Are you looking for a cryptocurrency wallet and exchange provider? If so, you've got plenty of options. While the plentitude of choices can look exciting, it can also feel daunting to make the right decision for your financial needs.
That's why you must spend time familiarizing yourself with the major crypto platforms. You should also compare the pros and cons of these platforms.
For example, when you take a closer look at Luno vs. Coinbase, a clear picture of the two exchanges' strengths and weaknesses quickly emerges. With that in mind, here's what you need to know about each platform's distinguishing features.
What Is Luno?
First established in Singapore as Bitx in 2013, Luno is an exchange and wallet provider for cryptocurrency investors. In 2017, they rebranded Bitx as Luno, meaning, “moon." This rebranding proved highly pivotal for the company.
It also represented a precursor to a rapid increase in the trading volume from 2017 to date. The most popular exchange in South Africa, Luno, recorded its highest trading volume in South Africa, followed by Nigeria.
As one of the crypto industry's early pioneers, Luno has processed more than $8 billion in transactions. It remains a strong player in offering exchanges between traditional fiat currencies and cryptocurrencies like Ethereum and Bitcoin.
What Does Luno Offer?
Luno offers its clients a secure and straightforward means of buying and selling Bitcoin and Ethereum. How? With a built-in cryptocurrency wallet supporting fiat currencies such as:
- United States dollars
- Pound Sterlings
- South African Rands
- European Union Euros
Luno offers a brokerage service, training, and consultancy services to help the general public become quickly acquainted with cryptocurrencies' complexities (e.g., Bitcoin and Ethereum).
The platform's offerings include a:
- Crypto trading platform
- Brokerage service
- API for developers
- Learning portal
What do you need to know about each of these resources? Here's what distinguishes Luno from the competition.
Crypto Trading Platform
Luno's trading platform is core to the website and facilitates purchasing and selling cryptos using fiat currency (e.g., Pound Stirling, US Dollars, Euros, etc.).
How do you start participating in the trading platform? First, link your bank account to Luno. Once your account gets verified, you may begin trading Ethereum or Bitcoin.
With a registered account, you can trade digital currency with other Luno clients. In exchange for this convenience, Luno earns a commission on all sales.
Luno wallet refers to the software program that stores public and private cryptographic keys and interacts with blockchain technology. The public key permits payments to the wallet's address, and the private key assists with spending from that address.
This process permits clients to buy and sell cryptos as well as store and monitor transactions. To buy and sell any cryptocurrency, you must have a Luno wallet.
Luno Brokerage Service
What does Luno’s brokerage service do? It aids in the buying and selling of cryptocurrency through a dealer network, instead of a centralized exchange.
A Luno broker matches up appropriate buyers and sellers, making transactions a cinch. For this service, you'll pay a brokerage fee. According to market conditions, the fee percentage varies.
The Luno brokerage service remains the preferred option for larger trades.
Why? Because it provides both parties with a better price, and it also proves more flexible and convenient.
API for Developers
How does Luno API work? It provides developers with trading capacity and financial information in the digital currency market.
This functionality permits developers to work with cryptocurrencies such as Ethereum and the ever-popular Bitcoin to access blockchain technology. Remember that blockchain is required for tasks such as accessing historical and current cryptocurrency market data.
While cryptocurrency sits at the edge of a brave new financial frontier, this also means it comes with a steep learning curve. How do you bone up on cryptos quickly? Luno's learning portal is one answer.
The portal will guide you through concepts essential to success in cryptos. It'll also help you learn and understand the language of currencies like Bitcoin and Ethereum. Finally, you'll gain insights into responsibly trading cryptos.
Think of Luno Store like Google's Play Store. Here, clients can explore new and exciting crypto-based apps and services. These are apps and services that have been recently launched in the digital currency space.
Can you trust the apps offered in the Luno Store? The simple answer is yes. The apps features in the Luno Store have all been pre-screened and vetted carefully. Now that you know more about Luno, let's take a look at how Coinbase compares.
What Is Coinbase?
Founded in 2012 by Fred Erhsam and Brian Armstrong, Coinbase is an exchange and wallet provider like Luno. Its exchange began as a Bitcoin brokerage service in San Francisco, California. Since its creation, Coinbase has expanded rapidly, adding many services along the way.
