Revolut launches crypto trading platform for advanced traders
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
- The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
- The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You should not expect to be protected if something goes wrong
- The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
- The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
- There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
- Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
4. Cryptoasset investments can be complex
- Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
- You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
- Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
Revolut X appears to be a departure from the brand’s ambition to be a “super app”.
Revolut has launched a platform designed to compete with leading crypto exchanges.
Revolut X is for advanced traders – a group that Revolut hasn’t previously catered for.
Revolut X isn’t accessible through the Revolut app, which is a big departure for a brand that’s made clear it wants to be the world’s first “super app”.
Instead, if a trader wants to use Revolut X, they’ll need to go through a laptop or computer browser. So what does it offer?
What is Revolut X?
Revolut X is accessible to all UK users with a Revolut retail account. However, it’s designed for advanced traders, not crypto newbies.
The service is offering 0% market fees and 0.09% taker fees. And users will be able to instantly on and off ramp (switch from fiat and crypto fee-free and with no limits). They’ll also be able to make market and limit orders.
Revolut X has a lot more analytical tools:
- Technical indicators
- TradingView charts
- Top-traded, top-gaining and top market-cap coins
How does Revolut X compare?
Revolut X competes with standalone crypto exchanges like Kraken and Gemini. The aim is to offer easier on and off ramping and lower fees.
In comparison to the other exchanges, its fees are competitive. As for the user experience, time will tell as to whether trading is as seamless as Revolut is promising it will be.
Revolut’s previous selling point was how integrated its crypto services were within its app – which definitely appealed to the merely crypto curious. However, its services were limited.
While advanced traders using Revolut X won’t get the same convenience as you get with the app, there’s a lot more in terms of trading tools.
If you want to see how Revolut stacks up next to other crypto exchanges in the UK, take a look at our best crypto exchanges guide. *Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply. Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.