Since its birth in July 2015, the Revolut digital banking system has revolutionized the banking world offering operations at almost zero cost through Android and iOS apps: a huge advantage for thousands of people who were looking for a flexible banking tool, through which they can do international money transfers that are fast and do not cost a lung. To the Revolut account you can also associate real and virtual credit cards.
Revolution and operations in cryptocurrency
A year ago, on December 7 2017, Revolut opened a new chapter of its success story by announcing to customers the possibility to buy and exchange cryptocurrencies through its app.
They initially opened its doors to the trade of Bitcoin, Litecoin and Ethereum, announcing to wanting to make them available not only to experienced investors but to all their customers.
In May of this year, Revolut announced the opening to Bitcoin Cash and Ripple (XRP).
How do you access to cryptocurrencies through Revolut?
Given the high level of demand, Revolut has provided a system that allows access to the excahnge of cryptocurrencies in two cases:
- Being in possession of a Revolut Premium account
- Inviting at least three friends to create a Revolut Standard account (the access will be guaranteed only when the three accounts of the invited friends will actually be opened and confirmed)
Revolut Premium users can immediately access the service. While others will have to wait for at least three people to accept the invitation, and choose to enter the circuit.
How can I buy cryptocurrencies with Revolut?
To exchange cryptocurrencies with Revolut it’s sufficient to download the latest version of the app for iOS or Android and enable the “crypto” function, after accepting the legal terms that remind the risks of the operations with cryptocurrencies.
Once this step has been made, it will be possible to convert any of the 25 international operational cryptocurrencies on Revolut into cryptocurrencies.
Buying cryptocurrencies through the Revolut app allows to:
- Store them securely in your account
- Transfer them for free to other Revolut users (but not to users outside the Revolut circuit)
- Change them with other cryptocurrencies or fiat
The conversion rates applied are those established by the Bitstamp exchange. With which Revolut has a partnership, plus a 1.5% markup to take into account volatility.
Pros and cons of the management of cryptocurrencies with Revolut
Now that you have an overview on the possibility of buying cryptocurrencies through the app Revolut, let’s make a brief summary of its pros and cons.
Pros
- Buying and selling cryptocurrencies is very easy, as shown by this official video of Revolut.
- Conversion rate are very advantageous.
- You can send cryptocurrenceis to other Revolut users.
- The simple and immediate operation makes it particularly attractive for users who are still not familiar with cryptocurrencies and are thinking of investing small amounts for the long term.
Cons
- Revolut is a company registered in England and Wales, and as such must comply with the legislation of the two nations: the problem is that cryptocurrencies are not regulated in the UK, so there’s no compensation provided in case of loss or theft.
- It’s not possible to send cryptocurrencies outside the Revolut circuit; this means that your power on the cryptocurrencies that you purchase is limited, and it’s not possible to exchange them on other platforms.
- Using a volume-weighted average price (VWAP) to calculate buy/sell prices means that short-lived price movements are not reflected in buy/sell prices. It’s terrible if you’re intending to trade.
- In case of hard-fork, Revolut will decide on a case by case basis: this means that there is no standard procedure, and that the introduction of a new cryptocurrency after a hard fork is not certain.