Ranked as the leading mainstream crypto exchange in the US, Coinbase represents an excellent way for individuals new to cryptos to invest for the first time. That said, the platform also offers Coinbase Pro for the most seasoned investors.
While the platform initially started only trading in Bitcoin, its list has expanded in recent years. Now, Coinbase permits transactions in Ethereum, XRP, Litecoin, and many other cryptos.
What Does Coinbase Offer?
What services will you enjoy when you open a Coinbase account? They include:
Here's what you need to know about each of these services and how it'll impact your user experience on the platform.
Coinbase Wallet is a DApp browser and crypto wallet controlled by the customer. Its private keys represent your ownership of the wallet. These keys get stored directly on your mobile device and not on the platform.
As already mentioned, Coinbase Pro is the platform's more advanced service. It lets you set up advanced order types, including limit orders.
By separating its pro platform from the central Coinbase.com exchange, the platform has kept it as simple and straightforward as possible.
Announced on May 15th, Coinbase Prime is an institutional-grade trading platform. It provides institutional investors with access to the same diversified liquidity pool that underpins all Coinbase products (e.g., GDAX and Coinbase).
Coinbase Commerce is a service that permits merchants to accept payments for goods and services rendered. The platform facilitates payments in various cryptos, including Ethereum, Bitcoin, Bitcoin Cash, and Litecoin. Payments get transmitted directly into the merchant's wallet.
With Coinbase Earn, eligible customers can earn cryptos while taking advantage of the platform's educational content. Eligible Coinbase users unlock these lessons and earn crypto in the process.
An independent, NYDFS-regulated entity, Coinbase Custody provides one of the most reliable and sophisticated custody solutions on the market today. It's designed to provide financial controls for companies and institutions seeking to trade in cryptos.
Think of Coinbase Ventures as the investment arm of the platform. It invests in early-stage blockchain and crypto startups.
Luno vs. Coinbase
You've got a better understanding of the various services and products provided by Luno and Coinbase. But how do these two platforms ultimately compare? Let's take a closer look at the following factors:
- Verification process
- Accepted payment methods
- Transaction fees
- Supported currencies
- Supported countries
By comparing the platforms in these categories, you'll quickly find the best one for your current needs and location.
When opening and owning a Luno or Coinbase wallet, you'll need to enter your name, verify your email address, and accept the platform's user agreement. If you want to buy and sell on these platforms, however, you must provide additional information.
When using Luno, you must confirm your phone number, and you'll need to submit a government-issued ID card and proof of residential address. For Coinbase, you must verify your identity as well as a credit card and debit card.
Accepted Payment Methods
Luno's accepted payment methods include cash deposits, bank transfers, interbank fund transfers (IBTFs), single euro payment areas (SEPAs), and electronic bank transfers (EBFs).
Coinbase accepts credit and debit cards. You can also use PayPal for withdrawals, and wire transfers are available (e.g., SEP in the EU and ACH in the US).
Transaction fees vary depending on the country where you reside. This fact applies to both Coinbase and Luna. Fees also depend on whether you're a maker or taker.
The following generalizations can be made. Luno has lower transaction fees overall and makes excellent sense for those operating in Nigeria or South Africa. But Coinbase users pay for its superior reputation, liquidity in the EU and the US, and extra crypto wallets.
Luno only currently supports three cryptos, Bitcoin, Ethereum, and Bitcoin Cash. As for using Coinbase globally? It offers 17 cryptos and continues to grow.
You'll find Luno in 44 different countries, including Nigeria and South Africa, Indonesia and Malaysia, Zambia, and most of the EU. You can use Coinbase in 102 nations, but not all of these nations support the exchange platform.
Pros and cons of Coinbase
- Most trusted brand in crypto
- Top-tier team and investors
- One of the pioneers of the industry
- Never successfully hacked
- Interoperable suite of crypto products
- It offers a great user interface for beginners
- It offers access to over 30 cryptocurrencies
- Can be more expensive than other options
- The site crashes at times of high volatility
- There is a lack of timely support
- Transactions can be delayed for up to 3 days
- Most local payment methods are not supported
Pros and cons of Luno
- Active in the world of cryptocurrency since 2013, Luno is a trustworthy and reliable place to trade cryptocurrencies.
- Being one of the easiest to use exchanges today, Luno scores high on usability and is perfect for beginners.
- Luno offers multi-language customer support and supports local payment methods, resulting in the best possible user experience.
