You’ve heard a lot about Luno and many people wish to know is Luno safe so we’re here to break it down for you on our personal opinion of Luno.
First of all, in order to know is Luno safe for use, you got to understand what is Luno.
Essentially, Luno is a cryptocurrency exchange which allows users to trade (buy or sell) digital currencies such as Bitcoin and Ethereum.
What’s great about Luno is it allows Malaysians to trade Bitcoin and Ethereum easily and fast because they have an MYR (Malaysian Ringgit) wallet which you can transfer money directly into using local banks. Once you have MYR in your wallet you can easily buy and sell cryptocurrencies based on the exchange’s current rate.
So is Luno safe?
One thing great is that Luno acts as the middleman (exchange) between people who buy and sell cryptocurrencies. The transactions are processed through their system so you can be sure there can be no scammers who usually receive your money and don’t transfer tokens to you.
The Luno wallet is a digital wallet which exists on the Luno platform. Every digital wallet is susceptible to hacks if the platform or system which holds it is breached. A safer approach to store your tokens for the long term would be in a hardware/physical wallet such as Ledger Nano S.
Bear in mind, each time you transfer tokens between your hardware wallet and Luno, a transaction fee applies.
Each time you transfer or trade tokens via Luno platform, Luno platform takes a small cut as well. It’s important to know which currency is the best way to trade as currently (as of December 2017), the transfer fee for Bitcoin is very high compared to Ethereum and there is a huge backlog of transactions.
Currently, all exchanges including Luno are facing difficulties transacting fast because the network is clogged due to the high amount of transactions but lack of miners. The mining fee is exceptionally high too.
In the past, there have been instances of exchanges being hacked. Therefore, while it is important to know is Luno safe, it’s also important to practice good trading security practices such as double authentication login and keeping “long-term investment” token in a hardware wallet.
We hope this article was helpful to help you decide is Luno safe. If you’d like to get started with Luno, sign up for free and get some promo credits here.