Where and How to Buy BRC-20 Tokens: A Quick Guide

February 7, 2024

How to Buy

Amrit Korpal

New, innovative crypto projects and ideas pop up on the crypto market every year. One of these is BRC-20 tokens. BRC-20 tokens are the first, yet experimental, standard for fungible tokens on the Bitcoin blockchain. These fungible tokens are widely employed in decentralized finance and cryptocurrency applications. You will need fungible tokens for numerous platforms and apps to function on the Ethereum network. However, this was not previously possible on the Bitcoin network. With the release of the BRC-20 standard, the Bitcoin network is about to enter a new era of utility. Let’s take a closer look at BRC 20 and how to buy BRC-20 tokens.

BRC-20 Tokens Overview

In short, BRC-20 is an experimental token standard on the Bitcoin network. It establishes guidelines for fungible cryptocurrencies that are individually traceable to satoshis, the smallest units of a Bitcoin. BRC-20, like Ethereum’s ERC-20 token standard, is a token standard that operates on the Binance Smart Chain (BSC). This new token standard boomed the crypto world with its high utility. It has swiftly become one of the most popular token standards on the Binance Smart Chain.

Initially, it was the ground-breaking Bitcoin Ordinals protocol that served as the model for the BRC-20 token standard. The latter is concentrated on NFTs based on Bitcoin, whilst the former is intended for fungible cryptocurrency tokens. Most BRC-20 tokens are various meme coins, however, a small number have important future use cases defined for them.

Early in March 2023, the mysterious blockchain analyst Domo developed the BRC-20 token standard. The ordinals protocol is used by the standard to facilitate the production and transfer of fungible tokens. Tokens that are in high demand on the BRC-20 token list include Ordi, Vmpx, and Pepe. Other popular BRC-20 tokens include Bitcoin Cats (1CATBRC), DRAC (DRAC), NALS (NALS), PIZA (PIZABRC), biis (BIIS), BNSx (BNSX), BTCs (BTCS), Dovi (DOVI), Mice (MICE), MMSS (MMSS), and many more. You can read more about Bitcoin Ordinals in StealthEX’s earlier article. 

In May 2023 BRC-20 tokens, only within 60 days, reached a $100 million market cap. This wild price appreciation and liquidity have caught the attention of centralized exchanges, including Binance, Huobi, and Okx. Huobi’s announcement in particular caused ORDI to spike to nearly $5, before retracing to $4. In May 2023, BSC News confirmed that the market was growing wildly.

The Price of ORDI. Source: Brc-20.io

Bitcoin ordinal inscriptions have been supported on the Bitcoin network since January 21, 2023, when software engineer Casey Rodarmor implemented the protocol. 

BRC-20 Tokens Use Cases

There are a number of use cases for the new type of tokens. For instance:

1. Peer-to-peer transactions. One of the most important and fundamental things you can do with a BRC-20 token is to transfer it to your peers as a marker of value transfer. These tokens can be moved or transferred to several wallets, regardless of each wallet’s location, and they can make use of all of Bitcoin’s features. Moreover, BRC-20 tokens take over the level of efficiency used by Bitcoins, and transaction fees are charged natively in Bitcoin.
2. Decentralized finance. Ethereum and EVM networks are still in the early stages of development within the DeFi field. On the other hand, BRC-20’s inception can mark the beginning of decentralized finance because, in contrast to Bitcoin, it is adaptable and can be combined with DeFi protocols. 
3. Integration with DEXes. Furthermore, BRC-20 tokens are easily integrable with yielding farms, decentralized exchanges (DEX), and other lending protocols. Ordinalwallets.com has already developed a platform for Bitcoin NFTs and BRC-20 transfers, trading, and minting. As BRC-20 advances, platforms like these will likely exhibit a snowball effect.

