Luno Review 2024: Pros, Cons, Fees, and More (2024)

With such a wide variety of crypto exchanges, it can be pretty hard to pick one, especially if you're a beginner. However, in this Luno review, I'll introduce you to one of the more popular choices.

What is Luno? Shortly put, Luno is a user-friendly platform for buying, selling, and securely storing digital assets. Is Luno safe? Based on the strong security measures it employs, it seems that it is. But is it better than crypto giants like Binance, Bybit, or Kraken? That's exactly what we'll try to figure out in this Luno review.

Verdict at a glance: Luno offers a platform for buying, selling, and storing popular cryptocurrencies. It puts a strong emphasis on security, with such unique features as deep freeze storage. Luno's user-friendly interface makes it especially suitable for newcomers. Besides, it's regulated in all operating countries, ensuring trust. However, Luno does have certain drawbacks, such as a smaller range of available crypto, a lack of advanced trading tools, and a presence in fewer countries compared to some of its rivals.

What is Luno?

Before getting into the pros and cons of my Luno review, let's delve deeper into the key question – what is Luno?

Luno is a crypto exchange designed to make cryptocurrencies like Bitcoin and Ethereum accessible to more people. It has been on this mission since 2013, aiming to make the world of digital currencies simpler and more user-friendly.

What sets Luno apart is its strong emphasis on compliance and security. According to the Exchange Benchmark released on November 2023 by CCData, Luno is striving to be among the most compliant crypto investment platforms globally^[1]. It takes a meticulous approach to regulations and boasts some of the most stringent security measures in the crypto realm.

Every cryptocurrency that lands on Luno's platform undergoes rigorous scrutiny against its internal due diligence standards. This vetting process ensures that traders have access to reliable and trustworthy projects.

The Luno exchange also prioritizes clarity, offering straightforward information to help users understand the risks associated with each investment, enabling them to craft strategies that suit their needs and comfort levels.

Key to its ethos is transparency. Luno stores all cryptocurrencies on a 1:1 basis, instilling confidence in users that their investments are safeguarded. Luno also prioritizes working closely with local regulators to ensure full compliance. This collaborative effort is Luno exchange's way of ensuring that everyone can engage in crypto investments securely and responsibly.

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Luno Review: PROS

Now, I want to focus my Luno review on the platform's strengths – the aspects that make it a standout choice for beginners and seasoned crypto enthusiasts alike.

Safety with Deep Freeze Storage

So, is Luno safe? I've already touched upon this topic in a few instances, but let's go into more detail now.

Luno’s commitment to security can be clearly seen in its choice of crypto storage. It employs a deep freeze storage approach, storing 95% of users' assets in a highly encrypted cold multi-signature wallet, which generates and stores the private keys completely offline.

This high-tech vault is powered by Bitgo Custody and Fireblocks, renowned names in the world of digital asset custody. Any Luno exchange review will tell you that it's one of the main pros of the platform.

For swifter transactions, there’s the multi-signature hot wallet, which handles instant crypto transactions. Though, its private key backups also find shelter offline, as they are spread across safety deposit boxes around the globe. One of the three keys is even stored by an external custodian.

Storing the majority of funds in a cold wallet and then some in a hot wallet is a pretty common and effective security practice employed by many centralized exchanges^[2].

However, Luno’s security doesn’t stop here. Adding another layer to this digital stronghold is the two-factor authentication. This extra step means you get a one-time code generated solely on your smartphone – a digital sentinel guarding your account's gate.

Passwords? They're guarded, too, stowed away in an encrypted form, accessible to no one but you. Also, when it comes to high-risk actions, Luno won’t budge without your say-so. It'll notify you via SMS, email, or push notification (if you have a trusted device) when a high-risk action is triggered, and wait for your confirmation before sealing the deal.

What are those high-risk actions, you ask? Well, the actions that Luno considers to be high-risk include:

• Enabling cryptocurrency sending from your Luno wallet;
• Making the first crypto transfer from a new device;
• Sending over $10,000 in assets;
• Altering your mobile number;
• Adding an email address;
• Generating an API key;
• Authorizing a device to receive push notifications for approvals.

