Coinbase is one of the cheapest ways that you can buy Dai (DAI) in the UK. You can deposit GBP with a simple UK bank transfer, where you’ll then be charged fees of up to 0.6% whenever you buy or sell any cryptocurrency. However, this is only if you enable its Advanced Trading interface. Otherwise you’ll pay higher fees (at least 2%).
However, there are a few other cheap places where you can buy Dai (DAI) in the UK with GBP.
Check out this quick post to learn more.
Where Is the Best Place to Buy Dai (DAI)?
This table quickly highlights some of the places where you can cheaply buy Dai (DAI) with a UK bank transfer, credit card, or debit card.
| Provider | Payment Method | Fees (Approx.) |
|---|---|---|
| Coinbase (Advanced) | UK Bank Transfer | < 1% |
| Kraken | UK Bank Transfer | < 1% |
| CoinJar | UK Bank Transfer | 1% |
| CoinJar | Credit & Debit Card | 2% |
| Crypto.com | UK Bank Transfer | Variable |
| Crypto.com | Credit & Debit Card | 2.99%+ |
The cheapest payment method for buying Dai (DAI) and other cryptocurrencies on the majority of platforms available in the UK is a bank transfer.
Each of the cryptocurrency exchanges or brokers supports the Faster Payments (FPS) too. This means that any GBP you send to these places should be credited within a single day (but it’s usually much faster than that).
Although Coinbase is the cheapest option, you’ll have to enable the Advanced Trade interface to get the lowest fees. But be warned: it’s not as beginner-friendly as alternatives like CoinJar or Crypto.com.
Read on for more details about my top three favourite options.
Best Places to Buy Dai (DAI) in the UK
1. Coinbase
Coinbase is a well-known brand amongst cryptocurrency enthusiasts. It’s grown to support an ever-growing number of cryptocurrencies – including Dai (DAI).
You can deposit GBP onto this cryptocurrency exchange using a UK bank transfer (FREE). You can then buy Dai (DAI) and a range of other cryptocurrencies without paying more than 0.6% in fees.
However, you’ll have to enable its Advanced Trade interface to get these low fees. You can do this by selecting ‘Trade’ in the left sidebar and then a small ‘Advanced’ tab at the top of the page.
- Create a Coinbase account. You’ll need to verify your identity and address before you get access to all payment methods.
- Send GBP with a UK bank transfer to your GBP wallet. My first deposit took a few hours to credit, but thereafter they’ve been sorted within minutes.
- Enable the Advanced Trade interface. You can do this by selecting ‘Trade’ in the left sidebar, then ‘Advanced’ at the top of the next page.
- Buy Ethereum (ETH) on the ETH / GBP spot market. You’ll get access to the real exchange rate and pay maximum trading fees of 0.6%.
- Use that Ethereum (ETH) to buy Dai (DAI) on the ETH / DAI spot market. As before, you’ll get access to the exchange rate and pay up to just 0.6% in fees.
Check out the Coinbase website to learn more about them.
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2. CoinJar
CoinJar is a little bit different than Coinbase’s Advanced Trade UI.
Coinbase Advanced Trade UI is a cryptocurrency exchange that is aimed at people who are looking to regularly buy and sell cryptocurrencies like Dai (DAI). While they’re cheap, they can be a little intimidating if you’ve never used something like it before.
CoinJar is a lot more beginner-friendly.
You can access it via your browser or a mobile app. In either case, they’ve made it simple and easy to buy Dai (DAI) or any of the other popular cryptocurrencies they support.
And they don’t rip you off either. You’ll pay a fixed fee of 1% when you buy or sell any cryptocurrency with CoinJar.
- Open a CoinJar account. Like elsewhere, you’ll need to verify your identity with them.
- Send GBP with a UK bank transfer to CoinJar. My first deposit took a few hours to credit, but thereafter my transfers have been credited within minutes.
- Buy Dai (DAI) with the money in your GBP wallet.
Check out the CoinJar website to learn more.
What is DAI?
DAI is a stablecoin that’s soft-pegged to the US dollar. It’s an ERC-20 token that’s designed to maintain a value of US$1 without sacrificing decentralisation or security in the process. Since its founding, DAI has become one of the most popular stablecoins on the market, especially within the world of decentralised finance (DeFi).
