Wrapped Ether (WETH) is a type of cryptocurrency that is essentially an Ether (ETH) token that has been wrapped, or converted, into a standardized ERC-20 token. This conversion allows WETH to be traded on decentralized exchanges that only support ERC-20 tokens.
In other words, WETH allows users to trade ETH like any other ERC-20 token, making it more easily exchangeable with other cryptocurrencies. By wrapping ETH, it becomes more compatible with decentralized applications (dapps) that only accept ERC-20 tokens, making it easier for users to trade ETH with these dapps.
WETH is important in the context of trading as it provides greater flexibility and compatibility for traders and investors who hold ETH and want to trade it on decentralized exchanges. It enables them to take advantage of the increasing number of dapps and decentralized exchanges that use the ERC-20 standard.