Wrapped Ethereum or WETH is Ether’s tokenized version. This token is hosted on the Ethereum blockchain and tied to the value the original coin. WETH allows you trade Ether to other ERC-20 tokens.
The popularity of wETH in Ethereum’s DeFi ecosystem has grown due to its use cases in DeFi protocols, including staking, investing, NFTs trading, providing liquidity to liquidity pools, and crypto lending.
Learn everything about WETH here and find out how to purchase it.
Let’s jump right in!
What Is Wrapped Ethereum, (WETH),?
Wrapped Ethereum or WETH is Ether’s compatible version.. A wrapped coin is a prototype token pegged to the original coin’s value that can be unwrapped at any point. I.e. Wrapped Bitcoin is a version of its native cryptocurrency that can be used to replace BTC. Almost all major blockchains have a wrapped version. Smart contracts can be used to reproduce the price of an ETH for Wrapped Ether. You can trade wrapped ETH with Ether in a 1:1 ratio. You can redeem all wrapped coins (e.g. WBTC) for original assets at any moment.
To promote interoperability among different networks and blockchains as well as digital assets within the crypto space, wrapped coins were created. Wrapped Ether, or WETH (wrapped), was developed to promote interoperability and enable Ether use in decentralized applications..Ether can’t be traded with Ethereum-based tokens directly because Ether wasn’t created before the ERC-20 standard was established. It is therefore impossible to trade ETH or lend ETH via a decentralized lending portal. WETH is designed to overcome these problems by making Ether possible to exchange with other Ethereum-based tokens. It also conforms to the ERC-20 standard. Wrapped ETH is more versatile than ETH, and it’s especially popular within the Decentralized Finance ecosystem. MetaMask, TrustWallet and almost every Ethereum wallet support Wrapped Ethereum.
What is WETH?
Some coins or tokens can’t be easily used outside their respective blockchains, preventing users from benefiting from the added functionalities of another blockchain. This limitation was overcome by wrapped tokens, which allow interoperability. Wrapped tokens act as a bridge between different blockchains, allowing users to access their crypto coins from another network. Wrapped tokens are sometimes referred to as derivatives in traditional finance since they mirror the underlying asset’s price. While they don’t have all of the characteristics of traditional derivatives, they do provide an extra layer of interoperability for ecosystem users.
WETH is an ERC-20-compliant cryptocurrency token that can be used to access DeFi protocols. It’s not the native ETH. You can trade their tokens or stake them to unlock multiple transacting possibilities.
Ethereum Vs. Wrapped Ethereum
ERC-20 Standard: WrappedETH conforms toAs opposed to ETH. WETH, the exchangeable Ether version, cannot be traded with Ethereum-based tokens. Because WETH is interoperable, it can be used in a variety of DApps that require users to convert from ETH into WETH. This allows for multiple transactions.
WETH is a compliant ERC-20 crypto token that can be traded on Ethereum’s blockchain. While WETH is allowed to access DeFi protocols, the native ETH isn’t.
WETH allows investors to trade wrapped tokens against other Ethereum-based altcoins and stake their tokens on DeFi protocols. ERC-20 tokens are fungible. That means they can exchange one token for another with the exact same value. Also, you don’t have to mint new WETH; instead, you exchange ETH for WETH in a trade, either through a smart contract or a digital wallet such as Metamask.
Exchanges: WETH Buying Guide
You can purchase WETH on many cryptocurrency exchanges. You can’t buy WETH, as with other cryptos. However, it is possible to purchase WETH only on decentralized exchanges that also support another currency. To buy the WETH token, you’ll need first to purchase Ethereum (ETH) or Bitcoin (BTC) and then use them to buy WETH. In doing so, you’ll need a cryptocurrency exchange that allows you to buy Bitcoin or Ethereum with a bank account or credit card. These are the steps that will help you purchase and store WETH.
Step 1. Select an Exchange
To get started, you’ll need to purchase one of the major cryptocurrencies, in this instance, Ethereum (ETH). You’ll have to compare cryptocurrency exchanges to choose the one that supports WETH and has the features you want, such as low transaction fees, an easy-to-use platform, and 24-hour customer support. You should also consider whether the cryptocurrency exchange will allow you to buy WETH using your preferred payment method (e.g. a credit/debit card, another cryptocurrency, bank transfer, etc.
Binance
The Malta-based cryptocurrency exchange, founded in China in 2017, has grown to become one of the world’s largest platforms in trading volume. Binance is the preferred exchange choice for many people, thanks to its low fees and availability of payment and deposit methods as well as more trading pairs than 99 percent of competitors.
Coinbase
Coinbase has over 100 currencies supported and is America’s largest cryptocurrency exchange. The fees charged by Coinbase are higher than that of competitors and are confusing. Although Coinbase’s security features are attractive, it is highly volatile and you should weigh the potential risks.
This exchange allows residents of all 50 states, with the exception of Hawaii, to trade.
