Luno was established in 2013 and has since grown to become a global cryptocurrency company that operates across many regions including Africa, Oceania, the United States, and Europe.
The platform was designed to make it safe and easy for users to buy, store, and learn about cryptocurrencies.More than a year ago, they had to lay off 35% of their workforce, because they were impacted by the FTC’s demise. However, they managed to get their act together and move forward with even more energy. Luno exchange’s main mission is to upgrade the world to a more open, efficient, and inclusive financial system. Has it succeeded in this ambitious endeavor?
The Facts
Market Presence
Luno has carved out a dominant position in the African market, boasting a market capitalization of approximately $30.5 million. The platform’s trading activities encompass Bitcoin, Ethereum, and four other cryptocurrencies, positioning it as a key player in the region’s crypto economy.
Services Overview
Luno’s suite of services is designed to cater to both novice and experienced traders. Here’s a breakdown of what the exchange offers:
Cryptocurrency Transactions
Users can engage in the buying and selling of Bitcoin and Ethereum using various fiat currencies, including ZAR and NGN. Transaction fees are set at a minimum of 2%, applicable specifically to the trading section of the exchange.
Scheduled Crypto Purchases
Luno facilitates automated, recurring crypto purchases through its ‘repeat buy’ feature. For instance, if you wish to acquire NGN 5000 worth of Bitcoin on the last Friday of each month, Luno’s system can manage this automatically, ensuring consistent investment without the need for manual intervention.
Supported Cryptocurrencies
The exchange currently supports a selection of six cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, and USD Coin. These offerings reflect Luno’s commitment to providing a diverse range of digital assets for trading.
Deposits and Withdrawals
Fees
Luno implements a fee structure for deposits and withdrawals. Depositing Bitcoin via email or phone number is free of charge, whereas deposits from a hot wallet incur a fee of 0.0002 BTC per transaction. Additional network and processing fees may apply for other cryptocurrencies and fiat currencies.
Methods
A variety of deposit methods are available on Luno, including bank wire transfers, credit cards, and direct cryptocurrency deposits using email, phone number, or the specific receiving address.
Limits
Transaction limits on Luno are determined by the user’s verification level. The platform offers four levels of verification, each with its own set of deposit and withdrawal limits, ranging from Level 0 (email verification only) to Level 3 (proof of residence), with corresponding limits in NGN, ZAR, and EUR.
Exploring Luno’s Fee Structure and Global Reach
Fee Strategy at Luno
Luno’s operational revenue is primarily derived from transaction fees, which are tailored according to the user’s geographic location. The platform operates with a 0% maker fee for all types of currencies, encouraging market liquidity.
For takers, the initial fee is 0.1%, which can be reduced based on the user’s 30-day trading volume. Luno employs a tiered fee structure with eight levels, culminating in a fee as low as 0.03% for those trading volumes equivalent to or exceeding 16 million pounds.
KYC Procedures
Engaging in transactions on Luno necessitates completing a four-tiered Know Your Customer (KYC) process. This includes providing an email address, phone number, identification card, and proof of residence. Initially, with only an email verification, users are unable to transact. Verification of a phone number grants transaction capabilities but with a minimal limit. Subsequent verifications progressively increase the transaction limit, ultimately leading to no cap on transactions for fully verified users.
Global Presence
Luno boasts a presence in over 40 countries, catering to a diverse clientele. Some of the countries where Luno is operational include South Africa, Nigeria, Indonesia, various European nations such as Austria, Cyprus, Germany, and the United Kingdom, as well as other countries like Malaysia and Zambia. This extensive reach underscores Luno’s commitment to providing global access to cryptocurrency markets.
The Review
Luno’s platform is often lauded for its user-centric design, which prioritizes safety and ease of use. The interface is intuitive, which is a boon for users looking to navigate the often complex world of cryptocurrency transactions. However, while the platform is indeed user-friendly, some may find it lacks advanced features that more experienced traders seek.
Among the countless number of bitcoin exchanges, Luno positions itself to foster a more open, efficient, and inclusive financial system through the world of cryptocurrency. Luno’s educational resources are commendable, offering a comprehensive library of information that can empower users from all walks of life to understand and engage with cryptocurrencies. Yet, it’s important to note that while education is a strong focus, the depth of content may not satisfy those looking for advanced trading strategies and insights.
In essence, Luno positions itself as more than just a marketplace for digital currencies—it aims to be a gateway to financial literacy in the crypto space. This noble goal is well-intentioned, but the platform’s effectiveness in achieving this on a global scale is yet to be fully realized. As the crypto market continues to evolve, so too must Luno’s offerings if it wishes to maintain its appeal to a diverse user base.