On top of that, note that Luno exchange's privacy practices are stringent, too. Your personal and financial details are kept safe and sound in cloud services that meet their iron-clad security standards. After all, what is Luno but a digital fortress?

The infrastructure hosting Luno is Amazon Web Services. Besides, there are firewalls that barricade Luno's internal networks, ensuring they stay out of reach from the wild web. Plus, all its applications and database servers run inside private networks.

On top of all that, encryption wraps all internet traffic in a tight seal, matching the standards set by external services. Minimal permissions, private networks, and isolation between testing and real-deal environments keep things extra safe.

So, is Luno safe? In short, yes, it seems that it is. When it comes to security, Luno’s got your back.

Very User-Friendly Features

Anyone writing a Luno review will tell you this: the platform shines when it comes to user-friendliness. Navigating Luno is a breeze, making it perfect for those new to the world of crypto.

It has two main features – the Luno wallet and the spot trading interface.

The wallet is where you can quickly buy and sell crypto with your local currency, and, of course, it's also a place where you can store it. You'll also notice the "Rewards" tab, but don't get it confused with earning tools like staking. There is a way you can earn on Luno, but only by inviting your friends to the platform and making sure they actually use it. This way, you can earn referral rewards paid in Bitcoin.

Additionally, its recurring buys feature can be a valuable tool for those looking to invest gradually over time. This option allows users to schedule repeat purchases daily, weekly, or monthly, enabling them to steadily grow their crypto holdings without the need for advanced trading tools.

Now, the spot trading interface is very user-friendly, too. You'll find a TradingView graph, an order book, recent trades, and an order-making box. Plus, below, you'll see all your current and previous orders. Luno offers around 25 trading pairs. While the selection is not the widest, you'll find both crypto-crypto and crypto-fiat pairs.

Also, if you've been looking for a Luno app review, don't worry – it mirrors this simplicity, sporting a clean design that has garnered positive attention across the board. With so many complicated and buggy apps around, its straightforwardness really makes the Luno app distinguish itself from others.

You'll easily find all the same features you can find on the web-based version. This includes swift crypto purchasing, price alerts, the spot trading interface, and a wallet for storing your crypto assets. Any user Luno app review will tell you that it's very easy to navigate.

On top of that, note that Luno also has several features made for businesses. This includes an API infrastructure, which provides businesses with a safe access to local and global liquidity pools and other services. Moreover, business clients get a dedicated sales support and even access to reporting tools, which will help in building their revenue models.

Lastly, it's worth noting that Luno adds even more to its appeal by providing traders with learning material about crypto. You can find articles that introduce you to different crypto assets, as well as things you should know about investing in crypto, and much more.

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A Useful Price Alert Feature

In crypto trading, staying on top of price movements is key. For that, Luno's got a nifty tool up its sleeve: the price alert feature. To understand where my Luno review is going, think of it as your personal crypto lookout, ensuring you don't miss the big swings in the market. Besides, setting it up is very easy, as I'll show you later.

Now, here's the beauty of it: you're in control of what alerts you get. Want a ping when Bitcoin shoots past $40,000? Done. Or maybe you'd rather know when it dips below a certain threshold? You've got it. These alerts come in different flavors - one-time pings or regular updates, depending on your needs.

Let's imagine a scenario: Say you set an alert for Bitcoin topping $80,000. As it climbs from $60,000 to $80,000, you'll hear that ping right when it hits your set value. However, if it drops back down to $60,000, there will be no alert (unless you've also set a 'less than $70,000' alert).

So, simply put, Luno's price alert is a notification tool that can ensure you're in the loop without being glued to the screen, and it should be mentioned in any Luno exchange review.

Compliant with Country-Specific Regulations

Now, something else I couldn't leave out of my Luno review is the fact that it stands out as a regulated platform across the countries it operates. Being regulated means it's legal and complies with necessary licenses and registrations in each region. This commitment to regulation is crucial for safeguarding users' interests and ensuring robust controls exist within the platform.

Luno also adheres to the BSI Information Security Standard and employs KYC verification, requiring users to verify their identities before they can start trading crypto.

