Sirwin
Sirwin
Wallet view of ETH and wETH

OpenSea, Offers, wETH & What to Do With It


Most folks have heard of Ethereum (ETH), but not everyone understands that there are different versions of ETH. So it's a bit a surprise when one finally sells an NFT on a platform like OpenSea, only to be paid in wETH versus ETH. You usually will see it as a balance in OpenSea like the sample below:

wETH balance on Opensea sample

source: OpenSea Support

Did the seller just get ripped off? No.

Fortunately, wETH, which stands for wrapped Ethereum, has been paid to close the value of ETH (it's supposed to be a 1:1 match but there is some variation). wETH, however, is a form of Ethereum that can operate on the ERC-20 platform in full capacity, which regular ETH cannot.

ETH is fine for basic value transfer and paying gas fees on the Ether network. However, ETH doesn't always work with a lot of defi applications, including NFT platforms. So, wETH becomes the alternative. To gain it, one just converts their ETH to wETH with a swap tool. On the other hand, if one sells an NFT, it's quite common to be paid in wETH. That's because NFTs are usually on the ERC-721 format. wETH allows the translation of value between different Ethereum platforms, and that in turn helps the NFT market, like that of OpenSea, thrive.

On OpenSea, wETH is literally the fluid currency to use. One can easily start off with ETH, but when buying an NFT, the platform will convert it automatically to wETH and anything coming back will be wETH by default. This isn't a bad thing for regular NFT traders. wETH can be used for both bidding on NFT auctions as well as outright purchase.

Uniswap is one of the easiest Defi tools to use for leverage the possibilities out of wETH. No surprise, it's quite popular as a result. Just connect your wallet, fill in the amounts and the swap occurs on confirmation.

uniswap swap

Keep in mind to time your swap. Gas fees and swap fees vary at different times of the day, which can save you a little bit if planned right.

wETH is quite useful, both for buying more NFTs as well as using it on other Defi's. For example, wETH can be lent out for an interest charge using Aave. Alternatively, one can stake wETH in a Uniswap liquidity pool and make income off of swap fees as people need wETH with the ETH they exchange. Or, obviously, one can use a swap to change it all back to regular ETH again.

I personally use Crypto.com's wallet for my NFT buying and managing balances needed for transactions. Then I move the remaining balances of ETH and wETH elsewhere. I keep my regular ETH in a separate wallet, and only manage my NFTs from the Crypto wallet. This keeps things separate even if its a few more steps to make things happen when I want to buy and sell. It's also a great defense if someone gets into my NFT wallet they don't have access to the rest of my money. Gotta think smart, no one else will do it for you.

 

 

 

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WinterYeti
WinterYeti

A professional freelance writer for the last 20 years and a budding photographer by hobby.


The Intersect of Crypto Musings & Consumer Impacts
The Intersect of Crypto Musings & Consumer Impacts

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