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Bridges & Wrong-Network Mistakes
Wrapped Tokens Explained
Learn what wrapped tokens are, why they exist, and how they differ from native assets.
Network map
What this means
A wrapped token is a representation of an asset on another network or system, often used to make assets usable outside their native chain.
Core ideas
What to understand first
- Wrapped BTC is not the same as native BTC.
- Wrapped assets depend on the wrapping or bridge mechanism.
- Wrapped tokens can have different contract addresses on each network.
- Liquidity and redemption assumptions matter.
User checklist
What to check before moving assets
- Check whether the token is native or wrapped.
- Verify the contract address.
- Understand redemption or bridge paths.
- Check liquidity before swapping large amounts.
Risk note
Common mistakes to avoid
- Wrapped assets add counterparty or bridge assumptions.
- Fake wrapped tokens can copy names.
- Wrong-network transfers can be difficult to unwind.