Converting GBP

[NIrish]

I recently signed up to KuCoin and deposit in my local currency GBP.

A fair exchange rate to USDT is approx 0.825GBP/USDT

However despite the official rate being flat the going rate on platform is climbing (up 7% today alone)!

The current cost is 1.01GBP/USDT a 22% premium to convert FIAT!!!!

Can anyone explain this?  There is no way I'm paying this extortionate rate so I can get USDT to buy coins.

[OmegaStarScream]

I'm not sure if you can buy from Binance directly, since a few banks already started restricting people from buying crypto[1]

But you should be fine using their P2P platform. Most offers seem to have the rates you're looking for[2]

[1] https://www.indieinvestor.co.uk/what-uk-banks-are-banning-crypto-buying/
[2] https://p2p.binance.com/en/trade/all-payments/USDT?fiat=GBP

[NIrish]

Thanks, I did get a lengthy security call from my bank before allowing deposit.

The problem now appears to be that I can't withdraw GBP back to my account from KuCoin and I can only buy USDT/BTC/ETH with GBP and all three are hugely unflated!

I just can't figure out why on earth people are paying a 22% premium to swap FIAT to a stablecoin, it seems to make no sense whatsoever!

Thanks for the P2P idea, something I can look into once I figure out what to do with my deposit at KuCoin!

[TryNinja]

I just can't figure out why on earth people are paying a 22% premium to swap FIAT to a stablecoin, it seems to make no sense whatsoever!

This is why...:

The problem now appears to be that I can't withdraw GBP back to my account from KuCoin and I can only buy USDT/BTC/ETH with GBP

No one can withdraw GBP from Kucoin, so the only way out is by buying crypto with it. No one wants GBP + everyone wants to get out -> price inflation.

Unfortunately, GBP withdrawal is still unavailable. According to this announcement: https://kucoin.com/news/en-kucoin-will-support-the-fiat-deposit-and-spot-trading-pairs-for-eur-gbp It will be available in the middle of March this year and we've already made a follow-up on this matter. Please keep an eye out for further updates. Thank you.

https://twitter.com/KuCoinUpdates/status/1637148938007633920

[decodx]

I just can't figure out why on earth people are paying a 22% premium to swap FIAT to a stablecoin, it seems to make no sense whatsoever!

That's exactly the point. No one wants a currency they can't withdraw from the platform, that's why the price difference is so big. You have to be careful with such things in the future and check the exchange rate before depositing funds. I guess now you have the option to either accept such a bad rate or wait for it to stabilize again on the platform, which can be risky.

[NIrish]

As I typed it here that I can't withdraw it suddenly clicked why the inflated rates but I thought I'd wait for others to confirm!

So ... when I first deposited the rate was ok, I recently sold some bitcoin back to GBP as "the rate was higher/better" going back to pounds.  I hadn't realised why at the time but it's all coming together now.

Anyway, the exchange rate now is substantially higher than a week or so ago when I deposited so I'm kind of stuck.

I guess I'll give it a little time and hope it calms down or the "middle of march" happens very soon!!

I have a limit order in place to catch the market if it drops in the mean time.

[NIrish]

Thanks everyone for the assistance, as there is no cost effective exit route I'm going to hang on and hope withdrawal becomes available soon, given that the "middle of march" was the quoted timescale given when GBP deposits were introduced at the beginning of March.

Hopefully their plan made a couple of weeks previously can't be that far out 

In the meantime, if I want to make any further investments can anyone recommend an exchange with GBP deposit and WITHDRAWAL?

I'm having a look into Kraken as a possibility.

[OmegaStarScream]

In the meantime, if I want to make any further investments can anyone recommend an exchange with GBP deposit and WITHDRAWAL?

I'm having a look into Kraken as a possibility.

Yes, Kraken is good. Alternatively, you also have Coinbase[1] or CoinCorner[2].

[1] https://help.coinbase.com/en/exchange/trading-and-funding/exchange-fees
[2] https://support.coincorner.com/hc/en-us/articles/5901068854812-CoinCorner-Fees-and-Limits

[examplens]

Hopefully their plan made a couple of weeks previously can't be that far out 

In the meantime, if I want to make any further investments can anyone recommend an exchange with GBP deposit and WITHDRAWAL?

maybe you can first change GBP to USDT, which you will transfer directly to the exchange where you want to trade further. I don't know how favourable the exchange rate is, but you will avoid some unnecessary fees in transactions. For example:
https://www.bestchange.com/visa-mastercard-gbp-to-tether-trc20.html

[yhiaali3]

I use coinex.com. A good exchange that I have been using for 5 years, in which there is a deposit in sterling and a withdrawal, you can try it.

I don't use local currency deposits and withdrawals but you can have a look at the current exchange rates:

This is for deposit

                   

This is for withdrawal

                   


However, it is best to do your own research before investing in any centralized exchange.

[NIrish]

Thanks for the suggestions, coinex looks like a decent option at a glance!

As for the locked up funds at KuCoin, the exchange rate has been dropping today for some reason. 

Down to £0.84/USDT from £0.97, however as true value is about £0.815 I'm still holding out, hoping that the drop will continue or withdrawals will come online soon!

[NIrish]

GBP/USDT on KuCoin is stabilising, if I manage to sell my GBP for USDT the plan is to send to another exchange where I can convert back to GBP and withdraw.  Most likely candidate is currently Kraken.

