Luno experiences - The crypto exchange review
The crypto exchange Luno, headquartered in the UK, has become increasingly well-known in recent years. The provider offers its users their own wallet and aims to simplify trading with Bitcoins, Ether and other cryptocurrencies.
But can Luno also keep up with the well-known crypto providers in terms of security?
We put the exchange under the microscope, compare fees, offers and services, and show better alternatives if necessary. Here is everything you need to know about Luno!
What is Luno?
Luno is a crypto exchange where traders can trade cryptocurrencies. Luno offers its customers the possibility to trade cryptocurrencies conveniently via their smartphone and also to pay with them.
Compliance is important to the cryptocurrency exchange, which is why the user can secure his account well. Luno itself also does a lot to protect its customers' money.
The user interface is similar to that of Google and is therefore understandable to everyone. We also like the API.
Unfortunately, there are only five cryptocurrencies on offer:
Up to a trading amount of 1,000 euros, verification is completed within minutes. The platform offers a bonus of 15 euros for the first purchase that is higher than 250 euros.
Number of cryptos
Number of currencies traded
7, no Paypal
Spending limit periods
0.2% - 1% purchase fee, depending on volume and trading pair
Deposit / withdrawal fees
Mostly low deposit and withdrawal fees
Fiat on cryptos
Cryptos on cryptos
The Luno offer
Luno offers users various services, including a trading platform for cryptocurrencies, a broker service, a Bitcoin wallet and an API for developers. The Luno account is controlled via a simple dashboard, which allows access to various areas, e.g. the buy-it-now / sell-it-now service, account reports, settings, etc.
As already mentioned, Luno attaches great importance to compliance and conformity with the rules, which is exactly why Luno only offers the five most established cryptocurrencies. Initially, Luno started with Bitcoin and Ether, but now there are also Bitcoin Cash, Litecoin and Ripple.
Although Luno's design is relatively simple, the platform offers appealing features, so that Luno experiences are consistently good. As with many other crypto exchanges, Luno also offers clear charts of the currently executed trades, an order book and an order function.
Placing a simple order is child's play. It is more difficult for traders who want to place a limit or market order. In this case, it is practical to click on the last price in the order book. This way you get an exact price. Day traders might have their problems with this, because it is not possible to do it so quickly.
This is where the API comes into play, with which you can link your own programmes to the trading market. Unfortunately, if you want to create analyses over a longer period of time, you have to resort to third-party software or other crypto exchanges, because Luno's market data does not go far back into the past. Luno clearly has potential for improvement here.
In addition, we have to note that the investor cannot buy Ether directly and must first exchange a fiat currency for Bitcoins in order to then buy Ethereum with Bitcoins - a cumbersome way that also results in high fees. We think this is unnecessary.
Luno - The functions
Luno is primarily a crypto exchange, which is why the platform focuses on Luno Bitcoin experience and cryptocurrency trading. It is suitable for beginners and also offers other services, for example:
Among the convincing features are charts and API access for automated trading. This allows purchased trading bots and also self-created ones to access Luno directly and make trades automatically. We will explain the following functions in more detail:
Traders can pay for coins with fiat currencies via credit card or SEPA transfer. However, the waiting time is likely to be significantly longer than when paying by card.
Liquid's website is user-friendly, which is why the investor only has to follow the instructions. After that, the cryptos land on the user account within a few days. Some credit institutions may charge an additional fee for the transfer. This should be clarified in advance. It should also be noted that withdrawals in fiat currencies are expensive.
A new wallet address is created with every deposit. In addition, there is a separate API for all cryptos. However, transfers of Ether to an Ether address are permitted. It is very important to note that the coins are usually lost forever if mistakes are made when entering the address.
All other digital currencies use their own programme, which is why direct transfer is not possible; a new wallet address is created.
With the chart function, many indicators and other basic functions can be displayed directly on the charts.
As the name suggests, the mobile wallet can be used on the move. The app can be conveniently linked to your own account and is available for Android and iOS devices.
With the drill-down procedure, the investor can look at various reports and also design them according to his own liking.
