Best Bitcoin BRC-20 Tokens

In March 2023, a new token standard was added to the Bitcoin blockchain. This add-on allows users to inscribe data to individual Satoshis. This process was a big step in further decentralizing Bitcoin. It allows users to create projects, interact with new communities and increase overall engagement with the Bitcoin blockchain. The standard is called BRC-20 and has the potential to permanently change not only Bitcoin but crypto as a whole. Let's take a look at some of the most popular BRC-20 projects in 2024.

What Are Bitcoin BRC-20 Tokens?

One of the major differences between Ethereum and Bitcoin is that Ethereum allows for much more customization and empowers the individual developer. Ethereum uses smart contracts and the ERC-20 standard to allow users to easily create new projects and tokens. For a long time, Bitcoin did not offer the same level of customization. However, a January 2023 update paved the way for more customization on the Bitcoin chain.

The update, created by software engineer Casey Rodarmor, allowed users to inscribe data onto individual Satoshis. One Bitcoin is comprised of 100 million Satoshis. Users could then attach different forms of data, such as pictures, text and sound to individual Satoshis.

While this feature allows for more customization, it differs from other token standards. For example, Ethereum allows users to create new tokens that are non-fungible ways to store data. Non-fungible tokens (NFTs) are not attached to another token but are entirely their own. Bitcoin is not there yet with NFTs, but the BRC-20 standard is a step in the right direction. 

How to Buy BRC-20 Tokens

Now that you have an idea of what a BRC-20 token is, you may be interested in buying some. The simple process takes three short steps.

Step 1: Buy Bitcoin

The first step to get a BRC-20 token is to obtain Bitcoin on virtually any crypto trading platform. Kraken offers low fees, ease of use and high security.

To get started on Kraken for as little as $10, create an account, verify it and link a bank account. You can then buy Bitcoin, which you can view in your portfolio. 

Step 2: Download Xverse

On a centralized exchange like Kraken, you do not have full custody over your assets. To solve this issue, you need a Bitcoin wallet. Xverse is one of the more popular wallets. You can download the wallet on iOS, Android and Chrome for desktop. 

Once you download the wallet, you will be given a wallet address, which is a long string of letters and numbers that serves as the unique identifier for your wallet. You can enter this on the centralized exchange and send the Bitcoin to your wallet.

Step 3: Exchange Your Bitcoin for a BRC-20 Token

With Bitcoin loaded into your wallet, you can head over to the decentralized exchange (DEX) that supports the desired token. You can find where to buy or exchange the token on CoinMarketCap.

Once you find an exchange that supports the token, you can connect your wallet and exchange Bitcoin for the desired token. After you complete the transaction, the new token should appear in your wallet.

Look at the exchange before the transaction. There have been cases of websites posing as exchanges and defrauding customers. 

Best BRC-20 Tokens for 2024 

With the steps to buying BRC-20 tokens in mind, let's take a look at some of the most prominent projects going into 2024. 

Multibit (MUBI)

Since the BRC-20 standard is so new, there's not a lot of infrastructure built around it. This means it can be difficult to interact with BRC-20 tokens. However, Multibit hopes to make this process a little easier. Specifically, it has created a way for users to exchange tokens between Ethereum and Bitcoin.

The way this is done is by converting ERC-20 tokens into MUBI tokens, which are then exchanged for BRC-20 tokens. 

Ordinals (ORDI)

As described above, BRC-20 tokens allow users to inscribe data into individual Satoshis. The project that is bringing this service to customers is called Ordinals. The project allows users to inscribe custom data onto their existing tokens.

ORDI was the first BRC-20 to begin trading, going live in May 2023.

PEPE Ordinals (PEPEBRC)

One of the more popular meme coins over the past year has been Pepe (PEPE). This token trades on Ethereum and rose to prominence after its release in May 2023, reaching an all-time high market cap of over $1.5 billion.

Pepe Ordinals (PEPEBRC) is hoping to capitalize on the success of Ethereum’s PEPE. PEPEBRC is one of the first meme coins to trade as a BRC-20 and capitalizes on the well-known Pepe meme. 

OXBT (Ordinals)

OXBT is another BRC-20 token. However, these tokens are a set of Ordinals that have been sold to the public. The project is very secretive, with a private Discord and little information online. However, the project’s secrecy has sparked interest in the BRC-20 community.

The founders created 200 million Satoshis (2 Bitcoin) with their signature orange picture. Since then, the market cap has risen to nearly $10 million. 

Will Bitcoin BRC-20 Tokens Take Off in 2024?

Despite the novelty of these projects, there's still a good amount of hype surrounding them. This is likely because of their resemblance to NFTs, which saw immense interest in the last bull market. Though it is unlikely that the BRC-20 standard will become as popular as NFTs, the hype surrounding the tokens is real. 

Additionally, there's an increasing likelihood of spot Bitcoin ETF approval in 2024. This could bring new investors and users to the Bitcoin blockchain and further boost BRC-20 tokens.

While there is a decent case to be bullish on BRC-20 tokens, other issues should be noted before investing. 

Problems With BRC-20 Tokens

BRC-20 tokens represent a new ecosystem. It was only implemented in early 2023 and did not gain much steam until the second half of 2023. Many users are unaware of the projects or do not understand how they work.

On that point, the ecosystem can be difficult to navigate. Because of this, there are few places to store and trade these tokens. While this could change in the future, they can be difficult to obtain right now. 

The tokens may be less secure than other crypto investments. There could be some areas that are potentially open to exploitation. In addition, the difficulty of use could lead to scams in other forms of fraud. 

Investing in Bitcoin’s Ecosystem

If you are hesitant to invest in BRC-20 tokens, there are still a handful of other ways to get involved with Bitcoin. Apart from directly investing in Bitcoin through a centralized exchange like Kraken, you can also invest in Bitcoin mining companies that trade on stock exchanges, as well as buying Bitcoin ETFs through a brokerage account.