Luno is a bitcoin exchange and payment service operating in 40 countries across Europe and several developing and middle-income countries. With a zealous mission to educate the world about cryptocurrencies and how to trade them, Luno has been compared to the E*TRADE of the online trading revolution of the 1990s. We have conducted an in-depth review of fees, features, and pros and cons to evaluate the demand for Luno’s crypto trading and payments services. While Luno is providing a valuable service by helping the world easily exchange and spend crypto in the mainstream economy, investors may prefer an exchange like eToro with real-time trading across multiple assets classes.
If you are looking for an exchange to buy cryptocurrency pairs across dozens of different cryptos, Luno is not your exchange. What Luno does do it does very well. The exchange offers trading in bitcoin and ethereum, the two largest coins by market capitalization, across fiat currencies. The Luno wallet and payment app make it easier than ever to send, receive and spend your crypto and fiat. Education is provided through the Luno Learning Portal and blog for the beginner bitcoin trader.
Luno makes using crypto in the real world easy. You can convert your crypto into your local currency at any time and spend it. Some exchanges offering over 100 crypto pairs to trade, on the other hand, do not offer any on-exchange option to convert to fiat. Instead, you have to withdraw your funds to your own digital wallet and find your own crypto-to-fiat solution. Large crypto-to-crypto exchanges like Kraken and Binance come to mind. Luno is for the trader who foregoes purchasing a Ferrari to drive in a low speed limit zone when a Toyota will do. The alternative does the job and is cheaper and more efficient. Luno’s market capitalization is $3.7 million.
Luno provides trading of bitcoin against five fiat currencies. They are the Euro (EUR), Indonesian Rupiah (IDR), Nigerian Naira (NGN), South African Rand (ZAR) and Malaysian Ringitt (MYR). Ether (ETH) is also traded. The Luno Brokerage Service offers the market price, whereby crypto can be instantly bought or sold at the quoted exchange price. Business accounts can be opened for businesses that want to accept cryptocurrency payments from customers; pay invoices in crypto; or buy, sell and trade crypto. We would not be surprised to see even bigger developments from Luno in payment services in the future. One of its original investors is South African e-commerce payment giant PayU.
In addition to the bitcoin cryptocurrency pairs listed below, you can buy ETH. You cannot buy Ripple, other majors or alt coins on LunoBitcoin (BTC)
Luno is a UK-based cryptocurrency exchange offering cryptocurrency trading on three continents.
- Isle of Man
- San Marino
- United Kingdom
Trading fees for buyers (makers) and sellers (takers) decline on a siding scale based on increasing trading volume.
|Market||Maker Fee||Taker Fee|
|BTC/MYR||0.00%||1.00% >BTC 0.00* 0.75% >BTC 10.00* 0.50% >BTC 100.00*|
|BTC/NGN||0.00%||1.00% >BTC 0.00 0.75% >BTC 10.00 0.50% >BTC 100.00|
|BTC/ZAR||0.00%||1.00% >BTC 0.00 0.75% >BTC 10.00 0.50% >BTC 100.00|
Deposits are free in Europe and Malaysia. Fees may apply in Indonesia, Nigeria and South Africa.
A small withdraw fee is charged per transaction and varies by country (e.g., Euro 0.30).
A fee is charged for sending and receiving money via bitcoin addresses.
Buying cryptocurrency means different things in different countries on the Luno exchange. The two options are Instant Buy or Sell and an Exchange Trade.
Instant Buy or Sell
In European countries, you are basically placing a market order and accepting the current market price. It is analogous to going into a shop and accepting the retail price for your goods.
Customers in South Africa, Malaysia, Nigeria and Indonesia can enter a trade to buy a bitcoin-fiat pair on the Luno exchange. This feature allows you to set a Limit order at the price you want to pay.
How to Buy Cryptocurrency on Luno: Step-by-Step Tutorial
The Luno exchange interface is one of the most user-friendly we have come across. All the basic tools are present to analyze a price chart, trade bitcoin, follow open orders and review trading history.
Trade cryptocurrency on Luno
Select Sign Up and enter an email address and password. Confirm the registration by following the link in the email you will be sent. Login into Luno. Next, you will be prompted to provide your mobile number and then enter the code received in the SMS message.
