Many big cryptocurrency exchanges like Binance and Kraken offer traders their platform to buy and sell listed cryptocurrencies. These crypto exchanges can be credited with playing a major role in the massive adoption of crypto in the world today but their services are strictly based on exchanging fiat money for crypto or exchanging crypto for crypto.
Even though these exchanges offer more than 100 cryptocurrency pairs, they do not offer any option for crypto-to-fiat conversion.
Traders who wish to convert to fiat would need to withdraw their crypto and find a crypto-to-fiat exchange to convert it.
Since crypto traders who trade on these exchange platforms find it difficult to convert the crypto in their wallet into their local currency, it becomes a concern that birthed a new crypto exchange platform and payment service, Luno, which offers traders on-exchange option to exchange their crypto to fiat.
In their article, we will have a review of the Luno exchange and its pros and cons.
What Is Luno?
Luno is a cryptocurrency exchange and payment service with the goal and enthusiasm of aiding a massive adoption of crypto and enlightening the world about cryptocurrency through its services.
Luno exchange operates across the globe abd covers about 40 countries across Europe and other continents.
The cryptocurrency pairs on the Luno exchange are quite limited and as such, it may not favour traders who have a large pool of cryptocurrency pairs.
Luno exchange offers trading options for cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple and USD Coin across many fiat currencies.
The Luno exchange has a market capitalization of about $3.7 million. Also, the platform’s mobile app and wallet are the easiest route to sending, receiving and spending crypto and fiat.
The exchange also considers the plight of beginner Bitcoin traders, which is why some tutorials are provided through the Luno Learning Portal and blog to educate them.
How Does Luno Exchange Work?
Luno is one exchange platform comprising one web page and one mobile app in over 40 countries but even though everyone has access to one platform, the features it offers may vary due to geographical location.
Luno exchange offers these features to US investors;
- Send cryptocurrency to an external wallet
- Buy and sell cryptocurrency
- Receive cryptocurrency deposits
Also, the use of debit cards for crypto purchases is accepted on the platform. A debit card must be added as a payment method before executing a trade. Users can deposit money from their bank accounts to the Luno exchange but this feature is not yet available in the US.
There’s an option for opening a business account on the platform which allows businesses to accept payments in crypto, pay invoices in crypto and trade crypto.
The Luno Brokerage Service gives the exact market price on which crypto can be instantly bought or sold.
The exchange permits Bitcoin trading against five fiat currencies namely; Euro(EUR), Indonesian Rupiah (IDR), Nigerian Naira(NGN), South African Rand (ZAR) and Malaysian Ringitt (MYR).
The Luno payment services will clinch some remarkable growth in a few years to come.
Pros Of Luno Exchange
1. Beginner-Friendly Crypto Trading:
Luno exchange has a web platform and mobile app that are user- and beginner-friendly for all. The exchange has made crypto trading and investment a simple and straightforward venture such that a newbie in the cryptocurrency world does not need a learning curve before trading.
To buy crypto, simply add your debit card, choose how much crypto you want to buy and confirm.
2. Educational Resources:
Luno provides some educational resources to users, especially new traders who are not yet equipped with the antics of cryptocurrency trading.
The exchange features a learning portal and blog, including video content, articles about cryptocurrency, and the latest crypto news.
3. Fast Verification:
Generally, licensed crypto exchanges have an obligation of verifying the clients’ identity but some crypto exchanges are very slow with this process.
However, the Luno exchange is an exception to this as it is among the exchanges that are quick with this process.
Luno exchange verifies users’ identities within a few minutes of submitting the required information, a selfie, and an ID.
4. Good Security:
Security is the utmost priority of every crypto exchange because any breach of its security is detrimental to the platform and its users.
Luno understands the implication of weak security, hence, it keeps the crypto funds in offline cold storage and stores the keys to crypto in safe deposit boxes.
This method of storing cryptocurrency offline has made it quite identities for cyber criminals to access Luno clients’ funds not to talk of stealing them.
Related: Difference Between Luno And Paxful
Cons Of Luno Exchange
1. Limited Cryptocurrency Available:
Luno may not be the best platform for users interested in large varieties of cryptocurrency because of the limitation of crypto trading on the Luno exchange.
The exchange has a few cryptocurrencies like Bitcoin and Ethereum listed on the platform.
However, this is not good for the growth of the exchange because other competing exchanges offer larger varieties of cryptocurrency.
If Luno should attract more users to the platform, then it should expand its scope on the amount of cryptocurrency it offers.
2. Limited Features:
Luno is not that exchange where you can carry out advanced trading woth trading tools. It’s just a simple platform where you can buy, sell, send and receive cryptocurrency.
Also, crypto staking or crypto lending is not available on the platform, therefore, there’s no chance of a user locking up crypto to earn rewards.
However, international Luno users can store cryptocurrencies in savings wallets and earn interest through a crypto lending program.
The Luno exchange fee structure is quite simple and less expensive, even though other crypto exchanges charge less.
The exchange charges a 0.75% trading fee on the amount of crypto being bought and sold.
There are no fees on crypto deposits but crypto withdrawal fees are dynamic and also depend on the network traffic at the time of withdrawal.
Bank transfer deposits are not yet available on the platform but there is a certainty that they won’t have any fees when they become available.
In conclusion, Luno is a great crypto-exchange platform which has helped bring crypto traders close to their local currency.
The platform does not only encourage massive crypto adoption, but it also gives educative content and information on how to navigate the crypto space and the latest news in the industry.