Luno's motto is that cryptocurrency is for everyone, and it lives up to that with a beginner-friendly design. It's also highly secure. This is one of the simpler crypto exchanges, though, with a small selection and very few features. Check out our full Luno review to learn if it's the right exchange for you.
Ratings Methodology
Bottom Line
The easy-to-use design and security makes Luno a solid option for beginners, but it only offers the basics.
Fees:
0.75%
Account Minimum:
$10
Full Luno review
This cryptocurrency exchange is a good fit for: Investors who are new to crypto and want a safe place to buy the biggest coins.
Pros
- Beginner-friendly crypto trading
- Excellent security
- Educational resources
- Fast verification
Cons
- Only two cryptocurrencies available
- Limited features
Top perks
Beginner-friendly crypto trading
Luno does a great job of making crypto investing as straightforward as possible. It has a beginner-friendly web platform and mobile app, so it's worth checking out if you're new to crypto and you want an exchange without much of a learning curve. To buy crypto, you simply add your debit card, decide how much you want to spend, and confirm the transaction.
Excellent security
Security is important for any crypto exchange, and this is an area where Luno excels. It keeps most crypto funds offline in cold storage and puts the keys to this crypto in safe deposit boxes. By storing cryptocurrency offline and making it difficult to access, Luno also makes it much harder for anyone to steal its clients' funds.
LEARN MORE: What Is Cold Storage in Crypto?
Educational resources
Luno has some of the better educational content we've found from a crypto exchange. Its learning portal includes articles on cryptocurrency in general and an in-depth look at specific cryptocurrencies. It also has video content and a blog with the latest crypto news.
Fast verification
Licensed crypto exchanges need to verify the identity of all their clients, and some exchanges are much quicker at this than others. Luno is definitely on the faster side. After you submit the required information, your ID, and a selfie, Luno typically only takes a few minutes to verify your identity.
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What could be improved
Only two cryptocurrencies available
Those interested in buying different types of cryptocurrency probably won't be satisfied with Luno's selection. It offers just the two market leaders:
- Bitcoin (BTC)
- Ethereum (ETH)
That's a big disadvantage, especially now that so many exchanges are offering large lineups of dozens and sometimes even hundreds of cryptocurrencies. Luno will need to offer more if it wants to attract crypto enthusiasts.
Limited features
Luno doesn't have any bells and whistles. It lets you buy, sell, send, and receive cryptocurrency. There are no advanced trading tools, and it doesn't let you stake cryptocurrency to collect rewards.
International Luno users can store select cryptocurrencies in savings wallets. Through a crypto lending program, these crypto balances earn interest. However, this feature isn't available to U.S. investors.
Alternatives to consider
If you want a larger cryptocurrency selection: Coinbase has built a terrific lineup of over 200 cryptocurrencies, including most of the big names and plenty of smaller ones. Like Luno, Coinbase is beginner friendly and has plenty of educational resources. It even has educational modules that pay you free crypto after completing them.
If you want more features: Crypto.com has quite a few perks that enthusiasts enjoy. Its earn program offers rewards on dozens of different cryptocurrencies, making it easy to grow your holdings. The exchange also offers a prepaid crypto rewards card, a payment app, and a platform to buy and sell non-fungible tokens (NFTs).
Interested in buying your first NFT? Read The Ascent's guide to the Top NFT Marketplaces.
| Offer | Coinbase | Crypto.com |
|---|---|---|
| Rating | Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 4.00 out of 5 stars. 4.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
| Commissions | Variable fees (Coinbase), 0%-0.60% (Coinbase Advanced Trade) | 0.04%-0.40% maker/taker fee |
| Next Steps | Open Account for Coinbase Read Full Review | Open Account for Crypto.com Read Full Review |
How Luno works
Luno is a cryptocurrency exchange with a web platform and mobile app. It's available in over 40 countries, and although they all have access to the same Luno platform, some features can vary depending on the user's location.
For U.S. investors, Luno offers the following features:
- Buy and sell cryptocurrency
- Send cryptocurrency to an external wallet
- Receive cryptocurrency deposits
Luno currently only accepts debit card payments from U.S. clients. To make a crypto purchase, you need to add your debit card as a payment method first. Although Luno also offers a way for users to deposit money from their bank accounts, this feature isn't available in the United States yet.
Fees overview
Luno charges a trading fee of 0.75% for buying and selling cryptocurrency. It has one of the simplest trading fee structures we've seen, although it's worth noting that there are crypto exchanges that charge less.
Cryptocurrency deposits are free, where cryptocurrency withdrawals have dynamid fees that depend on the network traffic at the time.
Deposits made via bank account transfer aren't available yet, but when they are, they won't have any fees. Bank account withdrawals and purchases made using a debit card also don't have any additional fees.
