Exchanging FTM for wBTC in 2024: When Is the Right Time?

Smart contracts are a vital asset in the crypto industry, and many blockchain platforms utilize that concept. Fantom is a network that offers a scalable chain for crypto apps, making it a decent investment option if you need an alternative to Ethereum. 

If you think it’s time to get rid of your Fantom coins, investing them into wrapped Bitcoin might be a good idea. wBTC has a similar concept to stablecoins and can be an important asset in volatile markets. Converting FTM to wBTC is simple on reliable platforms, but what about the moment when to execute the trade? We help you identify it and discover more about these projects in our guide below.

Understanding FTM and wBTC

Fantom and Wrapped Bitcoin are two different Cryptocurrency types, and understanding them is crucial. You can also compare LTC vs TRX to learn more about these assets, and here’s what you should know about FTM and wBTC.

FTM Overview

Ethereum’s problems with scalability, speed, and efficiency led to many trying to build alternative blockchains. Fantom network appeared in 2019 with the goal of offering an improved structure compared to Ethereum. It supports smart contracts and uses the Lachesis consensus protocol to offer a better balance of scalability, security, and decentralization.

FTM coins are native to the Fantom network. You use them to pay gas fees for transactions, make payments, and get voting rights on the blockchain. Another function that FTM coins secure is to become a validator and stake coins to profit from generating new FTM blocks.

A single FTM is now worth around $0.455. The network has a market cap of over $1.28 billion, and it’s out of the top 50 currencies in the crypto rankings.

wBTC Overview

Bitcoin is the most popular and valuable Cryptocurrency payment method. It doesn’t have many downsides, but not being able to use BTC on the Ethereum network was among them. That’s where Wrapped Bitcoin (wBTC) comes into play. 

wBTC is an ERC-20 token, meaning it’s available on the Ethereum network. It uses the stablecoin concept, which means a single wBTC issued has the same value as an actual BTC. BitGo Trust is where the creators hold all Bitcoins that are available as wBTC. At this point, there are over 153,000 wBTCs in circulation. The project’s market cap is over $8.74 billion.

The main purpose of Wrapped Bitcoin is to make BTC payments available on decentralized finance apps used on the Ethereum blockchain. DAO or Decentralized Autonomous Organization is behind the wBTC protocol. By acquiring wBTC, you can also access other DeFI functions, such as lending and earning interest.

Factors Influencing the Exchange

The crypto market is volatile, indicating that changes frequently occur within minutes, let alone hours or days. A good trading move today might be a bad decision tomorrow. So, it’s all about converting FTM to wBTC at the right moment. Here are some considerations to help you identify it:

• Market trends and analysis. What is the overall market feeling regarding the crypto industry? Is it on a positive swing and the overall market is heading up, or is it on a slope downhill? Catching the moment right when the sentiment changes from negative to positive can help to maximize your profit. 
• Technical and economic indicators. You can use a wide range of economic and technical indicators for the targeted currencies and swaps. Tools like TradingView can help you gain insights about price patterns and calculate indices that could help identify the real trading moment.
• Long-term vs. short-term holding. First, this depends on your preference. If you’d like to make a short-term gain, look for swings and moments when the price starts going up after hitting a relative low. For long-term gain, you can also acquire the coin at a low price and wait for it to gain value. It helps when the token you are trading is doing well to ensure you get more coins of the desired currency. 

FTM to wBTC: Final Thoughts

The latest signals indicate that Fantom might be going through rough times, with its market cap dropping significantly. If you don’t think that’s a current crisis, now might be a good moment to convert it to wrapped Bitcoin. wBTC is a smart option to acquire since you can use coins on the Ethereum network while ensuring you have a currency whose value aims to be identical to Bitcoin. Before going ahead with the trade, make sure you’ve analyzed all relevant factors and picked a reliable exchange.