What is a wrapped token?

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A wrapped token is a digital asset that represents another cryptocurrency or token on a different blockchain. This allows users to utilize their existing tokens on a new blockchain for various purposes, such as trading, lending, or staking. Consider the process of changing BTC into wrapped BTC (wBTC), where users can exchange BTC to USDT and buy USDT to wrap their BTC. This enables them to access the benefits of the new blockchain while still holding their original BTC. The ability to buy BTC online and buy BTC with a card provides users with convenient options to acquire wrapped tokens and participate in decentralized finance (DeFi) activities. By understanding the concept of wrapped tokens and utilizing platforms that offer easy conversion and access to these tokens, individuals can maximize their cryptocurrency holdings and engage in new opportunities in the digital asset space.