Why does this matter? Well, it's about customer safety. Luno recognizes the paramount importance of robust regulation in safeguarding consumer interests and securing funds. The platform's mission revolves around making cryptocurrency accessible while prioritizing user safety.

By engaging with regulators worldwide, it aims to establish effective regulatory frameworks within the crypto industry. This endeavor ensures that exploring, buying, and storing crypto on Luno remains safe and hassle-free for customers.

The bottom line is trust. Any Luno exchange review will point out the fact that the project values its customers' trust above all.

Luno Review: CONS

While Luno has its perks, every platform comes with its share of drawbacks, which is what I'll cover next in this Luno review. After all, exploring the downsides of the project can shed light on areas where Luno might not meet everyone's needs or expectations.

Not the Widest Selection of Cryptocurrencies

Since Luno is clearly very picky about what gets listed on its exchange (as I've already mentioned before in this Luno review), it has a limited selection of cryptocurrencies available for trading.

As of writing, the list of available cryptocurrencies on Luno includes popular ones like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), Avalanche (AVAX), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), Tether (USDT), Chainlink (LINK), Uniswap (UNI), Polygon (MATIC), and a few other assets. However, it's important to note that the availability of these coins might vary depending on your location.

While these options cover some major players in the crypto space, the absence of certain altcoins or newer tokens might disappoint users looking to further diversify their portfolios or explore emerging projects.

It's essential for potential users to check which cryptocurrencies are supported in their respective regions before fully relying on Luno for trading purposes. Also, as the crypto scene evolves, there might be updates to the list of available coins on the platform, potentially addressing this concern.

Despite this limitation, Luno remains a user-friendly platform with a solid reputation for security and ease of use, making it an attractive option for newcomers and seasoned traders alike.

No Advanced Trading Tools

When delving into Luno’s offerings, it’s important to note what it doesn’t offer, too – but I'm here to do the work for you with this Luno review, so don't worry.

Unlike platforms that provide a plethora of features and complex tools for trading strategies (like Binance or Bybit), Luno sticks to the basics. It facilitates straightforward transactions – buying, selling, sending, receiving, and storing cryptocurrencies – without diving into the realm of advanced trading functionalities.

This means that, if you’re looking for trading margin, futures, options, or any other type of advanced trading feature, Luno might not be the ideal fit.

Moreover, for those interested in staking their crypto to earn rewards, Luno doesn’t currently support this feature, too (or many other earning features, for that matter). This can be a downside for users seeking to grow their holdings by staking their assets to earn additional rewards or interest.

However, if simplicity and ease of use are what you value most, Luno remains a great choice. It offers a streamlined experience for managing your crypto, and your assets are accessible via the Luno app or website.

While Luno might not cater to the advanced trading community, its focus on accessibility, ease of use, and fundamental crypto management makes it a suitable platform for beginners or seasoned traders who prefer a simpler approach to cryptocurrency transactions.

Operates in Fewer Countries

There's one more downside that's worth noting in this Luno review – the platform's reach doesn’t extend everywhere just yet. It's got a bit of a limit on where it operates, which is understandable when you consider how regulated and compliant it is. So, if you've got here by Googling something like "Luno UK review" or "Luno Malaysia review", this is where you'll find the specifics you're looking for.

As of writing, it's available in over 40 countries. To specify, Luno can be used by traders in the countries that fall into the Single Euro Payments Area (SEPA),Australia, Indonesia, Malaysia, Nigeria, South Africa, Uganda, and the United Kingdom. However, the offered services and supported crypto assets might differ accross these regions might differ.

Luno Fee Structure

As in any Luno review, it's imperative that I take some time to talk about its fee structure.

In the fees department, Luno can become a bit of a maze, as it varies depending on where you use it. Let's break it down.

Deposits usually come free if you hit a certain amount, but Nigeria’s got a 2% fee. When you’re buying or selling, the fees can range from 1.1% to 2%, again depending on where you’re at.

Now, sending fees can be a bit tricky because they change based on how busy the network is. On the bright side, receiving crypto usually won’t cost you a thing, except if you receive less than BTC 0.0001; then, there will be a fee matching the value of that transaction.

