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Luis Clark
Luis is a personal finance expert who has been passionate and writing about crypto for more than five years.
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    Luno vs. Coinbase 2023: Fees, Pros & Cons

    luno crypto wallet south africa

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    Coinbase South Africa Review

    Luno vs. Coinbase: Verdict

    Luno and Coinbase are reputable cryptocurrency exchanges that cater to South Africans. Both trading platforms offer simplified crypto trading, making them viable options for crypto beginners and experienced investors. 

    After using both platforms, we discovered that Coinbase has an edge over Luno because of its advanced trading options, staking, and NFT support. This guide reviews Coinbase Luno to offer a better comparison. 

    luno crypto wallet south africa



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    Luno vs. Coinbase: Unique Features

    Cryptocurrency Wallet

    Luno South Africa Home Page

    Both Luno and Coinbase offer their customers cryptocurrency wallets to store their assets. And investors do not need to go through the exchanges to use these Bitcoin wallets to send and receive crypto.

    Luno and Coinbase crypto wallets are free to use and easy to set up, making them ideal for all kinds of investors.

    However, while the Coinbase wallet supports thousands of cryptocurrencies, the Luno wallet only supports ten crypto assets. Also, the Luno wallet is only available to verified Luno customers, while the Coinbase wallet is available to all crypto users. As a result, Coinbase wins in this category. 

    Instant Buy/Sell

    Coinbase Home Page

    Luno and Coinbase offer an instant buy/sell feature, so their customers can easily buy Bitcoin and other cryptocurrencies. This feature allows investors to trade crypto without using live markets or trading platforms, and this ease is ideal for crypto beginners and traders with low trading volume.

    While the Luno platform only offers an instant buy feature, Coinbase incorporates buy, sell, and swap options for more convenience. Hence, Luno customers are limited to crypto purchases with this feature, making Coinbase stand out here.

    Mobile App

    Both Luno and Coinbase provide mobile apps that support Bitcoin brokerage services on the go.The Luno app and Coinbase mobile apps are user-friendly and available on Android and iOS devices.

    However, during our Luno vs Coinbase review, we discovered that the Coinbase app is packed with more features. The Luno app majorly focuses on crypto trading. Meanwhile, the Coinbase app is more comprehensive with additional features, like Coinbase Pay and an NFT marketplace.

    Luno’s ratings on the Google Play and Apple App Stores are 3.9/5 and 4.3/5, respectively. On the other hand, the Coinbase app maintains 4.1/5 and 4.7/5 on both stores. Clearly, the Coinbase mobile app has a higher interaction rate and is the winner here.

    Supported Countries

    Luno and Coinbase are global cryptocurrency platforms that support various countries worldwide. However, Luno’s services are limited to only ten countries, including South Africa, Nigeria, Australia, Uganda, Malaysia, and the United Kingdom. 

    On the other hand, Coinbase supports 100+ countries, including South Africa, Nigeria, Uganda, the US, Canada, and more.

    Winner in Unique Features

    Coinbase is a much bigger exchange than Luno and wins this category.

    Luno vs. Coinbase: Cryptocurrencies Available

    In terms of crypto support, Luno and Coinbase support top digital currencies like Bitcoin, Ethereum, USD Coin, and Bitcoin Cash. However, one of the obvious downsides to Luno is its limited cryptocurrency support. Luno supports only ten cryptocurrencies, while Coinbase supports over 8,900 assets, including a wide range of altcoins.

    Winner in Crypto Availability

    As a result, Luno may be ideal for the beginner or average SA investor, while active traders will likely tilt toward Coinbase to diversify their portfolios. In other words, Coinbase wins this section.

    Luno vs. Coinbase: Can You Buy and Sell NFTs?

    One of the features modern investors look for in crypto exchanges is their support for non-fungible tokens (NFTs), which is the same for South African investors. Regarding NFT support, Luno is limited because the exchange doesn’t support the buying and selling of NFTs. 

    Winner in NFTs Availability

    Coinbase, on the other hand, has an NFT marketplace where digital creators and investors can mint, buy, and sell NFTs. With its NFT support, Coinbase defeats Luno once again.

    Luno vs. Coinbase: Fees

    In terms of fees, Luno and Coinbase are wide apart. We highlight both platforms’ fees below for better clarity. 

    As evident in the table above, Luno’s fees are lower than Coinbase’s

    Winner in Fees

    Luno charges no withdrawal fee, and the platform’s trading fees are as low as 0.10%—one of the lowest on the market. As such, the Luno offer is a better option for South African residents, and Luno wins this category. 

    Luno vs. Coinbase: Payment Methods

    Both Luno and Coinbase support fiat and crypto deposits. However, while Luno supports direct ZAR deposits and withdrawals, Coinbase doesn’t support the local currency. SA investors who want to trade ZAR on Coinbase must purchase the South African Tether (xZAR), which is pegged 1:1 to the ZAR. 