Step #2: Create and fund an account
After you’ve decided on an exchange, you’ll need to proceed to their account creation page to create an account and go through KYC verification to start trading. Deposit fiat currency in USD, EUR and other currencies to buy Ether or any of the cryptocurrencies. Or another cryptocurrency. To buy Ethereum, you can either use your bank account or credit card or crypto from a wallet.
Step 3: Get ETH
Since WETH can only be purchased against Ethereum, you will need to purchase tokens of Ethereum first. Simply purchase Ethereum through Coinbase and Binance. Firstly, select the ‘Buy Crypto’ tab, then search for ETH, and click on ‘Buy ETH.’ The platform will now take you to the payment gateway and request to add funds from your bank account or credit/debit card.
After the transaction has been completed, transfer the ETH tokens into another exchange wallet that supports WETH.
Step 4: Get a WETH wallet
Next, you will need a wallet that supports WETH. This wallet can be used to convert Ethereum to WETH. Visit the Metamask website for the Chrome browser extension and the Metamask iOS app.
Step 5: Purchase WETH
With your Metamask account, you can buy WETH directly. A decentralized exchange aggregater can be used to find the lowest price on Ethereum.
Step 6: Securely store WETH in a hardware wallet
If you intend to keep your Wrapped ETH for a lengthy period, you need to store them in a wallet securely. It is important to consider how much WETH and what your plans are for using it. There are two types of software wallets: Hot Wallets and Cold Wallets. Because they offer safe offline storage as well as backup, cold wallets such Trezor and Ledger are more reliable.
What is Binance’s WETH price?
To buy wrapped ETH, you need to first purchase Bitcoin (BTC), or Ethereum (ETH). You can buy cryptocurrency using a credit card, or from a bank account on Binance. These are the steps you need to follow in order to purchase WETH from Binance
Step 1. Create a BinanceAccount
For KYC verification, you need to open an investor account. You can then buy Bitcoin or Ethereum once your account verification is complete.
Step 2: Get Your First Cryptocurrency
First, we recommend purchasing Ethereum and then trading it to get the amount of wrapped Ethereum. Transfer ETH to an Ethereum-compatible wallet from your Binance account.
Step 3: Make a MetamaskAccount
In your default browser’s search box, type https://metamask.io or “Metamask extension.” Once you’ve located it, just click “Install Metamask for Chrome” to add MetaMask as a Google Chrome extension.
Once you’ve installed your MetaMask Extension, create your wallet account by clicking “Create a Wallet.” You’ll see a seed phrase of 12 words that you should securely store as a file. You have now created your MetaMask wallet account.
Step 4: Transfer Ethereum into Your Metamask Wallet
Look for “Copy to clipboard” at the top of the window and click on the account name to copy your address.
Then, paste your address in the “receiver” field in the app where you are transferring your ETH or tokens. Choose the amount you wish to move, then submit the transaction (make sure to choose the transfer network “Ethereum (ETH) ERC20”).
Step 5: Get started trading on Uniswap
Visit the Uniswap V2 exchange platform, click on the ‘Connect Wallet’ button in the top right corner to connect your wallet.
Sign in to our MetaMask account and choose Ethereum as the token to exchange. Next, search for WETH in the lower section or select it from the drop down menu. Now, you’re all set to place your order. Enter the amount you want to buy in the bottom box to see how much WETH you’ll get in the bottom field. If you’re happy with the amount, click the ‘Swap’ button and confirm the trade. Once you’ve completed all these steps, the Wrapped Ethereum will appear in your ERC-20 account.
Coinbase allows you to buy WETH
Wrapped ETH is one of the few cryptocurrencies that can be purchased only on decentralized exchanges. You must buy Ethereum (ETH) before you can purchase WETH. You’ll need a self-custody wallet. Here’s how to proceed with a Coinbase account:
MetaMask allows you to buy WETH
MetaMask can be used as an Ethereum wallet or entry point into the DeFi network. It’s accessible as an Android and iOS app and an extension with Chrome, Firefox, Brave, Edge, etc., and lets you trade and store ERC-20 and non-fungible tokens (NFTs).
Most Frequently Asked Questions
Can You Buy WETH with Cash?
At the time of writing, it is not possible to directly buy WETH with money. But, it is possible to use market such as LocalBitcoins, first to buy Bitcoin with cash and then move your bitcoins to the appropriate AltCoin exchange.
What other options are available to buy WETH/Bitcoin with credit cards?
It is possible. You just need to go to Changelly. This simple platform has a user interface with easy to follow instructions to purchase Bitcoin with credit cards. It’s an automated cryptocurrency exchange, allowing users to purchase cryptocurrencies with a credit card and quickly swap them.
Which is the most reliable method of payment?
It is cheaper to buy Ethereum using a bank card (or WETH directly through a banking account), and then exchange ETH for Ethereum. Buying WETH with a credit card is the fastest way; however, you’ll be charged higher fees.
Conclusion
Ethereum is one among the most popular and established DApp ecosystems. Because many ETH owners want to invest their ETH into DeFi initiatives, it is necessary that WETH be used. It is better to purchase WETH using ETH and other tokens than trying smart contracts wrap.
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Disclaimer
This website’s content is provided solely for educational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any security, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice.