How to Buy and Sell BRC20 Tokens (Summer 2023)

bitcoin defi how-to Jul 14, 2023
how to buy and sell brc20s

So you wanna know how to buy and sell BRC20 tokens, huh? Well, we're not surprised! Ordinals and BRC20s have been the talk of the crypto industry since February 2023, as the ecosystem grew from $5M to almost $1B in in late April/early May! We think the advent of decentralized finance (DeFi) on Bitcoin will be a major narrative and catalyst of the next crypto bull market, so we're happy to share everything we know about it so far with you guys. We hope you enjoy this step-by-step guide on how to buy and sell BRC20 tokens!

What Are BRC20 Tokens?

In January 2023, non-fungible tokens (NFTs) made their debut on the Bitcoin blockchain with the launch of the Ordinals protocol. Historically, the Ordinals protocol has been used to issue and transfer ownership of digital assets such as images, video, and audio – all of which come with their own verifiably unique characteristics and are not interchangeable on a 1:1 basis.

But the technology underpinning Ordinals also enables developers to inscribe text directly on the Bitcoin blockchain. And with BRC-20, this text is being used to represent fungible tokens which are, for all intents and purposes, identical and interchangeable on a 1:1 basis.

Bitcoin-based BRC-20 tokens may sound a lot like Ethereum-based ERC-20 tokens. But they are not to be confused.

For starters, BRC-20 tokens are issued on the Bitcoin blockchain and not Ethereum. That means that they are secured by Bitcoin’s proof-of-work security mechanism rather than Ethereum’s proof-of-stake security mechanism. To mint and trade them, you will need a Bitcoin wallet such as the UniSat Wallet.

Secondly, BRC20s have fewer “bells and whistles” compared to ERC-20 tokens. Bitcoin’s base layer is inherently limited – it does not support smart contracts. So, BRC-20 tokens can’t be deployed in other applications such as decentralized exchanges, borrowing and lending protocols, etc.

What BRC20s are Good Investments?

Well, there's no one-size-fits-all answer to that question since everyone has different investment goals and risk tolerances. But generally speaking, a good BRC20 investment should have a solid foundation, a strong team behind it, and a clear use case. (Read this post to learn more about which BRC20s are worth buying right now). You'll also want to consider the following factors:

1. Market Cap: A project's market capitalization is the total value of all its tokens in circulation. A higher market cap means that the project has a larger user base and is more widely accepted.

2. Trading Volume: This refers to the number of tokens that are traded on exchanges. A higher trading volume indicates that the project is more liquid and can be easily bought and sold.

3. Price History: The token's price history can help investors understand its volatility and potential for growth. A project with a stable price history may be less risky, while one with a history of large price swings may be riskier.

4. Use Case: A project should have a clear use case or purpose. Investors should consider whether the project solves a real-world problem or has practical applications.

5. Development Team: The development team behind the project should have experience and expertise in blockchain technology. Investors should research the team's background and track record.

6. Security: Investors should consider the security measures that are in place to protect the token from hacking or theft.

7. Regulatory Environment: The regulatory environment surrounding cryptocurrencies varies by country. Investors should be aware of any regulatory risks associated with investing in a particular token.

8. Risk Tolerance: Finally, investors should consider their own risk tolerance before investing in BRC20 projects. These are highly volatile and can be subject to large price swings, so investors should only invest what they can afford to lose.

(Read this post to learn more about analyzing crypto tokens).

About BRC20 Wallets and Marketplaces

As of today (July 2023) buying and selling BRC20s is mostly done through specialized Bitcoin wallets that have their own built-in marketplaces. The process is similar to buying an NFT on www.opensea.io, for example. You can also buy and sell some BRC20s on centralized exchanges like www.okx.com and www.gate.io, but this is not optimal at the moment because there are withdrawal restrictions and limited markets for BRC20 tokens there. So, we recommend using one of the following wallet/marketplaces:

Ordinals Wallet

The Ordinals Wallet is a non-custodial wallet that lets you save, transfer, receive, and generate Bitcoin Ordinals. These are like special identification tokens for each satoshi on the Bitcoin network, kind of like NFTs. You can even create rare and unique digital goods that can be exchanged and collected using these ordinals. Plus, the wallet also supports BRC20 tokens.

You can access the Ordinals Wallet from any device with an internet connection, since it's web-based. And since it's open-source, anyone can view and verify the code. So you can manage and store your Bitcoin Ordinals in a safe and transparent way.

Xverse Wallet

The Xverse wallet is another great option if you're looking for a way to save, transfer, receive, or even generate Bitcoin Ordinals and BRC20 tokens. The best par about this non-custodial wallet is that you can access it from any device with an internet connection since it's a web-based. Plus, the code is open-source, meaning anyone can review and validate it. So, you can trust that Xverse Wallet offers a secure and transparent way to store and manage your BRC20s and Bitcoin Ordinals. It's definitely worth checking out!

