Revolut Cryptocurrency Feature
- Ease of Use
- Beginner Friendly
Revolut makes buying and selling cryptocurrency fast, easy, and simple.
However, there is a BIG downside. You can’t send any cryptocurrency you purchase on Revolut outside of their platform. That sucks. This is just a way for people to speculate on cryptocurrency prices (but not actually use them).
I would 100% NOT recommend Revolut’s cryptocurrency exchange. Check out the link below for better (and cheaper) alternatives.
In December 2017, Revolut rolled out a new feature which allows you to buy, sell, and hold cryptocurrency from within their mobile app.
While this is clearly a fast, simple, and easy way to buy, sell, and hold cryptocurrencies, I do not recommend Revolut’s crypto exchange.
Want to know why? Read my full Revolut cryptocurrency review to find out more.
How It Works
Revolut has made it fast, simple, and easy to buy and sell cryptocurrency inside their app.
This type of intuitive process is exactly what the market needs to onboard newcomers and usher wider adoption.
You can currently buy, sell, and hold the following cryptocurrencies on Revolut:
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Ripple (XRP)
Revolut’s in-app cryptocurrency exchange is available to all users who are residents of the European Economic Area, Switzerland, or Australia.
Last updated: November 2019
- United Kingdom
- Republic of Cyprus
- Czech Republic
Revolut’s cryptocurrency prices are calculated using the volume-weighted average price (VWAP).
Translated into plain English, this means that the price is weighted in favour of the price that has seen the most volume in a defined time period. This is all based on price data from Bitstamp (their cryptocurrency exchange partner).
Using the VWAP means that short-lived price movements are not reflected in cryptocurrency prices (this is terrible if you’re intending to trade).
They add a 1.5% markup to the VWAP price “to account for volatility” (which seems like a poor excuse). You’ll be charged no other fees besides this, but it’s still not the cheapest way to buy cryptocurrency in the UK.
Bitstamp doesn’t support many fiat currencies (i.e., just EUR and USD).
Because of this, Revolut handles all the necessary currency conversion behind the scenes. This is all handled at the interbank rate (unless it’s a weekend, where they’ll add 0.5% markup to major currencies).
Revolut doesn’t support individual cryptocurrency wallets. Instead, your cryptocurrencies are stored in a ‘pooled’ virtual account. Your balance is recorded on their internal ledger.
You also can’t send (or receive) cryptocurrencies outside of Revolut.
This means you:
- Are locked into the buy/sell price they dictate.
- Can’t take control of your cryptocurrency.
- Can’t actually use your cryptocurrency (this is just a speculation vehicle).
Although posts like this have popped up on Reddit, you cannot pay in cryptocurrency when using your Revolut card.
Here’s what happens: If the only funds in your Revolut wallet are bitcoin (or another crypto) and you buy a coffee at Starbucks, Revolut will automatically exchange the cryptocurrency back into the local currency and then send that over to Starbucks to pay for your coffee. (Source)
Funds received by us in relation to cryptocurrency transactions will not be safeguarded (as is the case for fiat currency transactions pursuant to our obligations under the UK Electronic Money Regulations 2011). Any cryptocurrency we hold for you is not covered by the Financial Services Compensation Scheme. (Source)
So if your funds are lost or stolen, you’ll have no legal recourse for compensation! Great stuff.
Using Revolut is just like leaving your funds on any other cryptocurrency exchange. You shouldn’t do this, as crypto exchanges have been hacked in the past.
Summary: Revolut’s Crypto Exchange Sucks
Let’s not walk circles around this. Revolut’s in-app cryptocurrency exchange sucks.
It’s telling that Revolut frames their in-app cryptocurrency offering as Cryptocurrency Exposure. It’s just a vehicle for you to speculate on cryptocurrency prices. Nothing more.
It might be an easy on-ramp for a newcomer’s initial purchase – something which motivates them to find out more about bitcoin and other cryptocurrencies. But I’m not convinced by that. There are real cryptocurrency exchanges that are just as easy to setup and use (e.g., Coinbase or Wirex).
I would NOT recommend Revolut’s cryptocurrency exchange in its current state.
(Much) Better Alternatives
I’ve reviewed about a dozen of the best ways to buy bitcoin in the UK and ranked the best ways to buy bitcoin in the UK in this short and sweet list.
But if you’re looking for the easiest way to buy your first bitcoin (BTC)? Check out Coinbase.
When you signup to Coinbase through this link, you’ll receive a $10 (approx. £7) bonus (paid in bitcoin) when you buy more than $100 (approx. £77) of bitcoin. It seems like a no-brainer.
For the absolute best way to buy bitcoin in the UK though, check out this popular post.
Anything to add?
What do you think of Revolut’s in-app cryptocurrency exchange?
Let me know in the comments section below!
If you’re interested in seeing buy bitcoin on Revolut looks like, check out this album.