Luno Continues to Push Coinbase in the Exchange Market
Luno has garnered a lot of loyal followers despite it being exclusive to bitcoin and ethereum, is this the reason many people continue to use it? This reliability?
We look at what makes Luno the exchange it is, and how it has retained its popularity over the years.
What Is Luno?
At a basic level, Luno is an exchange that deals only in Bitcoin and Ethereum. It began in 2013 and since then it has consistently remained popular amongst users because of a number of unique features. In its own words, Luno is the world’s most trusted, secure and reliable exchange.
Despite the fact that it only deals in two cryptocurrencies, Luno has consistently been popular amongst all types of cryptocurrency users. The reason is that it is one of the easiest to navigate and has an intuitive interface. It is often used as a gateway for crypto investors to enter the market with fiat and invest in other cryptocurrencies. The fees are very reasonable and sending to other exchanges to trade for altcoins is simple.
Due to its limited choice of coins, it perhaps does not get the credit it is due. It is essentially in direct competition with the biggest exchange on the market, Coinbase, in that it only offers the biggest coins on the market. Despite this, it continues to attract more users whilst retaining old users.
It also allowed for forks, when Bitcoin and Bitcoin Cash forked they produced a wallet that could hold your bitcoin cash, meaning you could send to other wallets and exchanges. Luno regards Bitcoin as the legitimate currency and so only allows you to buy that and ethereum.
Luno has been endorsed by some very prominent cryptocurrency bigwigs, including Barry Silbert and the people behind Naspers. This shows a strong faith in what this platform has to offer. This is further exemplified by the fact that it has a 4.4/5 rating on the Google Play Store. Another important indicator is the number of downloads.
While the range is varied, the app is said to have been downloaded between 100,000 to 500,000 times. Not the best range but still a low of 100,000 is very impressive.
This means that Luno is among the most popular BTC/ETH exchanges in the market right now. When we consider the fact that it was launched way back in 2013 and so many exchanges have fallen by the wayside or are struggling in this new era of regulatory clampdown, the fact Luno is still going strong shows the impressive exchange it is.
What Is Most Unique About Luno?
The first and most obvious thing about Luno is that it is exclusive to Bitcoin and Ethereum. Other than that it also offers users the ability to transact without any fee. More specifically it only levies a fee on those who purchase BTC/ETH and not on anyone selling them. Thus it is market liquidity-centric. So, if you are buying Bitcoin or Ethereum, you should consider the fluctuations in the transaction costs before making a trade.
It also allows smaller fiat currencies to buy either bitcoin or ethereum, these include the Indonesian Rupiah, Nigerian Naira, Malaysian Ringgit, and South African Rand. This reach is another edge Luno has over Coinbase and a reason it continues to flourish.
Is Luno for You?
In the highly complicated cryptocurrency world, simplicity can be a blessing. This is the one single thing that makes Luno such a good application for Bitcoin and Ethereum investors. Not only does it offer you the chance to sell your BTC and ETH at no extra cost, but also buy them nominally. This means that your overall investment in cryptocurrencies is bound to benefit immensely from using it. You might think that not being able to trade in a diverse range of cryptocurrencies is an issue.
This simplicity attracts lots of first-time investors to Luno as well as those who want to simply buy bitcoin to invest in another cryptocurrency. The fact that there are no selling fees also makes it a good way for users to cash out of their investment and realise all the profit.