WBTC, or Wrapped Bitcoin, is an ERC-20 token on the Ethereum blockchain pegged 1:1 to Bitcoin, allowing BTC holders to tap into Ethereum’s decentralized finance (DeFi) ecosystem. By wrapping Bitcoin, WBTC enables its use in smart contracts, decentralized exchanges, lending platforms, and other dApps that native BTC cannot directly access. Custodied by a consortium of trusted entities, WBTC maintains its value link to Bitcoin while expanding its utility. It serves as a bridge, blending Bitcoin’s liquidity with Ethereum’s versatility for DeFi enthusiasts.
1. Create an Account
Visit the Netcoins website and click on the sign-up button. Or download the Netcoins app from the app store for mobile. Enter your email address, create a strong password, and agree to the terms and conditions. You will receive a confirmation email, click on the link to verify your email address.
2. Fund It
Choose your preferred funding method: bank wire transfer, interac e transfer, crypto deposit, or cash deposit. Follow the prompts to transfer funds into your Netcoins account. The process is quick and incurs no fees.
3. Start Trading
Why Buy Wrapped Bitcoin?
WBTC, or Wrapped Bitcoin, presents a compelling case for those intrigued by the fusion of Bitcoin’s proven value with Ethereum’s dynamic DeFi landscape. As an ERC-20 token pegged to BTC, it unlocks opportunities for Bitcoin holders to engage in decentralized trading, lending, and other Ethereum-based applications, potentially growing in relevance as DeFi adoption accelerates. Its strength lies in offering a seamless way to harness Bitcoin’s liquidity within a burgeoning ecosystem, making it attractive to those who see value in cross-chain interoperability and the expanding utility of digital assets.
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How Is Wrapped Bitcoin Unique?
WBTC stands out by merging Bitcoin’s unrivaled market presence with Ethereum’s expansive DeFi capabilities, offering a tokenized version of BTC that operates as an ERC-20 asset. Unlike native Bitcoin, which is limited to its own blockchain, WBTC can interact with Ethereum’s smart contracts, enabling its use in decentralized exchanges, yield farming, and lending protocols. This interoperability, backed by a 1:1 peg to BTC and managed through a transparent custodial system, makes WBTC uniquely positioned to bring Bitcoin’s liquidity into DeFi while retaining its core value proposition. No other asset quite replicates this direct bridge between the two leading blockchain ecosystems.
What Can You Do With Wrapped Bitcoin?
With WBTC, users can dive into Ethereum’s DeFi ecosystem using Bitcoin’s value in ways native BTC cannot. You can trade it on decentralized exchanges like Uniswap or SushiSwap, lend it on platforms like Aave to earn interest, or use it as collateral for borrowing other assets. WBTC also enables participation in yield farming, where you can stake it in liquidity pools to earn rewards. Its ERC-20 compatibility means it integrates seamlessly with Ethereum wallets and dApps, offering a versatile way to leverage Bitcoin’s liquidity across decentralized financial tools and opportunities.
FAQs
Why is KYC (Verification) required?
Netcoins USA Inc. is a licensed money service business under FinCEN, we adhere to the strict guidelines set by them for Money Transmitter Businesses. We are required to have a Know-Your-Customer (KYC) process and compliance program in place. KYC is a process that allows us to verify the identity of our customers, as per American regulations.
What do I need to provide for your verification process?
You will have to provide your email address, phone number and personal information including your first name, last name, address, date of birth and a piece of identification (like a driver’s license). Most users are verified at this point through our automated process. If you don’t pass the automated KYC process, you will have to go through an additional document verification stage. This is important and required as we are a regulated money service business in the US.
How can I fund my account?
Your Netcoins account can be funded with a crypto deposit, regular ACH, ACH pre-funding or a bank wire transfer. Once you have funds in your Netcoins account, you’ll find that it’s super easy to buy WBTC in the US.