Financial apps have integrated crypto buying into everyday money management, making it simpler than ever. Intermediaries like Revolut have opened up the digital asset market to millions of users, offering transactions in a few clicks. These services eliminate the technical barrier to entry, but operate on principles fundamentally different from traditional exchanges. Understanding these differences is crucial to making an informed investment decision.
Initial rules of intermediaries
Using an intermediary to acquire cryptocurrencies is a process that prioritizes convenience rather than full control over the assets. In this model, a financial or fintech application acts as a custodian. This means that when a user “buys” Bitcoin, they are actually acquiring the right to the value of the asset, but the cryptocurrency itself remains deposited with the intermediary. The company manages a collective wallet in which it stores the funds of all its clients, and only assigns the corresponding record in the system to the user.
This simplistic mechanic has fundamental consequences. The most important of these is the lack of access to private keys. In the world of cryptocurrencies, the popular saying “not your keys, not your coins” perfectly captures the essence of the problem. Without private keys, you don’t have direct control over the funds on the blockchain. The user is fully dependent on the terms and conditions and technological infrastructure of the intermediary. It cannot manage its assets on its own, for example by transferring them to an external, more secure hardware wallet.
The purchase process is reduced to a minimum. After logging in to the application, which the user knows and uses on a daily basis for payments or transfers, all you have to do is enter the cryptocurrency section, select the asset you are interested in and specify the purchase amount. The transaction is executed instantly from your account balance. This eliminates the need to register on external platforms, go through complicated verifications or connect separate payment methods. The whole thing takes place in a closed, controlled ecosystem, which is a huge convenience for beginners.
Types and Opportunities
The market for intermediaries offering exposure to cryptocurrencies is broad and includes different types of platforms, each with slightly different characteristics. The most popular category is fintech apps like Revolut, which integrate digital asset trading with traditional banking services. Their strength is to create a single hub to manage your finances, from everyday payments to simple investments. The second group consists of global payment processors, for example, PayPal, which have enabled their users to buy and store cryptocurrencies directly in the app. In both cases, the emphasis is on simplifying the process as much as possible.
The opportunities offered by these intermediaries are deliberately limited so as not to overwhelm novice users. They focus on basic functions that allow you to enter the market without having to explore its technical aspects. The offer is usually tailored in terms of convenience and simplicity. The most common options are:
- immediate purchase and sale of several or several dozen of the most popular cryptocurrencies,
- automation of investments through cyclical orders,
- setting price alerts for the assets you follow,
- exchange cryptocurrencies directly with each other within the platform.
However, it is worth remembering that not every cryptocurrency platform of this type allows for external transfers. Many of them, especially at the beginning of their activity, blocked the possibility of withdrawing coins to private wallets, which made the investment purely speculative.
Commissions and payments
The pricing model used by intermediaries is one of the key aspects that distinguishes them from professional exchanges. Costs are often higher, which is the price to pay for convenience and simplicity of use. The main source of income for these platforms is not an explicit commission, but a spread, i.e. the difference between the buy and sell rate.
The spread in fintech applications can be much wider than on stock exchanges. It can range from 1.5% to as much as 3% depending on the user’s tariff plan and current liquidity in the market. This means that the purchase price is noticeably higher and the selling price is lower than the average market price.
In addition to the spread, some platforms charge a fixed trading commission. In the case of Revolut, the amount of this fee depends on the subscription plan you have. Users of the free Standard plan pay a higher commission, such as 1.49% (with a minimal fee), while customers of premium plans such as Metal or Ultra can expect lower rates, such as 0.99% or even a complete fee waiver within certain limits.
Payment for cryptocurrencies is made instantly from your account balance in the app, which is extremely convenient. The user does not incur additional costs related to external payment operators, as in the case of topping up the account on the exchange with a credit card. The total cost of the transaction is therefore the sum of the spread and the commission resulting from the tariff plan.
A profitable purchase?
The assessment of the profitability of buying cryptocurrencies by an intermediary depends directly on the investor’s profile and goals. For a person who wants to come into contact with the market for the first time, invest a small amount and not worry about the security of the wallet or complicated procedures, this is an attractive solution. The barrier to entry is practically zero. The convenience of owning stocks, currencies and cryptocurrencies in one well-known application is an argument that for many will outweigh the higher costs. It is an ideal testing ground.
The problem arises when an investor starts thinking about cryptocurrencies more seriously. The lack of full control over assets, restrictions on their transfer, and high transaction costs make intermediaries unsuitable for active trading or building a long-term portfolio of significant value. Each transaction depletes the capital by several percent, which in the long run has a huge impact on the rate of return. For more committed users, a dedicated trading platform that offers lower fees will be a better choice.
For traders and professionals who require advanced tools and minimal costs, fintech services are completely inefficient. Entities such as a pro-trading company offer access to specialized solutions, such as the 1cft platform. This type of advanced trading platform 1cft is a work tool, not a simplified service for the masses, which provides access to global liquidity and advanced order types, which is essential in professional trading. Even the basic operations that 1cft offers are far beyond Revolut’s capabilities.
Intermediaries such as Revolut perfectly fulfill their role as a gateway to the world of cryptocurrencies for the mass audience. They offer unparalleled simplicity and convenience, which is perfect for getting started. However, this simplicity comes at the price of higher costs and a lack of full sovereignty over the means at hand. As you gain experience and increase your financial involvement, it is a natural and sensible step to move your operations to specialized cryptocurrency exchanges. They not only enable real ownership of assets, but also significantly reduce transaction costs. The final decision must be based on an informed analysis of one’s own needs, strategy and acceptable level of risk.
