Cryptocurrency is taking the center stage in the world of trade and investment, as there has been a paradigm shift towards digitization in every facet of the global economy, the growth of cryptocurrency is a discourse to understand.
However, with different kinds of exchanges characterized by crypto, and some major platforms operating in the trade and investment of the digital currency, there is a need to have a lucid knowledge of how some of these exchange platforms work.
Here, if you are faced with the decision of which crypto exchange to opt for between Luno and Paxful, you should then take your time to go through this comparative review of the two exchange platforms. Their comparison and contrast will enable you to take a stand for the best choice for you.
Luno And Its Overview
Established in 2013, Luno is a global crypto exchange platform originally headquartered in Singapore before relocating to London. With over two million users across the world, Luno runs its operational hub from Cape Town and its main hubs in Singapore, Johannesburg, and London.
Luno is exceptionally designed with a focal point on middle-income and developing companies. Their operations cover countries like South Africa, Nigeria, Indonesia, Malaysia, etc. On the other hand, the continents of North America, South America, and Australia do not have the operations of Luno covered.
Cryptocurrencies available on Luno are Bitcoin and Ethereum, and the traditional currencies used by traders to buy Bitcoin on Luno are Rand, Ringgit, and Rupiah in South Africa, Malaysia, and Indonesia, respectively.
Main Services Of Luno
1. Luno Trading Platform
Every registered user has the opportunity to trade on the Luno platform with the company charging a certain commission on sales.
2. Cryptocurrency E-wallet
Luno offers its trader an e-wallet for trading. You can access Luno Wallet via Android and iOS mobile.
3. Luno Brokerage Services
This is the instant buy or sells feature available to all users. With this feature, you can buy crypto at a quoted exchange rate. This transaction fee is included according to the market condition.
Paxful And Its Overview
Founded in 2015, Paxful is a reputable crypto peer-to-peer exchange platform with its base in the United States. With about six million users across the globe, Paxful trades only in Bitcoin with billions in global volume. On Paxful, there are over 350 ways to buy and sell Bitcoin with Bitcoin being held in its secure escrow until the trade is completed.
Main Services Of Paxful
1. Trading Platform For Users
Paxful enables users to directly trade with Bitcoin.
2. Paxful Bitcoin Wallet
Users can store Bitcoin, make and receive Bitcoin payments with Paxful Bitcoin Wallet.
Analytical Comparison Between Luno And Paxful
1. User Coverage
Paxful has a wider user coverage as it covers more countries than Luno. Luno covers only forty (40) countries in Africa, Europe, and Asia while Paxful has global coverage, except in New York City.
2. Payment Method And Supported Currencies
Paxful leads these considering factors. Aside Euro, Luno accepts local currency from Africa, Indonesia, Malaysia, and South Africa only. Also, Luno supports bank transfer and debit/credit cards payment. But Paxful supports all global currencies so far a user is ready to accept the currency during transactions.
3. Cryptocurrency Offered
Luno aces this category as it covers more cryptocurrency than Paxful. Luno offers two cryptocurrencies (Bitcoin and Ethereum) while Paxful offers just one. Paxful deals only in Bitcoin. Nonetheless, Bitcoin is the most popular and valuable amongst all the cryptos.
The fees charged by Luno are dependent on the location of the user and the choice of payment method while Paxful has a standard 0.008BTC fee on every transaction in addition to a 1 percent commission of the trade value. Hence, this fee is cheaper and simpler than that of Luno.
With the exhausting points above, a crypto user must assess and analyze these two platforms to have an outlook of the one that offers a comparative advantage for his trade and investment.