The Ethereum Blockchain powers many crypto projects that have proven to experience reliable success over the years, but since it was built before what we know as ERC-20 standards, it faces some limitations.
Consequently, users decide to “wrap” ETH, the native token of the Ethereum Blockchain, and turn it into Wrapped Ethereum, or the WETH token.
Although Wrapped Ether works just fine for some purposes, the truth is that there are some scenarios where someone would want to unwrap Ethereum.
In today’s guide, we are going to show you the whole process of turning Wrapped ETH into the classic ETH token that we all know.
Today you will learn:
How to convert WETH to ETH on MetaMask using UniSwap;
Understanding the differences between WETH and ETH crypto tokens;
Using the UniSwap exchange to accomplish the swapping transaction.
Table Of Contents
Ethereum Token (ETH) vs. Wrapped ETH (WETH)
As you already know, ETH is the native token of the Ethereum Blockchain.
Using ETH is essential if you need to pay transaction fees, more commonly known as gas fees in the ETH environment.
On the other hand, WETH also lives on the Ethereum Blockchain, and it has the same value as its older brother, ETH.
That means that you won’t pay more than you need during the transaction process of wrapping the crypto tokens.
The main difference lies in the utility that WETH has in decentralized environments that work with a smart contract.
Read Also: When you sign in to MetaMask, you realize that you can only trade directly Ethereum -based tokens.
If you need to add tokens that do not appear on MetaMask’s interface, you need toAdd Custom Tokens on MetaMask manually. Read our related post to learn more.
Benefits and Advantages of Wrapped Ethereum
After youBuy Ethereum, you can swap it for WETH, which will be worth the same as its underlying ETH token.
But let’s look at a clear example of having WETH tokens in your wallet:
WETH provides more utility to holders due to its practical use without the ETH losing value;
Interoperability with other crypto tokens is easier with WETH;
WETH can be used with compliant smart contracts, decentralized apps, and DAOs;
There are lower transaction fees relative to ETH;
Faster transaction speeds when compared to the ETH token.
Lower transaction fees and enhanced security seem like good benefits alright.
Nonetheless, you are on your right to unwrap Ethereum whenever you want.
WETH depends directly on a custodian’s control, which directly leads to centralization.
This contradicts the whole point of the ETH token, where ETH holders value total ownership and decentralization over a company’s control over their assets.
At the end of the day, ETH holders can simply unwrap Ethereum at their will. Luckily, doing so is elementary.
Now that you know the basics about these tokens, we can now proceed to unwrap Ethereum.
For practical purposes, we are going to perform the whole transaction on MetaMask and UniSwap.
Since UniSwap’s decentralized exchange already works perfectly on the Ethereum mainnet, you should not have any major problem performing transactions there.
Firstly, you need to send the funds to a centralized exchange. Learn everything about this process by checking out our related guide.
Step 1: Go to Uniswap Website
Firstly, go toUniSwap. You can do so from your MetaMask’s DApp browser on from your normal desktop browser - it will work either way.
Make sure you have the correct network selected.
If you are trying to unwrap WETH to ETH on Ethereum network, select Ethereum.
If you want to unwrap WETH via one transaction on Polygon network, switch to Polygon Mainnet.
Step 2: Connect MetaMask Wallet
Set up your MetaMask account. You can either download the browser extension or the mobile version of the wallet.
When you first log in to your wallet, you will be provided with aMetaMask Seed Phrase.
This phrase is linked to your private keys, so if you want to take care of each private key, you better keep this 12-word sentence safe somewhere.
Learn more about this matter by reading the previously mentioned article.
Step 3: Input the WETH Amount You Want to Unwrap
Select the wallet icon in UniSwap and connect MetaMask to it. The mobile version might show three dots instead of an icon.
Either way, just go to the “Swap” option and select WETH firstly, and ETH secondly.
There, you need to type in the amount of WETH that you need to unwrap.
Step 4: Confirm to Unwrap
If you use a hardware wallet to approve MetaMask transactions, make sure to authorize the change on your hardware wallet device.
