Revolut Cryptocurrency Feature
Ease of Use
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). The fees aren’t that great either (2.5% if you don’t have a premium account).
I will 100% NOT be using Revolut’s cryptocurrency exchange. Check out the link below to find lots of fully functional (and cheaper) alternatives where you can buy Bitcoin (BTC) and other cryptocurrencies.
In December 2017, Revolut rolled out a feature which allows you to buy, sell, and hold cryptocurrency from within their mobile app.
There’s no doubt: Revolut is a fast, simple, and easy way to buy, sell, and hold cryptocurrencies. But I think Revolut’s crypto exchange sucks.
Want to know why? Read my full Revolut cryptocurrency review to find out more.
How Does Revolut’s Crypto Feature Work?
Revolut has made it fast, simple, and easy to buy and sell cryptocurrency inside their app.
Check out this quick video to see how it works.
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)
- Stellar Lumens (XLM)
- EOS (EOS)
- Tezos (XTZ)
- OMG Network (OMG)
- 0x (ZRX)
Revolut’s in-app cryptocurrency exchange is available to all users who are residents in the following countries:
- United Kingdom
- United States
- European Economic Area (EEA)
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, who is Revolut’s cryptocurrency exchange partner.
Using the VWAP means that short-lived price movements are not reflected in cryptocurrency prices. If you’re intending to trade, even casually, then this is awful.
Revolut adds a 2.5% markup to the VWAP price “to account for volatility” – which seems like a poor excuse. If you’re a Premium or Metal Revolut user (which both require a paid subscription), then this fee is reduced to 1.5%.
But wait, there’s more! If you’re a standard user and exchange more than £1000 worth of any currency using Revolut, you’ll be categorised as a “high-frequency” customer. If you fall into that category, you’ll then be charged an additional 0.5% in fees when you buy or sell cryptocurrency using Revolut.
You’ll be charged no other fees besides this. However, this isn’t the cheapest way to buy cryptocurrency in the UK.
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 or sell price which they dictate.
- Can’t take control of your cryptocurrency (i.e. withdraw it).
- Can’t actually use your cryptocurrency (this is just a speculation vehicle).
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 cryptocurrency exchanges have been hacked in the past. Hell, it happens every year!
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.
A few things that are not bitcoin:
all exchange IOUs
— Jameson Lopp (@lopp) August 28, 2020
It might be an easy on-ramp for your initial purchase – something which motivates you to find out more about Bitcoin (BTC) and other cryptocurrencies. But I’m not convinced by that. There are real cryptocurrency exchanges that are just as easy to setup and use.
In short, I’m staying away from Revolut’s cryptocurrency exchange.
Revolut Cryptocurrency Alternatives
I’ve reviewed some of the most popular cryptocurrency exchanges and brokers in the UK and ranked the best ways to buy Bitcoin (BTC) in the UK in this short and sweet list.
But if you’re looking for the easiest way to buy your first Bitcoin (BTC)?
Here are three great alternatives (all great for beginners):
- Coinbase: Pay fees as low as 1.49% if you buy Bitcoin (BTC) with GBP deposited with a UK bank transfer.
- Luno: Has a superb mobile app. This allows you to pay just 1.5% in fees when you buy Bitcoin (BTC) or a few other popular cryptocurrencies with GBP deposited via a UK bank transfer. Check out my Luno review to learn more.
- CoinJar: Allows you to buy Bitcoin (BTC) and an ever-growing number of cryptocurrencies with GBP deposited via a UK bank transfer. Check out my CoinJar review to learn more.
For the absolute cheapest way to buy Bitcoin (BTC) in the UK though? Check out this popular post.
Anything to add?
Thanks for reading this Revolut cryptocurrency review!
Have a question about it? Or want to share your thoughts about it?
Let me know in the comments section below!
If you’re interested in seeing buy bitcoin on Revolut looks like, check out this album.