Trading Crypto in the UK with Revolut X

Revolut is a financial technology company established in 2015 that has quickly made its mark in the world of challenger banks. But what exactly are challenger banks, and how does Revolut distinguish itself with its cryptocurrency trading product? This piece delves into Revolut’s cryptocurrency features, its strengths and weaknesses, and how it stacks up against the competition.

Challenger banks, sometimes referred to as neobanks, are financial institutions that function primarily online. They provide a sleek and efficient alternative to traditional, physical banks. These banks focus on mobile applications, ensuring a user-friendly interface for managing money, making payments, and even exploring investment opportunities. By leveraging advanced technology, challenger banks can deliver faster and more efficient services compared to their traditional counterparts.

The absence of physical branches allows challenger banks to streamline operations, often resulting in lower fees. Their mobile-centric approach makes financial management more convenient and intuitive for users. Despite being a challenger bank, Revolut has undergone significant regulatory scrutiny over the years, enabling it to bridge the gap between decentralized finance (DeFi) and traditional finance (TradFi). This positions Revolut as a key player in steering mainstream audiences toward cryptocurrencies.

Revolut ventured into the cryptocurrency market in 2017, offering users a way to buy and sell a limited range of cryptocurrencies directly within its app. In February 2024, the company announced the launch of a new crypto exchange called Revolut X, aimed at “advanced traders.” This platform promises lower fees and enhanced market analytics. While specific user numbers for Revolut’s crypto services aren’t publicly available, the company boasts over 30 million users, indicating a strong potential market for its crypto offerings.

Several innovative features set Revolut apart in the crypto space. For instance, fractional trading enables users to buy fractions of a cryptocurrency, making it accessible to those with smaller budgets. Users can start investing in cryptocurrencies with as little as 1 British pound. Revolut’s mobile app is celebrated for its intuitive design, which can make crypto trading less daunting for beginners. This user-friendly interface could significantly enhance the user experience in crypto trading.

Revolut’s advanced exchange aims to offer lower fees and more sophisticated features for seasoned traders. The seamless integration between their fiat banking app and crypto products could make Revolut a leading crypto bank in the United Kingdom. The platform does have its limitations. Being relatively new to the crypto space, Revolut’s app and Revolut X offer a narrower selection of cryptocurrencies compared to established crypto exchanges. Users can’t earn yields on their crypto holdings through staking mechanisms within the app.

Revolut’s trading functionalities are somewhat basic, offering only market and limit orders, which may not meet the needs of experienced traders. As of May 2024, the platform restricts the transfer of crypto assets to external wallets, allowing transfers to other exchanges but blocking transfers to self-custodial wallets. This limitation could be a significant drawback for those who prioritize control over their digital assets.

Trading cryptocurrencies using Revolut’s banking application involves a few straightforward steps. First, users need to access the Revolut mobile app and log in. Within the app, they navigate to the “Crypto” section, select the cryptocurrency they wish to trade, and review the current price and trading chart. After choosing between “Buy” or “Sell” and entering the trade amount, users can review and confirm the transaction. It’s crucial to understand the inherent risks in cryptocurrency trading, as these assets can be highly volatile.

For more advanced trading, Revolut has launched Revolut X, an advanced crypto trading platform. Users can log in to Revolut X, deposit fiat money from their Revolut account, and start trading. Although Revolut X offers basic market and limit order options, it may not satisfy advanced traders due to its limited range of cryptocurrencies and lack of sophisticated trading tools compared to major exchanges like Coinbase, Binance, and Crypto.com. It does offer an option for sell orders, allowing users to exit their crypto holdings, possibly swapping them for stablecoins.

Revolut X holds significant growth potential within the crypto space. Its entry into digital asset trading presents both opportunities and challenges. While the platform is user-friendly and convenient, its limitations might not appeal to seasoned traders. With its integration across banking products and focus on enhancing the user experience, Revolut could establish itself as a top crypto bank in the United Kingdom. As Revolut expands its cryptocurrency services and trading features, Revolut X could become a major player in the dynamic world of digital asset exchanges.