Revolut: Redefining the Crypto Space as a Challenger Bank
Summary:
The article discusses the role of Revolut, a fintech company, in the burgeoning challenger bank sector. It delves into Revolut's cryptocurrency services, including its 2017 entry into the crypto domain and its 2024 launch of Revolut X, a crypto exchange designed for seasoned traders. The article highlights the unique features of Revolut like fractional trading and an intuitive mobile app design. It also discusses its potential to make a mark as a dominant crypto bank in the UK. However, the article also points out a few limitations of Revolut's cryptocurrency services. Trading steps for both Revolut's banking app and the advanced Revolut X platform are also provided.
Established in 2015, Revolut is a fintech company that is a part of the burgeoning field of challenger banks. So, what exactly are these challenger banks and how do they differentiate themselves with their cryptocurrency trading services? In this writeup, we will delve into Revolut’s cryptocurrency services, examining its characteristics, constraints, and competitiveness.
Also referred to as neobanks, challenger banks refer to online-based financial establishments that serve as digital alternatives to conventional brick-and-mortar banks. They commonly prioritize mobile applications, providing hassle-free digital platforms for managing finances, making transactions, and occasionally, for investments. These banks leverage state-of-the-art technology to offer quicker, more efficient services. They often take pride in reduced costs resulting from the absence of physical branches and streamlined procedures. The mobile-oriented approach of these banks facilitates more user-friendly finance management. Despite being a challenger bank, Revolut has faced stringent regulatory scrutiny, equipping it to mediate decentralized finance (DeFi) and traditional finance (TradFi), consequently encouraging mainstream audiences towards cryptocurrencies.
Revolut marked its entry into the world of cryptocurrency in 2017, enabling users to purchase and sell certain cryptocurrencies directly through its application. In February 2024, it launched a fresh cryptocurrency exchange, Revolut X, crafted for “professional traders,” boasting reduced costs and superior market analytics. The precise user count for Revolut’s crypto services isn't publicly disclosed, but its overall user base tops 30 million, indicating a colossal potential audience for its crypto services.
Revolut presents a host of inventive features that secure its competitive position in the crypto-sphere. These include fractional trading which empowers users to invest in cryptocurrency irrespective of their budget constraints; an intuitive mobile app design that aids rookie crypto traders; a promise of reduced charges and advanced features via its advanced exchange; and a seamless amalgamation of its traditional banking app and crypto services which could help establish Revolut as a go-to crypto bank in the UK.
However, it’s essential to remember that Revolut’s crypto services have their share of limitations. As a relatively new entrant in the crypto market, the array of cryptocurrencies and support for layer-1 blockchains is less than what established crypto exchanges offer. Also, it doesn't offer yield earning on crypto holdings via staking mechanisms, only provides elementary market and limit orders, which might be restrictive for seasoned traders, and does not permit the transfer of crypto assets to external wallets.
Here’s how you can trade crypto using Revolut’s banking app: Log in to the Revolut mobile app; find the “Crypto” segment; choose the cryptocurrency you want to trade with; Opt for “Buy” or “Sell” and input the trading amount; review the transaction details including the total cost and applicable charges; and confirm the transaction.
In addition, Revolut has also introduced its enhanced crypto trading platform, Revolut X, with these steps to trade: Users can log into the Revolut X app through https://exchange.revolut.com; Click “Deposit” to view the fiat balance, deposit the balance into the Revolut X account; begin trading; note that there are only basic market and limit order options and only a limited selection of cryptocurrencies; Sell orders are also available on the app; Check portfolio performance and assets by clicking on the portfolio tab on the left.
Revolut X seems set for significant growth in the crypto sphere. Its features and its focus on user experiences give it a potential to establish itself as a prime crypto bank in the UK. As Revolut X evolves with increasing cryptocurrency offerings and trading features, it might just become a significant contender in digital asset exchanges.
Published At
5/17/2024 4:08:13 PM
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