Check the fees related to the operation, and confirm the unwrapping.
Now, you have just unwrapped Ethereum - that means that your WETH has turned into ETH and it will be stored on your MetaMask wallet.
That’s how you do it! If you have used UniSwap for previously wrapping your ETH, then note that process consists of doing the exact same thing, but now from WETH to ETH.
If you want to receive more useful crypto insights, you can always count on our latest blog post here, at GrowFollowing.
Swap WETH to ETH FAQ
Can I Convert ETH Token to BNB Using MetaMask?
Not directly. Since these tokens operate in different networks, the best course of action for you is to simply send ETH to Binance, and turn it into BNB effortlessly.
-Open your MetaMask wallet and make sure your network is[Ethereum Mainnet].Then select[Swap].-Look for WETH in the[Swap to]field.-Enter the desired amount of ETH and select[Review Swap].
Additionally,you can change WETH back into ETH at any moment. The ratio of wrapping to unwrapping is 1:1,thus other than transaction fees,there are no additional charges. By engaging with the WETH smart contract,you can manually wrap your ETH,and it will be stored and converted into the equal amount of WETH in return.
To add WETH, click on the MetaMask extension, select the Assets tab, and click import tokens. Type WETH into the Import tokens search box. You should see Wrapped Ether (WETH) show up as an option.
How Much Does It Cost To Convert WETH Into ETH? The ratio of wrapping to unwrapping is 1:1,so other than transaction fees,there are no additional costs.
Before going on, we should explore how ETH works in the context of trading. Internally, the SDK uses WETH, as all Uniswap V2 pairs use WETH under the hood. However, it's perfectly possible for you as an end user to use ETH, and rely on the router to handle converting to/from WETH. So, let's use ETH.
First, send funds from MetaMask to a crypto exchange such as Binance or Coinbase. Sell your crypto funds in exchange for some fiat currencies such as USD, or EUR. Once you've received the fiat money, you can transfer this money straight into your bank account linked with your Binance.
You can easily convert ETH into WETH through a process known as wrapping. You can also convert WETH back into ETH at any time. Both wrapping and unwrapping follow a 1:1 ratio, meaning there are no extra costs apart from transaction fees.
Converting wETH to ETH is a taxable event. Once you've wrapped your Ethereum and you want to convert it back to ETH, the logic for calculating capital gains is the same as in the tax simulation above for wrapped Bitcoin.
Wrapped Ether or WETH is the ERC-20 version of Ether. This wrapped token increases the interoperability of Ether by making it usable on ERC-20 compatible blockchains. WETH's value operates similarly to stablecoins on a 1:1 ratio.
Wrapped Ether Token(WETH)is available on the Polygon MATIC $0.9688 (MATIC)network. To add WETH to Metamask on Polygon,just JST $0.02541 copy the contract address of Polygon WETH,then enter the address in the token import window,and click[Import Token]to import the token into the wallet.
WETH can be traded on a decentralized exchange (DEX) using your Coinbase web3 wallet. WETH is only supported on a DEX. Additional fees will apply. Coinbase is not responsible for activity or assets traded on a DEX.
Wrapped Ethereum tokens can be unwrapped after they've been wrapped, and the process is simple: Users just have to send their wETH tokens to a smart contract on the Ethereum network, which will then return an equal amount of ETH.
Transaction fees using WETH are always typically lower than transaction fees for ETH. You can always “unwrap” your WETH and convert it back into ETH by putting your minted WETH back into the smart contract that generated it. You will receive an equal amount of ETH in return.
In order to buy an NFT on OpenSea using Polygon you must bridge your ETH to Polygon. Bridged ETH is represented as wETH. From the OpenSea website, click the wallet icon then select the three dots next to your ETH balance and choose “Bridge to Polygon.” Enter an amount that is at least the price of the NFT.
To trade on Uniswap, you need to have ETH or any other ERC-20 standard token. These tokens can then be traded through Metamask's wallet. Metamask is a browser plugin that is used as an Ethereum wallet.
