What Is HTX BTC (HBTC) How It Works & Where To Buy It?

HTX BTC (HBTC) is an ERC20 version of Bitcoin – HBTC, and BTC are pegged at a 1:1 ratio.

HBTC was created to bridge the liquidity and ease of trading between centralized exchanges (CEXes) and decentralized exchanges (DEXes).

HBTC is one of the multiple H-tokens that have been created to inject liquidity and flexibility into the DeFi market.

HBTC is a natively HTX-created ERC20 token that is pegged to BTC. HBTC is currently the 60th largest cryptocurrency by market capitalization.

How HTX BTC (HBTC) Works

HTX Global is one of the largest cryptocurrency exchanges in the world – providing millions of users access to hundreds of trading pairs and financial products.

The team at HTX recognized the need for traditional digital assets like Bitcoin to be traded in a DeFi market. The principle was relatively simple, every Htoken, in this case, HBTC, would need to have sufficient BTC backing it.

The current price of BTC would always be pegged to the HTX BTC price, but users would now have the freedom to trade HBTC tokens across various DeFi markets and on multiple decentralized marketplaces.

The most notable decentralized marketplace is Uniswap, where users could now freely trade an ERC20 (Ethereum network) version of BTC – trading at the same BTC price.

One of the main benefits of this DeFi-optimized token is that it reduces the transaction confirmation period as well as having transaction fees native to the Ethereum network.

The USD price for Bitcoin is directly correlated to the HBTC price at all times, allowing users to freely trade and participate in various decentralized finance applications – essentially giving Bitcoin new utility in the market.

The process of acquiring HBTC tokens is simple:

1. Deposit your BTC into HTX Global’s exchange account
2. Withdraw HBTC from the exchange account
3. Enter the address and select the amount you wish to withdraw, and click “withdraw”.

HTX’s H-tokens are available for trade across a wide range of ecological partners, including the likes of Curve, Maker, DDEX, and Uniswap.

HTX Global is a credible exchange which has likely been the reason that HBTC tokens have experienced rapid adoption in the DeFi market. The HTX BTC price has remained pegged, and this has built trust among the community of token holders.

To exchange HBTC back to BTC is a simple process – users simply need to deposit their HBTC tokens into their account and then withdraw BTC. Obtaining HBTC tokens and redeeming BTC is a streamlined process that the average user can complete in a few seconds.

What Is HTX BTC (HBTC) Used For?

HBTC and other H-tokens are commonly used because they allow users to benefit from the world of DeFi with wrapped versions of traditionally incompatible coins – Bitcoin needs to be wrapped into an ERC20 version to be used on the Ethereum network.

A liquid asset is more flexible, and users have the potential to earn additional yields on these liquid assets. The trading volume for many of these wrapped assets is also increasing exponentially, which is indicative of the popularity of wrapped tokens.

In a traditional sense, Bitcoin was only compatible within the Bitcoin network and therefore was restricted – a wrapped ERC20 version of Bitcoin allows users more flexibility and a more liquid asset than a standard Bitcoin.

The advancements in blockchain technology have allowed for the development of innovative, high-quality assets that give multiple cryptocurrencies more utility and allow for the expansion of the decentralized finance market.

Additionally, on DeFi protocols, HBTC tokens can be traded, staked, and used to earn yields for liquidity provision.

Where To Buy HTX BTC (HBTC) Tokens

HBTC tokens are currently only available for purchase on a limited number of exchanges. The HTX team behind the HBTC token aims to bolster the tradability of the HBTC token in the future.

HBTC tokens are commonly traded on decentralized crypto exchanges. Before you’re able to purchase HBTC, you’ll need to deposit BTC onto an exchange; sequentially, the wrapped version of BTC tokens (HBTC) will then be credited to your digital wallet.

The crypto exchanges below are the safest place where you can buy, sell and store various crypto tokens.

1. HTX
2. Gate.io
3. KuCoin
4. Binance
5. Crypto.com

HBTC tokens can currently be purchased on the following exchanges:

1. MDEX
2. MakiSwap
3. HotBit

HBTC tokens can be stored in any ERC20 compatible wallet – some of the most popular wallets include MetaMask and Trust Wallet.

About HTX BTC (HBTC)

How long has HTX BTC (HBTC) existed?

HTX BTC was listed on September 9th, 2020, and has continued to trade since. The trading volumes for HBTC reached an all-time high in February 2021.

