Revolut, a prominent player in the challenger bank industry, has made a name for itself with its cryptocurrency trading product. This article explores the features, limitations, and competition of Revolut’s cryptocurrency offerings.
Challenger banks, also known as neobanks, are online financial institutions that offer a streamlined alternative to traditional brick-and-mortar banks. These banks prioritize mobile apps to provide users with a user-friendly experience for managing money, making payments, and sometimes even investing.
What sets challenger banks apart is their use of cutting-edge technology to offer faster and more efficient services. By eliminating physical branches and streamlining operations, they can often offer lower fees than traditional banks. Their mobile-centric design also makes it easier for users to manage their finances.
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), attracting mainstream audiences to cryptocurrencies.
Revolut entered the cryptocurrency space in 2017 by allowing users to buy and sell a limited selection of cryptocurrencies directly within its app. In February 2024, it announced a new crypto exchange called Revolut X, targeting advanced traders. This exchange promises lower fees and enhanced market analytics.
While exact user numbers for Revolut’s crypto products are not publicly available, its overall user base has surpassed 30 million, indicating a significant potential audience for its crypto offerings.
Revolut offers several innovative features that set it apart in the crypto space. Fractional trading allows users to buy fractions of a cryptocurrency, making it accessible to those with limited budgets. The intuitive design of Revolut’s mobile app also makes crypto trading less intimidating for beginners.
Additionally, Revolut’s advanced exchange offers lower fees and advanced features for seasoned traders. Its seamless integration between the fiat banking app and crypto products positions Revolut as a leading crypto bank in the United Kingdom.
However, there are limitations to using Revolut’s offerings for crypto trading. 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.
Furthermore, users cannot earn a yield on their crypto holdings through staking mechanisms within the Revolut app. Revolut also only offers basic market and limit orders, which may be restrictive for experienced traders. Additionally, as of May 2024, Revolut restricts the transfer of crypto assets to external wallets, allowing transfers to other exchanges but not to self-custodial wallets.
To trade cryptocurrencies using Revolut’s banking application, users can follow these steps:
1. Access the Revolut mobile app and log in with your account details.
2. Navigate to the “Crypto” section, which may vary depending on the app version.
3. Select the cryptocurrency you want to trade and review 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 a volatile asset class, and their prices can fluctuate significantly.
Revolut has also launched an advanced crypto trading platform called Revolut X. To trade cryptocurrencies using this platform, users can follow these steps:
1. Visit 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 your Revolut banking application. 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.
Revolut X only offers basic market and limit order options, which may not satisfy the needs of experienced traders seeking more advanced tools and strategies. The platform also supports sell orders for users who want to exit their crypto holdings.
Users can check their portfolio performance and assets held by clicking on the portfolio tab.
The future of Revolut X looks promising in the crypto space. While the platform offers convenience and a user-friendly experience, its limitations may not meet the requirements of experienced traders. However, with its integration across banking products and focus on user experience, Revolut has the potential to become a leading crypto bank in the United Kingdom. As it expands its cryptocurrency offerings and trading features, Revolut X could emerge as a major player in the evolving landscape of digital asset exchanges.