Many people are familiar with Eth but not weth currency. Eth is the short form of the ether or ethereum cryptocurrency. Similarly, weth is the Wrapped form of ethereum currency. The major difference is that Weth can be swapped with other ERC-20 tokens. If you are new to these terms, you have come to the right place. Here, is a blog on everything you need to know about Weth currency.
Before Introducing the weth itself, it is important to know other terms. The Ethereum currency is the native currency of the ethereum blockchain. The ERC-20 is a standard that is used to define how tokens are transferred. The transfer includes keeping the record in the ethereum network. Altcoins are all the other coins except bitcoin and eth coin.
History of weth currency:
Weth was started with the purpose of being able to trade eth with other ERC-20 tokens. Since the ERC-20 standard was started after ETH currency, ETH doesn’t meet the standard. Wrapping Eth can help it to meet this standard. It was developed by ethereum projects and propose was released in 2017. WETH helps users to convert from eth to weth without any centralized party. Converting into Weth can help you trade it through dApps in the ethereum ecosystem.
Price of Weth currency:
The price of the eth currency and wet currency are equal. Its current price is 4146.64 USD, with 57.93% low than the highest price. The highest price it has reached is 7,341$ and the lowest is 0$. You can stay updated on the price by visiting crypto.com. Its market capitalization is more than 2,434 billion USD.
How to wrap and unwrap Eth?
You can easily wrap and unwrap eth according to your need. You can do this by following these simple methods;
First of all, you will have to open a metamask account. If you already have one, log in to your metamask account. Then, you will have to download its browser extension. Now, go to the uni swap website ” app.uniswap.org”. Now, you can connect your wallet to it. Select ETH for the top and weth for the bottom asset. If you are unwrapping do vice-versa. Now, select the amount of ETH you would like to wrap or unwrap. Now, click the wrap button, then the popup message appears. The popup message is from metamask showing the gas fees and transaction amount. Now, click confirm to complete the entire process.
Advantages of using Weth currency:
There are quite a few advantages to using weth currency. A few of these advantages are mentioned below;
- Trading can be done with other ERC-20 tokens. It has higher liquidity compared to the native ETH. This is because it is minted by custodians, which guarantees its value.
- It is more secure than other native tokens. Weth has comparatively enhanced security because custodians usually use secure exchanges.
- You have higher control over your tokens. This is because its private keys are stored in a secure location.
- Another best advantage is the higher transaction speed. The high speed saves your time and makes the transaction hassle-free.
- Comparatively, The transaction fee of weth is also low.
Disadvantages of using weth currency:
Weth currency also has some major disadvantages over eth currency. Here, are a few:
- The wrapping and unwrapping require a custodian.
- There is a high reliance on custodians, which may lead to centralization. This directly contradicts the point of decentralized currency.
- Since the wrapping and unwrapping are done by custodians, a certain charge is required. Per every minting and burning high amount has to be paid.
- Problems with the custodian can affect the minting and burning process.
What is the cheapest way to wrap eth?
There are many ways you can wrap ETH. you can choose any medium to convert it. The payment is done in ether itself. Some cheap standard gas fees are;
- uni swap
- Kyber DMM
What is the difference between weth and eth?
Technically speaking, there is no certain difference between the two. Weth is simply, eth with an additional feature to meet the E-20 standard. The wrapping of eth is weth, the coin can be both wrapped and unwrapped. Weth can be bought through an auction on opensea. Even, the price is exchanged on the ratio of 1:1, hence isn’t affected by any price fluctuations.
Weth currency is very easy to trade with. However, there is a high chance that weth is going to be eradicated. In the market, eth is currently trying to meet the standard set as per E-20 standard. If this plan is successful, it might have a huge impact on the weth currency. Weth is also not supported by the coinbase.