Luno experiences - The crypto exchange review

Overall Rating: 
5/5 stars

Quality

speed

cost

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:

Bitcoin
Ether
Bitcoin Cash
Litecoin
Ripple


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.

Luno

Key data

Number of cryptos

5

Number of currencies traded

5

Supported countries

40

Payment methods

7, no Paypal 

Account limits

no

Spending limit periods

Yes

head office

GB

Trading fee 

0.2% - 1% purchase fee, depending on volume and trading pair

Deposit / withdrawal fees

Mostly low deposit and withdrawal fees

Own wallet 

Yes

Fiat on cryptos

Yes

Cryptos on cryptos

Yes

Luno-Review (1)

The Luno offer

Bitcoin hand take money

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.

Luno

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:

Wallet Service
Affiliate programme
Business accounts
Multisignature Wallets
Cold Storage
Two-factor authentication


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:

  • With fiat currencies

  • With cryptocurrencies

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.

Chart function

With the chart function, many indicators and other basic functions can be displayed directly on the charts.

Mobile Wallet

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.

Drill-down procedure

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.

Luno-Anmeldung-300x276

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.

Luno-Einzahlung-300x255

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-Handel

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:

Cryptocurrencies

Bitcoin
Ether
Bitcoin Cash
Litecoin
Ripple
Fiat currencies

Euro

Malaysian Ringgit
Indonesian Rupiah
South African Rand
Nigerian Naira

The customer can make a deposit as follows:

  • By credit card
  • By SEPA bank transfer
  • Via an international bank transfer
  • Via GT Bank transfer
  • By Paystack
  • In South Africa with cash
  • Via instant bank transfer
Luno-Test-300x210

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


Luno

eToro

Libertex

Coinbase

Deposit

1.5-3.5%, depending on the payment method

no

no

3.99%

Purchase fees

0.25 - 1%, depending on the coin

0.75 - 5%, depending on the coin

3.08%

1.49%

Sales charges

0.25 - 1%, depending on the coin

0.75 - 5%, depending on the coin

3.08%

1.49%

Network fee 

not clear

no

no

no

Instant trading fee

different levels

no

no

no

Payout

not clear

$ 5

free

$ 0.15

Luno charges many different fees and is almost opaque. The surcharges include, for example:

  1. Fees for deposits and withdrawals of fiat currencies and coins.
  2. Transaction fees for the purchase of cryptocurrencies
  3. Withdrawal fees for the withdrawal of fiat currencies
  4. Network fees if the user sends cryptocurrencies from his wallet to another address
  5. Instant trading fee when cryptos are traded directly through Luno and not through the regular market
  6. 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.

  • Level 0 (email confirmation): Fiat currencies cannot be deposited or withdrawn at all.
  • Level 1 (telephone confirmation): With this level, the user can deposit and withdraw a total of 1,000 euros.
  • Level 2 (ID verification): With the level 2 account, the trader can deposit and withdraw up to 5,000 euros per month.
  • Level 3 (proof of residence): The level 3 account allows monthly deposits and withdrawals totalling 100,000 euros.

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-Kundenservice-300x262

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-Erfahrungen-300x246

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:

  • Luno uses multi-signatures so that cold wallets can never be opened by a single person. The four-eyes principle makes the work of criminals more difficult.
  • Hot wallets permanently connected to the internet are also protected by the four-eyes principle, one of the two parties being BitGo. This is an independent trustee for cryptowallets. Fraud is therefore practically impossible.
  • The deposits are also secured by Luno. Luno relies on cold storage (separated from the internet), where a large part of the deposits are kept and thus cannot be hacked online.
  • On the website, Luno requires two-factor authentication for accounts - a security measure that traders should also use.
    All passwords are stored only as hash characters. This corresponds to the current standard of technology to protect against hackers.
  • Luno also has several procedures of its own that improve security, such as encryption at all levels and self-imposed audits by recognised auditors as well as other high data protection standards.

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.

Luno-App-230x300

Luno App

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:

Pros

  • Low fees
  • High quality trading platform
  • Simple and user-friendly interface
  • Large selection of cryptocurrency transactions
  • Currency pairs with MYR, IDR, ZAR and NGN
  • High security and good hedging options of the
  •  Luno account
  • User-friendly app
  • API

Cons

  • Only five cryptocurrencies supported
  • Lack of transparency with the complex fee structure
  • Supported countries are limited
  • Verification is cumbersome
  • Customer support is difficult to reach

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.

Luno

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.

Cryptoscene

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.


Buy cryptos with eToro

User-friendly and intuitive platform
Fair and transparent fee structure
First-class customer support
Wide range of cryptocurrencies
Free demo account

FAQ

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 it.

How long does Luno take for a payout?

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.

Is a trading account with Luno worthwhile?

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.

How much money should a trader deposit with 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.

Hi, my name is Benzion. I have twelve years of experience in the Forex industry, and I have launched two successful crypto trading services. I have in-depth experience on several blockchain networks like Bitcoin, Etheruem, EOS, Cardano, Hyperledger, ICON, Komado, etc. I also have in-depth knowledge of blockchain techniques, including various consensus mechanisms, DLT, smart contracts, security, and privacy measures. Benzion Friedman