Is Revolut Good for Crypto?
Revolut is a new virtual bank with millions of customers. It is an "alternative to traditional banks" because it provides free and instant financial services to people who travel internationally or want to live a global lifestyle. But is it good for crypto?
While the worldwide banking system has remained unchanged for centuries, Revolut is bringing about positive change by allowing you to avoid the time-consuming and bureaucratic bottlenecks of traditional banking. The platform provides you with financial flexibility, allowing you to take control of your finances.
Revolut: The banking app
Revolut is a banking app that allows you to spend and transfer money worldwide in real-time. It is licenced in two countries: Lithuania and Australia. The platform operates in Poland, Lithuania, Bulgaria, Croatia, Estonia, Cyprus, Greece, Latvia, Malta, Romania, Slovakia, and Slovenia.
Revolut, founded in July 2015 by Nikolay Storonsky (a former trader at Credit Suisse), aims to provide mobile and online banking, allowing clients to avoid the high fees charged by traditional banks. The platform includes a pre-paid card that can be topped up with bank transfers or an existing credit/debit card. Users can also send money instantly or request payments from their accounts.
Revolut crypto fees
Paying Revolut fees for your cryptocurrency asset activities can become very expensive, especially if you trade cryptocurrencies frequently.
As stated in the company’s cryptocurrency terms, when you purchase cryptocurrencies through the app, it will exchange them at a partner exchange (such as Coinbase or Bitstamp).
You can exchange cryptocurrencies on these partner platforms without a middleman (Revolut). However, when we dig deeper and look at cryptocurrency fees on these exchanges, we find that they are still higher than on eToro.
In short, such a structure increases Revolut's costs and raises safety concerns if something unexpected occurs. You may have to pay multiple fees per transaction depending on the amount you want to exchange:
- A fair usage fee.
- A transaction fee.
- A Bid-Ask spread.
Can you move cryptocurrency from Revolut to a wallet?
Sending crypto from Revolut to a wallet gives you more control and protection over your crypto assets, especially if you keep them in a cold wallet like Ledger or Trezor.
However, Revolut crypto transfer to a wallet is not yet available to all users. The availability of withdrawals is determined by your location and the type of paid plan you have.
Assume you live in a country where crypto withdrawals are permitted (i.e., the UK). You should know some fees and limits when using the app to withdraw cryptocurrency.
Crypto withdrawal fees: The platform charges a "Network fee" and a "Service fee" when withdrawing cryptocurrencies. You can view the estimated total costs on the confirmation page before the withdrawal.
Limits on crypto withdrawals: There are currently restrictions on the total amount you can withdraw from the platform. £500 is the daily cap, and £1,000 is the monthly cap.
Is Revolut good for crypto?
Revolut is not a good option for cryptocurrency because of the high fees, absence of the withdrawal feature (in most countries), and limited selection of crypto assets.
The 1.99% fee for purchasing and the 1.99% fee when selling cryptocurrencies are way too high, an overall of 4% at least for one trade. By switching to the eToro platform, you can drastically reduce the amount of fees you pay.
Although there is a possibility to upgrade your account type to Premium or Metal and pay lower fees, it is still more expensive.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.