You should see your Polygon (PoS) wallet dashboard and all current tokens bridged to Polygon (PoS). Locate the Ether (Ether - PoS) token and click Withdraw.In the pop-up window, enter your desired withdrawal amount and click Transfer.
In order for ETH to be exchanged with other Ethereum-based tokens, it needs to be wrapped into WETH. Wrapping ETH does not affect its value, 1 ETH = 1 WETH. WETH is also one of the tokens that allows Matcha users to utilize our Gasless Trading option.
How do I transfer my existing ETH and tokens to MetaMask? You can send ETH and tokens from another wallet to a new MetaMask account. Simply copy your new MetaMask public address and go to your existing wallet or exchange to send funds to your new wallet address.
In addition to being under the sway of demand, one of the reasons Ethereum can be costly to transact on is because of its security. In a way, security is the feature for which you're paying a premium.
Because there is limited space in each Ethereum block, the gas fee market is often used to prioritize which transactions will be included in the next block. Each transaction needs a certain amount of computational resources to complete, which requires a gas fee.
As a result, a specific cryptocurrency could serve use cases on another blockchain network. One of the foremost aspects of Wrapped Ethereum would point to the fact that it is not useful for paying gas fees in Ethereum blockchain transactions.
Without any ambiguity, crypto to crypto exchanges are taxable (A15). Your gain or loss is the difference between the fair market value (FMV) of the property received and the cost basis of the property exchanged.
Another popular strategy for how to avoid capital gains tax on crypto is to invest using a tax-efficient product like an Individual Retirement Account (IRA). An IRA is a type of savings account designed to help individuals save for retirement.
What is Wrapped Ether (WETH)? WETH is an ERC-20 token on Ethereum that represents 1 Ether (ETH). ETH is used to pay for transactions on the Ethereum blockchain. For example, swapping between cryptoassets on an Ethereum-based DEX will cost some small amount of ETH.
From a technical perspective, a wrapped Bitcoin token is safe. It will likely be in custody in safe platforms like Ethereum or Binance Smart Chain, and once converted into an ERC-20 or BEP-20 token, it will hold the security of the related network.
ZenGo offers a secure wallet for Wrapped Ethereum (WETH), which will allow you to buy, receive, and store your funds with ease, right on your smartphone. Whether you're a crypto expert or a complete beginner, using ZenGo's wallet couldn't be simpler.
Currently, the best wETH exchange to buy WETH is Poloniex, which saw $ 0.00 worth of wETH trading volume in the last 24 hours. However, you can also choose from other exchanges that list WETH, such as Uniswap V3, Uniswap V2, Uniswap-V2, Balancer and SushiSwap.
The core cryptocurrencies you can use on OpenSea are Ethereum (ETH/WETH), SOL, AVAX, USDC, BNB, and DAI. We support a few other payment tokens, but it's not currently possible to use non-crypto currencies like USD or the Euro.
Open your Coinbase Wallet, go to “Settings,” click on “Recovery Phrase” and write down your 12-word phrase. Now, open MetaMask and click “Import using secret recovery phrase.” Enter your recovery phrase from Coinbase, create a new password and confirm.
Transaction fees using WETH are always typically lower than transaction fees for ETH. You can always “unwrap” your WETH and convert it back into ETH by putting your minted WETH back into the smart contract that generated it. You will receive an equal amount of ETH in return.
Okay, yes, I get that, but why are they so high? The price of gas is dynamic and is essentially a product of demand: the more people that are trying to get their transactions processed by the network, the higher it will be.
Uniswap charges a 0.01%, 0.05%, 0.3% (most common), or 1% fee on swaps. These fees are paid to liquidity providers who supply tokens on the platform. Uniswap supports thousands of ERC-20 tokens, an ever-growing market segment. Uniswap is available to traders worldwide.
On Ethereum, WETH is used to swap between tokens on decentralised apps. Some decentralised apps can only use WETH as collateral. You can use Ether to pay gas fees and exchange WETH for other ERC-20 tokens on DeFi applications.
Introduction: My name is Tyson Zemlak, I am a excited, light, sparkling, super, open, fair, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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