The post How to Buy Wrapped Ethereum (WETH) by Drew Bradley appeared first on Benzinga. Visit Benzinga to get more great content like this.
Want to jump straight to how to buy Wrapped Ethereum (WETH)? You can buy ETH on eToro, Webull or Robinhood and swap it for WETH.
Are you looking to make an offer on the prominent NFT marketplace OpenSea? Or do you want to stake WETH in a yield farming platform? To do so, you will first need to buy WETH, the wrapped version of Ether (WETH). Wrapped ETH (WETH) has a wider range of use cases than ETH.
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What is the Difference Between WETH and ETH?
Ether (ETH) is the native token to the Ethereum blockchain. If you are looking to use the ERC-20 standard of ETH, you may need to turn your ETH into WETH. This is an in-depth guide on exactly how to buy Wrapped Ethereum (WETH).
What is WETH?
Wrapped Ethereum (WETH) is an ERC-20 token pegged to Ethereum’s native token ETH. The ERC-20 token standard allows for the capability of smart contracts on the Ethereum blockchain. A smart contract is a computer program that enforces the terms of an agreement. Therefore, ERC-20 tokens allow for all kinds of things. Since both pegged to Ethereum, ETH and WETH have the same price. If you want to access a service paid for using an ERC-20 token, you need to wrap your ETH. Some platforms automatically swap it for you as a first step in the transaction, but in other cases, you need to do it yourself. WETH is the tradable version of ETH and is frequently used on decentralized finance (DeFi) and decentralized application (dApp) platforms.
Brief History of WETH
WETH launched in 2017 and was pegged to ETH. ETH is the second largest cryptocurrency in the world and may even contest Bitcoin for the top spot soon. You can check out ETH’s price history here.
ETH is unable to be exchanged directly with ERC-20 tokens that live on the Ethereum blockchain. To exchange ETH for these tokens you first wrap it, creating WETH. One of the main reasons WETH was created in the first place was to use dApps in the Ethereum ecosystem.
How to Buy WETH
Before you learn how to buy WETH, you will need some regular ETH.
Step 1: Open an online account.
The first step in getting WETH is to open an account on a crypto exchange to purchase ETH. To open an account, you’ll need provide things such as:
- Your full legal name
- Your address
- Your phone number and email address
- A government-issued ID (includes driver’s license, passport or military ID)
- A password of your choice
Depending on the exchange, you may need to provide more personal info. It’s a good idea to have the information provided above ready to go when opening an account. Most exchanges allow you to open an account in as little as a few minutes; however, some exchanges make take longer to verify your ID. Once your identity has been verified, you’re ready to begin investing.
Purchase ETH. Being the second largest cryptocurrency by market cap, many popular crypto trading platforms support Ethereum. Some of your best options include eToro, Webull and Robinhood Markets Inc. (NASDAQ: HOOD).
get started
securely through eToro’s
website
eToro is headquartered in Cyprus, England and Israel. A major eToro plus is its social trading operations, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its underwhelming research and customer service features.
Best For
- Investors looking to CopyTrade other traders
- Simple user interface
- Several major cryptocurrencies and altcoins
- Expansive network of social trading features
- Large client base for new traders to imitate
- Only 29 coins available
get started
securely through Robinhood’s
website
Robinhood is the broker for traders who want a simple, easy-to-understand layout without all the bells and whistles other brokers offer. Though its trading options and account types are limited, even an absolute beginner can quickly master Robinhood’s intuitive and streamlined platform. On the other hand, more advanced traders might be frustrated by Robinhood’s lack of technical analysis tools, a feature that’s now nearly universal across other platforms.
Best For
- Fee-free trading
- Beginner crypto investors
- Doge day traders
- Commision-free trading
- Access to Dogecoin
- Limited altcoin selection
- No wallet capabilities
get started
securely through Webull’s
website
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
Best For
- Active traders
- Intermediate traders
- No charges to open and maintain an account
- No account maintenance fees or software platform fees
- Intuitive trading platform with technical and fundamental analysis tools
- Only offers 14 coins
Step 2: Buy or download a wallet (optional).
