What Are Wrapped Tokens? | Binance Academy

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What Are Wrapped Tokens? | Binance Academy
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Wrapped tokens enable cryptocurrencies to be used on another blockchain other than the blockchain they were originally issued on. Keen to learn more? Have a read ⤵️

allows you to wrap your crypto assets for use on the Binance Smart Chain in the form of BEP-20 tokens. Once you’ve brought your assets to BSC, you can trade them or use them in variousThe wrapping and unwrapping cost gas; however, as far as BSC is concerned, you can expect significantly lower gas costs than other blockchains. You can read more aboutEven though many blockchains have their own token standards , these standards can’t be used across multiple chains.

And lastly, a great benefit is transaction times and fees. While Bitcoin has some fantastic properties, it isn’t the fastest and can sometimes be expensive to use. While that’s fine for what it is, it can cause some headaches sometimes. These issues can be mitigated by using a wrapped version on a blockchain with faster transaction times and lower fees.Limitations of using wrapped tokens

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