Wrapped Bitcoin (WBTC) is an ERC-20 token representing Bitcoin that can be swapped with BTC on a 1:1 basis. This digital asset was created for Ethereum developers to enable them to use Bitcoin in the blockchain (Ethereum). It combines the best features of both networks: the liquidity of Bitcoin and the decentralised application support provided by Ethereum.

Wrapped Bitcoin launched in 2019 as a joint project of major blockchains, including MakerDAO and Compound. By fixing the BTC token in a digital vault, and then minting a new WBTC on Ethereum, the forked blockchain works. This function can be enabled by a system of custodians and merchants as well as WBTC DAO.

Wrapped Bitcoin’s importance in the crypto world is why you should be curious. Interoperability is the greatest challenge facing the sector. Blockchain technology’s current landscape is characterized by many independent projects that have different functions.

While it protects individual networks’ security, it makes it difficult to transfer assets and communicate with them. WBTC bridges that important gap even though it uses a different security system than bitcoin. This is known as proof of reserve. Nonetheless, with WBTC, one gets a fixed interest income from lending BTC tokens as DeFi collateral.

WBTC meets resistance amid a bullish momentum

Technically, WBTC price moves similarly to that of BTC, making it an option for investors searching for tokens related to the latter. At the time of writing, WBTC was trading at $20,209, 7% higher in the past week.

Source: TradingView

The daily technical outlook shows that WBTC found resistance at $20,959 and is currently on a retracement. The MACD momentum indicator confirms bullish momentum while the Stochastic oscillator is slightly lower than the overbought area.

Should you buy WBTC?

Wrapped Bitcoin’s fundamental side is positive due to DeFi’s use cases. The technical side of things is that the price has returned to the support. However, the cryptocurrency could be affected by macro developments just like BTC.

Where to buy WBTC

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

Binance is known for its low trading fees and multiple trading options. These include margin trading, peer-to-peer, spot trading, and margin trading.

WBTC available for purchase with Binance today

KuCoin

Kucoin is a cryptocurrency exchange which offers over 200 cryptocurrencies.

Kucoin offers a variety of services such as a peer-to-peer, spot and margin trading and bank level security. There are also a number of payment methods that can be accepted.

The interface is user-friendly and the fees are relatively low.

KuCoin Buy WBTC Today