Withdrawal fees? Buckle up, they're all over the place, depending on where you’re located. If you’re in the United Kingdom or South Africa, withdrawals won’t pinch your pocket. Australia's mostly free too, but for amounts under $50.00, there’s a $1.30 tag.

When it comes to trading fees, being a market maker can score you a 0% fee in most spots, except for Malaysia, Nigeria, and South Africa. In those places, it varies between 0% and 0.4%, depending on jurisdiction and tier level. Your tier is defined by your last 30-day trading volume, which is calculated daily.

Now, market taker fees are a whole other story. They vary a ton based on where you are and your tier level. They can range anywhere from 0.03% to 0.6%. It’s like a sliding scale of fees, depending on where you stand.

Overall, be sure to check the most up-to-date Luno's fee structure for your jurisdiction on their website.

How to Use Luno?

Now that you've been properly introduced to Luno's pros, cons, and fees, you're probably set on whether you're going to trade on the Luno exchange, right? So, it's time for me to take my Luno review in another direction: teaching you how to use it.

How to Sign Up to Luno?

Starting with Luno is a piece of cake. Just follow these easy steps to sign up and begin your crypto adventure. You can do this on Luno's website or mobile app, but this guide will be focused on signing up from the website. Still, as any Luno app review will tell you, the process is just as simple if you choose to do it on your mobile.

Step 1: Head to the Luno website and click on [SIGN UP]. It's a button in the upper right corner.

Step 2: Enter your email address and create a strong password, then click [LET'S GO]. Make sure your password is a mix of letters, numbers, and special characters to enhance security.

Step 3: Verify your email by clicking on the button you'll find in the verification letter.

Congratulations! You've successfully signed up for Luno. Now, all that's left to do is verify your account, but that process varies across jurisdictions. So, just click one of the buttons in the upper right corner (it can be [Buy], [Sell], [Send], or [Receive]), as all of them will prompt you to complete your profile by verifying your identity.

How to Set a Price Alert on the Luno Mobile App?

In Luno, setting a price alert is like having your own crypto watchdog, so I decided to include this guide in my Luno review to help you with that as well. This feature sends a nudge to your phone or email (if you're not logged in) when the crypto hits a price you’ve set, and it's the star of most Luno app reviews.

Just note that I'll show you how to set it on your Luno app, but it's a pretty much the same process on the web-based Luno version, too.

Step 1: Log in to the Luno app on your device and tap on the asset for which you want to create an alert.

Step 2: Tap the bell button on the top right corner of the screen.

Step 3: Then, tap the bell button again. You'll be taken to the alert creation window where you can choose alert frequency and conditions.

In other words, decide if you want this alert just once or every single time the price shifts. Also, maybe you want to be notified when the price goes above or below a certain amount? Make your choices here.

Then, type in the specific price that'll trigger your alert. Once you've set it, hit [CREATE ALERT] to lock it in.

Step 4: In case you want to check your price alerts, toggle them on or off, or edit them, go to the asset again and click that bell button. Once, you do that, you'll see all your price alerts for that asset and you'll also be able to edit them.

Remember, you can go all out with multiple alerts. Just a heads-up: these alerts are only available for the cryptocurrencies Luno supports.

Conclusions

To sum up, Luno stands out as a user-friendly platform for buying, selling, and securely storing popular and solidified cryptocurrencies. Its emphasis on safety and being regulated across its operating countries adds to its credibility. The platform's simplicity and intuitive design make it a great choice, especially for beginners.

However, Luno does have its drawbacks. Its selection of cryptocurrencies is somewhat limited due to how picky the platform is, and it lacks advanced trading tools that more experienced traders might seek. Additionally, its availability is confined to fewer countries compared to other popular exchanges like Binance or Bybit.

Nevertheless, whether Luno is a good choice depends solely on your trading needs and experience level. If you're all about security, compliance with regulations, and hassle-free platform navigation, Luno might just be it.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. CCData: 'Exchange Benchmark. November 2023';

2. S. Ebrahimi, P. Hasanizadeh, S. Aghamirmohammadali, et al.: 'Enhancing Cold Wallet Security with Native Multi-Signature Schemes in Centralized Exchanges'.