How to Set Up a BRC20 Wallet for BRC20 Tokens

There has been a lot of movement towards Ordinals and BRC-20 tokens in the crypto space, as of now they seem more popular than NFT’s, should we base that on the number of tweets. Such a surge interest suggest that it makes sense to be prepared and know how to use this opportunities. This guide will allow to get a smooth experience in the Ordinals space.

For starters, what are Bitcoin Ordinals?

Bitcoin Ordinals is a protocol that lets you attach digital content (like images, videos, or text) to satoshis - the tiny units that make up Bitcoin. Each satoshi gets its unique serial number based on when it was mined.

Casey Rodarmor launched Ordinals in January 2023, introducing a new way to create digital collectibles directly on Bitcoin. Think of it like this: if Bitcoin is a giant stack of 100 million tiny coins (satoshis), Ordinals let you write something special on specific ones, turning them into unique digital items.

Ordinals differ from regular NFTs because they live on Bitcoin's main network. When you inscribe data onto a satoshi, that inscription becomes as permanent and secure as Bitcoin. Each Bitcoin breaks down into 100 million satoshis (worth 0.00000001 BTC each), and any of these can become an Ordinal inscription.

So, what are BRC-20 tokens?

BRC-20 tokens are Bitcoin's equivalent to Ethereum's ERC-20 tokens. They're a token standard that runs on Bitcoin through the Ordinals system. Developers created BRC-20 in 2023 to enable the creation of fungible tokens on Bitcoin.

Unlike Ordinals, which create unique digital items, BRC-20 tokens are interchangeable and uniform. The protocol uses the Ordinals' inscription system but adapts it to generate multiple identical tokens - expanding Bitcoin's functionality into fungible digital assets.

And lastly, what is a BRC-20 wallet?

A BRC-20 wallet helps you manage Ordinals on Bitcoin. You can store, send, and trade tokens. You can also mint and sell tokens through Ordinals marketplaces. Created in March 2023, BRC-20 tokens work only with Ordinals-compatible Bitcoin wallets.

Popular wallet options include:

• Trust Wallet (supports tokens like ORDI and SATS)
• Ledger (provides offline hardware storage)
• Xverse (works on Android, iOS, and Chrome)

Through this guide, we'll help you explore Ordinals using the Xverse wallet.