Why wrap to bridge, rather than sell and buy wrapped tokens?

What is the advantage to wrapping tokens, rather than selling them on one chain and buying them on another. Is it to do with capital gain/loss?

For example, I have some Etherium on Kraken. It’s gone down in value since I bought it. I want to farm with it as weth on Avalanche. So I would need to pay gas to send it to etherium Metamask, wrap it, bridge it, use it.

But I can just sell it on Kraken to Ada. I can use the capital loss to realise gains elsewhere. Then a cheap ada transfer to kucoin, buy Avalanche, send to Avalanche chain on Metamask, buy Weth and farm. If I ever want to cash out I can just sell, and if I want Etherium directly I can just bridge and unwrap.

Is that possible/the best thing for me, or have I misunderstood something?

(Btw, can’t send avalanche direct from Kraken as global setting lock is on).

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1 thought on “Why wrap to bridge, rather than sell and buy wrapped tokens?”

  1. Buy sell equals slippage. Bridging is paying a fee. If moving thousands of dollars in eth slippage will eat quite a lot of funds that you are moving.


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