Don’t spread bet on Bitcoin… it will just hurt
“The Least Stupid Way to Trade Cryptocurrencies?”It’s interesting to see that Revolut have launched a new Bitcoin, Litecoin & Ethereum exchange.
thumb_up I like Revolut and always use the service when I travel. It’s a great app and debit card combination for getting foreign currencies at close to spot FX rates… or within 1% of the spot rate. That’s a 5-10% saving on your normal debit or credit card.
They’ve now started to offer some cryptos and according to firm:
customers are now be able to buy, hold and exchange Bitcoin, Litecoin and Ethereum in just 30 seconds at the best possible rates.
Will Revolut Work Well with Bitcoin, Litecoin & Ethereum?Anyone reading Spread Bet Magazine will know I’m against leveraged trading of Bitcoin et al. But… a good quality product with no leverage could work for a small highly speculative trade.
info Revolut don’t offer leveraged trading, i.e. no spread betting or CFD trading, and this is key. With Revolut you just buy / sell like you do when buying / selling any currency when you go on holiday. £100 will get you £98.5 worth of Bitcoin. Simple
info The benefit of no leverage is that you won’t get stopped out in one of the stupid 10-20% swings that happen all the time.
info As above, Revolut take a 1.5% commission – I assume this is on both the buy AND sell trade, i.e. 3% to get in and out of the market.
thumb_up Revolut is FCA regulated so that gives me a little more reassurance over deposits and all the theft that happens with cryptocurrencies.
warning Even though Revolut is FCA regulated, remember that the FCA doesn’t currently regulate cryptos, i.e. you don’t have the same level of consumer protection as you do with Revolut’s banking or foreign exchange service.
info The new cryptocurrency service only launched in December 2017. I haven’t tried it yet / I haven’t looked at it enough to see how wide the spreads are.
info With the “standard account” that I have, it’s free to access the new crypto exchange if you refer 3 friends. You can also access the crypto exchange with the Premium account (£7/month).
lightbulb_outline I do plan to try it and buy about £100-£200 of Bitcoin, i.e. money I don’t mind losing. This is also key – all cryptocurrencies are very high risk. I will write this money off straightaway.
warning Do not forget – cryptocurrency trading is really really really risky.
If you don’t want to trade cryptocurrencies, good for you.
thumb_upBut I’d still recommend a Revolut card for cheap foreign change rates for when you travel. It can easily save you 5-10% on this year’s ski trip and that just makes sense.
Get a Revolut Card?
It’s easy too lose a lot on Litecoin too!
When you register with Revolut you might need to pay a one-off £12 fee. After that, I just use the standard account with no monthly fees.
Also see our main Bitcoin trading guide and lot of examples of how it can all go horribly wrong.
Remember: Spread betting, CFDs and forex trading carry a high level of risk. You can lose more than your initial investment. These products are not suitable for all investors. Only speculate with money that you can afford to lose. Make sure you fully understand the risks involved and seek independent financial advice where necessary.