Step 2: Verify your identity
Before you can trade, the next step is ID verification. The ID required depends on your level of verification. In Europe, for example, the trading levels for Deposits/Withdraws and corresponding ID requirements are:
Level 1 – 1,000/1,000 Euros – Confirm mobile number and basic personal details
Level 2 – 5,000/5,000 Euros – Submit photo/scan of government-issued ID and selfie photo
Level 3 – 100,000/100,000 Euros – Submit proof of residential address
Step 3: Fund your account
From the main menu, choose Wallets. Choose the wallet for the currency you want to deposit, which is Euro in this example. Deposit options will vary from country-to-country. In this example, Euro is being deposited from a UK bank account by a SEPA bank transfer.
Step 4: Buy cryptocurrency
Instant Buy or Sell orders can be executed in European countries. Outside Europe, the exchange trading option is also available. In placing an Instant Buy or Sell order, you are basically placing a market order and accepting the current price.
Select Buy from the homepage. Choose the cryptocurrency you want to buy and the one you want to spend. Enter the amount and click Next and then Confirm.
Customers in South Africa, Malaysia, Nigeria and Indonesia can enter a trade to buy a bitcoin-fiat pair on the Luno exchange. The trade feature allows you to set a Limit order at the price you want to pay. The order is pending until it is filled or cancelled.
Step 5: Withdraw your funds
If you want to withdraw money from your Luno wallet to your bank account, first ensure your ID is verified and your bank account is linked to Luno. Select Wallets from the main menu. From your wallets, choose your local currency account. Click Withdraw. Enter the amount you want to withdraw and select the bank you want to with draw to. You will be asked to enter your Luno pin code to confirm the withdrawal.
Although Luno is not a regulated exchange, within 10 years the exchange expects all countries will require cryptocurrency exchanges to be regulated. Luno plans to migrate to a regulated model as regulation sweeps the globe. Within the next two to three years, Luno anticipates becoming licensed in four or five of the markets it currently operates in.
Is Luno safe?
Luno has “bank-grade” security measures in place. Luno stores the private keys of its customers in a safe place it calls the “deep freeze.” The keys are kept in safety deposit boxes in a bank vault, and Luno claims no person has access to more than one safety deposit box. Here is an overview of the security measures in place at Luno.
🔐 Customer private keys are encrypted and stored in the deep freeze in a bank vault
🔐 A hot wallet requiring multi-signatures is used for instant withdrawals
🔐 Multi-sig keys are required to make a transaction
🔐 Two factor identification is required to sign into an account
🔐 Use of a password generator is advised to create a strong account password (e.g., Lastpass, Keychain, Keepass)
🔐 Regular financial and security audits ensure funds are safe
🔐 All traders must be verified before using the exchange and personal information is encrypted
Luno has a free wallet, formerly called the BitX Wallet. The wallet acts like a PayPal of crypto. Users can send and receive bitcoin, ethereum and fiat by email, mobile phone number, QR code, or blockchain address (for cyrpto). With the ability to easily convert your crypto into your local currency, Luno makes it easy to spend crypto.
The Luno app is your trading platform, wallet and PayPal all-in-one. All trading functions are accessible in markets that support exchange trading. Multiple wallets can hold your bitcoin, ethereum and local currency. Access your list of contacts to instantly send crypto or fiat payments by email. The app is available for Android and IOS.
If you need to contact Luno, here is where to start.
Help Centre – FAQs are provided on all aspects of how to use the Luno exchange.
Email support – Contact Luno by email through Submit a Request.
Luno Pros and Cons
✅ Quick and easy way to trade bitcoin against fiat currencies
✅ Easily convert between crypto and fiat currencies
✅ Send crypto and fiat email payments for free
✅ Businesses can accept and pay in crypto with a business account
❌ Only two cryptos available to trade (Bitcoin and Ethereum)
❌ No margin lending or advanced tradings tools
❌ Low liquidity
❌ Not available to North American customers
❌ Exchange trades not available in Europe
Why We Recommend eToro Over Luno
Luno is focused on doing a few things very well, and it has succeeded. By offering simplified bitcoin trading , crypto-to-fiat conversions and a PayPal of crypto payments, Luno is helping businesses and consumers spend crypto in the mainstream economy on three continents. As for its exchange trading services, Luno may not be on the moon with its simplified approach. Its real intention may be to become a leading crypto-fiat payment service, and it already has two million customer wallets full of crypto and fiat to spend in the real world.
If Luno were to compete as principally a crypto-to-fiat exchange, it has a lot of competition. A number of exchanges have already gone down the regulated path. The most popular exchange for social trading, eToro, has launched a regulated crypto exchange with dozens of crypto pairs and fiat-backed stablecoins. Traders now have more cryptocurrency traders and portfolios to follow and copy on a reputable and trusted broker in business since 2007.