Instant Sell / Buy
With Instant Sell / Buy, the user can buy cryptocurrencies directly from Luno or sell them via Luno without having to turn to the regular market, but of course not for free and Luno charges a fee for this.
It is disturbing that this surcharge is not presented transparently, because Luno unfortunately does not offer any transparency in the fee structure. In our test, each trade resulted in a different surcharge, so that we could not find out according to which percentage or how Luno calculates the fee.
Anyone who wants to make use of the instant option should therefore definitely check how high the surcharge is for the direct transaction.
Instructions for opening an account and buying coins
Luno's homepage has an appealing design and is clearly laid out. The button to open an account (Get started) is in the middle and on all other pages in the top right corner (Sign up). As a result, opening an account with Luno is a no-brainer and requires three simple steps. Here is a guide:
Step 1: The registration
To open an account, the user needs an email address and a secure password. Alternatively, the trader can also register via the Facebook account or with his Google account.
Those who have registered with their e-mail address will immediately receive an e-mail with a button to verify the account. Once you have clicked on this button, you will be forwarded directly to the Luno dashboard.
Step 2: The deposit
After the verification, the trader has to link his bank account with Luno. This can be done under the menu item "beneficiaries". Afterwards, the user can select the preferred payment method via "More".
At Luno, cryptocurrencies can be bought in two ways: Either via the regular market, or directly via Luno with the Instant Buy / Sell function, which, however, costs something. Both options are only possible once the customer's account has been verified and money has been deposited.
Step 3: Buy coins on the exchange or with the Instant Buy / Sell function
If you want to buy coins on the regular market, i.e. on the stock exchange, click on the menu item "Exchange". After clicking, the trading overview appears, where you can enter the desired number of coins and the purchase price. To confirm, all you need to do is click on "Place buy order.
The more expensive variant with the instant buy / sell function works in a similar way. A trade is made by clicking on the "Buy" button. You have to specify which cryptocurrency you would like to buy and for how much. After clicking on "Next", all transaction-related data is displayed again, and when the user has confirmed the details by clicking on "Buy", the transaction is carried out.
Luno - The payment methods
Luno wants to appeal to European users as well as users from emerging countries and therefore accepts various currencies and payment methods. The following currencies are available for deposits:
South African Rand
The customer can make a deposit as follows:
Unfortunately, Paypal is not accepted by Luno. It is therefore not possible to buy cryptocurrencies with Paypal at Luno.
Luno costs - comparison of fees with other providers
1.5-3.5%, depending on the payment method
0.25 - 1%, depending on the coin
0.75 - 5%, depending on the coin
0.25 - 1%, depending on the coin
0.75 - 5%, depending on the coin
Instant trading fee
Luno charges many different fees and is almost opaque. The surcharges include, for example:
- Fees for deposits and withdrawals of fiat currencies and coins.
- Transaction fees for the purchase of cryptocurrencies
- Withdrawal fees for the withdrawal of fiat currencies
- Network fees if the user sends cryptocurrencies from his wallet to another address
- Instant trading fee when cryptos are traded directly through Luno and not through the regular market
- Because Luno's fee structure is extremely opaque, it is difficult for an investor to keep track of fees when making trades.
The purchase limits at Luno
At Luno, there are different accounts which, depending on the level, entail different levels of identity verification and have different deposit limits.
Those who use the "Buy it now" function can also specify how many bitcoins and fiat currencies they can buy in each order placed. For example, the investor can determine to only spend up to 7,000 euros per order.
Luno's customer service - Evaluation
Luno provides a basic knowledge with basic information on the website. However, the knowledge database including FAQs, with which some small problems can be solved by traders themselves, is not enough. In case of questions, the user can turn to the e-mail support, which, however, does not deserve top marks. On Trustpilot, Luno customers complain about blocked accounts or funds that were not credited on time.
The operators of Luno respond to critical reviews in social networks and rating portals, but there is still room for improvement in the customer support of this platform. However, this is not unusual; all too often, customer support at cryptocurrency exchanges leaves much to be desired. Bitstamp and Coinbase have also received bad reviews in this regard.
