Luno cryptocurrency exchange review
Luno offers a simple and secure way to buy bitcoin and Ethereum with your bank account.
A built-in wallet, support for several national fiat currencies, and a user-friendly interface make Luno a digital asset exchange platform worth considering for both beginners and experienced traders.
|Product Name||Luno Cryptocurrency Exchange|
|Fiat Currencies||EUR, IDR, MYR, NGN, ZAR, SGD, UGX, ZMW|
|Cryptocurrencies||BTC, ETH, BCH, XRP|
Electronic Funds Transfer
Varies by payment method
|Withdrawal Fees||Fee varies|
- Simple and straightforward
- Easy transfers
- Tiered verification
- Managed wallet
- Third-party wallet
- Batched transfers
- No GBP support
What is Luno?
Luno (formerly BitX) is an intuitive and feature-rich cryptocurrency exchange with an international presence. Headquartered in London, Singapore, and Cape Town, Luno boasts a diverse and experienced team and is backed by several notable investors, including Venturra Capital, Digital Currency Group, Balderton Capital, Naspers, and Rand Merchant Investment Holdings (RMI).
Users from supported countries can take advantage of Luno’s fiat integration by buying or trading bitcoin or Ethereum with fiat currency directly through the Luno platform. Its built-in digital wallet also offers security and convenience.
Where is Luno available?
Before beginning, you will need to make sure that your country is supported by the Luno platform.
Currently, Luno is only available to users in:
- South Africa
- Select European countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom)
|Country||Wallet||Exchange||Instant buy/sell||Payment methods|
Luno fees vary depending on network activity, location, and currency. Sending bitcoin from the platform incurs a dynamic fee that adjusts, based on the bitcoin network traffic.
There is a fee of 0.0002 BTC for receiving bitcoin via a bitcoin address, although both sending and receiving bitcoin via a mobile or an email address is free.
|EFT deposits – EUR, IDR, MYR, ZAR||Free|
|Cash deposits – ZAR||ZAR20 + 5%|
All fiat withdrawals have some fee associated with them, although these vary on a country-to-country basis. Similarly, trade fees vary based on national currency and transaction size.
|Market||Maker fee||Taker fee|
|BTC/MYR, BTC/NGN, BTC/ZAR||0.00%||1.00% > 0.00* BTC|
0.75% > 10.00* BTC
0.50% > 100.00* BTC
* Based on your 30-day BTC trading volume as calculated daily.
How do I verify my Luno account?
Luno requires verification to deposit or withdraw fiat from the platform. Users who only need to transact in or store cryptocurrencies can participate without needing further verification. If you do want to exchange bitcoin or Ethereum with your national currency, the verification process will depend, once again, on your country of residence. Additionally, different verification “levels” come with different limits and requirements.
Level 1, for example, only requires confirmation of a mobile number and some basic personal information, but it is capped with an all-time deposit/withdrawal limit of EUR1,000. More identity verification is required to increase limits, with Level 3 being the highest. For Level 3 verification, you may need to submit government issued ID, proof of address, and/or other location-specific forms. Deposit/withdrawal limits on Level 3 verification range from none (Indonesia and South Africa) to a monthly limit of EUR100,000.
Unlike many cryptocurrency exchanges, Luno is designed primarily to facilitate the purchase of bitcoin (BTC) and Ethereum (ETH) with fiat currency, rather than trading one cryptocurrency for another. Buying cryptocoins with Luno is fairly straightforward, but the process will depend somewhat on your country of residence.
Before you can use Luno to buy BTC and ETH, you need to create a Luno account and go through the verification process to link your bank account.
Once you’ve created your account, either via email address or social media integration, you will want to navigate to “Wallets” from the main menu within the web or mobile app.
Find the appropriate wallet for your national currency and select “Deposit”.
The next steps will vary depending on your location, but the Luno application will provide detailed instructions on how to link to an account with your bank of choice. Follow the steps to sync your bank account with Luno.
Once this is complete, you’ll be able to make a wire transfer from your bank to your Luno wallet. In some countries, you will be asked to provide a unique reference number or deposit account to ensure security.
You’ll get an email from Luno when the funds are successfully transferred, at which point you will be able to purchase bitcoin and Ethereum through the Luno Exchange.
Is Luno safe to use?
Luno offers a fairly advanced level of overall security. Digital wallets are secured via two-factor authentication and account passwords are stored in a hashed form. SSL encryption is used throughout all web services, and Pretty Good Privacy (PGP) encryption is used to secure client web wallets.
According to Luno, the platform keeps most client funds stored in a series of “deep freeze” cold storage wallets. These are encrypted, multi-signature wallets with private keys stored in individual bank vaults. Multi-signature capability ensures that no one individual can ever access a given wallet without cooperation from additional parties.
To handle instant transactions and withdrawals Luno keeps a multi-signature wallet online. For this “hot wallet,” Luno holds one of the required keys and the other is held by BitGo, a prominent payment processor and leader in multi-signature technology. Using multi-signature in this way means that an attacker would have to penetrate both Luno and BitGo to compromise the exchange’s web wallet. This adds an additional layer of security.
Pros and cons
- Real-time market updates.
- Bank deposits and withdrawals in supported countries.
- Multi-language support.
- Multi-signature web wallet.
- Good documentation.
- Only available in select countries.
- Only supports BTC, ETH, BCH and XRP.
- Limits on deposits/withdrawals based on account verification levels.
- Fees are relatively high for some transaction types.
What’s next for Luno?
Luno added support for Ethereum in November, 2017. At the time of this writing, Luno users can create an Ethereum wallet and buy, sell, send, and receive Ethereum through the platform.
Ethereum trading is not yet offered on the Luno exchange, although the platform has announced that this feature is forthcoming. It’s possible that Luno may add support for additional cryptocurrencies going forward.