- They have adopted a deep-freeze storage strategy offering a high level of internal security.
- Luno has country-based restrictions. As of now, Luno is available only in Australia, Europe, Indonesia, Malaysia, Nigeria, Singapore, South Africa, Uganda, United Kingdom, and Zambia.
- Compared to the leading cryptocurrency exchanges, Luno supports a limited number of cryptocurrencies.
Frequently asked questions about Coinbase
We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.
Where is Coinbase based?
Coinbase's headquarters is in San Francisco, California. They did recently announce, however, that a large percentage of their workforce will be going remote. Their mailing address is: Coinbase, Inc. 100 Pine Street Suite 1250 San Francisco, CA 94111
Who is the team behind Coinbase?
Coinbase was founded by Brian Armstrong and have a team of more than 500 employees. You can read more about their employees here.
Where can I use Coinbase?
Coinbase can be used in more than 30 countries including:
- The Czech Republic
- The Netherlands
- San Marino
What's the difference between Coinbase App and Coinbase Wallet?
The Coinbase app is a great product for those looking to buy and sell cryptocurrency. While the Coinbase Wallet app is used for storing your cryptocurrencies.
Can I switch from my existing wallet app to the Coinbase Wallet app?
Yes, you can. Each wallet uses a private key for security that can be imported into the Coinbase Wallet. In the settings menu of your current wallet, just search for the 12-word recovery phrase or mnemonic and then use the same 12 word phrase to sign into the Coinbase Wallet.
Frequently asked questions about Luno
We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.
What are the current fees on Luno?
The fees charged by Luno varies by the type of service. Luno charges deposit fees on certain deposit methods. They also charge a transaction fee from takers and withdrawal fees for withdrawing crypto to external addresses.
Luno charges trading fees only from the takers, and it is between 0.03%-0.1%. The fees depend on your trading volume in the last 30 days. When it comes to Luno's Instant Buy/Sell service, the fees vary by the amount of cryptocurrency you want to purchase, the type of cryptocurrency, and the fiat currency you are using for the purchase.
What is the minimum deposit for Luno?
The minimum deposit is $10 on Luno
Is Luno safe to use?
Luno has never been hacked, however, it’s worth noting that it could always get hacked and you need to be very cautious to not fall victim to phishing or other hacking attacks.
How long does it take to withdraw money from Luno?
It generally takes up to two business days to withdraw funds from Luno.
How to Start Trading With Luno?
Working with Luno is easy. All you need to do is download the app and sign up for your free Luno wallet. Once you’ve set up your profile, choose your preferred payment method like bank transfer or credit card to add money to the wallet. Once you have added funds, you can start buying, storing, or sending the crypto assets using Luno.
How Protected is My Private Key with Luno?
To protect your private keys, Luno stores them in a physical bank vault secured with stringent access control mechanisms like fingerprint and retina scans. The keys are stored in several vaults across many continents. The entire system is built in a way that you have to access the keys from multiple vaults and put them together before you could use them to extract the Bitcoin.
Does Luno have an API?
Yes, Luno has an API that can be leveraged to access present and historic Bitcoin and Ethereum market data, submit and view orders, buy, sell, send, and receive Bitcoin and Ethereum and generate receiving addresses.
How to Verify Identity with Luno?
First, you need to confirm your mobile number and your basic personal details. Then you need to submit a photo or a scanned image of your government-issued ID. You also need to file a selfie photo, not more than 24 hours old. The final step is to enter your residential address and select your employment status.
Can a Foreign Resident Open Account in Luno?
Yes. To open a Luno account as a foreign national, you will have to furnish documents related to proof of identity, proof of residency, proof of bank account with residential address, and proof of residential address.
How secure is Luno?
Luno has taken all necessary steps to ensure the security of the exchange and user funds. They have an authentication strategy in place, and it involves passwords stored in hashed form and the 2FA or two-factor authentication model. Entire communication happens over SSL-secured HTTP channels, whereas the wallets are stored using PGP encryption. All personal information is encrypted and securely stored.
Coinbase vs. Luno: The Takeaway
When it comes to Luno vs. Coinbase, these two platforms share many similarities. To decide which platform's right for you, consider where you live, which cryptos you wish to use, and your risk level of comfort.
Ready to find out more about crypto wallets and exchange platforms? Check out our comprehensive list of platforms.