Crypto basics
Cryptocurrency
Cryptocurrencies are digital assets secured through a peer-to-peer network of computers, not a central entity like a bank. They are volatile and unregulated, meaning their value can change rapidly. Tax may apply to any gains made through trading cryptocurrencies.
Blockchain
A blockchain is a decentralized digital ledger of transactions. It grows in 'blocks' that contain recent transactions, ensuring transparency and security without a centralised ledger.
Fiat currency
Fiat money is a government-issued currency not backed by a physical commodity, such as gold or silver. Examples include the US dollar and the euro. Cryptocurrencies are not tied to fiat currencies, nor are they issued or backed by any government.
Private keys
A private key is a unique code tied to a cryptocurrency wallet address used to access cryptocurrencies. Revolut appoints third-party custodians to protect the private keys of all users.