Here is why we think eToro is the better exchange for many beginner traders.
✅ Regulated by multiple jurisdictions globally, including the UK FCA and CySec
✅ Leading social trading platform to develop trading skills
✅ Top performing traders easily copied with CopyTrader™️ and OneClick trading
✅ Top performing cryptocurrency portfolios by theme easily copied with CopyPortfolios™️
✅ Secure multi-currency wallet granted a Distributed Ledger Technology (DLT) licence from the Gibraltar Financial Services Commission (GFSC)
✅ Trading tips from social feeds
✅ Low fees
✅ Good educational resources for the beginner trader
In the competitive crypto exchange market, Luno does look like an economy car competing with Ferraris, but with a longer lasting engine. As cryptocurrency exchanges introduce advanced trading features and hundreds of coins to their offerings, Luno is creating real demand for crypto by making it easier to spend it in the real economy. The wallet allows for easy conversion and spending of crypto. Nonetheless, Luno is currently unregulated and for this reason we cannot endorse this platform.
If you are looking for cryptocurrency trading on a regulated exchange, eToro is one of the first exchanges to license cryptos. The new multi-signature wallet is also licensed by Gibraltar, providing a safe place to store crypto and private keys in cold storage. Our eToro review takes an in-depth look at how investors are already using the social trading platform to trade cryptos, and multi-asset portfolios.
A trader is exposed to higher risks when trading on an unregulated exchange. If you lose money on an unregulated exchange due to fraud, it will be more difficult to seek remedy through a legal or insurance claim. On a regulated exchange, the investor has more protection against loss. If the broker you have deposited money with goes bankrupt, for example, the US FDIC or UK FCA provide deposit insurance.
A decentralized exchange does not use an intermediary to hold customer funds and accounts. Peers trade directly amongst each other (peer-to-peer) and funds are transferred between their cryptocurrency wallets. Trader money and ID are at lower risk of being hacked. A downside of DEXs is the current lack of liquidity.
A centralized exchange accepts and holds users’ deposits. Most exchanges also conduct ID verification to comply with know your customer (KYC) and anti-money laundering (AML) rules. As a repository of client money and personal identification information, centralized exchanges have a higher risk of becoming a victim of cyber hacking and theft.
If you sign up for Luno, you will receive a Luno wallet to store your bitcoin, ethereum and fiat money. It is a hot wallet. Luno stores your money in cold storage with your private keys.
Hot wallets store your crypto assets online and face a higher risk of cyber hacking. Cold storage involves storing your crypto assets offline on a USB drive or paper wallet, for example. Luno’s cold storage wallet places crypto assets in a safety deposit box in a bank vault. The following risk measures should be taken to protect your hot and cold crypto assets:
☑️ Generate and store your private keys offline
☑️ Use two-factor authentication to access your wallet
☑️ Use biometric identification
If you send bitcoin to a bitcoin address, a fee is charged to cover mining and related charges. Luno let’s you send bitcoin for free by sending to an email address or mobile number. Select Send from the Luno homepage, enter the recipient email or mobile number and the amount you want to send. The recipient will receive the money instantly if they are a Luno customer. Non-customers have 14 days to sign up on Luno.
More trading bots – automated preprogrammed trading algorithms – are being developed for cryptocurrency trading. The most common way of connecting a trading robot to a cryptocurrency exchange is an API. In contrast to many of the plug-and-play bots used in forex trading, APIs may require some technical knowledge to configure. Proprietary and popular bots can be connected to the Luno exchange through an API. New trading bot models are emerging. eToro, for example, has a OneClick™ approach to copying trading strategies. Its CopyTrader™ and CopyPortfolios™ tools can copy a whole portfolio, the most recent trade or a stop-loss of other traders in one click, allowing investors to instantly copy the trading strategy of successful traders.
- 1 🌟 Is Luno recommended?
- 2 What is Luno?
- 3 How does the Luno exchange work?
- 4 What cryptocurrencies does Luno support?
- 5 🏳️Supported countries
- 6 Fees & limits
- 7 Luno Dashboard
- 8 How to Buy Cryptocurrency on Luno: Step-by-Step Tutorial
- 9 Is Luno regulated?
- 10 Is Luno safe?
- 11 Is the Luno wallet safe?
- 12 Does Luno have an app?
- 13 Is Luno customer service reliable?
- 14 Luno Pros and Cons
- 15 Why We Recommend eToro Over Luno
- 16 ✔️Conclusion
- 17 FAQs