The hidden dangers of not wrapping your Bitcoin

If you don't wrap your Bitcoin, you risk losing it all if your wallet is lost or stolen—just like with any other form of money or asset. You also lose the ability to easily transfer your Bitcoin to another person or entity, as wrapped Bitcoin is more like cash than an electronic funds transfer. Finally, if you don't wrap your Bitcoin you miss out on increased security and anonymity.

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoins are created as a reward for a process known as mining.