How to Buy TerraUSD (UST) in the UK (2021)

This post contains affiliate links and I may receive compensation when you click certain links.

One of the cheapest places to buy TerraUSD (UST) is on Coinbase Pro. However, it’s not possible to directly buy it with GBP. This means you’ll need to buy it using Tether (USDT) or another market pair.

Alternatively, you can buy TerraUSD (UST) directly with GBP using CoinJar. This is more convenient and easier to use than Coinbase Pro, but the fees work out slightly higher.

Check out the full post to learn more.

A Quick Overview

Here’s a quick overview of some places where it’s possible to buy TerraUSD (UST) in the UK.

ProviderPayment MethodTrading Fees
Coinbase ProUK Bank TransferUp to 0.5%
CoinJarUK Bank Transfer1%
CoinJarCredit & Debit Card2%
GeminiUK Bank Transfer1.99% (if > £150)
GeminiCredit & Debit Card5.48% (if > £150)

How to Buy UST

1. Coinbase Pro

Coinbase is a well-known name in the crypto-space and was one of the first major cryptocurrency exchanges to receive an e-money license from the Financial Conduct Authority (FCA) in the UK.

Since then, you’ve been able to deposit GBP with a UK bank transfer easily and quickly. Because this is processed via the Faster Payments Service (FPS), my deposits have been credited within minutes to my account.

You can’t buy TerraUSD (UST) directly with GBP on Coinbase Pro, but you can buy it with Bitcoin (BTC) or Tether (USDT).

The cheapest route is to buy Tether (USDT) with GBP, and then exchange that for TerraUSD (UST).

There’s a small fee for buying Tether (USDT) with GBP (0% maker, 0.01% taker), and then a larger fee (max 0.5%) when buying TerraUSD (UST) with Tether (USDT).

While this is cheaper than alternatives, the Coinbase Pro interface isn’t beginner-friendly.

Coinbase WebsiteCoinbase Pro Review

2. CoinJar

Unlike on Coinbase Pro, you can buy TerraUSD (UST) directly with GBP.

If you’re a UK resident, then you can deposit GBP with a UK bank transfer. Like in other places, this is processed via the FPS – and means that your GBP should be credited to your account within minutes.

If you take this route, then you’ll be charged 1% in fees when you subsequently buy TerraUSD (UST) using the GBP in your wallet.

Alternatively, you can instantly buy TerraUSD (UST) with a credit or debit card. However, you’ll pay 2% in fees if you take this route.

Given that you can deposit GBP with a UK bank transfer, and have it credited with minutes, it seems a bit unnecessary to use a card and pay these extra fees.

CoinJar WebsiteCoinJar Review

3. Gemini

Like CoinJar, Gemini allows you to deposit GBP with a UK bank transfer – or instantly purchase a supported cryptocurrency with a credit or debit card.

However, the fees are the highest of these three options:

  • 49% transaction fee (if you spend more than £150).
  • 50% convenience fee.
  • Extra 3.49% in fees if you use a debit or credit card.

Gemini supports more than 40 cryptocurrencies – including TerraUSD (UST), Chainlink (LINK), and UMA (UMA).

Gemini WebsiteGemini Review

Extra: What is TerraUSD (UST)?

TerraUSD (UST) is a stablecoin that runs on the Terra blockchain, which is built on the Ethereum network. It is a decentralised stablecoin that attempts to maintain a 1:1 peg with the US dollar without sacrificing scalability.

South Korea-based Terraform Labs, the company behind the TerraUSD (UST) stablecoin, was founded in 2019 by Daniel Shin and Do Kwon. One year later, in 2020, the duo launched TerraUSD (UST).

What makes TerraUSD (UST) unique is that it’s a USD-pegged stablecoin that’s not actually backed by US dollars.

But that raises the question: How does TerraUSD (UST) maintain its 1:1 peg?

The answer lies with another coin that’s somewhat confusingly known as Terra (LUNA). Asset holders can swap and burn LUNA for UST to maintain the stablecoin’s 1:1 peg with the US dollar during times of market contraction or expansion. All of this happens without oversight from Terraform Labs, allowing the network to be both decentralised and scalable.

