LUNO Exchange Review

/LUNO Exchange Review

LUNO Exchange Review 2018-05-22T15:48:34+00:00
LUNO Exchange Review

Luno Review – Complete Exchange Guide

Quick inner navigation:

  1. What is Luno?
  2. How does the Luno Exchange work?
  3. Buying and selling; all you need to know
  4. Luno Fees
  5. Luno Verification
  6. How Safe is Luno Exchange?
  7. How to use the Luno wallet?

Having followed the latest trends in the Cryptocurrency industry for a while, it wouldn’t be complete without mentioning Luno. The exchange platform has been able to withstand market-place pressure to remain relevant, even with its limited currency support features. There have been a mixture talks going around concerning the Luno exchange platform, some of which lack a valid basis. Therefore, this insightful Luno Review seeks to help you have a clear understanding.

What is Luno?

Established in 2013 in South Africa, Luno is a crypto exchange that serves users from around the world. The company is currently headquartered in London and has offices in Singapore and Cape Town. Luno was opened to serve upcoming markets that didn’t have a local cryptocurrency exchange. As such, you can buy bitcoins on Luno using Indonesian Rupiah, Nigerian Naira, South African Rand or Malaysian ringgit. If you don’t come from any of the countries mentioned above, you can deposit funds in your Luno account using Bitcoins.

The exchange also supports Ethereum and Bitcoin cash trading with Bitcoins. However, the trading volume of bitcoin and Ethereum is not large. Luno has also been targeting European markets, supporting more than 30 European countries with SEPA payments. It is Formerly referred to as Bitx. It conducts exchange services in 43 countries including; South Africa, Nigeria, Malaysia, Indonesia, Poland, Greece, Germany, Slovenia, Netherlands, Norway, Croatia, Romania, and Italy in their respective local currencies. Recent claims indicate that the company is working towards spreading its services throughout Europe.

Though Luno’s operations remain uncensored, the fact that it’s a member of the UK Financial Conduct Authority (FCA), accords it the credibility needed to thrive in the competitive crypto industry.

How does the Luno Exchange work?

The cryptocurrency exchange Luno offers a platform that creates a connection between potential buyers and sellers. The buyers and sellers exchange cryptocurrencies. It is important to mention that Luno exchange neither sells or buys Bitcoins itself nor is in charge of controlling the exchange rates. For this very reason, the exchange may be classified as more of a peer to peer exchange where the primary role of Luno is providing a platform.

If we look at the exchange from the side of the seller, they are owners of Bitcoins who want to sell it in exchange for another currency. To do so sellers make a deposit with their bitcoin on Luno. The sellers are the people behind market making as they are the ones who make an order to exchange a certain amount of crypto to another currency. This way the sellers add liquidity on the Luno exchange platform by increasing the amount of not traded bitcoins.

As for the buyers – people who are interested in buying Bitcoin, they deposit a currency, which they are willing to exchange with crypto. The buyers can execute the process of buying in two ways. The first choice is closing an order that already exists – paying a certain amount of a certain currency in exchange for a certain amount of coins. The second choice is creating a new order (in Luno language – a new bid) and asking for a certain amount of BTC in exchange for w certain amount of currency that you are willing to exchange. When the buyers are choosing to create new orders themselves the Luno exchange looks at it as a market making as the buyers add liquidity to the platform by depositing the currency they want to exchange for Bitcoin.

There may be situations when the offers of the sellers and the deals that the buyers want to make are not corresponding one another and therefore there may be issues with the supply and the demand. However, Luno claims that unless there are demand and supply for whatever is being sold and bought, for example, BTC or fiat currency, there will be more sellers and buyers in the market who will create their own orders with already adjusted prices. In other words, the company thinks that the supply and the demand will meet sooner or later. The company is taking the role of the security guard meanwhile people are trading, trying to make sure that the trades are secure and free of frauds. For this service, Luno is charging a fee and tries to sustain itself for continuing its existence in the market.

Buying and selling; all you need to know

Before conducting any transaction on this platform, you need to have a wallet. All this is made available immediately you sign up for an account and then verify your details, which include your email address and government-issued identity card. You also have to accept the platform’s user terms and conditions.

Once your account is active, you get to start selling and buying small amounts of Bitcoins on the Luno platform, with an option of raising your limit for more significant amounts. However, this doesn’t apply to the Bitcoins you send or receive into your Luno wallet.

Payment Methods

Since Luno offers its services in various countries, it includes the use of different payment methods depending on your location. However, the primary mode of payment is through bank transfers from all over the world.

Luno accepts deposits made through bank transfers or bitcoins. In the 35 European countries where the trading website serves, they accept SEPA payments. In Nigeria and Indonesia, normal bank transfer is accepted. In South Africa, the exchange’s biggest market, Luno accept EFT payments. In Malaysia, the company accepts Interbank GIRO or IBFT transfer. Luno further accepts additional payment methods in the countries where they primarily serve. Nigerian customers, for example, have the option to use GT Bank or PayU payment method. South Africans have the option to use EFT or Cash deposits.