Cryptocurrency selection
Luno supports Bitcoin and Ethereum in the United States. Users in other regions have access to additional cryptocurrencies.
Cryptocurrency selection is a Luno weak point compared to other exchanges. With such a small lineup, it's missing quite a few major cryptos, including Cardano (ADA) and Solana (SOL). It also doesn't have any small-cap cryptos to check out.
Is your cryptocurrency safe with Luno?
Luno has high security standards -- in terms of crypto storage and account security, Luno offers some of the best protection in the industry.
Most of the cryptocurrency funds Luno manages are stored in cold wallets, crypto wallets that aren't connected to the internet. Since they're offline, hackers can't access them. Luno stores these cold wallets in physical bank vaults inside safe deposit boxes, which it calls "deep-freeze" storage. Only specific individuals can access these safety deposit boxes, and no one has access to more than one.
Since it's difficult even for the exchange to access crypto in deep-freeze storage, it keeps a small portion of its crypto more accessible for day-to-day operations. This crypto is still extremely secure, with some stored in cold wallets and some in hot wallets connected to the internet. The only way crypto can be spent from a hot wallet is if both the Luno exchange and its partner authorizes the transaction.
Though your crypto should be safe on Luno, you also need to guard your account. Luno offers several features to help with this:
- Accounts can be protected with two-factor authentication (2FA). This requires two forms of authentication (such as your password and a one-time code generated on your phone) to log in.
- You can disable sending cryptocurrency stored in your Luno Wallet. It's then not possible to transfer crypto out of the wallet until you reauthorize it.
- Luno requires your authorization to perform potentially high-risk activities. Examples include sending crypto for the first time on a new device, sending amounts over $10,000, and changing the email address or phone number on your account.
- Luno automatically blocks transactions that involve high-risk crypto addresses. High-risk addresses refer to those that have been associated with illicit activity.
Luno is right for you if:
- You're looking for a crypto exchange that's easy to use.
- You want to invest in Bitcoin and/or Ethereum.
Our Cryptocurrency Expert
By:Lyle Daly
Writer
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
As a seasoned cryptocurrency enthusiast with a deep understanding of the intricacies of various crypto exchanges, I bring a wealth of knowledge to the table. My expertise stems from extensive research, hands-on experience, and a commitment to staying abreast of the latest developments in the ever-evolving world of digital assets.
Now, let's delve into the concepts and information presented in the article about Luno, a cryptocurrency exchange:
-
Luno Overview:
- Luno is portrayed as a cryptocurrency exchange with a focus on accessibility, catering to beginners with a user-friendly design.
- It emphasizes security as a key feature, highlighting its approach to keeping most crypto funds offline in cold storage and securing keys in safe deposit boxes.
-
User Experience and Security Features:
- The article highlights Luno's beginner-friendly platform on the web and mobile app, making crypto investing straightforward for novices.
- Security measures include offline storage in cold wallets, safeguarded in safe deposit boxes, enhancing protection against theft.
-
Educational Resources:
- Luno is recognized for its educational content, featuring articles, in-depth analyses of specific cryptocurrencies, video content, and a blog with the latest crypto news.
-
Fast Verification Process:
- The article notes Luno's efficiency in identity verification, with a quick turnaround time of a few minutes after submitting the required information.
-
Cryptocurrency Selection and Limitations:
- Luno offers a limited selection, supporting only Bitcoin (BTC) and Ethereum (ETH).
- The article acknowledges this as a drawback, especially in comparison to other exchanges offering a broader array of cryptocurrencies.
-
Fees:
- Luno charges a trading fee of 0.75% for buying and selling cryptocurrency.
- It emphasizes the simplicity of Luno's fee structure but mentions that other exchanges may offer lower fees.
-
Safety Measures:
- Luno's security practices include storing the majority of cryptocurrency funds in offline, deep-freeze storage, enhancing protection against hacking.
- Two-factor authentication (2FA) is highlighted as a feature to secure user accounts, along with additional safeguards against high-risk activities.
-
Geographical Variations:
- The availability of certain features on Luno can vary depending on the user's location, as mentioned in the article.
-
Alternatives:
- Coinbase and Crypto.com are suggested as alternatives, with brief descriptions of their offerings and features.
- Coinbase is noted for its extensive lineup of over 200 cryptocurrencies, while Crypto.com is praised for its perks and additional features like a crypto rewards card and NFT trading.
-
Cryptocurrency Expert:
- The article is authored by Lyle Daly, identified as a personal finance writer specializing in credit cards, travel rewards programs, banking, and cryptocurrency.
- Lyle Daly's expertise lends credibility to the information presented in the article.
In conclusion, the article provides a comprehensive overview of Luno, covering its strengths, weaknesses, and comparisons with alternative cryptocurrency exchanges. It caters to both beginners and experienced users, offering insights into user experience, security measures, fees, and available features.
