Revolut and cryptocurrencies – solutions, which fell from the sky
This post is also available in: Polish
Going abroad is highly connected with the tremendous amount of preparation. One of the key phases of planning the travel is gathering enough money in the right currency. Traditional exchange in cantor is usually not cost-effective – usually the mark-up for the moneychanger adds to currency rates. Ordinary credit cards usually mean double currency exchange according to actual bank prices. At that moment, Revolut comes in and changes everything…
Startup, which just rocked the whole finance market
Revolut has been established on 1st of June 2015 by Nikolay Storonsky and Vlad Yatsenko. Firstly, it was created as a British startup with the headquarters in London. It was formed in order to fulfil market niche – target customers were people often travelling abroad who suffered catastrophic financial losses due to the high rate of currency exchange. Both of founders had close contact with banking – before starting their own startup both of them were employed by Credit Suisse.
Due to the unstable economic situation of Great Britain (mostly because of Brexit) owners of Revolut started to strive for a banking licence. That was totally successful – 13th of December 2018 they got a Fintech license from the central bank of Lithuania. This fact provides the company with an ability to develop into the full-fledged banking business.
Just registered with @RevolutApp.— Roland Mathys (@MathysRoland) August 18, 2019
Oh dear traditional banks: your transaction business is dead! I tell you: DEAD!
5 Minutes and you are ready to receive, transfer, exchange money and your Revolut Card is available in #applepay.
What Revolut can offer?
The assumption standing behind the Revolut is providing users the possibility to exchanging money in way much better terms than it used to be in cantors. Legend has it that they got this idea while they were traveling and spent a lot of money on conversion. It was that moment when they thought of combining the multicurrency card with a mobile application. Revolut is available in three options: Standard, Premium and Metal.
However, paying in different currencies at the rate of interbank course (which means without additional provision) is only one of a variety of services. The user has also access to different types of insurances (e.g. medical for the travel), no fee withdraws (up to a certain amount of money) and virtual cards. The last ones are especially necessary during shopping in online shops which are localized abroad.
Owners of the most abundant account may count on gaining Revolut metal card, 0.1% cashback within Europe and 1% outside Europe on all card payments. Moreover, in this package, there is also access to a concierge – who is the banking assistant.
Cryptocurrencies on Revolut platform
Revolut did not stop on the services for travelers. On the request of the users, cryptocurrencies were implemented. Precisely, 5 most common of them – that is Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple.
However, to gather access to cryptocurrencies the user needs to buy a Premium or Metal account. It does not mean that the users of standard accounts can not have such access. Nonetheless, they need to invite 3 friends to open an account on Revolut using the referral link.
Exposition to cryptocurrencies – what is going on?
Buying cryptocurrencies via Revolut is based on the so-called exposition. But… what does mean such a mysterious name?
Revolut is coworking with Bitstamp Exchange and from that place collects cryptocurrencies rates. Buying exposition is reserving funds on the exchange and assigning it to your own account. For such an operation Revolut gets a 1,5% price markup – taking into account instability of prices.
In other words, when the user gets access to cryptocurrencies, Revolut creates special wallet for him. It allows keeping resources in it as well as rebuying them on the exchange. The great plus for the many users is the fact that changing cryptocurrency into Fiat money is immediate. The exchange rate is taken from the Bitstamp at the moment of execution of the transaction.
Revolut, without any doubts, changed the exchange market making it much more user-friendly. In the future Revolut plan to introduce credits into its offer – to even better fulfil expectations of its clients. The way for operating cryptocurrencies is very interesting – for sure, fans of the dynamic exchange will appreciate its capabilities.