTC just like any other Ethereum token.

Liquidity pools

wBTC adds liquidity to decentralised exchanges (DEXs) like Uniswap. Traders can swap wBTC for other tokens seamlessly.

Collateral

Some lending platforms accept wBTC as collateral for borrowing stablecoins or other assets.

Cross-chain interoperability

wBTC acts as a bridge between Bitcoin and Ethereum. You can move your BTC to Ethereum, use it in DeFi, and then convert it back to BTC when needed.

Why do investors buy wBTC?

Access to DeFi

If you’re a Bitcoin holder who wants to explore DeFi opportunities, wBTC allows you to do so without selling your BTC. You can earn interest, trade, and participate in yield farming.

Diversification: By holding wBTC, you diversify your crypto portfolio. Instead of being limited to Bitcoin’s ecosystem, you gain exposure to Ethereum’s vibrant DeFi space.

Liquidity provision

Providing liquidity to DEXs by staking wBTC can earn you trading fees and rewards.

Wrapped BTC: Conclusion

Wrapped Bitcoin bridges the gap between Bitcoin and Ethereum, unlocking new possibilities for both communities. It’s like having a portal that connects two worlds – the solidity of Bitcoin and the dynamism of Ethereum.

Remember, each wBTC token represents real Bitcoin, making it a powerful tool for cross-chain interactions. Keep an eye on its price, as it fluctuates based on market demand and adoption.

How to buy Wrapped Bitcoin on CoinJar

If you’re interested in buying Wrapped Bitcoin (wBTC) on CoinJar, here’s a step-by-step guide to get you started.

Sign Up for CoinJar: Download the CoinJar app on your iOS or Android device. Create an account and verify your ID. This process usually takes just a few minutes.

Deposit Funds: Transfer funds from your bank account. CoinJar also supports instant purchases using Visa or Mastercard debit cards.

Buy wBTC: Once your account is funded, search for “Wrapped Bitcoin” (wBTC) and select it. Choose your desired amount and execute the purchase.

Enjoy Your wBTC: Congratulations! You now own wBTC, which represents Bitcoin on the Ethereum network.