Bitkeep Wallet

If you're looking for a convenient and reliable way to handle your BRC-20 tokens, then the BitKeep BRC20 Wallet might just be the perfect solution for you. This non-custodial wallet allows you to easily save, transfer, receive, and even generate BRC20 tokens. You can access it from any device with an internet connection since it's a web-based. This means you can manage your tokens on the go, without any hassle.

What sets BitKeep BRC20 Wallet apart is its open-source code. This means that anyone can review and validate the code, ensuring transparency and security. You can trust that your BRC-20 tokens are stored and managed in a secure manner. So, if you're looking for a user-friendly and trustworthy wallet to handle your BRC20 tokens, definitely give BitKeep BRC20 Wallet a try.

Unisat Wallet

Unisat Wallet is a versatile and user-friendly wallet designed specifically for managing BRC-20 tokens. With this wallet, users can easily store, send, receive, and even create BRC20 tokens. One of the standout features of Unisat Wallet is its support for multiple devices and platforms, including web, mobile, and desktop. This allows users to access their BRC20 tokens from anywhere with an internet connection, providing convenience and flexibility.

What sets Unisat Wallet apart is its emphasis on security and privacy. The wallet utilizes advanced encryption techniques to ensure the safety of users' BRC20 tokens. Additionally, Unisat Wallet is a non-custodial wallet, which means that users have full control over their funds and private keys. This adds an extra layer of security, as users are not relying on a third party to store their tokens. Overall, Unisat Wallet is a reliable and trustworthy solution for managing BRC20 tokens, offering both convenience and security to its users.

How to Buy BRC20 Tokens on Unisat

Our suggestion at this time is that you use the Unisat wallet and marketplace to buy BRC20 tokens. This is because its the only place that has been able to avoid listing erroneous tokens, so far. People using Ordinals Wallet, for example, have complained about copy-cat tokens being listed and sold on that platform. To avoid buying the wrong token, use Unisat. Here's the step-by-step guide ๐Ÿ‘‡

Step 1: Download Unisat extension for Chrome

First, search "unisat chrome extension" on Google๐Ÿ‘‡

Then, add the extension to your Chrome browser. Here it says "remove" because I already have it installed ๐Ÿ‘‡

Step 2: Create New Wallet with Mnemonic Seed

Open the Unisat extension and on this pop-up choose "create new wallet" option ๐Ÿ‘‡

Make sure to save you seed phrase or you will not be able to restore your wallet in case of an emergency ๐Ÿ‘‡

Create a Native Segwit address in order to save on fees. This type of address is more efficient (fee-wise) than the others๐Ÿ‘‡


Step 3: Fund wallet with Bitcoin

Now, you're ready to fund your wallet with Bitcoin, so you can pay transaction fees. Click "receive" to copy the address you will send BTC to ๐Ÿ‘‡

Step 4: Search BRC20 on Unisat's marketplace

After you've deposited some BTC into your wallet, click "marketplace" on the Unisat navigation menu๐Ÿ‘‡

Next, search the token ticker (name) of the BRC20 you want to buy๐Ÿ‘‡


Step 5: Click "buy," choose gas fee, and sign transaction

Next, you'll see an auction-style listing for the token. Click "buy" on the one you want to buy๐Ÿ‘‡

You will be asked to accept the Unisat terms of service first๐Ÿ‘‡

On the next screen you can choose to customize the fee you pay for the transaction before you confirm it๐Ÿ‘‡

Choose "custom" if you want to make sure the transaction does not fail๐Ÿ‘‡

Then, click "confirm"๐Ÿ‘‡

Finally, sign the buy transaction (give it a couple of mins and the token will appear inside your wallet)๐Ÿ‘‡

How to Sell BRC20 Tokens on Unisat

Selling your BRC20 tokens on Unisat is a pretty straightforward process. Here's how to do it step-by-step๐Ÿ‘‡

Step 1: Inscribe transfer

On the marketplace page, click "my inscriptions" then "list"๐Ÿ‘‡

Next, click "inscribe"๐Ÿ‘‡

Then, choose the amount you want to sell and raise the fee (optional) and click "next"๐Ÿ‘‡

Click "next" again to approve the transfer (selling) inscription๐Ÿ‘‡


Step 2: List token for sale

Now, you can list the amount you inscribed ๐Ÿ‘‡

Choose the price (in satoshis) you would like to list it for ๐Ÿ‘‡

Finally, sign the listing transaction๐Ÿ‘‡

Step 3: Wait for sale confirmation

After you list the token for sale, all you have to do is wait...when someone buys your token the amount of sats (BTC) you listed it for will be transferred into your wallet and you'll see the balance increase!