Luno.com – Trading Bitcoin, Fees, Limits and Orders explained
In this video:
- How Luno.com works, which is the exchange that we use to buy Bitcoin in South Africa.
- Cover the fees you’ll incur when depositing, withdrawing, and trading Bitcoin on Luno.
- Explain about how the fees are calculated, and what exactly market makers and takers are.
- Explain how Luno’s trading limits work, and go into the various steps you’ll need to take in order to verify your ID, and trade the amount of Bitcoin that you wish.
- How to buy Bitcoin
There has been lots of interest around Bitcoin in South Africa recently, and cryptocurrency in general, so this video showing you how to buy Bitcoin in South Africa using Luno.
Luno allows you to buy and sell Bitcoin for Rand (ZAR), and also allows you store your Bitcoin in their wallet, which you can access using your phone or PC. With the wallet, you can save your Bitcoin, use it to buy things online, or even send it to someone else.
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How to buy altcoins
Using an exchange like Bittrex or Binance, you can convert your Bitcoin into the altcoin of your choosing. You can also use the platform to trade between cryptocurrencies to earn more Bitcoin – however, this comes with risks, and you stand a chance to lose Bitcoin if the price of your altcoin doesn’t go up as fast as Bitcoin. The past few weeks, for example, Bitcoin outperformed almost every single altcoin, and caused their valuations in Bitcoin to go down, a lot.
Always be careful when trading, and do not risk any money that you cannot afford to lose. Also, always be sure to do your research before investing into any cryptocurrency, and be sure to get information from more than one source.
Cheaper way to send Bitcoin
To withdraw Bitcoin from Luno faster:
• Have Bitcoin on Luno
• Convert that Bitcoin to Ethereum on Luno (shown in video)
• Send the Ethereum to your destination (i.e Binance) – your destination MUST HAVE an Ethereum wallet and address. Most exchanges do.
• Convert the ETH back into Bitcoin on the exchange you sent it to. • You’ve now moved Bitcoin from Luno to somewhere else, using the Ethereum blockchain Luno BTC – Luno ETH – Send ETH to destination – convert to BTC
• Have Bitcoin on another exchange (i.e Binance)
• Convert it into ETH (on Binance)
• Withdraw that ETH to your Luno wallet
• Covert the ETH to BTC on the Luno market (this can be done for free)
Provided the price of Ethereum stays the same, you’ve effectively moved your Bitcoin much faster and cheaper than using the Bitcoin network – simply by converting it to Ethereum, sending it via the Ethereum blockchain, and then converting it back to Bitcoin on the other end. Just like you guys, I’ve also been frustrated with the Bitcoin network lately, especially with regard to the send fees and transaction times. Technical details for why this is happening aside, I thought I’d show you guys a faster and cheaper way to send Bitcoin around, using Ethereum. Luckily, Luno just added an Ethereum market, so we can now buy ETH in South Africa with our Rands (first by using the Rand to buy Bitcoin, and then using the Bitcoin to buy ETH, as shown in the video). You’ll find that most exchanges and wallets charge much less for an Ethereum transaction, and it’s usually much quicker than Bitcoin, too. However, you need to make sure that wherever you’re sending your Ethereum to (after changing it from BTC to ETH), has an Ethereum wallet that you can send your ETH to. Once the ETH arrives, you can change it back into Bitcoin, and then trade it from there into whatever cryptocurrency you want.