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How to Buy BRC-20 Tokens?
Shailee Adinolfi
&
Annie Pei
General Wallet Use
Most Bitcoin enthusiasts know about Ordinals and many have heard of BRC-20 tokens. But knowing how to buy some can be a different story.
Despite their growing popularity, many people still don’t know exactly how BRC-20 tokens work or where to get them. While user experiences with blockchain protocols and wallets are getting better every day, many users still need a bit of help to access the tokens and collectibles .
What is a BRC-20 Token?
The BRC-20 token protocol was created in 2023 as a type of digital asset on the Bitcoin blockchain that uses Ordinals inscriptions to create new fungible tokens. The creator of BRC-20 tokens called them a “fun experiment” at their inception. But today, they are an important part of token innovation on Bitcoin.
Many people liken BRC-20 to ERC-20 tokens on the Ethereum network — although they have distinct differences. BRC-20 tokens leverage the Ordinals protocol to inscribe token data onto satoshis, allowing users to create unique tokens with specific properties.
Anyone can deploy BRC-20 tokens by inscribing its parameters and claiming ownership. Users can deploy, mint, and transfer BRC-20 tokens easily with just a few clicks.
Some of the most popular BRC-20 tokens include:
Ordi (ORDI)
As the first BRC-20 token ever created, Ordi has gained significant traction and boasts a large market capitalization.
SATS (1000SATS)
Paying homage to Satoshi Nakamoto, the creator of Bitcoin, SATS is one of the largest BRC-20 tokens and represents the smallest unit of Bitcoin.
Multibit (MUBI)
A bridging platform facilitating cross-network transfers between BRC-20 and ERC-20 tokens, enhancing liquidity and accessibility.
Pups (PUPS)
The first BRC-20 memecoin, Pups also claims the title for first BRC-20 airdrop. The Pups team announced that it would migrate to Runes at the 2024 Bitcoin halving.
These notable BRC-20 tokens represent only a few of a diverse range of tokens available on Bitcon. Each serving different purposes and catering to various communities. Now, let's explore how you can acquire these tokens for yourself.
How Do I Mint BRC-20 Tokens?
There are two steps involved in minting a BRC-20 token:
Deploying a token, which involves creating a transfer inscription for the BRC-20
Minting the transfer inscription that you generated
To deploy a token, you’ll need to:
Create a Script File — This should contain essential information about the token including its name, symbol, total supply, and any additional features you want to incorporate. Normally, you can do this through marketplaces.
Inscribe the Script File — Take the file and go through the process of inscribing an Ordinal.
Mint the Transfer Inscription — Take the transfer inscription that appears in your wallet and inscribe it. During this inscription process, you’ll be able to set additional parameters.
Confirmation — Wait for confirmation on the Bitcoin blockchain. Once confirmed, the BRC-20 tokens are officially minted and deployed on the blockchain.
Transfer and Use — After they’re confirmed, you can transfer your tokens to other users or utilize them in various applications within the BRC-20 ecosystem.
Using a marketplace like Magic Eden to mint BRC-20 tokens is quick and easy if you have a compatible wallet like Leather. There are a few simple clicks to mint your tokens and, before you know it, you own BRC-20 tokens on Bitcoin.
In the process, be mindful of any transaction fees and make sure to comply with any regulatory requirements when minting tokens.
How Do I Buy BRC-20 Tokens?
Buying BRC-20 tokens is relatively straightforward, but it requires access to cryptocurrency exchanges and platforms that support these tokens.
Generally, here's how to buy BRC-20 tokens:
Choose a Marketplace or Exchange — Find a reputable crypto exchange or marketplace that supports BRC-20 tokens like Binance, OKX, UniSat, and others. They often list a variety of BRC-20 tokens for trading.
Create an Account or Connect Your Wallet — Signing up for an exchange account normally requires some personal information for KYC (know your customer), depending on the exchange and legal requirements in your region. Many BRC-20 marketplaces, however, generally just require you to connect your Leather wallet.
Deposit Funds — Most exchanges support deposits in various cryptocurrencies like BTC or ETH, which you can then use to buy BRC-20 tokens.
Find a BRC-20 Token — Search for a BRC-20 token you wish to buy and make sure you're selecting the correct one before making a purchase.
Place an Order — On the trading interface, place a buy order. You can choose between different order types, such as market orders or limit orders.
Execute the Transaction — Review and confirm the transaction.
Withdraw to a Secure Wallet — Consider withdrawing your new BRC-20 tokens to a self-custody wallet like Leather for safe keeping. This protects your tokens from potential exchange hacks or vulnerabilities.
There are an ever-growing number of BRC-20 tokens you may find interesting. However, it’s always advisable to research and use caution when buying new tokens.
How Do I Send and Receive BRC-20 Tokens?
If you have a Bitcoin wallet like Leather, you’ll likely have the option to send and receive BRC-20 tokens. To receive BRC-20 tokens:
Open Your Bitcoin Wallet — Access a cryptocurrency wallet that holds the BRC-20 tokens. This can be a software wallet, hardware wallet, or an exchange wallet.
Find Your Taproot Address – Locate your wallet Taproot address and give it to the sender.
Monitor Transaction Confirmation — Once the transaction has been confirmed on the Bitcoin network, your BRC-20 tokens should appear in your wallet.
Sending BRC-20 tokens is a little more complicated and involves two phases. You’ll need to create a transfer inscription first and then send that inscription to a recipient.
To send BRC-20 tokens:
Initiate the Transaction – Access your wallet that holds the BRC-20 tokens you’d like to send and look for the “send” option. Specify which BRC-20 tokens you’d like to send.
Specify Token Amount – Enter the amount of BRC-20 tokens you’d like to send to continue minting the transfer inscription.
Mint Your Transfer Inscription – Once the mint process is complete, your transfer inscription should appear in your wallet.
Obtain Recipient’s Taproot Address – You want to obtain the recipient’s preferred Taproot address to which you’ll send the transfer inscription.
Review Transaction Details – Before finalizing the transaction, check the recipient address, fee options, and token amount for accuracy.
Confirm and Send — Once you're satisfied with the transaction details, confirm the transaction. Some wallets may require you to enter a password or use 2FA to authorize the transaction.
Receiving BRC-20 tokens is even easier than sending them. However, it’s always important to use caution when sharing your wallet address with anyone. To receive BRC-20 tokens, simply provide your wallet address to the sender. Once they’ve completed the transaction, you should see the tokens in your wallet balance.
Conclusion
BRC-20 tokens are an exciting new space in the Bitcoin ecosystem. And every day, it’s becoming easier for average users to access and invest in cryptocurrencies.
If you’ve previously bought, sent, or received any cryptocurrencies, you will find transacting with BRC-20 tokens is very similar. The correct wallet or exchange gives you everything needed to engage with the BRC-20 ecosystem.