However I've never sent Crypto before, can anyone advise what network I should use to get the USDT from KuCoin to another exchange or offer any advise so I don't get it wrong!!   

[Potato Chips]

However I've never sent Crypto before, can anyone advise what network I should use to get the USDT from KuCoin to another exchange or offer any advise so I don't get it wrong!!   

I suggest watching some video tutorials on youtube so you have an idea of how things work.

I would first check the available networks on both exchanges for USDT as they should match. For instance if you wanna withdraw USDT on TRON network, both kucoin and kraken has to support it.

Make sure to also read everything on the withdrawal and deposit page as exchanges typically place notices/guides on there e.g. something like "you may only deposit abc coin on y network in this address". Do it slowly and verify everything is right: the address, the coin selected, the network. For your peace of mind, you may also send a small amount first as a test.

[NIrish]

Thanks!! I hadn't followed up on this as I hadn't managed to convert my GBP to USDT .... until today!

Ironically after waiting it out with a limit order at 0.82/USDT the market randomly dropped to 0.77 today 

Anyway, I've set up with Kraken so the plan is to trial a transfer before sending the rest across to convert back to GBP and withdraw!

Fingers crossed!!!

[NIrish]

Getting into Crypto is starting to feel like walking through a minefield of potential issues and I'm reasonably tech savvy.  I don't know how the average Joe will ever get onboard!

My latest and thankfully unexpensive faux-pas was to send a trial $3USDT from KuCoin to Kraken as this was the minimum send ....

However it now appears the minimum deposit amount is higher than the minimum send at $5USDT on Tron so my transfer is simply lost ... poof ... gone!!

Learning comes the hard way again!

[Potato Chips]

Getting into Crypto is starting to feel like walking through a minefield of potential issues and I'm reasonably tech savvy.  I don't know how the average Joe will ever get onboard!

My latest and thankfully unexpensive faux-pas was to send a trial $3USDT from KuCoin to Kraken as this was the minimum send ....

However it now appears the minimum deposit amount is higher than the minimum send at $5USDT on Tron so my transfer is simply lost ... poof ... gone!!

Learning comes the hard way again!

Question, did kraken not show the minimum amount to be accepted on their coin's deposit page? cause any decent exchange should....

I would also get in touch with the support about your situation as some exchanges allows you to just deposit the remainder of the minimum deposit amount. They have a live chat, see: https://support.kraken.com/hc/en-us/articles/215601908-Contacting-Kraken-Support

[OmegaStarScream]

Question, did kraken not show the minimum amount to be accepted on their coin's deposit page? cause any decent exchange should....
-snip-

It looks like they do: https://support.kraken.com/hc/en-us/articles/360000381806-Viewing-your-cash-deposit-and-withdrawal-limits

@OP I know you only did this to test things out but if you're planning to withdraw a small amount regularly, it's probably better for you to withdraw all of your funds to a non-custodial wallet and then send them to Kraken whenever you want. This will help you save on fees.

[NIrish]

Kraken did display the minimum amount but sadly I overlooked it.  I think I already had it in my head that the minimum was $3 from KuCoin and didn't register it was different on Kraken.  My mistake obviously but frustrating.  Has spooked me about sending the larger lump but at least this issue won't be a concern.

I did speak to their help chat who were pleasant but said it was lost as Tether transfers can't be "stacked" and another payment won't push this one through so to speak!  Yet another lesson learned.

I don't really intend to transfer regularly, this is born out of KuCoin not having a withdraw GBP option whereas Kraken do.  However I'm interested to know why it would be cheaper to send to a wallet and then on to Kraken from there?  Surely I still have to pay the transfer fee to move it to my wallet each time??  Or do you mean a lump to wallet and then small payments from there??  Is it cheaper to send from a wallet??

[mindrust]

"Just when I thought I was out, they pull me back in."

As TryNinja said, you are now just another rabbit in the rabbit trap. If you want to get out of the trap, you need to pay a fee and the fee is 22%. 

I agree with you on that these things ain't making crypto adoption easier and you know what? That's the whole point. The banks don't want to do any business with the crypto exchanges for a reason. They don't want you to buy crypto. That's because your government also don't want it.

When crypto people say "We are going to destroy the FIAT, the banks horrraaay" You didn't think that was going to happen in a bed of flowers right?

[OmegaStarScream]

I don't really intend to transfer regularly, this is born out of KuCoin not having a withdraw GBP option whereas Kraken do.  However I'm interested to know why it would be cheaper to send to a wallet and then on to Kraken from there?  Surely I still have to pay the transfer fee to move it to my wallet each time??  Or do you mean a lump to wallet and then small payments from there??  Is it cheaper to send from a wallet??

Yes, I meant the latter. A non-custodial wallet will not charge you anything more than what you need to pay (network fees) and it's based on:

- Transaction size.
- How congested the network is.

An exchange on the other hand tends to charge users a fixed fee (depending on the coin/network of course)

So for example, Binance and Kucoin charge you 0.0005 BTC (~14$) while OKX charges 0.00032 BTC (~8) but if you were to try a non-custodial wallet then it shouldn't cost you as much:

Average transaction fee: $0.57 (1 input, 2 outputs, SegWit, 1 hour conf. time.)

So if you had 500$ BTC in KuCoin for example, it's better to withdraw everything, and use it from your personal wallet, than to withdraw a small amount each time you want to use your funds. Now, things may not be as bad when  dealing with USDT on Tron, but it's definitely something you should keep in mind.