The highest price for HBTC since listing was on November 8th, 2021, when BTC reached an all-time high of $67,790.

However, the current bearish sentiment in the market and the decline in BTC prices have directly affected the price of HBTC as it is pegged to the price of BTC.

What’s controversial about HTX BTC (HBTC)?

There are always certain things to consider before investing in any cryptocurrency. Before investing in wrapped versions of a token, it’s important to understand what a wrapped version is and how it differs from the actual token.

Let’s take a look at the top controversy surrounding HTX BTC (BTC):

• It’s Not Real Bitcoin – HBTC is not real Bitcoin. It’s an ERC20, wrapped version of Bitcoin. Users need to deposit BTC to receive HBTC – which can then be traded in the DeFi market. There are certain risks associated with wrapped tokens.
• Because the token is not the actual cryptocurrency, it isn’t compatible with the original network. For example, HBTC tokens can’t be sent to a Bitcoin address using the Bitcoin network. Instead, HBTC tokens can only be transferred on the Ethereum network and sent to a relevant HBTC ERC20 address.
• Another associated risk is impermanent loss, decentralized platforms are subject to hacks and exploits, and HBTC tokens could be lost during such an event.

How many HBTC Tokens tokens are there?

At the time of writing, HBTC has a circulating supply of 38,970 HBTC

The total supply of HBTC is 38,970 HBTC

Can HBTC be mined?

HBTC is an unmineable cryptocurrency. HTX BTC (HBTC) tokens can only be obtained if a user deposits BTC. The minting of HBTC tokens only occurs once BTC is deposited; the redemption of BTC onsets the elimination of HBTC tokens from the HBTC supply.

There are, however, various ways for users to earn yields on HBTC tokens. Some of the most popular ways to earn revenue from HBTC tokens are by participating in DeFi products such as liquidity pools, staking, and yield farming.

What is the market cap of HTX BTC (HBTC)?

The market cap of HTX BTC (HBTC) is:

HTX BTC (HBTC) market cap = total amount of coins in circulation x current market price of HBTC.

HTX BTC (HBTC) Market Cap = 38,970 HBTC x $29,586 = $1,16 billion (60th largest market cap)

HBTC is currently one of the top 100 cryptocurrencies by market capitalization.

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of HTX BTC (HBTC)

HTX BTC is not the only wrapped version of Bitcoin on the market. Although the HTX Global exchange is incredibly popular and credible, there are still various wrapped tokens available on the market that are pegged to BTC and can be used across multiple chains.

Some of HTX BTC’s (HBTC) top competitors are:

• renBTC
• BTCB
• WBTC

What are the future plans for HTX BTC (HBTC) token

The HTX team has announced its intention to continue the usability of the HBTC token through various DeFi markets. The core focus is on streamlining the process of obtaining HBTC tokens – the simpler the process, the faster adoption occurs.

The more HBTC tokens are minted and used across various platforms, the more likely the HBTC token is to continue seeing success in the future.

The future success of HBTC is reliant on the token maintaining its peg, the reduction of potential exploits, and the expansion of DeFi markets listing and trading HTX BTC tokens.

Pros And Cons Of HTX BTC (HBTC)

Pros:

• Pegged To BTC Price – HTX BTC price is always pegged to the BTC price. Although they have a differing circulating supply, the current price of Bitcoin will always be the HTX BTC price. The market cap of HTX BTC will increase as the circulating supply for HBTC tokens increases.
• Faster Transaction Confirmation Period – Using HTX BTC as an on-chain asset reduces the transaction confirmation period drastically – from around 60 minutes to 5 minutes.
• Can Be Used In DeFi Markets – Bitcoin is not compatible with the Ethereum network, which is why there is a need for enhanced functionality of the Bitcoin token – leading to the creation of a wrapped version of BTC that can be used on the Ethereum network.

Cons:

• Not Real Bitcoin – Although there are various benefits to having a wrapped bitcoin (ERC20) token, such as versatility and access to DeFi products – the main concern is that the token is pegged to BTC and isn’t a true Bitcoin.
• Sufficient BTC collateral is needed to mint an HBTC token, but there are various dangers such as impermanent loss, exploits, and more when participating in decentralized marketplaces.
• Competition – HBTC is not the only ERC20 version of Bitcoin on the market. There are multiple wrapped versions of Bitcoin available.