What is Luno and How Does it Work?
If you are a cryptocurrency investor, trader or enthusiast, we are sure you want to know what Luno is. First of all, Luno is a cryptocurrency exchange that allows you to buy and sell virtual currencies. Secondly, this is one of the most recognized platforms to exchange digital assets in the world. Additionally, you can also use it as an investment platform.
This cryptopedia guide will be useful for you to understand what Luno is and how this platform works. You will also get valuable information about the advantages and disadvantages of the platform.
What is Luno?
As we have said in the first paragraph, Luno is one of the largest exchanges in the world. This platform has been operating for several years and it offers users with both basic and advanced trading solutions.
If you want to better understand what Luno is, you can think of a trading account you can find in most of the home banking applications. If you want to buy foreign currencies or stocks, you can simply go to your bank’s website, open your account and start investing or buying other currencies.
In some cases, you can even have the possibility to subscribe to financial products or purchase foreign currencies using your banking app. This is how Luno works but with crypto solutions. You will have the possibility to buy, sell and hold virtual currencies, participate in different investment options, and be part of the cryptocurrency market.
How Does Luno Work?
The first step you need to follow is to create an account in this platform. It might require you to provide information such as your email address, a password and ID confirmation. The ID is necessary to be compliant with the Know Your Customer (KYC) and Anti Money Laundering (AML) rules and regulations.
Once you have your account created and confirmed (this takes a few minutes), you will be able to purchase virtual currencies. You can link your bank account to the Luno exchange and purchase virtual currencies with your local fiat currency.
If you live in South Africa, you can deposit ZAR. You would do the same in Europe but with EUR or IDR in India. Everything will depend on the country you are located in. At the moment, Luno has more than 5 million customers from more than 40 countries.
Luno is currently allowing users to get access to Bitcoin (BTC), XRP, Ethereum (ETH) Litecoin (LTC) and Bitcoin Cash (BCH). In the future, new digital assets could be added to the platform.
Luno Exchange: Advantages and Disadvantages
Luno is a recognized cryptocurrency exchange that is offering advanced and basic trading solutions to users. It has many positive things and also some disadvantages. Let’s get into the pros and cons related to the Luno cryptocurrency exchange:
Pros
- Low fees for traders
- Fiat currencies accepted from different countries
- One of the largest cryptocurrency exchanges in terms of volume
- Several locations covered
- It has more than 5 million customers
- It offers other crypto investment services and not just trading
Cons
- It has few cryptocurrencies available
- There are larger exchanges