The ticket system is not well supported. You wait in vain for quick answers and it is difficult or impossible to have a conversation over several messages. You can hardly reach Luno customer support directly either. If you look at the positive aspects, you can also attribute this to the rapid growth of Luno and justify it with the fact that there are simply too few employees in customer support.
Luno testimonials on Trustpilot
Luno is currently rated 4.1 out of 5 stars on UK Trustpilot with 1,932 reviews. 50% of users have given the platform the highest rating. Here are a few reviews:
Luno ExperienceHalliday wrote on 08/01/2021:
"Thanks guys, u people are doing a great job." (Thanks guys. You guys are doing an excellent job).
Phetoho, who also left a review on 08/01/2021, also had a good Luno experience:
"So far so good! This app is user-friendly, easy to understand and so real. I love it!" (So far so good! This app is user-friendly, easy to understand and so real. I love it!)
And Virile wrote on 07/01/2021:
"The very best app I have come across in my life. Easy way to make money." (The very best app I have come across in my life. An easy way to make money.
Luno Review - Security
As a market leader in compliance, Luno naturally has a comprehensive security concept. Luno treats customer data with the utmost care and also offers the following:
It can therefore be said that Luno leaves nothing to be desired when it comes to security. Nevertheless, it is always advisable never to store large sums of cryptos in the crypto exchange's account and instead to prefer your own wallet, preferably a cold storage that is not connected to the internet.
In addition to the practical user interface in the web browser, Luno offers its customers a convincing app, both for Android and iOS devices. The app works well for both operating systems. It is therefore not surprising that the app is rated with over 4 points in the corresponding app stores. Luno's support usually responds to negative reviews within 24 hours.
With the app, traders can register, deposit money, benefit from comprehensive trading functions and get their own Ether and Bitcoin wallet.
Luno experience: Advantages and disadvantages
Luno offers some advantages, but of course it also has its disadvantages. Here are all of them at a glance:
Luno in the test - conclusion
In summary, we can say that Luno is an acceptable crypto exchange. The crypto exchange gives a solid impression despite the few weak points with the lack of customer support and the limited range of cryptocurrencies. Instead, Luno has made sure that the implemented features such as the provided API are really top functional and clean.
The interface convinces with a clear design and the registration, verification, deposit and trading with cryptocurrencies run smoothly. The app, which is available for both Android and iOS devices, also convinces with its functions and is also beautifully and simply designed.
Furthermore, Luno offers its customers their own wallet for Bitcoins and Ether, which is protected by various security measures - not only by the user himself, but also by Luno.
Customer support can definitely be improved. More employees simply need to be hired to take care of the customers. The selection of coins is limited, but these are established cryptocurrencies. Another definite criticism is the lack of transparency in the fee structure. Luno needs to do something about this.
On the whole, Luno is a solid crypto exchange, but it still has some annoying shortcomings. However, it can at most be recommended to those traders who do not want to trade cryptocurrencies on a daily basis. Day traders are better served with special brokers.
Better alternative: eToro
We see the trading platform eToro as a much better alternative to Luno. This provider is one of the world's most popular online trading platforms and is subject to state regulation and licensing. Here, users can trade not only cryptos, but also stocks, CFDs, commodities and much more. Users will find an extensive, the revolutionary Copy Trading function, as well as opportunities for further education.
User-friendly and intuitive platform
Fair and transparent fee structure
First-class customer support
Wide range of cryptocurrencies
Free demo account
Luno is a crypto exchange where traders can trade cryptocurrencies. Luno offers its customers the possibility to trade cryptocurrencies conveniently via their smartphone and also to pay with it.
Luno can score points for the processing time for a payout. Payouts are made quickly and are processed within a few minutes, depending on the selected payout method. In rare cases, however, the payout can take up to two working days.
Luno offers comprehensive trading functions in the area of the five established cryptocurrencies. There is definitely money to be made and security is high at Luno.
This question cannot be answered in a general way. A trader must decide how much to invest based on the available liquidity, the selected cryptocurrency and, last but not least, the individual risk appetite. In general, it can be said that one should only invest money that does not hurt in the event of a total loss.