Wrapped Cryptos On The Ethereum Network

in LeoFinance2 months ago (edited)

Good morning and welcome back to another exciting week, today I was going over some stuff online and came across more news on wrapped cryptocurrencies. More specifically, I found that Binance has recently listed wrapped bitcoin (WBTC) on its exchange. As far as market cap goes, Binance is known as the largest cryptocurrency exchange, which means that a simple listing can be a big deal.

Although wrapped bitcoin was created in 2019, the idea of collateralizing crypto is still a new concept to most. For example, the functionality of WBTC allows borrowers and lenders to connect in a decentralized setting. This not only eliminates the need for traditional credit checks and proof of income, the ethereum based protocol eliminates many issues that surround debt.

Collateralizing assets for a financial gain is nothing new, I would compare this action to borrowing money against real estate. In my opinion, borrowing money in this manner makes much more financial sense than just taking out a loan. A traditional loan does not increase in value whereas, a collateralized loan allows you to maintain ownership over your assets while paying off the liability. I am hoping that I will be able to add wrapped cryptos to my portfolio this week so I am able to let you all know what my experience is.

Posted Using LeoFinance

Sort:  

Congratulations @purefood! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You distributed more than 28000 upvotes. Your next target is to reach 29000 upvotes.

You can view your badges on your board And compare to others on the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Do not miss the last post from @hivebuzz:

Hive Power Up Day - The countdown is ticking
Hive Power Up Day - Let's grow together!