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WETH vs ETH: differences

WETH vs ETH: WETH and ETH are essentially equivalent. The former is simply the ‘wrapped’ counterpart of the latter. By ‘wrapping’ a token, a non-native asset can now be used on any blockchain, such as ETH wrapped on
the BNB blockchain.

What is ETH?

Ethereum, also known as ETH, is a digital currency similar to Bitcoin that can be bought, sold and traded on the stock exchange like any other cryptocurrency.

However, Ethereum can do much more than just be a virtual currency. On the Ethereum network, it can be used to regulate transaction fees, create decentralized applications (DApps), and create smart contracts..

What is WETH?

WETH is short for Wrapped Ethereum, also known as Wrapped ETH. All tokens produced on Ethereum adhere to the ERC-20 protocol, with the exception of ETH, which does not. On the Ethereum network, a smart contract allows users to wrap ETH in WETH to increase ETH’s usability. Wrapping is the process that results in the production of WETH tokens
.

WETH vs ETH: differences

While ETH and WETH may occasionally be used interchangeably, there are some significant differences between the two. The native digital currency of the Ethereum network is called ETH. The gas, or transaction costs, needed to execute smart contracts on the Ethereum blockchain are paid with ETH. Thanks to WETH’s ERC20 compliance, it can be held in any wallet or exchanged on any DEX that accepts the standard. Only wallets that support the Ethereum blockchain can store ETH, which is not ERC20 compliant
.

WETH vs ETH: Which is Better?

ETH and WETH have the same value, so neither is higher than the other. However, choosing which one to use at any given time depends more on your needs than on which one might be superior. If users wanted to buy something online, for example, ETH would be a better option for them. However, they might need WETH if they wanted to buy Bitcoin
.

How does Wrap ETH work?

A wrapped ETH is generated by a smart contract that receives ETH. ETH is locked in a secure address by a smart contract, but since WETH is backed by ETH reserves, users can exchange it whenever they want. As a result, the wrapped token (WETH) is burned when the smart contract sends the native token to its wallet. Always 1:1 is the swap ratio. Keep in mind that wrapping ETH will result in gas or transaction costs.

Another option is to use a decentralized exchange to exchange WETH for another coin (DEX). A different token can also be exchanged directly with WETH using their MetaMask wallet. ETH can be wrapped and discarded entirely with the help of UniSwap, OpenSea,
and MetaMask.

To close ETH with MetaMask, follow these steps:

  1. Make sure the user has a MetaMask account. Enter their wallet password.
  2. They can see how much ETH they have in their wallet. If they don’t have enough money, they can buy some ETH with a credit or debit card.
  3. Connect your MetaMask wallet to a decentralized exchange, such as Uniswap.
  4. Before clicking on Swap, the user must be connected to the Ethereum mainnet.
  5. A new prompt with token options will appear on the screen.
  6. In the Exchange to box, select WETH from the drop-down menu.
  7. Enter the amount of ETH you want to wrap and then click Review Swap.
  8. Next, users are redirected to a new prompt with the final details of the transaction.
  9. Check the transaction information, gas fees, and conversion rate (1:1) for the translation. They will be asked to add additional funds if they don’t have enough to complete the transaction.
  10. Now, click on Exchange to complete the transaction.

At the end of the transaction, WETH will be delivered to your wallet. By opening WETH, you can send native tokens to your
wallet.

WETH vs ETH: how to discard WETH

After learning how to convert ETH to WETH, let’s look at how to discard WETH. Mastering the token with wrapping until it reaches its original form is known as unwrapping. WETH is then converted to ETH and deposited in your wallet when
it’s discarded.

Ether can be discarded in a variety of ways:

  1. Manual interaction with smart contract
  2. Exchange ETH with WETH using Uniswap or Binance
  3. Use MetaMask on OpenSea.

How to discard WETH on OpenSea using MetaMask

The steps listed below must be followed to discard the wrapped tokens:

  1. Log in to your account on OpenSea.
  2. In the upper right corner of the screen, click on the wallet icon.
  3. The user will be prompted to log in with their wallet.
  4. Proceed by selecting MetaMask.
  5. Log in with your password.
  6. The user can view the details of their fund after logging in to their account.
  7. If your funds are limited, consider adding WETH.
  8. Choose the three dots that appear next to the WETH information.
  9. Choose the last option (Unwrap).
  10. A new prompt will appear on the screen with the details of the transaction.
  11. Check the details of the WETH that you want to convert into ETH.
  12. Select Cancel again.

After the user completes the request, click confirm to receive the original asset (ETH) in their wallet. Even though the wrapping and unpacking procedures for MetaMask have been covered above. However, they can use other wallets if it’s more convenient for them
.

Conclusion

WETH vs ETH: While WETH and ETH may initially seem similar, their structure, usability, and flexibility are very different. Anyone looking to use a cryptocurrency should be aware of these differences. The differences described in this article should be understood before using WETH or ETH. Keep in mind that WETH and ETH have the same value. The only distinction is in how they are applied. Essentially, WETH is an extension of ETH that is more adaptable and easier to use and can be applied to a wider range of uses
.

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