Getting Started Guide: How to Purchase BRC Tokens and Their Application Prospects

The Rise of the BRC-20 Token Ecosystem

In early 2023, despite the downward pressure in the crypto market, innovative digital assets based on the Bitcoin network defied the trend. The rapid expansion of BRC-20 standard tokens within the Bitcoin ecosystem reflects the unique technological value and market appeal of this asset class.

What is a BRC-20 Token

A BRC-20 token is a fungible token standard operating on the Bitcoin blockchain, inspired by the Ethereum ERC-20 standard design. This innovation enables the Bitcoin ecosystem to support a variety of digital asset forms, including cryptocurrencies, digital collectibles, and more, seamlessly integrating with smart contracts and decentralized applications (dApps).

Market Size and Development Data

As of the end of 2023, the BRC-20 token ecosystem has established a substantial market foundation:

• Over 55,000 unique BRC-20 tokens minted
• Total historical transaction volume exceeding 40 million
• Total market capitalization surpassing $451 million
• Trading volume over $145 million

These figures clearly demonstrate that BRC tokens are becoming an important asset class within the Bitcoin ecosystem.

The Key Role of Bitcoin Ordinals and NFTs

BRC-20 tokens, together with Bitcoin Ordinals technology, form the two main pillars of Bitcoin tokenization, targeting fungible and non-fungible assets respectively. The emergence of these technologies has significantly expanded Bitcoin’s functional boundaries from a payment tool to an asset issuance platform.

Ordinals Inscriptions Technology

Ordinals create unique digital artifacts by assigning serial numbers to satoshis, the smallest units of Bitcoin, similar to the concept of NFTs on Bitcoin. Since its launch:

• Over 45 million unique Ordinals inscriptions have been generated
• The total value of Bitcoin NFT transactions reached $200 million within just three months
• New application scenarios such as digital art and collectibles have been opened within the Bitcoin ecosystem

Practical Use Cases for BRC-20 Tokens

The diverse applications of BRC tokens have attracted widespread attention from investors and creative professionals:

1. Physical Asset Tokenization
Real estate, artworks, commodities, and other tangible assets can be traded on-chain via BRC-20 tokens, enhancing liquidity and transparency.

2. Decentralized Finance (DeFi) Applications
Lending, liquidity mining, and other DeFi functions can be implemented under the BRC-20 standard, while retaining Bitcoin’s security advantages.

3. Gaming and Virtual Assets
Ownership and trading of in-game items and virtual goods can be fully managed transparently with BRC-20 tokens.

4. Digital Identity and Credentials
Personal identity verification information and qualification certificates can be securely transmitted online as tokens.

5. Rewards and Loyalty Programs
Points and rewards issued by companies can be realized through BRC-20 tokens, increasing user engagement.

6. Governance and Voting Rights
Decentralized organizations can use BRC-20 tokens for voting rights distribution and decision-making.

7. Cross-Chain Interoperability
BRC-20 tokens can serve as bridge assets between Bitcoin and other public chains.

8. Innovative Financial Derivatives
Stablecoins, futures contracts, and other financial instruments can be built based on the BRC-20 standard.

How to Purchase BRC-20 Tokens

Centralized Exchange Purchase Methods

Most centralized trading platforms have listed mainstream BRC-20 tokens. For example, popular tokens include:

• Ordinals (ORDI) - Current price $4.15
• SATS (SATS) - Widely available popular option
• Rats (RATS) - Emerging token choice

Purchase Process:

Step 1: Complete identity verification and account activation on a supported centralized exchange.

Step 2: Deposit stablecoins (like USDT) or other mainstream cryptocurrencies as trading pairs.

Step 3: Search for the target token trading pair (e.g., ORDI/USDT) in the spot market, and place a market or limit order.

Step 4: After the transaction, the BRC-20 tokens will be in your trading account, which you can choose to keep on the platform or transfer to a self-custody wallet.

Web3 Ecosystem Purchase Options

For BRC-20 tokens not listed on centralized exchanges, Web3 platforms offer alternative solutions:

1. Choose a Web3 platform supporting BRC-20
Ensure the platform has good reputation, robust security measures, and an intuitive interface.

2. Prepare a compatible self-custody wallet
Wallets like Ordinals Wallet, Unisat, Xverse, Sparrow support BRC-20 token storage and transactions.

3. Acquire Bitcoin (BTC)
Since BRC-20 tokens are based on the Bitcoin network, you need to purchase BTC as a trading medium. Purchase channels include centralized exchanges, OTC markets, etc. The current BTC price is approximately $89,000.

4. Transfer BTC to your self-custody wallet
Send the acquired Bitcoin to your chosen wallet address to ensure liquidity for subsequent transactions.

5. Connect your wallet to the trading platform
Follow platform instructions to link and authorize your wallet with the Web3 trading interface.

6. Execute BRC-20 token trades
Locate the target BRC-20 tokens on the platform and place buy or sell orders as needed.

7. Ensure asset security
After purchase, store the tokens in a compatible wallet. For large holdings, it is recommended to use hardware wallets for added security.

8. Continuous monitoring and management
Regularly check your investment status, market trends, and relevant policy updates.

Investment Tips and Risk Management

As a relatively new asset class, BRC-20 tokens and BRC coins carry obvious risks. Before participating, conduct thorough project research, understand the token’s economic model and application potential, and consult professional financial advisors if necessary. Investors should recognize that market volatility, policy risks, and technical risks may all impact asset value.

Summary

The rise of BRC-20 tokens, Bitcoin Ordinals inscriptions, and Bitcoin NFTs marks an important iteration in the digital asset space. Through diverse application scenarios and innovative technological frameworks, BRC coins open new opportunities for investors, developers, and collectors. Keeping abreast of these trends and understanding how to participate can help better identify potential opportunities in the crypto market. However, while pursuing emerging assets, maintaining caution and risk awareness remains essential.