Luno Review: Platform for Buying and Selling Bitcoin

Description

Luno (initially BitX) is a bitcoin exchange. The company operates in over 40 countries in North America, Africa, Asia, and Europe and allows users to buy, sell, send, and receive bitcoin. The platform can be accessed on the web or via mobile apps available for iOS and Android devices.

Luno offers advanced features such as a price alert, repeat buys, and API. The API allows traders to access the platform from their applications and create custom trading strategies. Price alert enables users to receive notifications when the bitcoin price reaches the target level. With a Repeat Buy feature, it is possible to set up a regular purchase of bitcoin (daily, weekly, or monthly). It is helpful for users looking to save money by dollar cost averaging their investments.

How to Sell Bitcoin on Luno

To sell BTC on Luno, you first need to sign up for an individual or business Luno account. Being a KYC exchange, the platform will require you to provide proof of identity. After verifying the account, you can fund it using bank transfers, debit or credit cards, or other payment methods available for your country.

Once you have signed up, you can create a local currency wallet with the following supported fiat currencies to fund the Luno account: AUD, EUR, IDR, MYR, NGN, SGD, ZAR, UGX, GBP, and USD. Luno offers a custodial wallet service. So along with the local currency account, you may create a bitcoin wallet. This means that Luno holds your funds, and you do not have direct control over them. The service has a disabling bitcoin sends feature and two-factor authentication to increase security. However, it can not provide as much security as hardware wallets you own.

The process of buying bitcoin can be done in two ways:

1. A taker order. The buyer can choose an already existing order created by the seller.
2. A bid. The buy can create a new order and set how many sats he wants to buy and the price he is ready to pay.

Luno Payment Methods

Luno offers various payment methods depending on the your location, with cash, checks, and deposits from foreign accounts not being accepted at the moment. Bank transfers is the most prevalent method across regions. This allows you to initiate transfers from your local bank accounts using the bank details provided by Luno. Additionally, in certain areas, Luno facilitates instant deposits through specific services. For instance, in Malaysia, users can make instant deposits through FPX, while in South Africa, Electronic Funds Transfer (EFT) is available. In Europe, users can utilize SEPA transfers for their transactions.

In some countries, you can also opt for instant buy options via your debit or credit cards without first adding money to your local currency wallets. Although generally faster than bank deposits, this method may has slightly higher fees. Moreover, in Nigeria, users have the option of making deposits via voucher purchases, where they can buy a voucher using their bank card or via bank transfer and enter the voucher number on Luno. Once redeemed, the funds will be added to their NGN wallet

Luno Investment Plan

Luno offers an investment plan that leverages Dollar-Cost Averaging (DCA). Through recurring buys, you can automate your investment strategy on the platform, setting fixed amounts to be purchased at regular intervals, whether weekly, monthly, or otherwise. This approach removes emotion from buying decisions and promotes consistent investing over time. Additionally, DCA with Luno helps reduce risk by averaging out the purchase price of Bitcoin, allowing you to acquire more Bitcoin when prices are low and fewer when they’re high, ultimately mitigating the impact of market volatility.

Moreover, Luno’s investment plan offers convenience, as the platform handles recurring purchases automatically. You only need to ensure there are sufficient funds available in your local currency wallet to execute the purchases as scheduled.

Luno Fees and Limits

Luno’s limits and fees depend on the country in which you are located and your payment method. For example, in Europe, if you buy Bitcoin with SEPA transfer, the fee is €0.30, and if you pay with card the fee is 3.5%. The minimum amount you can start buying is $10. Luno limits also depend on the verification level. There are three verification levels: basic, intermediate, and highest, and to get it, you need to confirm and submit your basic personal details and scans of some documents.

The Luno Exchange has two different fees for trading, following a maker-taker model. The first fee is a maker fee that is not charged when a user places an order that is not immediately matched with an existing one. The second fee is a taker fee, which is charged when an order is immediately matched with an existing order.

Luno Countries

Luno is available in many countries worldwide. Here’s the list of countries using Luno: In Africa, Luno serves countries such as Nigeria, Uganda, and South Africa. In the Asia-Pacific, Luno is available in Australia, Indonesia, and Malaysia. In Europe, Luno is available in the United Kingdom and countries within the Single Euro Payments Area (SEPA), enabling users to buy Bitcoin with SEPA. However, it’s worth noting that Luno is not available in the United States at this time.

Is Luno Safe and Legit?

Luno has been operating since 2013 and is registered with financial authorities in several countries, ensuring compliance with regulations in those jurisdictions. To safeguard user accounts and funds, Luno uses industry-standard security measures, including cold storage and two-factor authentication. Additionally, Luno uses a multi-signature hot wallet to facilitate instant Bitcoin transactions. Their infrastructure is hosted on Amazon Web Services, providing a secure environment for Luno services.

However, it’s important to note that while Luno uses a multi-signature wallet where the keys are generated and stored offline and offsite, it is a custodial wallet. This means users do not have full control of their funds, and in the event of the exchange collapsing, there is a risk of losing funds.

Should You Buy and Sell Bitcoin on Luno?

Luno is a legitimate exchange for buying and selling Bitcoin, with a track record dating back to 2013. It prioritizes security through features like 2FA, multisig, and cold wallets. If you are a regular Bitcoin investor, its recurring buy feature makes it easier and convenient for you to accumulate Bitcoin over time.

However, it’s important to note that Luno is not available to US residents and is currently accessible only in English, French, Malay, and Indonesian. Additionally, for those who prioritize self-custody in their Bitcoin trading journey, the custodial wallet model may pose concerns, as the exchange holds the private keys to your funds, potentially leading to loss in case of collapse or bankruptcy. Therefore, it’s advisable to either withdraw Bitcoin to self-custody wallets immediately or buy from noncustodial exchanges such as Pocket Bitcoin, Peach Bitcoin, and Hodl Hodl.

If you treasure privacy, Luno’s KYC requirements might be a drawback. Therefore, you can opt for non-KYC exchanges like Robosats, Hodl Hodl, and Peach Bitcoin. Furthermore, the absence of Lightning Network support in Luno limits the speed and cost-effectiveness of Bitcoin transactions. As such, while Luno offers convenience, security and investment option to users, individuals should carefully consider their priorities and explore alternative platforms that better align with their needs.

More Information

• List of countries
• Luno updates on Twitter
• YouTube channel