We’re back with another crypto exchange comparison, and this time, Binance and Luno will be competing against each other. Binance and Luno are both crypto exchanges that let you buy, sell, and hold crypto. However, there are some differences.
Binance is a full-service cryptocurrency exchange that lets you trade spot assets, futures, and options. It also offers various other crypto products. Luno is similar to Coinbase and other standard crypto exchanges that let you buy and store crypto in a hassle-free way.
So, which one should you choose and why? Let’s find out.
Binance vs Luno: Supported Cryptocurrencies
First things first, let’s talk about the cryptocurrencies supported by the two exchanges. We’ll also talk about the features offered by each exchange. Let’s delve in.
Binance currency supports 400 cryptocurrencies. It has one of the largest pools of trading pairs in the crypto space. If a cryptocurrency exists in the world, you will most likely find it on Binance. Binance allows you to trade cryptos against USD, USDT, and other cryptocurrencies and stablecoins.
Binance supports derivatives trading. You can trade two types of futures on Binance: those settled in stablecoins and those settled in cryptocurrency. Margin trading is also available on Binance, and the exchange offers a cross-margin of 3x and an isolated margin of 10x.
Other crypto products offered by Binance are staking, dual investment, auto-invest, BNB vault, liquidity farming, crypto loans, and more.
Luno isn’t as comprehensive as Binance. It’s a crypto investment app that lets you buy and hold cryptos. It supports five cryptocurrencies: Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin. Luno is gaining popularity, as its daily spot trading volume has risen to over $21 million.
So, what features does Luno offer? For starters, it allows you to buy and deposit crypto in your wallet. Luno provides a crypto-wallet as well. You can stake your investments and earn a handsome 7.6% interest rate per year.
As of now, Luno doesn’t offer futures or margin trading.
Verdict: Binance is the winner, as it supports more cryptocurrencies and offers more products.
Binance and Luno both follow a market maker/taker fee method. Also, they have a tiered fee structure, where your payable fee depends on your 30d trading volume. Let’s compare the fee charged by the two exchanges.
Binance has ten levels of verification: VIP 0 to VIP 9. Users with a 30d trading volume of less than 50 BTC or a BNB balance of below 50 BNB are in the first tier. They need to pay a market maker/taker fee of 0.075%/0.075%.
Similarly, users with a 30d trading volume of over 150k BTC and a BNB holding of over 11,000 BNB are in the final tier. For them, the fee is 0.02%/0.04%.
Please note that Binance has different fees for futures trading. Since Luno doesn’t offer futures, we won’t discuss the Binance futures fee here. You can visit this page to learn more.
Binance doesn’t charge a deposit fee for depositing crypto. However, a small fee may apply when you deposit fiat currencies. There’s also a small withdrawal fee depending on the underlying asset.
Luno also has a tiered fee structure. It has eight fee tiers. Users with a 30d volume of under £250k are in the first tier. For them, the fee is 0%/0.1%. Users with a trading volume of over £16 million are in the final tier, and their fee is 0%/0.03%.
There’s no fee for depositing and receiving crypto. However, a dynamic fee will apply when you send crypto to others. Also, a small withdrawal fee may be applicable.
Verdict: Luno is the winner, as it has lower fees than Binance.
Account Funding Methods
Now, let’s talk about how you can find your accounts on Binance and Luno. Here’s a quick comparison.
Binance lets you fund your account using cryptocurrencies, stablecoins, and fiat currencies. The supported deposit methods depend on the currency you want to deposit. For instance, you can deposit EUR using a credit/debit card, bank transfer, P2P trading, cash balance, and third-party payment gateways.
But if you want to deposit INR, you can do it using P2P trading and third-party payment gateways — WazirX and Simplex — only.
Account funding methods supported by Luno also depend on the cryptocurrency you want to deposit. If you want to deposit EUR, you can do so using SEPA transfer only. For depositing AUD, you can use bank transfer and PayID.
Currently, Luno allows fiat deposits from Australia, Europe, Indonesia, Malaysia, Nigeria, Singapore, South Africa, Uganda, and the United Kingdom.
Verdict: It’s a tie, as both exchanges support fiat deposits.
Opening Account & Account Limits
Binance and Luno both offer a seamless account opening process. Let’s discuss how you can open an account on the exchanges, along with their KYC requirements.
Binance offers a seamless account opening process. Visit the Binance website and click on Register Now. Visit the registration form and verify your email/phone number to open an account. You’re now ready to trade crypto.
Binance doesn’t have a mandatory KYC process; however, there are limits. Unverified users can withdraw only 0.06 BTC per day. Also, they get up to 20x leverage only, which is significantly lower than the maximum offered leverage of 125x. Verifying your account unlocks all the limits.
