Buy Wrapped Bitcoin(WBTC) in India?—?Step by Step guide for beginners
Buy Wrapped Bitcoin(WBTC) in India?—?Step by Step guide for beginners
How to Buy Wrapped Bitcoin(WBTC) in India?
What is the Wrapped Bitcoin?
Wrapped Bitcoin (WBTC) is an ERC-20 token on the Ethereum blockchain that resembles Bitcoin (BTC). The biggest advantage of Wrapped Bitcoin is its seamless integration into the world of Ethereum wallets, decentralized apps, and smart contracts.
The protection and usability of Bitcoin will be transferred in Ethereum’s thoroughly decentralized application framework to the co-operative team to add Bitcoin to the Ethereum network. The ERC20 token is sponsored fully by the real BTC (WBTC). The reserves are facts in the chain which show the true 1:1 proportion of mined WBTC tokens to the BTCs of custodians.
Key elements of Wrapped Bitcoin include:
- Liquidity: One of the most distinct advantages of WBTC is its greater liquidity in the market. The Ethereum ecosystem is extremely diverse. This distribution of funds can create a scenario where decentralized exchanges and other platforms lack the necessary liquidity to function optimally. Low liquidity renders an exchange that is less effective as users can’t trade their tokens quickly and for the amount they desire. WBTC incorporates the liquidity of BTC into the flexibility of Ethereum’s ecosystem.
- Scalability: Since wrapped tokens are present on Ethereum’s blockchain, instead of Bitcoin’s directly, transactions with Wrapped Bitcoins are faster and cost-effective. Also, you can have more transaction and storage options.
- New Functionalities: WBTC provides users with more functionality compared to regular BTC. For example, WBTC has a higher advantage against Ethereum’s robust smart contracts. Smart contracts are self-executing pre-programmed protocols. They are considered an important part of the core technology blockchain sector. However, it happened when Ethereum entered the market years after BTC. As a result, Bitcoin lacks a feature called smart contracts. This gives WBTC an edge that includes Smart Contracts.
- Defi BTC: It’s the spark that lit the WBTC fire. Defi applications transform traditional centralized financial services into a decentralized version. Apps like Compound help the users to replace banks and provide liquidity in exchange for rewards.
- Staking WBTC: A majority of users are required to lock their cryptocurrency into a smart contract for an agreed time in exchange for rewards. Users who convert their BTC to WBTC can take advantage of these protocols to the next generation.
- Yield Farming BTC: There is a very slight difference between staking and farming. Specifically, farming protocols have shorter lockup periods.
How to Buy Wrapped Bitcoin (WBTC)?
One can buy Wrapped Bitcoin (WBTC) in India by using the platform of BuyUcoin. It is a 5-step process. After opening a digital wallet, one has to register an account. Once the KYC process gets completed, the users need to follow a Google 2-step verification followed by entering the bank details,
then you can start trading in Wrapped Bitcoin (WBTC).
Buy Wrapped Bitcoin in India?—?Step by Step Guide For Beginners
BuyUcoin is an exchange that provides buying and selling Wrapped Bitcoin in India as well as other cryptocurrencies. Below is a step by step guide to buying Wrapped Bitcoin via BuyUcoin:
Step 1?—?Open a Digital Wallet
A digital wallet houses your cryptocurrencies and uses blockchain technology to communicate with others. It is important to make in-depth research before you decide what one is best for you, however, there are several providers of digital wallets. Today, BuyUcoin’s the leading digital wallet provider.
Step 2?—?Register & Open an Account
When you enter the BuyUcoin/Signup account, register and open a service account. Choose your person or company form of account. Choose your country and adhere to the terms and conditions of your crypto-trading account.
Step 3-KYC
For the Indian jurisdiction, KYC and AML are compulsory. Your data are secure and encrypted and stored only in Indian data centres. To complete your KYC, you are redirected to another URL. With your last selfie, please be ready. Pictures of your pan card will be required. The mobile number connected to your Adhar is important.
Step 4-Google 2 step Verification
To use 2FA, the Authenticator app must be enabled on your smartphone or tablet. If enabled, any time you log in to your BuyUcoin account, you will be asked to include a 6- digit one-time password with your email and password. This only functions when an email and password are entered.
Step 5-Add Bank details
Add your name credentials, the account name of the holder and the IFSC code information.
Trade Wrapped Bitcoin
Wrapped Bitcoin is an innovation, which takes BTC to the Ethereum network successfully. Various cryptocurrencies, including Bitcoin, the oldest and largest of them all, Ethereum, Dogecoin, and others, are available on the exchange. After conducting due research, a person can invest in any of them. Any investment is determined by the number of funds available and the investor’s (realistic) goal/objective.
After you’ve selected a good exchange, you’ll need to set up KYC and payment methods. You may be required to submit a copy of verification documents such as your PAN card, photo ID, and address proof for KYC. You have finished setting up your account once you have completed this step. You are now ready to make your order and begin trading on the bitcoin market. Some exchanges impose a transaction fee for each transaction.
Can I Use Regular Money to Buy Wrapped Bitcoin?
Yes, you can use regular money or any fiat currencies such as INR in India to buy Wrapped Bitcoin where Wrapped Bitcoin can be stored in your wallet with a single tap to buy or sell your desirable cryptocurrencies without any hidden transaction fees using one of India’s leading cryptocurrency exchange BuyUcoin. Getting a Wrapped Bitcoin Wallet BuyUcoin is a multi-currency crypto wallet where Wrapped Bitcoin can be stored with high-end security features where cold storage wallets are used.
Wrapped Bitcoin Exchanges
Purchasing Wrapped Bitcoin’s can be hard, but exchanges make it simple. Buying cryptocurrency might be a hard procedure, but there are crypto exchanges that make it quite simple for a layperson to buy cryptocurrency. Crypto exchanges are apps/websites, such as BuyUcoin or Robinhood, that allow average people who are unfamiliar with trading to invest in cryptocurrency in a relatively simple way by investing their fiat currency.
WBTC’s market capitalization has increased to about $1.5 billion, up from $12.5 million at the beginning of June. The price of Bitcoin increased to about 35% during that period, according to data compiled by Bloomberg. The growing popularity of WBTC and similar coins could eventually impact the security of the Bitcoin network.
Conclusion
The Bitcoin that is responsible for backing Wrapped Bitcoins (WBTC) is verifiable through a “proof of reserve” system that checks that 1:1 backing between minted WBTC tokens and Bitcoin is stored by custodians. This altcoin, Wrapped Bitcoin is maintained by a group called the WBTC DAO that now comprises over 30 members. WBTC was originally founded by BitGo, Ren, and Kyber. It’s a relatively recent idea for Bitcoin wrapped, but maybe important for Defi. Imagine you know Bitcoin now and want just Defi apps to continue to use them. However, there is a problem! No much of a blockchain bridge is accessible from Bitcoin-Ethereum. Wrapping BTC leads to the resolution of this problem and the liquidity required for Defi protocols.
The currency’s price will be determined by the market’s composition and demand. WBTC can be purchased in whole or in portions. Furthermore, exchanges typically have daily and monthly withdrawal limits, which means that cash from a large-scale transaction may not be available to the trader right once.
Buy FTX Token in India?—?Step by Step guide for beginners
Buy Wrapped Bitcoin(WBTC) in India?—?Step by Step guide for beginners was originally published in BuyUcoin Talks on Medium, where people are continuing the conversation by highlighting and responding to this story.
Text source: BuyUcoin Talks - Medium
