How do you bridge your funds between BTC and ETH? What is a bridge? And how can you use it?
As the demand for different blockchain technologies grows, so does the need to enable interoperability. Cross-chain bridges allow their users to switch Blockchains and enjoy the benefits of all of them.
In this article, you will learn:
- What is a cross-chain bridge?
- What are the different types of bridges?
- Step-by-step tutorial on how to bridge your funds between BTC and ETH.
- A bridge allows independent blockchains to communicate with each other.
- Use a bridge to move funds between the Bitcoin and Ethereum.
- There are no completely decentralized BTC-ETH bridges.
- You can use SwapBridge to transfer your cryptocurrency between Bitcoin and Ethereum.
Transfer Crypto with Bridges
One of the biggest problems in the world of Blockchains is the inability to work together. Bridges solve this problem by enabling transfers of digital assets and information between different blockchain ecosystems. By sending tokens from one blockchain platform to another, the benefits of both platforms can be maximized. The platforms also benefit from this approach: If traffic is shifted from Ethereum to other platforms and thus fairly shared, scaling issues will be mitigated in the long run.
Different types of bridges
A trust-based bridge is a type of bridge where people can interact with a central pool of funds. If someone transfers for example BTC, it will be added to the bridge’s pool, and they’ll receive the corresponding amount of ETH. The centralized authority will charge a small fee to initiate the transaction.
One of these bridges is SwapBridge. It is easy to use, has low economical fees, and doesn’t require KYC. (Know Your Customer) It offers customers the possibility to bridge their coins and tokens between 4 chains, including Ethereum and Bitcoin.
In the next section, we will provide you with a step-by-step tutorial on how to bridge your Crypto between Ethereum and Bitcoin with SwapBridge.
Trustless bridges are also known as decentralized bridges. They do not have a centralized authority, instead, they use smart contracts or multisig wallets that are called. These bridges store the user’s deposits and provide them with tokens on the new chain.
Although Bitcoin is well known, the Bitcoin blockchain does not have the same smart contract capabilities that form the basis of the Ethereum blockchain. Therefore, there is currently no way to build a fully decentralized BTC/ETH bridge. An alternative would be to swap your Ethereum into Wrapped Bitcoin. (WBTC) It enables Bitcoin to be represented as an ERC-20 token on the Ethereum Network. Read more about Wrapped Tokens on our blog.
How to bridge your Crypto between BTC and ETH
In this tutorial, we will use the SwapBridge app.
1. Choose the right Network
Foremost, you need to decide where you want to send your funds and where you intend to receive your bridged funds later.
You have the option to choose between different blockchains and different directions. In the screenshot below, we will send BTC on the Bitcoin blockchain and then receive ETH on the Ethereum blockchain.
2. Choose the desired amount
After you did the selection for the desired networks, you can insert the amount of crypto you want to send. The application will calculate the expected BTC to ETH ratio in real-time. This way you know how much crypto you will get on the receiving network.
3. Enter the receiving address
To receive the bridged funds later, you will need to enter the address of your wallet on the receiving blockchain. Please verify the address you entered, as your funds cannot be recovered if the address you entered is inaccessible to you.
4. Send your crypto
After you have entered a valid address to which the bridged funds should be sent, click on “Start Bridging”. Thereafter, you will see an address to which you have to send your funds. This address will be monitored by the bridge protocol to send you the corresponding amount of crypto on the other blockchain. This process can take some time, as your bitcoin transaction needs to be confirmed 3 times before the bridging process starts.
1-2 minutes after the third block confirmation, you will have your bridged crypto on the desired blockchain.
Interoperability has always been a problem in the blockchain space. So far, not many solutions have been implemented. Even though they are still just in an early stage, bridge developers are working diligently to solve this problem. Being able to switch blockchains and enjoy the benefits of all of them makes the future of blockchain technology even more exciting.
Cross-chain bridges show that the crypto world may be moving toward a collaborative space that emphasizes ease of use and mass adoption of cryptocurrencies.
What is a Crypto bridge?
A bridge allows its users to move their assets between independent blockchains.
Can I transfer Crypto between BTC and ETH?
Yes, you can transfer your cryptocurrencies between BTC and ETH by using a bridge.
How can I bridge Crypto between BTC to ETH?
To bridge your funds between the Bitcoin and Ethereum networks, you can use a bridge.
Can BTC be used on the Ethereum network?
Yes, it’s possible by swapping your ETH for Wrapped Bitcoin (WBTC). It is an ERC-20 token on the Ethereum Network that is backed by the value of Bitcoin.
What is the BTC to ETH conversion ratio?
The conversion ratio is the exchange rate for which those two coins can be traded.
You can get a real-time quote on the Bitcoin to Ethereum bridge.