    Regarding fiat payment methods, the Luno crypto exchange supports electronic funds transfers (ETFs) via bank wire transfers and direct cash deposits via debit cards. In contrast, Coinbase supports USD and EUR deposits via credit/debit cards for South Africans.

    Winner in Payment Methods

    Overall, Luno offers more South African-friendly payment methods, so it wins this category.

    Luno vs. Coinbase: Security

    Luno Security Features

    Coinbase and Luno are among the most reputable crypto exchanges in terms of security. Both offer robust security measures to safeguard investors and their funds. For instance, both platforms require mandatory know-your-customer (KYC) verification. At the same time, Coinbase and Luno employ advanced encryption technology to protect their platforms from online threats or cyber-attacks.

    The two platforms claim to store most of the users’ assets in offline cold storage. And industry-leading two-factor authentication (2FA) is also present on both exchanges for customers to protect their accounts from third-party break-ins or theft.

    Additionally, Coinbase has a custodial fund insured by the Federal Deposit Insurance Commission (FDIC). The fund is worth $250,000 per customer. This fund is additional protection for customers in case the trading platform gets hacked. 

    Winner in Security

    In terms of security, Coinbase and Luno go head-to-head, but Coinbase surpasses Luno with its additional insurance fund. However, Coinbase has been hacked in the past, which is worth considering since there have been no reports of the Luno cryptocurrency exchange being hacked since its inception.

    Luno vs. Coinbase: Earn/Staking Rewards

    SA investors interested in earning extra income can do so on Coinbase. The trading platform has various crypto earn features, including crypto staking. The crypto staking feature on Coinbase is available to all users; customers can lock up their assets for rewards of up to 6.12% annual percentage yield (APY).

    Meanwhile, the Luno cryptocurrency exchange has no earning or staking feature. Instead, the exchange only focuses on the buying, selling, and trading of cryptocurrencies; this could be why it is not the most popular exchange.

    Winner in Earn/Staking Rewards

    Based on our Coinbase vs Luno review, Coinbase wins this category.

    Luno vs. Coinbase: Usability

    Coinbase and Luno are famous for their focus on simplified crypto trading. Both exchanges offer user-friendly trading platforms that make crypto purchases and trades seamless for beginners and experts.

    On the Coinbase website and mobile app, creating an account, completing KYC, adding funds, and executing trades are all smooth processes. Similarly, Luno has a straightforward user flow across its mobile and desktop channels.

    Winner in Usability

    However, Coinbase has a sleeker design. In addition, Coinbase customers always have access to charts, an order book, and market orders, so they can easily process trades. As a result, Coinbase slightly edges Luno in terms of ease of use.

    Luno vs. Coinbase: Customer Service

    Trading cryptocurrencies can sometimes be challenging. Because of this, cryptocurrency exchanges like Luno and Coinbase provide resources to help their clients solve any problems they may face. For example, both platforms have help centres with learning materials and self-service guides. Similarly, there are FAQs with solutions to common problems

    Luno and Coinbase also have a dedicated customer support team to intervene when users require human interference or instant solutions. However, Luno has a higher customer support rating, with a 4/5-star rating on Trustpilot. On the other hand, the online Coinbase review rating of 1.5/5 indicates that the platform’s support requires more improvement.  

    Online reviewers rate Luno highly because of its ease of use and relatively low fees, while Coinbase reviewers have complained about poor customer support and difficulties with fund withdrawals.

    Winner in Customer Service

    The Luno crypto exchange wins in this section.

    Conclusion: Final Verdict

    Coinbase and Luno are popular among South African investors for offering exchanges of digital assets. Both are renowned for a simple trading experience. In this Luno vs Coinbase review, Coinbase defeats Luno in most categories, including coin support, features, earn/staking, NFT support, and usability—making it the better exchange.

    Overall Winner

    However, the Luno exchange platform remains a great option for South African residents keen on a low-cost exchange with direct ZAR support and outstanding customer service.


    Most frequent questions and answers

    South Africans may prefer Crypto.com because it charges 0.075% trading fees and has exciting earn features with up to 14.5% APR. Crypto.com also supports ZAR. 

    The major disadvantage of the Luno crypto exchange is its limitation to only ten cryptocurrencies. Also, the exchange has no crypto staking/earn feature.

    Crypto withdrawals on Luno are nearly instant. However, fiat withdrawals are only processed on weekdays and may take up to three business days. 

    Investing in cryptocurrencies in South Africa is subject to income tax. So using this digital asset exchange does not eliminate taxes.

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    Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade, or sell any investment instruments or products, including but not limited to cryptocurrencies, or use any specific exchange. Please do not use this website as investment advice, financial advice, or legal advice, and each individual’s needs may vary from that of the author. Investing in financial instruments, including cryptocurrencies, carries a high risk and is not suitable for all investors. It is possible to lose the entire initial investment, so do not invest what you cannot afford to lose. We strongly advise conducting your own research before making any investment decisions. This post includes affiliate links with our partners who may compensate us.

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