Your guide: How to Convert Wrapped XRP to XRP?
If you’ve been learning about cryptocurrencies, you’ve probably heard of “wrapped assets” and “decentralized exchanges.” Wrapped XRP (wXRP) is XRP used on blockchains like Ethereum within the DeFi environment created by the company.
But what happens if you want to get your wrapped XRP back to how it was before? We’ll show you how to easily change wrapped XRP to XRP in this guide, so you can feel confident about the process.
Keep reading to learn more.
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What is Wrapped XRP?
Let’s talk about what wrapped XRP is and why it exists before we start the exchange process. Wrapped XRP, or wXRP, is a type of XRP that can be used on other blockchains, such as Ethereum, as part of the DeFi environment that was created by the company.
It’s pegged 1:1 with XRP, which means that each wrapped token is backed by the same amount of XRP that is held in funds by a custodian. Hex Trust is one of the best digital asset custodians in Asia.
Why Should You Use Wrapped XRP?
Some people may wonder why they would use wrapped XRP instead of the real XRP. The answer lies in the fact that it gives you more options. You can take part in decentralized finance (DeFi) activities on blockchains other than Ripple’s original ledger by changing XRP into its wrapped form.
This means you can sell, stake, or use wXRP in Ethereum DeFi protocols. This gives you more ways to make money and get your coins quickly.
Also read: BRICS Makes Massive De-Dollarization Announcement
How to Convert Wrapped XRP to XRP?
Let’s get to the point: how to change wrapped XRP back to XRP. The steps are easy to follow whether you want to cash out or just keep the original XRP. How to do it:
Pick out a platform: Choose the site or decentralized exchange (DEX) where you want to change your wXRP first. Platforms like SushiSwap are popular choices because they make it easy to trade your wrapped goods. It’s also possible to use a service like Wrapped.com, which handles the transfer and works with Hex Trust.
Next, you’ll need to link your cryptocurrency wallet to the website. MetaMask is a wallet that is often used for these kinds of transfers. When dealing with ERC-20 tokens like wXRP, make sure you have enough Ethereum (ETH) in your wallet to cover transaction fees. You will need Ethereum for gas fees.
Start the Conversion: Once your bank is linked, pick out how much wXRP you want to change back to XRP. There will be a prompt on the platform to confirm the deal. Once you confirm, wXRP returns to the caretaker, and the equivalent XRP is sent to your chosen wallet.
Check the Transaction: Once the exchange is done, go to your wallet and make sure that the right amount of XRP has been added. The transaction should show up almost right away, but it could take a little longer based on how busy the blockchain is.
Why Change Back to XRP?
You might want to turn your wrapped XRP back into XRP for several reasons:
Going back to XRP’s Native Ledger: If you want to hold XRP, you might want to do so on its native ledger, which is meant to make cross-border payments quick and cheap.
You might want to trade or sell your XRP on an exchange that doesn’t accept wXRP in exchange for another cryptocurrency.
Security concerns: Since wXRP uses a custodian, some people might rather keep XRP directly to avoid the risks that come with custodial services.
Advantages and Things to Think About
By changing wrapped XRP to XRP, you can easily move between different blockchain settings. This helps you without losing any of your asset’s value. But it’s important to know about the fees that come with these transactions. Especially when using Ethereum’s network, where gas fees can change at any time.
Also, make sure you only use platforms and wallets that you know and trust. This helps to avoid scams and mistakes during the exchange process.
Conclusion
Anyone who wants to keep up with the changes in cryptocurrencies and decentralized finance needs to know how to turn wrapped XRP into XRP. It’s useful to know how to switch between these forms of XRP, whether you want to get the most out of your assets on different blockchains or just keep the original.
Don’t forget to use safe platforms, watch out for transaction fees, and check your wallet names twice every time. If you do these things, you’ll be able to easily handle your wrapped XRP and make the most of the growing crypto world’s opportunities.