Advantages of BRC-20 Tokens

There are a number of advantages for the new type of tokens. These include:

• Interoperability. The compatibility of BRC-20 with other blockchain networks is one of its main benefits. Tokens for BRC-20 can be moved between the Ethereum Virtual Machine (EVM) and Binance Smart Chain with ease because of their compatibility. This implies that BRC-20 tokens have the ability to make use of both networks’ liquidity, which facilitates buying and selling for traders and investors.
• Lower transaction fees. Lower transaction fees than other token standards are one of BRC-20’s main advantages. Compared to the Ethereum network, Binance Smart Chain can process transactions at a significantly cheaper cost since it employs a Proof-of-Staked Authority (PoSA) consensus method. Because of this, users who wish to avoid paying large transaction fees may find BRC-20 tokens to be a desirable choice.
• Faster transactions. Additionally, compared to Ethereum, Binance Smart Chain offers faster transaction speeds. Binance Smart Chain can handle up to 100 transactions per second, compared to Ethereum’s 15 transactions per second processing speed. This indicates that BRC-20 token transactions are a more efficient choice for users because they can be finished considerably faster than ERC-20 token transactions.
• Increased security. BRC-20 tokens are kept on a decentralized ledger and protected by encryption, much like any other blockchain-based asset. They are therefore more secure than conventional financial assets since they are immune to fraud and hacking. Furthermore, as every BRC-20 token transaction is documented on the blockchain, it is transparent and easily auditable by anybody.

Where to Buy BRC 20 Tokens?

There are many exchanges where one can buy BRC-20 tokens, including major crypto exchanges such as Binance and KuCoin and separate DeFi swappers.

One of the safest options is StealthEX. This user-friendly platform offers users to get BRC 20 tokens with no extra fees and with the best floating and fixed rates. Although StealthEX is a fully functional cryptocurrency swapper, it differs from Binance and other significant exchanges. You can initiate a cryptocurrency swap without registering with the platform, and, unlike large centralized exchanges, StealthEX does not keep its customers’ funds and it’s private and transparent. 

In addition, StealthEX is one of the safest options that lets you swap your crypto. In essence, it’s a non-custodial exchange, and the platform’s security satisfies strict industry’s requirements. After making a deposit, the user instantly receives the currency of their choice into their wallet. Every exchange is conducted between external wallets from third parties and is sometimes processed in a matter of minutes.

How to Buy BRC-20 Tokens?

Just follow the guidelines below; these will let you make a quick and efficient exchange via StealthEX. Let’s imagine you want to exchange Bitcoin for Ordinals, one of the most popular BRC-20 tokens. To make an exchange through StealthEX, you need to take only a few simple steps.

1. First, you should choose Bitcoin in the left drop-down list. Then choose Ordinals (ORDI) in the list of coins on the right. 

After setting the pair it is necessary to enter the amount of BTC you want to exchange. Here you will see the estimated amount of ORDI crypto you will receive after the exchange.

When everything is set, press the Start Exchange button and you will be taken to the next page.

2. In the second step, you need to provide the Ordinals recipient address. The recipient address must match the crypto you are going to receive. Remember to double-check the information you enter prior to the exchange as the transaction you make cannot be canceled.

As soon as you have carefully checked all the details, you can press the Next button and you will be redirected to the Confirmation page.

3. Here you can revise the address provided and the amount of ORDI you will receive. Don’t forget to read and check the Terms of Use and Privacy Policy box. Without checking the box you will not be able to continue the exchange. 

Pressing the Next button you will be redirected to the Exchange page. 

4. At first, you will see the address where you need to send your Bitcoin to continue the exchange. StealthEX will also provide you with the exchange ID. It will allow you to keep all the information about the swap. It is recommended to save your exchange ID or the link to your exchange.

After sending Bitcoin to the shown address, the information on the Exchange page will be renewed automatically. The Exchange page has several statuses that will change during the time of the exchange.

• The first status is Awaiting deposit.
• The following status is Confirming. This means that StealthEX is confirming the transaction you made.
• The next status is Exchanging. During this time the exchange is being made.
• Then the status will be changed to Sending to your wallet. This indicates that there are just a few minutes until you receive your Ordinals (ORDI).

