Luno vs Coinbase A Comparative Guide

There are several things you need to know when comparing Luno vs Coinbase. You can find out more by checking out our guide here.

Dean Fankhauser8 min read
Luno vs Coinbase: A Comparative Guide | Bitcompare

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.


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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
  • Wallet
  • Brokerage service
  • API for developers
  • Learning portal
  • Store

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

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.

Learning Portal

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.

Luno Store

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.

For more information about Coinbase, check out our comprehensive Coinbase Review: What You Need to Know Before Using it.

What Does Coinbase Offer?

What services will you enjoy when you open a Coinbase account? They include:

  • Wallet
  • Pro
  • Prime
  • Commerce
  • Earn
  • Custody
  • Ventures

Here's what you need to know about each of these services and how they'll impact your user experience on the platform.

Coinbase Wallet

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.

Coinbase Pro

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 exchange, the platform has kept it as straightforward as possible.

Coinbase Prime

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

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.

Coinbase Earn

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.

Coinbase Custody

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.

Coinbase Ventures

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.

Verification Process

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

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.

Supported Currencies

Luno only currently supports three cryptos, Bitcoin, Ethereum, and Bitcoin Cash. As for using Coinbase globally? It offers 17 cryptos and continues to grow.

Supported Countries

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.

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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.

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