To obtain WETH, you’ll need a wallet that supports the token. You can choose from two main types of crypto wallets: hardware wallets and software wallets. Software wallets are often easier and faster to use but are less secure than their hardware counterparts. Some of the best options for software wallets on the market right now are Exodus wallet and MetaMask. Then, you will be able to obtain WETH through connecting your wallet to a decentralized exchange (DEX) like Uniswap and swapping your ETH for WETH.
Best Hardware Wallet: Ledger
Ledger is one of the top hardware wallets on the market. It is easy to use and supports sending and receiving WETH. Once you have purchased a Ledger hardware wallet, you download its software onto your computer and create an account.
You’ll be assigned a wallet address (typically a long string of letters and numbers), and then you can send and receive thousands of cryptocurrencies through the wallet. Hardware wallets offer an extra level of security as opposed to software wallets, but they cost money, while software wallets are typically free. Additionally, Ledger provides the convenience of connecting to software wallets such as MetaMask to check your account balance.
Best Software Wallet: MetaMask
MetaMask is a free and widely used online wallet for Ethereum. It’s available as an extension on Google Chrome, Mozilla Firefox, Brave and Microsoft Edge browsers. It also has an app on both iOS and Android phones.
- Allows you to swap ETH for WETH directly in the wallet.
- Click the wallet extension icon in upper right hand of Google Chrome.
- Click Swap.
- Swap as much ETH for WETH as you’d like to.
Step 3: Swap for WETH through a DEX.
- Launch Uniswap.
- Connect your wallet with the “Connect Wallet” button in the upper right hand corner.
- Select ETH on the top and WETH on the bottom as shown below.
- Enter the desired amount of ETH you’d like to swap for WETH.
- Press Wrap, complete the transaction in the wallet window and in a few seconds your WETH should show up in your wallet
Note: If you don’t see your WETH after the swap goes through, you may need to add the token to Metamask (or whichever wallet you are using). To do this all you need to do is scroll down in the Assets tab in the Metamask window and click import tokens. You can either search for WETH there or copy and paste the token address from a site like CoinMarketCap.
Trade, Sell or Convert your ETH to WETH
Deciding on whether to trade, sell or convert your crypto is based on your personal goals and preferences. If you are looking to take profits on WETH, a common strategy is to sell a portion of your WETH on the way up and keep a portion to hold long term to eliminate some risk. Most exchanges allow you to sell your crypto for cash or trade it for USDC, a stablecoin pegged to the U.S. dollar. If you are trying to accumulate more crypto long term, taking profits when crypto prices go up could allow you to accumulate more when prices go back down.
By following the steps above, you can convert your ETH to WETH using Uniswap. If you are looking to place an offer on OpenSea, you will need to convert your ETH to WETH. If you want to sell your WETH for cash, it’s easiest to first convert it back to ETH.
Current Crypto Prices
Since reaching all-time highs in November 2021, crypto prices have dropped. In November, Bitcoin saw its all-time high of over $69,000, and Ethereum saw its all-time high of over $4,800. However, in June of this year, Bitcoin and Ethereum hit 52-week lows. Bitcoin went to $17,601.58, and Ethereum reached $883.15. Recently, both tokens have been able to rally, putting Bitcoin around $21,000 and Ethereum around $1,600.
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Is WETH a Good Investment?
WETH can be a good investment if you are looking to have tradable ETH to do things like make bids on OpenSea. However, since it is pegged to the price of ETH, its price will follow suit. To read more about if ETH is a good investment please visit here.
How do I swap WETH for ETH?
The process is just as simple as swapping ETH for WETH. Simply go to an exchange like Uniswap or Metamask’s swap feature, enter in ETH and WETH, choose how much you want to swap and complete the transaction.
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The post How to Buy Wrapped Ethereum (WETH) by Drew Bradley appeared first on Benzinga. Visit Benzinga to get more great content like this.
