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).
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.