Guide to acquiring BRC-20 tokens on the Bitcoin blockchain

Why BRC-20 Became the Main Trend in the Crypto Market

At the beginning of 2023, the cryptocurrency sector was experiencing significant upheavals. It was during these tense times that BRC-20 tokens attracted the attention of investors and traders, becoming a bright example of innovation within the Bitcoin ecosystem. Their rapid growth indicates enormous potential and the strong interest of the crypto community in new forms of asset tokenization.

As of December 2023, over 55,000 unique BRC-20 tokens have been created. At the peak of activity in May 2023, the Bitcoin blockchain processed nearly 400,000 transactions with such tokens, and the total volume of all transactions exceeded 40 million. The combined market capitalization of BRC-20 tokens reached $451 million, with a trading volume of over $145 million.

What Are BRC-20 Tokens and How Do They Work

BRC-20 is an innovative standard for creating interchangeable digital assets directly on the Bitcoin blockchain. The concept is borrowed from the successful ERC-20 model on Ethereum but adapted for the Bitcoin network. This allows for the creation and transfer of cryptocurrencies, digital collectibles, and other assets with full interoperability with decentralized applications (dApps).

The main advantage of BRC-20 is that they inherit the security and decentralization of Bitcoin while expanding its functionality beyond simple payments. Tokens can interact with smart contracts and open new horizons for DeFi applications.

Bitcoin Ordinals and NFTs: Two Sides of the Same Coin

Bitcoin Ordinals have revolutionized the understanding of digital assets on the Bitcoin blockchain. This technology assigns unique ordinal numbers to individual satoshis, creating non-fungible tokens (NFT), similar to virtual artifacts.

In the first three months of their existence, Bitcoin NFTs reached a trading volume of $200 million. The number of created Ordinals inscriptions exceeded 45 million, demonstrating strong growth and creative possibilities in this area. Bitcoin NFTs have expanded the understanding of digital ownership, providing authenticity and rarity to virtual items of art, music, and video content on the most secure blockchain.

Current Applications of BRC-20 Tokens in the Real Economy

The versatility of BRC-20 opens up many practical applications:

• Tokenization of tangible assets: Real estate, art pieces, and goods can be represented by tokens, ensuring simplicity and security in exchanges on the blockchain
• Decentralized finance: Used in lending, borrowing, and yield farming operations
• Gaming sector and virtual items: Secure management of in-game assets and collectibles
• Digital identification: Representation of certificates and digital IDs
• Reward programs: Creating blockchain-based loyalty systems
• Governance mechanisms: Used as voting tokens in decentralized organizations
• Cross-chain interoperability: Building bridges between Bitcoin and other blockchains
• Financial instruments: Development of stablecoins and derivative products

Key Popular BRC-20 Tokens and Their Current Status

Today, the most well-known and traded BRC-20 tokens include:

Ordinals (ORDI)

• Current price: $4.09
• Daily change: +1.99%
• 24h trading volume: $1.10M
• Market capitalization: $85.93M

SATS (SATS)

• Current price: $0.00
• Daily change: -2.73%
• 24h trading volume: $143.62K
• Market capitalization: $32.05M

Bitcoin (BTC)

• Current price: $87.31K

These tokens demonstrate various market patterns, providing investors with diverse trading opportunities.

How to Buy BRC-20 Tokens: Step-by-Step Guide

Platform and Wallet Selection

The first step is to choose a reliable Web3 platform that supports trading of the BRC-20 tokens you are interested in. Ensure the platform has a good reputation, security measures, and an intuitive interface.

To store tokens, you will need a specialized BRC20 wallet compatible with the Bitcoin blockchain. Popular options include Ordinals Wallet, Unisats, Xverse, and Sparrow Wallet. The chosen wallet should be secure, user-friendly, and fully compatible with BRC-20 tokens.

Purchase and Storage Process

Step 1: Acquire Bitcoin Since BRC-20 tokens exist on the Bitcoin blockchain, you need to purchase BTC. This can be done through centralized exchanges using fiat currency, bank cards, transfers, or other cryptocurrencies.

Step 2: Transfer to Wallet Move the purchased Bitcoin to your selected BRC20 wallet. This step is critical, as BTC is needed not only for buying tokens but also for paying transaction fees.

Step 3: Connect to Trading Platform Connect your BRC20 wallet to the chosen platform following their instructions. Usually, this involves authorizing via message signing with your wallet.

Step 4: Place an Order Find the BRC-20 token you want on the platform and place a buy order for the desired amount. The process varies depending on the platform—follow the provided instructions.

Step 5: Secure Storage After a successful purchase, keep the tokens in a secure wallet. For large sums, consider using a hardware wallet that offers maximum security.

Monitoring and Portfolio Management

Regularly check the status of your investments, monitor market news, and any changes in the crypto sphere that could affect the value of your BRC-20 tokens. Stay informed about new listings, technical updates, and ecosystem developments in Bitcoin.

Key Recommendations for Investing in BRC-20

Investing in BRC-20 tokens involves significant risks. Before making investment decisions, conduct thorough research and consider consulting a financial advisor.

Despite the attractiveness of this rapidly growing sector, approach with caution. Use trusted platforms, choose reliable BRC20 wallet solutions, manage risks properly, and do not invest funds you are not willing to lose.

Conclusion: The Future of BRC-20 in the Bitcoin Ecosystem

The development of BRC-20 tokens, Bitcoin NFTs, and Ordinals marks a new era in the world of digital assets. Thanks to their unique features, expanded capabilities, and diversified applications, these technologies offer promising opportunities for investors, content creators, and collectors.

By understanding the dynamics of these trends and the principles of participation, you can more confidently identify promising opportunities within the crypto ecosystem. However, remember: alongside all the advantages of this direction, proper risk management and a cautious approach to exploring new trends in the crypto market are crucial.