Luno Fees

There is no uniform transaction fee for Luno users the exchange covers a wide range of countries. Therefore, expect the fees to fluctuate depending on the available payment method and location of the transaction. However, the good news for all account holders is that you can exchange all your local currencies in your Luno wallet with Bitcoins, on the platform. You then automatically receive the exchange in bitcoin wallet.

Luno charges dynamic fees for deposits, trading and withdrawal fees. In nearly all cases, the exchange’s deposit fees via bank transfer are free of charge. All SEPA deposits are free. All deposits in Nigerian PayU payment attract a charge of 1.58%. Payments via Card deposit via EveryPay attract a payment of 1.34% plus €0.0418. Deposits made through bitcoins and ethereum are free of charge. Trading on Luno attracts a taker fee of between 0.25% and 1% and no maker fee. Crypto to crypto trading and trading with Indonesian currency attract the lowest trading fee of 025% and 0.2% respectively.

When it comes to withdrawal fees, Luno charges slightly high fees. SEPA withdrawals, for example, attract a charge of €0.30. Indonesian customers have to part with 6,500 Indonesian ringgits per every transaction. EFT withdrawals cost ZAR 8.5 while Nigerian withdrawals cost Naira 200 euros. Withdrawal fee also applies when you deposit cash to your bank from your Luno account. However, there is no fee charged on all deposits made to your Luno account, unless those in place by third parties.

Below is a table to guide you through your Luno Transactions

Bitcoin Sending and Receiving table

Currency Method Fee
BTC Sending to coin address Dynamic
BTC Sending to email address Free
BTC Receiving via Email/Mobile phone Free
BTC Receiving into Bitcoin address BTC 0.0002

Luno fees on Withdrawals

Currency Method Fee
BCH Bitcoin Cash BCH 0.00
EUR SEPA Transfer EUR 0.30
ZAR EFT ZAR 8.50
MYR Interbank GIRO/IBFT MYR 0.10
IDR Bank Transfer IDR 6,500.00
NGN Bank Transfer NGN 200.00

Luno fees on Deposits

Currency Method Fee
BCH SEPA Transfer Free
IDR Bank Transfer Free
MYR Interbank GIRO/ IBFT Free
NGN PayU Debit/ Credit Card VIA PAY U 1.58 %( Max NGN 2,070)
NGN PayU Bank Deposit Via Pay U 1.58 % ( Max NGN 2,070)
ZAR EFT Free
ZAR Cash Deposit Penalty ZAR 20.00 +5.00 %

How long does it take to withdraw?

The process of withdrawing Bitcoins via Luno is instant. However, withdrawals from your bank might take a little bit longer as it heavily depends on your location, bank and network issues.

Also, there are times when the withdrawal-cut-off time doesn’t apply as payments take longer than expected. You should, however, expect to receive your money within 24 hours. Consequently, you must take the initiative to request withdrawals within the official withdrawal-cut-off time, to be accepted.

Luno Verification

Luno requires every member to get verified before they can deposit funds into their Luno account. The verification process is a bit strict compared to other exchanges. First, you need to create an account on the exchange. Click ‘Verify Now’ and the exchange will guide you through the process. The first requirement for the verification process is a mobile number. Luno sends a confirmation SMS or an automated call which helps you pass through the next step. The second verification phase requires that you enter personal details like your name, address, and your ID number. Alternatively, you can provide personal details like a recent utility bill, a mortgage statement, lease or rental agreement, a recent insurance policy document and telephone account.

In order to upgrade your limits on Luno, you may be required to go through a proof of identity process. During this process, you need to send the scan or a clear photo of the document that is required based on the country you are from. The required documentation based on what part of the world you are from is as follows. In case you are from Indonesia, you can either provide your Electronic National Identity Card, or a letter applying for an Electronic National Identity Card, or an Indonesian passport that is valid. If you are from Malaysia you should provide Malaysian identity card, driving license, a valid Malaysian passport. The Nigerians need to provide the front and back pages of the national ID card, a valid passport, electronic ID card, voter card, driving license, BVN. The people from Singapore need to provide the front and the back pages of their National identity card, Armed forces ID card. Users from South Africa have to get verified with National ID card, National Identity Book, valid passport. Finally, the European users have to submit a high-quality photo or scan of either the front and back pages of the National ID card or national passport or driving license. Along with one of these three, they also need to send a clear selfie.

For you to increase your selling and buying amounts, you have to gain access to the next three account verification levels on Luno. They include;

  • Level 1; here you need to confirm your mobile number and other primary information.
  • Level 2; at this stage you need to provide a copy of your scanned identity card together with all the requirements of level 1.
  • Level 3; here you provide all the details from level 1 and include a proof of residence.

Kindly note that the withdrawal limits vary with location.

How Safe is Luno Exchange?