5. Finally, you will be redirected to the Finish page. This shows that the exchange has been successfully made and you will receive crypto to the address provided. To be sure that Ordinals crypto was sent to your wallet you can also use the Output hash shown on this page and check it in the blockchain list of transactions.

From here you can either create a new exchange on StealthEX or leave the page and check your Ordinals wallet to be surprised at how fast you get ORDI crypto sent to your address. Usually, the process is quite rapid so you won’t need to wait long: a Ordinals swap is processed in a matter of minutes. 

Now that we’ve sorted out how you can buy Ordinals (ORDI) via StealthEX, let’s take a closer look at the project and its properties.

BRC-20 Tokens: Risks and Considerations

Driven by community and promotion, BRC-20 are the ultimate meme coins. A week can see a 100x price gain from them, but they can also dump 99.9% even faster. Purchasing them is highly dangerous unless you are able to mint some at the outset.

There are also a number of challenges associated with these tokens, including, for instance, the lack of standardization. BRC-20 is not a widely adopted token standard, which can make it difficult for developers and users to navigate and interact with BRC-20 implementations. Moreover, BRC tokens can face regulatory uncertainties: the regulatory status of BRC-20 tokens is still unclear, which could hinder their adoption by businesses and institutions.

Additionally, BRC-20 tokens are simple to create, but there’s a chance that overproduction could result in depreciation. A deluge of tokens, particularly ones with no practical use, might weaken their value and cause many of them to become worthless. Also, when it comes to their adoption, there is currently no widespread use for or acceptance of BRC-20 tokens. Early adopters are at risk due to the current status of the industry, even if it is anticipated that the ecosystem will expand with time. 

Whenever investing in BRC-20 tokens, it’s important to remember that meme coins are very speculative, and investing in them can be risky. It doesn’t necessarily mean that a single BRC-20 pump will create another rally. The only actual BRC-20 asset to date is ORDI, but even its price is highly erratic. It’s therefore always best to access risks correctly and diversify your crypto portfolio.

The Future of BRC-20 Tokens

Moving into 2024 and beyond, BRC-20 tokens are expected to see more technological developments, a rise in usage, changing legal frameworks, and a widening range of business prospects. Navigating the changing world of BRC-20 tokens will require constant learning and adaptation, as well as taking sustainability and ethical standards into consideration. The emergence of BRC-20 tokens marks a significant milestone in the evolution of digital assets on the Bitcoin blockchain. BRC-20 has the ability to broaden the scope of applications for Bitcoin, support the upward trajectory of the cryptocurrency’s valuation, improve accessibility, and raise liquidity.

Investing into BRC-20 tokens requires a calculated strategy. Important tactics include carrying out in-depth research, comprehending the risks, diversifying your investment portfolio, staying informed of market developments, choosing between short- and long-term investment goals, using reliable cryptocurrency exchanges, paying close attention to wallet security, and being aware of taxes that go with this type of investment.

Conclusion

BRC-20 tokens’ future is yet unclear. The standard’s success will be contingent upon several aspects, including the blockchain industry’s sustained growth, developers’ and consumers’ acceptance of the standard, and the creation of new token-using applications. Since these tokens are a relatively new technology, their track record is not as extensive as that of other token standards like ERC-20. For developers and consumers that wish to generate and manage digital assets on the Bitcoin blockchain, this new standard could be a useful tool.

Thanks to the crypto industry’s fascination with the explosive rise of BRC-20 tokens, meme coin fans now have plenty of investment and fun options to choose from. As the market value of these tokens continues to rise, it is essential to keep a careful eye on the development of these tokens and the protocols that underpin them in order to identify possible opportunities for trading and investment. If you’d like to start investing into BRC-20 tokens right away, don’t forget to check out StealthEX, your gate to the world of Bitcoin Ordinals!

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Don’t forget to do your own research before buying any crypto. The views and opinions expressed in this article are solely those of the author.