Buying bitcoin and other cryptocurrencies through the Revolut app has become popular due to its simplicity, speed and direct access to a variety of digital assets. In this article, I will present how to purchase cryptocurrencies through Revolut step by step, how to exchange them, withdraw them, and what taxes we may face during these transactions.
Can you buy cryptocurrencies through Revolut?
Yes, Revolut allows its users to buy, exchange and sell various cryptocurrencies directly through the app. The process is intuitive and accessible to people of all levels of cryptocurrency expertise. Revolut's offer includes not only bitcoin, but also ethereum, litecoin and many other popular cryptocurrencies.
Commissions at Revolut
The commissions Revolut charges for cryptocurrency transactions vary by subscription level. Standard and Plus account users will pay 1.49% per transaction, while Premium and Metal subscribers will pay 0.99%. Revolut may also mark up the cryptocurrency exchange rate, which means that the rate at which you buy or sell cryptocurrencies may be slightly different to current market rates. This exchange rate difference is an additional way for Revolut to generate revenue from its cryptocurrency operations.
Revolut strives to be transparent about its fees and commissions, so before making any transaction, users can check the current commission rates and exchange rate directly in the app.
How to buy cryptocurrencies on Revolut?
- Open the Revolut app and log in to your account.
- Go to the 'Crypto' section in the application located in the bottom menu.
- Click 'Invest' and select a cryptocurrencythat you want to buy.
- Click 'Buy' and enter the amount purchase in the currency you want to use, or specify the amount of cryptocurrency you want to purchase.
- Confirm the transaction and that's it! The purchased cryptocurrencies will be added to your wallet in the Revolut app.
How to exchange cryptocurrencies on Revolut?
Exchanging cryptocurrencies on the Revolut app is a very quick process, allowing users to seamlessly convert between different types of assets.
- Open the Revolut app and log in.
- Go to the 'Crypto' section.
- Select the asset you want to exchange and click “Sell”.
- Choose a cryptocurrency pair and the amount you want to exchange. You can specify it in the source or target cryptocurrency. The application will automatically calculate the equivalent in the second cryptocurrency based on the current exchange rate.
- Confirm the transaction by clicking “Verify order”.
- Check your transaction history. Once your trade has been approved, you can review the transaction details in your account history to make sure everything went as planned.
How to withdraw cryptocurrencies from Revolut?
While Revolut doesn't yet offer a direct option to withdraw cryptocurrencies to external wallets, there is an easy way to convert your digital assets into traditional currency and withdraw funds to your bank account. Here's how you can do it:
- Open the Revolut app and log in to your account.
- Go to the 'Crypto' section.
- Select cryptocurrency to sell and click on it to start the conversion process to traditional currency.
- Specify the amount of cryptocurrency you want to sell, or the amount in traditional currency you wish to receive. The app will show you the converted value at the current exchange rate.
- Confirm the transaction by clicking “Verify order”.
- Go to the “Transfers” section, and then 'Accounts', where you can select or add an account to which you will make the withdrawal.
- Confirm your withdrawal. The funds should appear in your bank account within a few business days.
Will we pay tax and how much for withdrawing cryptocurrencies from Revolut?
The withdrawal of funds obtained from the sale of cryptocurrencies may be subject to taxation depending on the regulations in force in the country of your tax residence. In Poland, for example, income from cryptocurrencies is treated as capital income and is taxed at a rate of 19%..
Security and restrictions
When buying and selling cryptocurrencies through Revolut, you should be aware of the potential risks associated with price fluctuations and remember that Revolut as a platform does not offer the same level of control over cryptocurrencies that dedicated cryptocurrency wallets provide. Additionally, it is worth bearing in mind that the cryptocurrency offer at Revolut may vary depending on the country.
Final thought
Revolut offers a simple and effective way to enter the world of cryptocurrencies, providing users not only with tools to buy, sell and exchange digital assets, but also with valuable knowledge. Although the platform does not provide such advanced control over assets as dedicated cryptocurrency wallets, it is an excellent starting point for those who want to start their adventure with cryptocurrencies without delving into the complexities of purchasing and storing them. What's more, Revolut often rewards commitment to the educational process by offering the opportunity to earn free cryptocurrencies. This is an incentive not only to learn, but also to practically use the newly acquired knowledge on the platform.
