Luno Exchange How It Works

Luno is a global cryptocurrency exchange platform that allows users to buy, sell, and store digital currencies such as Bitcoin, Ethereum, and others. Many new users may want to understand how Luno functions — from creating an account to trading and withdrawing funds. This article explains, step by step, how the Luno exchange works, along with its features, supported assets, and safety measures.

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Luno Exchange How It Works

What Is Luno Exchange?

Luno is a global cryptocurrency exchange platform that enables users to buy, sell, and store digital currencies such as Bitcoin (BTC), Ethereum (ETH), and other popular assets. Founded in 2013 and headquartered in London, Luno operates in several countries across Africa, Asia, and Europe. Its mission is to make cryptocurrency accessible and easy to use for people around the world.

Unlike decentralized exchanges, Luno functions as a centralized platform, meaning it acts as an intermediary between buyers and sellers. It provides a user-friendly environment for beginners to start exploring cryptocurrencies while also offering tools for more experienced traders.

Luno Exchange How It Works

Luno’s process can be divided into a few key steps — from account creation to trading and withdrawals.

  1. Account Creation:
    To begin, users must create a Luno account by registering on the website or through the mobile app. The platform requires basic personal details such as an email address and a password. After registering, users must verify their identity through a Know Your Customer (KYC) process, which involves uploading identification documents. This step ensures compliance with financial regulations and helps maintain platform security.
  2. Deposits:
    Once the account is verified, users can deposit funds into their Luno wallet. Depending on the region, deposits may be made through bank transfers, credit or debit cards, or local payment methods. Luno supports both fiat currency (like USD, EUR, or ZAR) and cryptocurrency deposits.
  3. Buying and Selling:
    Users can trade cryptocurrencies in two main ways:
    • Instant Buy/Sell: This feature allows users to quickly purchase or sell crypto at the current market rate. It’s simple and designed for beginners who prefer convenience over trading complexity.
    • Exchange Platform: For more experienced users, the Luno Exchange provides a live order book where buyers and sellers place orders at preferred prices. The exchange matches these orders to execute trades, giving users more control over prices and timing.
  4. Withdrawals:
    After trading, users can withdraw funds in either fiat or cryptocurrency form. Fiat withdrawals typically go to a linked bank account, while crypto withdrawals are sent to an external wallet. Processing times depend on the payment method and blockchain network conditions.

Luno Features and Tools

Luno offers several features designed to make cryptocurrency trading and management more accessible:

  • Luno Wallet: A built-in wallet that securely stores users’ digital assets. It supports multiple cryptocurrencies and includes safety features like two-factor authentication (2FA).
  • Mobile App: The Luno app, available on iOS and Android, provides full access to account management, trading, and tracking tools on the go.
  • Price Alerts: Users can set custom alerts to receive notifications when a cryptocurrency reaches a target price.
  • Educational Resources: Luno offers learning materials and guides through its “Luno Discover” section, helping users understand crypto concepts, blockchain technology, and market trends.

Supported Cryptocurrencies and Payment Methods

Luno supports several major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Ripple (XRP), and USD Coin (USDC). The available cryptocurrencies may vary depending on the user’s location due to regulatory requirements.

For payment methods, Luno typically supports:

  • Bank Transfers – The most common and secure method for deposits and withdrawals.
  • Credit or Debit Cards – Available in selected regions for quick purchases.
  • Cryptocurrency Transfers – Users can deposit crypto directly from an external wallet.

Transaction fees and limits differ by region and payment type, which users can review in Luno’s fee schedule before trading.

Is Luno Safe to Use?

Luno emphasizes security and regulatory compliance. The platform stores most user funds in offline cold wallets, reducing the risk of hacking. It also uses encryption and two-factor authentication to protect user accounts.

Luno complies with financial regulations in the regions where it operates, which means it follows anti-money laundering (AML) and KYC standards. However, as with any online platform, users should take precautions such as enabling 2FA, using strong passwords, and keeping personal information private.

Luno Exchange provides a straightforward way for users to enter the world of cryptocurrency trading. From creating an account to making deposits, trading, and withdrawing funds, the platform is structured to guide users through each step with ease. Understanding how Luno works — including its features, supported currencies, and safety measures — helps users navigate the exchange confidently and make informed decisions while managing their digital assets