Looking to buy Synthetix (SNX) with GBP in the UK?
Check out this quick list of the best places where you can buy it in the UK.
Intro: Best Ways to Buy Synthetix UK
Here’s a quick overview of the best places where you can buy Synthetix (SNX) in the UK.
|Kraken||UK Bank Transfer||Up to 0.26%|
|Coinbase (Advanced)||UK Bank Transfer||Up to 0.60%|
|CoinJar||UK Bank Transfer||1%|
|Crypto.com App||UK Bank Transfer||Variable|
|BC Bitcoin||UK Bank Transfer||5%|
Excluding Coinbase, each of these places also allows you to buy Synthetix (SNX) and other cryptocurrencies with a credit or debit card. However, you’ll end up paying higher fees if you do this.
How to Buy Synthetix UK
1. Coinbase & Kraken
UK residents can deposit GBP into both of these cryptocurrency exchanges using a UK bank transfer. Each of them processes payments via Faster Payments (FPS), which means that your funds should be quickly processed and credited to your account.
(When I send GBP to Coinbase, it’s typically credited within minutes).
Kraken has the lowest trading fees of these three cryptocurrency exchanges – charging a maximum of 0.26%.
|Provider||Fees: Maker||Fees: Taker|
|Kraken||Up to 0.16%||Up to 0.26%|
|Coinbase (Advanced)||Up to 0.40%||Up to 0.60%|
But here’s the thing:
While cryptocurrency exchanges are the cheapest way to buy Synthetix (SNX), they’re NOT beginner friendly whatsoever. If you’ve never seen something like this before, then it might be a little intimidating to use.
Founded in May 2013, CoinJar is a cryptocurrency broker (and exchange) that allows you to buy Synthetix (SNX) and an ever-growing number of other cryptocurrencies.
You can deposit GBP into CoinJar with a UK bank transfer (via Faster Payments). After making my initial deposit, I’ve found that the GBP I transfer over to CoinJar is credited within minutes.
CoinJar charges a fixed fee of 1% whenever you buy Synthetix (SNX) or any other supported cryptocurrency. The prices you’re quoted might be slightly higher than the real exchange rate – but, when I’ve checked, not by much.
Alternatively, you can instantly buy any of the 57 supported cryptocurrencies with a debit card. However, you’ll pay twice as much in fees for this.
You can access CoinJar via your web browser, but there’s also an easy-to-use mobile app that you can download too.
3. BC Bitcoin
Established in 2017, BC Bitcoin is a highly-rated cryptocurrency broker that allows you to Synthetix (SNX) and almost any cryptocurrency you might want to get your hands on.
BC Bitcoin supports UK bank transfers (via Faster Payments), credit/debit cards, and SEPA bank transfers.
You’ll normally be charged 5% in fees to buy Synthetix (SNX) using BC Bitcoin.
The minimum order value is £250, but you can purchase multiple cryptocurrencies at the same time if you reach out to them (rather than going through the website).
What is Synthetix (SNX)?
Synthetic (SNX) is the native token for Synthetix, a decentralised finance (DeFi) protocol. There are many aspects of the Synthetix network, including its integrated decentralised exchange (DEX). Synthetix also allows anyone to mint and issue synthetic assets on the Ethereum network.
Technically, the token is called Synthetics Network Token (SNX) and the network is called Synthetix, but most people use the terms interchangeably. I’ll call the token SNX here to avoid any confusion.
The Synthetix network and the SNX token were both founded by Kain Warwick, an Australian entrepreneur. Both the token and the network were originally known as Havven (HAV), but the company rebranded in 2018 to Synthetix.
Here’s a short video that explains how the Synthetix protocol and the SNX token work:
The primary feature of the Synthetix protocol is that it lets anyone issue synthetic assets.
Synthetic assets on the Synthetix network are ERC-20 tokens that track the price of real-world assets, like stocks, commodities, fiat currencies, or even non-Ethereum cryptocurrencies.
Synthetix calls its synthetic assets “synths”. The protocol tracks real-time prices of the underlying assets of all synths using the Chainlink oracle.
Trading synths on Synthetix has a few advantages. In particular, investing with synths lets anyone trade stocks, commodities, and fiat currencies without the need to make an account with a centralised broker or exchange. This could be especially relevant for people in parts of the world that don’t have good access to traditional financial tools or markets.
Synthetix also supports derivatives trading for all synths minted on the protocol using tokens called inverse synths. An inverse synths’ price rises when the price of its underlying asset falls, giving traders an easier way to gain exposure to the derivatives market without the need for complex options contracts.
But what role does SNX play in all of this?
SNX is the utility token for the Synthetix protocol. It can be used as collateral whenever someone wants to mint new synths or inverse synths. You can also stake SNX to provide liquidity and stability to the protocol in exchange for staking rewards.
There are 3 main benefits to holding Synthetix (SNX):
- Ability to Mint Synths. Anyone that holds SNX tokens can issue synths on the Synthetix protocol. Issuing synths requires depositing a 750% collateralization ratio in SNX for the synths that you want to mint. For example, if you want to mint 100 synthetic Bitcoins (BTC), you would need to deposit the equivalent of 750 BTC in SNX onto the protocol. You can get your SNX collateral back by burning an equivalent amount of the synth that you initially minted.
- Opportunity to Earn Staking Rewards. SNX token holders can also earn rewards by staking their tokens on the Synthetix protocol. Staking your SNX helps to provide liquidity to the network. In exchange, you can earn weekly staking rewards, which are primarily paid out from trading fees on the Synthetix DEX, Kwenta.
- If you hold SNX tokens, you can vote on proposed changes to the Synthetix protocol through the network’s Snapshot DApp (decentralised app).
Best Synthetix (SNX) Wallets
Synthetix (SNX) is an ERC-20 token that’s widely supported by major hardware and software wallets.
If you bought your SNX tokens on an exchange and simply want a more secure place to store your private keys, you can use nearly any ERC-20-compatible wallet. Popular software wallets that you can use include MyEtherWallet and Exodus Wallet.
But if you want to stake your SNX, place governance votes, or mint synths, you’ll need to use a wallet that’s compatible with Synthetix DApp. Popular software wallets that integrate with the Synthetix protocol include:
- MetaMask: Arguably one of the most popular Ethereum network wallets available, MetaMask is a browser extension and mobile app that connects to most DApps. It supports all ERC-20 tokens, including SNX.
- Coinbase Wallet: A non-custodial software wallet that’s available as a mobile app and browser extension. It supports all ERC-20 tokens as well as coins on a handful of other popular blockchains. Coinbase Wallet also has a built-in DApp browser and support for NFTs.
- Portis Wallet: A non-custodial wallet service that supports coins and tokens on most major networks. It can store the private keys to all ERC-20 tokens, including SNX. Portis Wallet is only available on the web, but it offers a user-friendly way to manage your crypto.
The Synthetix DApp also works with WalletConnect. WalletConnect is a third-party software that integrates dozens of hardware and software wallets to DApps. Some SNX-compatible wallets supported by WalletConnect include Trust Wallet and Atomic Wallet.
But what if you want to use a hardware wallet for your SNX tokens?
Popular SNX-compatible hardware wallets include:
Only Trezor and Ledger devices have a direct integration with the Synthetix DApp. But you can use WalletConenct to integrate your Ellipal or CoolWallet device to the protocol to access the network’s staking, synths minting, and governance features.
Thanks for checking out this guide about how to buy Synthetix (SNX) in the UK!
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