Here’s a look at how TerraUSD (UST) works and how it interacts with LUNA to maintain its peg:

What are the benefits of holding TerraUSD (UST)?

There are a number of benefits to holding TerraUSD (UST).

The primary benefit of holding TerraUSD (UST) is similar to the benefit of holding any stablecoin, namely, that its price doesn’t (or at least shouldn’t) fluctuate too far beyond its peg—in this case, US$1.

But TerraUSD (UST) offers some advantages that you can’t get with many other stablecoins.

The fact that UST is explicitly not backed by the US dollar is important. This means that its peg won’t break simply because a central authority doesn’t have enough cash reserves to back up the UST in circulation. There are other ways that UST’s peg could break, but this isn’t one of them.

Additionally, TerraUSD (UST) offers the potential for scalability and decentralisation that’s hard to get with many other stablecoins. This is because the algorithm behind the coin is designed to keep its value stable through interactions with LUNA, even during periods of economic volatility.

That said, the biggest potential financial benefit of UST is its staking rewards. Investors can stake UST (or LUNA, for that matter) on the Anchor Protocol, a savings protocol that’s built on the Terra blockchain. This protocol provides yields of upwards of 20% on staked assets.

Finally, anyone holding UST or LUNA also gets a governance vote in decisions made within the Terra ecosystem.

What’s the difference between TerraUSD (UST) and TerraWon (KRT)?

If you spend enough time researching the Terra ecosystem, you’ll discover that there are a lot of different coins with the word ‘Terra’ in their names.

For example, TerraUSD (UST) is the network’s stablecoin that tries to maintain a 1:1 peg with the US dollar. TerraWon (KRT) does the exact same thing, but for the Korean won.

There are other Terra coins in the works, too. In January 2021, Terra coin holders voted to approve a proposal for TerraEUR (EUT), which will try to maintain a 1:1 peg with the Euro. As the Terra ecosystem grows, more coins might be added to it.

Extra: Best TerraUSD (UST) Wallets

TerraUSD (UST) can be a tricky cryptocurrency to store because there are technically 3 types of UST tokens:

  • Native TerraUSD: This is the form of UST that’s native to the Terra blockchain.
  • ERC-20: Most UST that you buy on major exchanges is the ERC-20 version.
  • BEP20: Some exchanges support the Binance Smart Chain version of UST.

Not all wallets are compatible with all forms of TerraUSD (UST). So, it’s essential that you verify the type of UST that you buy so that you don’t try to send your assets to an unsupported address.

That said, you can use Terra Bridge for interchain transfers to swap one version of UST for another. Additionally, most UST that you buy on exchanges is the widely supported ERC-20 token variety.

A simple way to store the private keys to your TerraUSD (UST) is on the official Terra Station wallet. The wallet is available as a mobile app (iOS and Android), Chrome extension, or as a desktop app for OS, Windows, and Linux.

Terra Station supports all of the coins in the Terra ecosystem, including Native TerraUSD and LUNA. It also supports Anchor Protocol (ANC) and Mirror Protocol (MIR), as well as a range of DApps. You can also stake all Terra ecosystem coins from the app.

Other popular hot wallets that support TerraUSD (UST) include:

  • MetaMask: Supports the ERC-20 version of TerraUSD (UST).
  • Atomic Wallet: Supports the ERC-20 version of TerraUSD (UST).
  • Trust Wallet: Supports the ERC-20 and BEP20 versions of TerraUSD (UST).

If you want a hardware wallet for securing your assets, two of the best options for UST storage are the Ledger Nano X and Nano S.

The private keys on all versions of all Terra coins, including UST and LUNA, can be stored on Ledger wallets using an integration with Terra Station. However, you need to download the Terra Station desktop app to get started.

Since TerraUSD (UST) is an ERC-20 token, it’s also compatible with Trezor wallets like the Trezor Model T and the Trezor One. However, UST isn’t supported by the Trezor Suite wallet interface. So, you’ll need to integrate your Trezor with MetaMask or another similar platform before you can store your private keys.

Related Content

Thanks for checking out this post about how to buy TerraUSD (UST) in the UK!

Here are some other posts you might like:

Leave a comment