NOTE: Please see update at end of article for cheapest route found.
Until recently the cheapest route to move money from my bank account into the BSC based DeFi economy was to transfer £GBP directly from my current account to my Binance account and then use it to buy $BNB, which I then moved to my MetaMask. That route is now closed, lost and sorely missed.
Ever since, the Binance gates were slammed on us poor Britons, I have been on a quest to find the cheapest alternatives I can, frustratingly these often involve convoluted and torturous routes.
For comparison I will show the cost of buying 1 $BNB. The price on Binance for 1 $BNB right now is £235.55 if only I could get by fiat there.
- Crypto.com, I use Crypto.com a lot, I have one of their debit cards which I use to earn cashback on all my purchases, so I had hoped this would be a good option - but sadly no. The issue is not their fees, but their rates, right now their $BNB price is £243.30 - however that is not the end of the problem. To get my BEP2 BNB from my Crypto.com account to MetaMask I first have to send it to Binance and then from there to Metamask as a BEP20 token. This incurs two sets of transaction fees: Crypto.com's withdrawal fee is 0.02 $BNB a whopping £4.86.
By the time my BNB hits Binance it has cost me £248.16. That's 5.4% more than it would have cost me on Binance before the loss of GBP bank transfers.
- Coinpass - this one is a bit of a workaround. Coinpass allows me to deposit GBP in my account for free, but only offers a handful of coins, none of which are BSC. On Binance I can trade 2.3425 $LTC for 1 $BNB and I need 0.001 $LTC to cover Coinpass's withdrawal fees, so I need to buy (allowing for network fees) 2.3445 $LTC which will cost me £242.40.
By the time I own 1 $BNB on binance I have spent £242.40. That's 2.9% more than on Binance before the loss of GBP bank transfers.
- Binance - now Binance is still possible using a debit card, providing your bank doesn't block the transaction - I use Revolut who are crypto friendly, my article here explains why you should switch to them - The Binance rate for a debit card purchase using £242.24 but you also have to pay a £4.95.
This time 1 $BNB is costing me £247.19. That's 4.9% more than on Binance before the loss of GBP bank transfers.
- Trustwallet - you can just buy BNB directly in your trustwallet using Moonpay, many recommend this route for no reason I can fathom.
This time 1 $BNB is costing me £251.80. That's 6.9% more than on Binance before the loss of GBP bank transfers.
I have not yet found a cheaper route than the Coinpass route, but even that means UK users are paying a 3% premium to interact with BSC. If anyone has found a cheaper route I would love to hear from you.
- Thank you Rammie for your suggestion in the comments, I ran up costings for your suggested route using Coinbase Pro and indeed it did come out cheaper. Deposits from a UK bank to Coinbase Pro are free - however you will need to have a UK bank account that does not block the transaction - I would recommend Revolut. Once money has hit your account we just want to find a coin with low network fees to send to Binance, $LTC remains a good option. On Coinbase Pro I can buy the required $LTC for less than I can on Coinpass and there is no withdrawal fee.
So far a bank transfer to Coinbase Pro with the purchased coins sent to Binance to exchange for BNB is the cheapest route.