Growing up to new heights with bitcoin and many other cryptocurrency, so far, instability remains under a new White House administration, many investors have started paying more attention to them.
By March 2025, 1 wrapped bitcoin is equivalent to $ 87,784.15. This is a major advantage compared to the previous year – returns far away from shares, bonds, real estate and precious metals.
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But what is wrapped wrapped in bitcoin? Here is a quick breakdown:
- It is a converted version of bitcoin that can be used on the growing network of ethereum-based platforms and decentralized applications.
- Its current market capitalization is $ 11.3 billion.
- It has a circulating supply of around 129,100 with a $ 209.6 million trading volume.
If you first invested $ 1,000 in it when you were launched for the first time, what will happen today? Keep in mind the following, considering this crypto investment.
$ 1,000 in wrapped bitcoin: again and now
Wrapped bitcoin was first launched on 31 January 2019. On that day, a bitcoin cost around $ 3,460.
This means that $ 1,000 may have bought you 0.289 wrapped bitcoin. Today, the amount of bitcoin – the price of about $ 25,270 – wrapped or otherwise.
Keep another way, wrapped bitcoin has increased by 2,537% from the end of January 2019. S&P 500 for reference has increased by about 120% in the same time period.
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What is wrapped bitcoin?
The wrapped bitcoins are underestimated for the value of bitcoin, but they use separate underlying technology platforms.
Bitcoin uses its blockchain technology to login the history of transactions. Many owners buy and hold it as a long -term store of value, instead of a currency for transactions. Blockchain technology keeps it decentralized and safe – at least to the extent the wallet or crypto exchange is safe.
The wrapped bitcoin is actually a token on the ethrium decentralized finance (DEFI) network. It makes it easier to buy, sell and interact with other digital assets on the DEFI network, such as other cryptocurrency and nonfible tokens (NFT). The DEFI network includes a complete ecosystem for protocols such as religion, makardao, compound and Kabar Network.
Technically, WBTC is a “stabechoin”, meaning that it is a cryptocurrency supported by another currency. In this case, each WBTC coin is supported by bitcoin in equal amounts of bitcoin, which is conducted in a trust by Custodians like Bitgo.
How do I buy WBTC?
Investors can buy bitcoins wrapped through decentralized exchanges such as coinbase or benns.
Exchange lets you carry money between fiat currencies such as US dollar and specific cryptocurrency, or exchange from one coin to another. Some crypto exchanges also let you buy cryptocurrency with credit cards – for a fee, of course.
Just be careful that the crypto exchanges are not safe as traditional banks, and your holdings are not insured by FDIC.
Final Tech to Go: Crypto in your portfolio
Most investing experts recommend not having more than 10% of your portfolio in cryptocurrency. They make a funny speculative investment with your portfolio’s “Play Money” part. However, their instability makes them very incredible for prolonged financial needs, such as retirement.
If you prefer the idea of investing in crypto, but do not want to use a decentralized exchange, some licensed brokerage, such as Robinhood and Fidelity, offer Crypto trading platforms. Of course, it defeats the purpose of the wrapped bitcoin owner: interacting with other digital assets on the atherium’s Defee network.
Catilin Moorehead contributed to reporting for this article.
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This article originally appeared on Gobankingrates.com: if you have invested $ 1K in the launch -wrapped bitcoin,
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