How to Convert Your Bitcoin (BTC) into Wrapped Bitcoin (cbBTC) to Earn Income While You Sleep-web3.0-php.cn

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How to Convert Your Bitcoin (BTC) into Wrapped Bitcoin (cbBTC) to Earn Income While You Sleep

王林

Sep 14, 2024 am 03:18 AM

Cryptocurrency InvestmentCoinbase Wrapped Bitcoin

Coinbase Wrapped Bitcoin (cbBTC) is like an investment property that's working for you, earning money while you sleep – by giving guests a place to sleep.

How to Convert Your Bitcoin (BTC) into Wrapped Bitcoin (cbBTC) to Earn Income While You Sleep

Coinbase Wrapped Bitcoin (cbBTC) is a variant of bitcoin that’s been converted to a format that’s compatible with the Ethereum or Base blockchain networks. It’s pegged to bitcoin at a 1:1 ratio, meaning that 1 BTC is always equal to 1 cbBTC. This allows bitcoin holders to use their BTC in a wider range of decentralized finance (DeFi) applications, including lending, providing liquidity, and earning yield.

To convert your bitcoin to cbBTC, you’ll need to follow these steps:

Own Bitcoin on Coinbase. To start using cbBTC, you need to hold bitcoin in your Coinbase account. (See our guide here.) If you don’t have bitcoin yet, you can easily purchase it on Coinbase through the app or website.

Convert BTC to cbBTC. Once you have bitcoin in your Coinbase wallet, you transfer your bitcoin to an address on either the Ethereum or Base network. This transfer automatically converts your bitcoin to cbBTC at a 1:1 ratio, which lets you use it with many DeFi applications.

Note: You still own the bitcoin! It’s like converting an investment property into a rental property.

Store and Manage cbBTC. Your cbBTC can be stored in any Ethereum-compatible wallet, including Coinbase Wallet. You can also manage and trade cbBTC on decentralized exchanges (DEXs) like Uniswap, Aerodrome, and Curve.

Note: If you sell the cbBTC, or trade it for another token, this is like selling your rental property. You sell the underlying BTC, and receive cash (or another token) in return. You also pay taxes on the transaction.

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