Is Luno a Good Crypto Exchange for Beginners?
It is important for novice cryptocurrency traders to choose the right crypto exchange. Not all companies can be used when you are just starting your path in trading, which is why the success in cryptocurrency trading depends on making the right choice. Beginners often wonder whether Luno is a good crypto exchange to start trading with. In this article you will learn whether Luno is good for beginners, what its pros and cons are and what a novice trader needs to know.
Short summary about the broker Luno
The Luno exchange is a multifunctional service that provides users with a free multicurrency crypto wallet called the Luno Wallet which allows you to quickly exchange, buy, and sell cryptocurrencies. The service has an investment system that allows you to make money on cryptocurrency deposits. The proprietary trading terminal is represented by a web version and a mobile application for iOS and Android. They trade Bitcoin (₿), Litecoin (Ł), Ethereum (Ξ), XRP, USDC, and other cryptocurrencies. Among fiat assets are euros and pounds sterling. For beginners, the service offers free training programs as part of the proprietary Training Center. Data and assets are protected by two-factor authentication and hot and cold hybrid asset storage. he broker is especially in demand among residents of South Africa, Malaysia, Singapore and Nigeria.
| 💰 Account currency: | Cryptocurrencies, EUR, and GBP |
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | 1:1 |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies, EUR, and GBP |
| 💹 Margin Call / Stop Out: | No |
Luno Pros and Cons
👍 Advantages of trading with Luno:
•a convenient and functional trading terminal (web and application);
•they provide a free multicurrency wallet with free service;
•an investment system with an annual interest rate of up to 7.6%;
•a high level of information security over the platform;
•they trade most major cryptocurrencies, and there are crypto-to-fiat pairs;
•large trading volumes and high speed of the service;
•one of the lowest trading commissions (0.00% for a maker).
👎 Disadvantages of Luno:
•no referral program;
•fiats are represented only by EUR and GBP.
What is a Good Crypto Exchange for Beginners?
In order to choose the right broker for a beginner, you need to consider several aspects.
Here are the main ones:
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Education. It is important for novice crypto traders to learn how to trade. An exchange can offer educational courses, video tutorials, articles, webinars, etc. The more learning opportunities there are the better.
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Availability of a demo account. You will need this account to practice. It provides an opportunity for a beginner to trade risk free and try out trading strategies.
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Availability of a simple method to buy cryptocurrencies. An exchange service or a P2P exchange would be an advantage for an exchange.
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Low fees. The level of income of the trader depends on the level of the fees. Therefore, it is important to choose a company that charges minimum fees. Crypto exchanges mostly use the Maker and Taker fee model. It is important that you study them.
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Instruments for passive investing. In addition to active trading, passive income is also important for beginners. Pay attention to availability of copy trading or staking.
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Trading platform. It is important for a novice trader to choose the simplest trading platform that will be easy-to-use for trading.
In addition to these factors, you also need to consider how customer support operates, as it will also be important. Bonuses for beginners are also a nice perk.
Trading Conditions for Luno Users
Before you start working with an exchange, it is important that you evaluate its trading conditions. Luno offers traders the following conditions.
| 💻 Trading platform: | Proprietary platform |
| 📊 Accounts: | Standard |
| 💰 Account currency: | Cryptocurrencies, EUR, and GBP |
| 💵 Replenishment / Withdrawal: | Bank cards and accounts, electronic and cryptocurrency wallets |
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | 1:1 |
| 💼 PAMM-accounts: | No |
| 📈️ Min Order: | from 0 |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies, EUR, and GBP |
| 💹 Margin Call / Stop Out: | No |
| 🏛 Liquidity provider: | No |
| 📱 Mobile trading: | Yes |
| ➕ Affiliate program: | No |
| 📋 Orders execution: | N/A |
| ⭐ Trading features: | Free crypto wallet, advantageous investment system, low commissions, there are pairs with fiats, high level of security |
| 🎁 Contests and bonuses: | Traders Union rebates |
Commissions and Fees
The size of commissions and fees is also an important factor of choice. Traders Union analysts have prepared a short review of Luno commissions and fees. In this section, you will find trading fees of the exchange as well as withdrawal fees.
The company has withdrawal fees. The fee on most assets is dynamic. For Ripple, the commission is fixed at $0.03. There is no commission for BTC. There are no fees for depositing cryptocurrency. Fiats are deposited free of charge, they are withdrawn only via SEPA with a flat fee of €0.30.
Trading commissions depend on the trading level. The trading level is determined by the volume of trades during the previous 30 days. The maker’s commission at all levels is 0.0%. Taker’s fees range from 0.03% to 0.10%. Instant commission for buying/selling with EUR is 3.5% for Google Pay and card, and 1.5% for a cryptocurrency wallet.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | 0.07% per order | Yes |
Investment programs of Luno
It is important for novice traders not only to trade actively, but also earn passive income. Passive investing can help you earn extra profit, and also compensate for the losses you may incur as a result of active trading. Luno offers the following passive income options.
Investment Programs, Available Markets, and Products of the Crypto Exchange
The Luno crypto exchange offers a proprietary investment system called Luno Savings. Each verified user gets access to the system. You have to go to the corresponding section of the personal account in the web version or open the Luno Saving tab in the mobile application.
Luno Savings is a catalog of offers from partners of the platform. Partners use the contributions of investors to solve their own business problems, in exchange for paying interest. The rate for all offers is annual, the percentage depends on the conditions, currency, and the amount of the deposit. The maximum rate is 7.6%.
The feature of the Luno investment system is its absolute transparency, as well as freedom of action for the investor. You immediately know all the terms of the contract, there are no hidden fees. You can withdraw your deposit at any time, but this will not allow you to receive interest.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of thedeal and all the steps from signing up to withdrawal of profits.
Luno’s affiliate program:
The Luno crypto exchange does not provide partner (referral) programs. In addition to making money on the sale and purchase of cryptocurrencies and currencies, the user has only one resource for generating passive income — the investment direction. The absence of the referral program can be regarded as the absence of the need for the company to additionally stimulate the influx of new customers. This means that the trading volumes are already sufficiently large.
Conclusion. Is Luno good for beginners?
The Luno cryptocurrency exchange will be an excellent choice for beginners. The exchange offers a convenient trading platform, which a beginner can learn to work with rather quickly. There is an excellent education center with a large number of materials for novice traders. Also, traders can earn passive income on good conditions. Therefore, Luno could be considered as a good cryptocurrency exchange for a start.
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FAQ
What do I need to know about the fees charged by cryptocurrency exchanges?
The majority of cryptocurrency exchanges use the Maker/Taker fee model. As a rule, they use a multi-level system for traders that depends on the trading volume. The higher the trader’s trading volume, the lower the fees.
How do I choose a reliable cryptocurrency exchange?
Crypto exchanges mostly operate without licenses, as the majority of countries haven’t adopted legislation to regulate them. In order to choose a reliable exchange, you need to find out about its reputation and read the reviews about user experiences with it.
How many cryptocurrencies could a crypto exchange offer?
The number of cryptocurrencies on the listing of a cryptocurrency exchange may be very different. Some platforms offer less than 10, while others – several hundreds. It is important that you check the choice of cryptocurrency before registering on the exchange.
What are the risks of investing in cryptocurrencies?
Investing in cryptocurrencies carry high risks due to their high volatility. It could cause substantial losses, which is why it is important to observe the rules of risk management.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.