Cryptocurrencies - insecure and can't be spent

#1

Today I got access to cryptocurrencies in Revolut. Finally! I was really excited when I received the notification. Sadly, that excitement was short lived. I’m ok with revolut setting the sell/buy price and markup, but there is a fundamental flaw I can’t really live with and I won’t be using crypto on revolut until it’s resolved.

The issues is I can’t transfer cryptocurrencies in any way. I can only exchange from fiat currencies to crypto and viceversa, but that’s absolutely the only thing I can do. This has very serious implications:

  • Security: it’s cryptocurrency 101 not to keep your money in exchanges. They’re being hacked all the time. Bitcoins and other cryptocurrencies should be kept in a wallet for which only I have the private key (paperwallets, hardware wallets, wallets held in full clients, etc…). Since revolut won’t allow me to transfer funds to any other address (not even my own), I wouldn’t be able to keep that money secure. And since it’s revolut holds the private key for the wallet that would hold that money, in case of a hack, my funds would be compromised. Not acceptable. Specially when there are ways to prevent it.

  • Interoperability: the first thing I wanted to do was to transfer some bitcoins from an exchange to revolut. But I can’t do that, because revolut won’t even give me an address (let alone private key) to operate with.

  • Purchases: since I can’t transfer to any other bitcoin address, I can’t make any purchase in bitcoins. It’s not like that’s a big limitation for the time being, but it goes agains the whole point of cryptocurrencies.

  • Trading: being unable to transfer cryptocurrencies also means I’m locked in to revolut. I can’t benefit from the different exchange rates at different exchanges.

So, the only thing I can do with revolut’s current approach to cryptocurrencies is to do some speculation. And that would be severely limited since I have only one rate to choose from, and it’s not that good.

I went from excited to disappointed in a matter of minutes. I used to think of revolut as something halfway between a bank and a exchange. Now I see it’s just a bank that offers crypto as a financial investment, just like a fund.

I know you can’t change this overnight, but please take this into consideration. There’s no way anybody with a basic understanding of cryptocurrencies is going to be ok with your current offering.

Cheers!

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#2

Totally agree with you here, I was also under the impression I could send crypto directly to revolut and convert to fiat.

To buy in the UK we currently have to:

  1. Send euros to coinbase via SEPA and get shafted by RBS on the GPB to Euro.
  2. Send the euros to Gdax as coinbase is also a rip off.
  3. Buy etherium on Gdax and send to various exchanges to buy altcoins.
  4. Transfer the new altcoin into ledger nano S for security (optional).

To sell basically all the above in reverse, again getting shafted by all the conversion to get back to fiat. This is total madness, when I first saw Revolut I thought finally I can avoid the pain of all this SEPA nonsense and coinbase. If Revolut doesn’t offer wallets to send and receive cryptos then I really dont see the point of their crypto service. I am guessing someone else will come along and blow them out the water very soon if they dont get their act together.

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#3

It’s easier than that…
Open a EUR account in your Revolut app and transfer EUR to your crypto exchange of choice, if they accept EUR directly.
I use Gatehub this way.
I gave up on Coinbase because the fees are ridiculous.

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#4

Interesting! How are Gatehub fees?
And comparing to Kraken?

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