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Luno Exchange Review
Luno is a unique offering in the cryptocurrency exchange space, as it is mainly focused on developing markets like Nigeria and Malaysia. Both bitcoin and Ether can be traded on this exchange, although the crypto asset support is rather limited outside of those two key players.
While developing markets have tended to converge on peer-to-peer trading platforms like LocalBitcoins and Paxful over the years, Luno offers an alternative option in these locations for people who prefer a traditional, centralized trading platform for bitcoin. Let’s take a closer look at what Luno has to offer in terms of cryptocurrency trading.
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Luno Overview
- Solid cryptocurrency exchange that focuses on developing markets like Nigeria and Malaysia
- Support for Bitcoin and Ethereum buying
- Good alternative to peer-to-peer exchanges
- Easy-to-use interface makes crypto on-boarding a breeze
Pros & Cons
Pros
Simple interface that is easy to understand for users in any market
Developing countries are supported, which is somewhat of a rarity for this type of exchange
This exchange has never been hacked
Low trading fees
Free bank transfer deposits
Cons
The way fees work on this platform can be confusing
There is no non-custodial wallet offered by this exchange
Only useful in emerging markets
Luno Sign-up Process
Luno has made it extremely easy to sign up for an account. To start, you simply need to click the “Sign Up” button available in the top-right corner of the Luno homepage. Alternatively, you could get started by downloading the Luno mobile app for Android or iOS. Once you’ve clicked the option for signing up for a new account, you will need to enter two pieces of information: your email address and a new password. After signaling that you agree to Luno’s terms of service, you will be able to click “Sign Up” to finish with this part of the sign-up process.
The next step is to look for an activation email that Luno has sent to your email address. You should check your spam folder if you do not see the email message after completing the initial page of the sign-up process. To continue the setup process, you can simply click the “Confirm Email Address” button found in the email Luno has sent you.
Now that your email has been verified, you will next need to confirm your phone number. To do this, you will enter your phone number and wait to receive a text from Luno. You should receive a text with a 4-digit code from Luno shortly after entering your phone number. Enter that 4-digit code in the next text box to confirm your phone number with Luno.
At this point, you have successfully created your Luno account. However, you will need to enter additional information if you wish to gain full access to the Luno platform. To comply with global anti-money laundering standards, Luno will need personal information, such as your real name and passport number, to verify your account. You will need to go through with a full Know Your Customer verification process that includes scanning a copy of your government-issued ID to trade on this platform.
Once you have completed all of these steps, it is also recommended that you setup two-factor authentication on your account for additional security.
What You Can Buy
The cryptocurrency selection available on Luno is rather limited. Here is a full list of the crypto assets supported by this exchange:
- Bitcoin
- Ether
- Litecoin
- Bitcoin Cash
- Ripple
In a blog post, Luno explained there reasoning for the relative lack of altcoins available for trade on their platform. For now, the company is focused on making it as easy as possible to navigate the platform, which means leaving out the additional complexity introduced by the thousands of different altcoins on the market, at least for now. Additionally, Luno is concerned about the low security standards associated with altcoins and the tendency for these niche offerings to act as vehicles for pump-and-dump schemes. That said, it’s possible that Luno will decide to add more cryptocurrencies to the platform over time.
Luno Supported Applications
Luno is available on any device that you likely have in your home. Whether you’re looking to trade via a desktop computer or a mobile phone, Luno has you covered. In addition to functioning properly in the browser on any desktop environment, Luno also has mobile apps available for Android and iOS devices.
Fees
There are three different types of fees involved with the Luno exchange platform: deposit fees, withdrawal fees, and trading fees.
Deposits and withdrawals are made via bank transfers, and the specific fee associated with your particular transaction will depend on a variety of factors, including the jurisdiction in which your bank account is located and the specific fiat currency you would like to deposit. If you are making a deposit, then there will be no fee on the transaction; however, there are fees for withdrawing fiat currency to a bank account. Additionally, you’ll need to pay network fees for withdrawing cryptocurrency from this platform.
For trading, Luno uses the same sort of schedule that is used by other platforms where trading becomes less expensive as monthly trading volume increases. It should be noted that the trading fees on this platform are pretty low. There is no fee on the maker side of trades, and taker fees start at 0.10%. The lowest taker fee for traders who are doing a tremendous amount of volume per month are 0.03%.
Instant purchases of cryptocurrency is also available in some jurisdictions. If you want to purchase bitcoin or an altcoin with a debit or credit card, then you will be charged a 3.5% fee on the transaction.
Luno Features
Luno’s focus on developing countries like Nigeria and Malaysia is definitely what sets it apart from some of the other major cryptocurrency exchanges around the world. For cryptocurrency users in these countries, Luno is generally going to be the best possible option for moving back and forth between crypto assets and fiat currency.
Outside of its focus on emerging markets, Luno is also noteworthy from a user interface perspective. The simplicity offered by the mobile apps and overall exchange platform is among the best in the world.
The fees for trading on this platform are also extremely competitive from a global perspective, starting at 0.10% for the taker side of a trade.
Supported Countries
Luno is focused primarily on developing countries like Nigeria and Malaysia but it’s also available in a variety of countries around the world including:
- South Africa
- Indonesia
- Austria
- Belgium
- Croatia
- Czech Republic
- France
- Finland
- Italy
- Ireland
- Slovakia
- Slovenia
- Sweden
- UK
What is the Luno App?
The Luno App is the focal point of Luno’s approach to crypto. Since more people have smart phones than computers in developing countries, Luno has smartly introduced a crypto exchange app that has 90% of the functionality of a full exchange.
You can easily buy, sell and trade cryptocurrencies from the comfort of the Luno App and it’s an excellent way for new crypto users to get involved for the first time.
Furthermore you can send crypto to other Luno users for no charge.
Does Luno Have a Wallet?
Luno does not have a standalone wallet but it does offer a high degree of security thanks to it’s “deep freeze” storage method by Bitgo Custody. That means the majority of crypto on Luno is held in offline cold storage.
Luno can also be secured with two-factor authentication.
Keep in mind that, at the end of the day, Luno does hold your private keys. If you want a non-custodial solution you should check out our crypto wallets review round-up.
Luno Frequently Asked Questions
The exchange rates for various cryptocurrencies on Luno depend on the activity of its users. In other words, Luno is not setting the price for buy and sell orders on the platform in a centralized manner. In terms of the costs associated with making trades, that will depend on the payment method used to get fiat currency onto the exchange. Trading fees are extremely low and start at 0.10%. When a credit or debit card is used to purchase some cryptocurrency, those fees rise to 3.5%.
Yes. While most of the countries where Luno is available are in Europe, there are a number of African countries where the platform is available as well. In addition to South Africa, this cryptocurrency exchange is also available to people who live in Nigeria, Uganda, and Zambia.
Yes, Luno is available to residents of Malaysia. Additionally, Luno can be used by citizens of two other countries in southeast Asia: Indonesia and Singapore.
Luno has mobile apps that are available for both Apple and Android devices. These apps can be found in the corresponding app store for the operating system of the device. For most people, the mobile app is going to be the best way to interact with the Luno platform due to its user-friendly interface.
If you need help getting started with trading on Luno, then there are plenty of tutorials available online. Anyone who hasn’t been able to obtain a full grasp of the Luno platform via this article should also look for tutorials on YouTube, as having a visual aid can be extremely helpful for learning how to use any cryptocurrency exchange.