DAI tokens are issued by MakerDAO, a decentralised autonomous organisation. As a DAO, MakerDAO isn’t run by a group of developers, though it was founded by Rune Christensen, a Danish entrepreneur. Rather, anyone that holds Maker (MKR) tokens gets a governance vote in decisions made by MakerDAO and can propose changes to how the DAI stablecoin operates.
Keep in mind that stablecoins like DAI aren’t new in the cryptosphere. The first major stablecoin pegged to the US dollar (USD) to hit the market was Tether (USDT), which launched in 2014. However, stablecoins like Tether (USDT) theoretically maintain their peg by backing each coin with a single US dollar held in a centralized reserve.
When DAI launched in 2015, it revolutionised the world of stablecoins. Instead of holding US dollars in a centralised reserve as collateral, DAI uses an algorithm to maintain its soft peg. This algorithm mints new DAI using smart contracts. These smart contracts generate DAI whenever an appropriate amount of Ethereum-based assets are held by the protocol in collateral.
But holding Ethereum-based assets in collateral is just one part of how DAI maintains its US dollar peg.
MakerDAO’s Oasis DApp also acts like a lending platform where anyone can deposit Ethereum-based tokens. In exchange for depositing ERC-20 tokens, borrowers can then get a DAI token loan at a dynamic interest rate. The algorithm is designed to maintain DAI’s stable price by adjusting DAI borrowing interest rates based on market trends.
If there’s too much DAI in circulation and the price starts to fall, the interest rate rises to help force borrowers to pay back their loans and stabilise prices. All of this happens based on decisions that are made by the protocol’s algorithm and MakerDAO – not a central authority like a reserve bank.
For a quick look at how DAI maintains its peg and operates within the MakerDAO ecosystem, check out this video:
The primary benefit of holding DAI is the fact that its price (theoretically) shouldn’t fluctuate.
Proponents of DAI argue that this makes it a useful cryptocurrency to use when you want to purchase goods or services because its price won’t vary wildly from one moment to the next.
Beyond its use as a digital currency for making purchases, DAI is also widely used in the world of DeFi. Many DeFi platforms offer interest on DAI, so it’s a potential source of passive income.
Additionally, some DeFi apps let you use DAI as collateral on crypto-backed loans so you can get quick access to cash without the need to liquidate your assets.
Best DAI Wallets
DAI is easy to store using most ERC-20-compatible software and hardware wallets. However, not all wallets provide equal access to the MakerDAO ecosystem.
If your primary concern is safely storing the private keys to DAI that you bought on an exchange, you can use pretty much any ERC-20-compatible wallet to manage your DAI, such as Exodus Wallet.
But if you want to be able to generate DAI by depositing Ethereum-based assets on the MakerDAO Oasis DApp your options are somewhat limited. In this situation, you might want to use a wallet that has a direct integration with the Oasis DApp, such as:
- MetaMask: A popular mobile app and browser extension-based wallet, MetaMask is a convenient place to manage all ERC-20 tokens, including DAI. Since it offers a direct integration with Oasis. you can deposit collateral from your wallet onto the DApp and then instantly receive DAI into your MetaMask wallet.
- Coinbase Wallet: A non-custodial software wallet that was created by the team at Coinbase. It supports most major coins plus all ERC-20 tokens, including DAI. Coinbase Wallet is primarily a mobile app, but it’s now also available as a browser extension so you can quickly connect to most DApps.
- MyEtherWallet: One of MetaMask’s top competitors. It’s a free non-custodial software wallet that you can use as a mobile app or a browser extension. Like MetaMask, it’s quick and easy to connect your MyEtherWallet to DApps such as Oasis so you can make the most of your crypto.
In addition to these three direct integrations, the Oasis DApp also lets you connect your non-custodial hardware or software wallet using WalletConnect. With WalletConnect, you can use other popular software wallets, such as Atomic Wallet and Trust Wallet, to access all the benefits of Oasis and other similar DApps.
For traders that would rather use a hardware wallet, you have plenty of options to choose from for managing the keys to your DAI.
Popular DAI-compatible hardware wallets include:
Both Trezor Suite and Ledger Live (the wallet interfaces for Trezor and Ledger devices) support DAI so you can manage your tokens with ease. Additionally, the Oasis DApp has direct integration with both Ledger and Trezor devices so you can access the wider MakerDAO ecosystem from your hardware wallet.
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