Luno also offers a seamless account opening process. Visit the website and click on Sign Up in the top-right corner. Fill in the form and open an account.
Luno has the verification levels: Level 1, Level 2, and Level 3. By default, users are at Level 1. The limits also depend on the country you’re in and the currency you want to deposit. For example, Level 1 European users can send up to US$ 2,400 per day. For Level 3 users, this limit increases to US$ 120,000.
On the other hand, Australian users can send up to US$12,000 a day, and there are no verification levels.
Verdict: It’s a tie, as both exchanges have optional KYC.
Ease Of Use & Interface
Next, let’s talk about the platform and interface offered by the two providers. Here’s a head-to-head comparison.
Binance has one of the most advanced platforms in the crypto world. Let’s delve into the several elements of Binance’s platform.
First, it has a quick convert section like Luno, where you can buy and exchange crypto. It’s simple and user-friendly. If you need a full-fledged trading platform for spot, margin, and futures trading, you can use Binance’s advanced trading platform.
It has two charting systems: one is its proprietary system, and the other is powered by TradingView. You can use anyone you want, though the TradingView version has more features. You get other features like the Order Form, Order Book, depth chart, indicators, chart types, etc.
Binance also has a mobile app that lets you manage your trades and investments from your mobile phone.
Luno isn’t as powerful and comprehensive as Binance. It has fewer features and options, making it ideal for beginners. For starters, it has an exchange section where you can buy and exchange cryptos. If you want to trade cryptos, you can use the advanced trading platform.
Luno’s trading platform is simple and intuitive. It has two chart types: line and candlestick. There aren’t any indicators supported by the platform yet, but the Luno team is constantly adding new features.
Coming to usability, you can place an order in a few simple clicks. Luno supports three order types: Limit, Market, and Stop-Limit, and there’s also support for Post-only orders. The intuitive order form lets you trade on the go.
Please note that Luno is essentially a mobile platform. It doesn’t have a desktop version, and it’s only available on iOS and Android devices. This makes Luno excellent for busy users who don’t have the time to sit in front of the desktop to trade cryptos.
Verdict: It’s a tie. Binance is ideal for advanced traders, while Luno is good for beginners and busy users.
Security is one of the most important factors to consider before registering on a cryptocurrency exchange. The good news is that both the exchanges offer industry-leading protection for your crypto deposits. Let’s compare the security features of the two exchanges.
Binance implements all the industry-standard security measures to provide safe trading and investing experience to its users. It stores most of its users’ funds in a multi-signature cold storage wallet to prevent hackers from accessing it.
Additionally, there’s mandatory two-factor authentication to increase the security of users’ accounts. Other security features used by Binance are SSL encryption, IP allowlisting, insurance fund, and KYC requirements.
Luno also takes all the industry-standard measures to provide the best experience to its users. The features implemented by Luno are similar to Binance. These include deep freeze storage (cold storage), air gaps, two-factor authentication, passwords, and more.
Verdict: It’s a tie. Both exchanges use the best security features.
Customer support is another crucial feature to consider before choosing a cryptocurrency exchange.
Binance has three ways to provide support to its users. First, it has a comprehensive help center that provides help guides, articles, and FAQs. If you have a generic query, you’ll find its solution on the help center.
If you can’t find what you need, you can use the virtual assistant. If you need to connect with a support representative, you can raise a ticket and send them an email.
Luno also has an in-depth help center that provides answers to almost all commonly-asked questions. If you need further assistance, you can contact support at [email protected].
Verdict: It’s a tie, as both exchanges have help centers and email support.
Is Binance a safe exchange?
Yes, Binance is a safe exchange. It takes all the security measures needed to provide a safe experience to all its users. Binance was hacked once in 2019; after that, the company has taken strict measures to provide a risk-free experience to its users.
Is Luno a safe exchange?
Yes, Luno is a completely safe exchange. No hacking incident associated with Luno has come to light yet. Furthermore, it implements all the security measures needed to create a safe trading environment for its users.
Although Binance and Luno are both crypto exchanges, they are disparate in many ways.
Binance offers a lot more features and functionalities. It supports futures and options, has margin trading, and provides a world-class trading platform. These elements make Binance an excellent pick for advanced traders.
However, if you’re a beginner, you should go for Luno. It is ideal for new users who are learning about crypto and how to invest in it. It also has a trading platform that lets you trade cryptos.
Overall, it’s a tie. Choose Binance if you’re an experienced trader and Luno if you’re a beginner.
- What Does “SAFU” & “HODL” Mean In Crypto World? (2022) - November 8, 2022
- 9 Best Monero Wallets To Secure XMR In 2022 - October 26, 2022
- Best Tron(TRX) Wallets To Secure Tron Crypto In 2022 - October 25, 2022