Revolut Brings Cryptocurrencies To The Masses
In an unexpected move, Revolut, the e-banking firm, has decided to open up its Cryptocurrency section to 10m+ Standard plan users. Previously, you were required to be either a Premium member or hold a Metal account.
This move is said to be influenced by the ongoing COVID-19 issue.
Though it was intended for later in the year, Revolut reacted now to the ongoing pandemic, to the global economic crisis, and a number of potentially controversial tools many governments decided on using to try to alleviate the effects - including the quantitative easing program, which provoked hyperinflation fears.
The company said in a letter to users that it chose to enable regular clients trading in crypto as well, thus giving them "the opportunity to explore different ways of diversifying, including through crypto."
The rate Revolut provides is derived from their crypto exchange partner, Bitstamp, plus a 1.5% markup to account for 'volatility'. They mention in addition that they charge no additional fees for using the service, but the letter states that the flat fee for Standard users will increase to 2.5% in May.
The downside of investing in Crypto with Revolut is that the company doesn't allow you to transfer assets outside of the app, for example to an external wallet. The company says that this is because it: "holds cryptocurrencies on behalf of those wishing to gain exposure."
They further mention that it "securely holds the private keys of all users in a pooled cryptocurrency wallet."