Revolut, a prominent fintech company established in 2015, has made a name for itself in the challenger bank industry. But what sets it apart in terms of cryptocurrency trading? This article delves into Revolut’s cryptocurrency services, examining its features, drawbacks, and how it compares to its competitors.
What exactly are challenger banks?
Challenger banks, also known as neobanks, are online-based financial institutions. They offer a streamlined alternative to traditional brick-and-mortar banks, with a strong emphasis on mobile apps that provide user-friendly experiences for managing money, making payments, and sometimes even investing.
By leveraging cutting-edge technology, challenger banks deliver faster and more efficient services. By eliminating physical branches and streamlining operations, they often offer lower fees compared to traditional banks. Their mobile-centric design also makes financial management easier and more intuitive.
Revolut’s role in the crypto-friendly landscape
Despite being a challenger bank, Revolut has faced regulatory scrutiny over the years. However, this has positioned them as a bridge between decentralized finance (DeFi) and traditional finance (TradFi), driving mainstream audiences towards cryptocurrencies.
Is Revolut crypto-friendly?
Revolut entered the cryptocurrency space in 2017, allowing users to buy and sell a limited selection of cryptocurrencies directly within their app. In February 2024, they introduced a new crypto exchange called Revolut X, targeting advanced traders with promises of lower fees and enhanced market analytics.
While exact user numbers for Revolut’s crypto products are not publicly available, their overall user base has surpassed 30 million, indicating a significant potential audience for their crypto offerings.
Advantages of Revolut’s crypto services
Revolut stands out by offering several innovative features:
– Fractional trading enables users to buy fractions of cryptocurrencies, making it accessible to those with limited budgets. Users can start their crypto investment journey with as little as £1.
– Revolut’s mobile app is renowned for its intuitive design, making crypto trading less intimidating for beginners. Cryptocurrency applications can be notoriously difficult to navigate, so Revolut’s offerings can greatly improve user experience.
– Revolut’s advanced exchange promises lower fees and advanced features for experienced traders.
– The seamless integration between their fiat banking app and crypto products positions Revolut as a leading crypto bank in the United Kingdom.
Limitations of Revolut’s crypto offerings
However, there are some limitations to consider:
– As a newer player in the crypto space, Revolut’s banking app and Revolut X offer a smaller selection of cryptocurrencies and limited support for layer-1 blockchains compared to established crypto exchanges.
– Users cannot earn yields on their crypto holdings through staking mechanisms within the Revolut app.
– Revolut only provides basic market and limit orders, which may restrict experienced traders.
– As of May 2024, Revolut restricts the transfer of crypto assets to external wallets, allowing transfers to other exchanges but blocking transfers to self-custodial wallets.
Steps to trade crypto using Revolut’s banking app
Here’s a step-by-step guide to trading cryptocurrencies using Revolut’s banking app:
1. Access the Revolut mobile app and log in with your account details.
2. Navigate to the “Crypto” section (location may vary depending on the app version).
3. Select the cryptocurrency you want to trade, and Revolut will display the current price and trading chart.
4. Choose between “Buy” or “Sell” and enter the amount you want to trade in fiat currency or the chosen cryptocurrency.
5. Review the transaction details, including the total cost and any applicable fees.
6. Confirm the transaction, and once confirmed, the crypto purchase or sale will be processed.
Before engaging in cryptocurrency trading, it is crucial to conduct thorough research and understand the inherent risks. Cryptocurrencies are volatile assets, and their prices can fluctuate significantly.
Steps to trade crypto using Revolut X platform
In addition to the standard banking app option, Revolut has also launched its advanced crypto trading platform called Revolut X. Here’s how to use it:
1. Go to https://exchange.revolut.com to log in to the Revolut X application and stay connected to your Revolut account.
2. Click on “Deposit” to view your fiat balance on the Revolut banking app. You can deposit fiat from your Revolut account into the Revolut X account. If you already hold crypto on the exchange, you can also use it for trading.
3. Once the deposit is approved on the Revolut mobile app, you can start trading on Revolut X.
4. Revolut X offers basic market and limit order options, but it may not satisfy the needs of experienced traders seeking advanced tools and strategies. Additionally, the app supports a limited number of cryptocurrencies compared to major exchanges like Coinbase, Binance, and Crypto.com.
5. Users can check their portfolio performance and assets held by clicking on the portfolio tab.
The future of Revolut X
Revolut X is poised for significant growth in the crypto space. Its entry into crypto trading presents both opportunities and challenges. While it offers a convenient and user-friendly platform, its limitations may not cater to experienced traders.
However, with its integration across banking products and focus on user experience, Revolut has the potential to establish itself as a leading crypto bank in the United Kingdom. As it expands its cryptocurrency offerings and trading features, Revolut X could become a major player in the ever-evolving landscape of digital asset exchanges.