Luno has been in the industry since 2013, and though it doesn’t rank among the best exchange sites, it still has substantial support, thus making it relevant. However, just like many other Cryptocurrency sites, the platform is vulnerable to scamming activities.

  • Community Trust

Luno is not a very reputable cryptocurrency exchange. Throughout online review websites, Luno attracts low ratings. From complaints about non-existent customer support to missing coins, most users have nothing but negative reviews about the exchange. However, the exchange has great ratings when it comes to their Android wallet. The Luno wallet has had over 500k downloads with a 4.2 review score since its launch, and that’s quite something for a mobile App. However, comments from the Luno community traders indicate the site is slowly losing trust.

  • Security

Luno platform has never been hacked, and that tells volumes about their security. The Luno website is encrypted with HTTPS to keep hackers away. Like most modern exchanges, Luno claims to store most of their users’ coins in cold wallets. The coins are further protected with multi-signature technology. The exchange also backs up their wallets.

Luno’s multi-signature service is a partnership with BitGo, a security company that generates different private keys that are secured differently and signed jointly. Additionally, you create an account supported by a strong password and 2-factor authentication for additional security. The team behind Luno has emphasized the security of the platform since day one. When it just started the team members were the ones who were allocating the deposits annually and many other basic things. They used to do it like that for the sake of the safety, however, with the increasing number of the customers they had to switch to the automation. The team claims that the automation is still paying a lot of attention to the security of the platform.

  • Customer Support

The website provides a comprehensive Questions and Answers section, guides about how to use the website effectively and so on. Luno exchange has a help center where you can get all of your questions answered. If you have a question about depositing, withdrawing, security issues or the basics of getting verified on the exchange, Luno FAQ section will help. Other than that, Luno has a ticket system which you use when making complaints regarding your experience on the exchange. However, Luno reviews online indicate that the exchange has poor customer services rarely reply to customers’ complaints.

  • Handling Speed

Luno claims that they complete bitcoin payments within 48 hours at most. Some payments are completed within 24 hours but in most cases, customers say the payments take up to a week to complete. In general, Luno’s handling speed is poor even when dealing with crypto to crypto payments. A lot of delays dominate the transaction process. Some individuals claim to experience undelivered cash for over two weeks.

However, the company has changed its internal business from manual to automated system, the handling speed has increased a lot. The deposits usually show up in your wallet within 24-48 hours depending on the currency. The only cases of 48 hours of deposit allocation are recorded with EUR and ZAR. BTC deposits are allocated after 3 confirmations.

How to use the Luno wallet?

For signups:

  1. Go to Luno.com
  2. Enter your email address
  3. Create password
  4. Verify your account
  5. Activate 2FA

Your account is now ready for use!

Buying and Selling Bitcoins

Luno exchange provides you with two ways to sell and buy Bitcoins.

  • Trade on Exchange; to use this method, first click on “Exchange” and select the amount you want to sell/buy Bitcoins. The transaction is automatic once the marketplace price hits that mark.
  • Instant sell/Buy; make sure you deposit your local currency into your Luno wallet, then click on “buy”/ “sell.” Afterward, enter the amount you want to transact and confirm.

Luno Exchange Review – In a Nutshell

Just like any other Cryptocurrency, Luno has its own set of Pros and cons.

Pros

  • Luno has a mobile app.
  • You can sell, buy, receive, send, exchange, and store all in one place.
  • Luno is a quite safe website.

Cons

  • Poor customer support
  • Limited coverage/funding methods.

Luno exchange is a growing bitcoin and ethereum exchange. In 2017, Luno went on a funding spree and raised more than $10 million. The exchange also increased the number of offices and employees from 20 to 80 within one year. However, the exchange hasn’t been keen on improving their customer services. While no hacking incident has been reported about Luno, a large portion of their customers still complain about missing funds. Luno’s customer services are poor and their payment handling speed is terrible. As a growing exchange, however, Luno has the ability to improve their reputation and relationship with customers.

So, should you use Luno’s services? As many as 50,000 people use Luno’s exchange to buy bitcoins in South Africa every day. In Nigeria and Malaysia, the exchange also has a solid user base. With that in mind, the exchange seems to work efficiently in certain countries compared to others. South Africans, Nigerians, and Malaysians can easily use the exchange. But users from other countries may experience issues trading on the site. Luno has so many faults that aren’t favorable for any beginner or serious investor. The customer support section is also wanting, and the many restrictions on non-member countries aren’t pleasing. However, the website seems well organized with extra material for beginners. Luno is an established exchange available in multiple countries but has poor reviews. In conclusion, Luno wallet is excellent and accessible across the globe. Nevertheless, we advise you to use it only for exchanges and store your Bitcoins somewhere else.

We hope this Luno exchange review has helped you to get a better idea of what is Luno and how is it different from the rest. Make sure to check out our website for more comprehensive articles, guides, and reviews. Thank you for reading and we hope to see you next time.

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