Our beloved Revolut whipped out a new feature In December 2017 that allows you to purchase, hold and sell cryptocurrency. So you can now buy and sell Bitcoin and other cryptocurrencies on Revolut! But what’s the catch? Continue with the article to find out more.
What is revolut?
Revolut is one of the most rapidly growing fintech platforms worldwide. The platform allows instant transfers to and from more than 120 countries. Revolut has claimed that it is signing up 6,000 new customers now per day and it has a user base of two million clients, and one million of the customers are from the UK only!
Some of the services that Revolut offers include ;
Global Money Transfers
Peer To Peer Payments
Prepaid Debit Card
Revolut incorporating cryptocurrency is a very progressive move, and it further encourages cryptocurrency mainstream adoption. However, like all new ventures, its either going to be good or bad people are either going to love it or hate it. Let’s look at some of the pros and cons of this new feature, to help you decide whether you want to use it or not.
Pros of Revolut Crypto
This new Revolut cryptocurrency feature makes purchasing and selling crypto easy, simple and very fast. Revolut Crypto is precisely what the market needs to get newcomers on board and encourage wider adoption.
It’s a further leap in the right direction, bringing legitimacy to crypto. This can only be a good thing for cryptocurrency’s price action.
Another good factor is that you can instantly send cryptocurrency to anyone who is a Revolut account holder. The easy and instant operation makes it specifically attractive for users who are still new to cryptocurrency and are considering investing small amounts for the long term.
One can avoid paying extreme currency conversion fees (since BTC/EUR trading pairs are more popular than BTC/GBP trading pairs).
You can use your Revolut card to carry out transactions with your cryptocurrency. This happens by them exchanging cryptocurrency for FIAT instantly.
Some Unfortunate Disadvantages of Revolut Cryptocurrency
Any cryptocurrency that is stored by Revolut is not protected. Therefore you will not be compensated if your cryptocurrency is stolen or lost. This is similar to leaving your cryptocurrency on an exchange (definitely do not do that!). I believe Exchanges have been hacked before because of this.
You cannot send any cryptocurrencies outside of Revolut. Ultimately that means you are locked into the buy/sell price that they dictate and you cannot have control of the cryptocurrencies yourself. However, If you wanted to use the cryptocurrency that you would have bought, you wouldn’t be permitted to do so.
Making use of a volume-weighted average price (VWAP) in calculating buy/sell prices ultimately means that short-lived price movements are not shown in buy/sell prices. It is very bad if you are planning to trade.
Support for hard forks considered on a case-by-case basis. This means; there is no standard procedure, and introducing a new currency after a hard fork is not certain.
It is great to see cryptocurrency adoption, however, always do your due diligence when deciding where to buy sell and store your cryptocurrency.
Although Revolut is very restrictive and coincides with the fundamental characteristics of cryptocurrencies, it does continue to offer a great way to exchange funds into several other FIAT currencies, to further transfer to another crypto exchange.