How To Trade On Luno And Make A Profit

Luno is a popular exchange that allows you to invest in cryptocurrencies; the platform is available in 40+ countries across the globe.

The exchange is user-friendly and allows users to buy, sell, and store digital assets such as Bitcoin and Ethereum.

If you’ve been looking for how to trade on Luno and make a profit this article is for you.

To use the platform, you need to do the following:

Create an account: visit the official Luno website and click the sign-up button, enter your preferred email and password, and click the “let’s go” button to complete the account creation.

Luno requires all new users to submit the required documents to complete a KYC (know your customer) process.

Deposit funds: before trading on the luno platform, you need to deposit funds.

Choose the fiat currency you want to deposit (e.g. USD, EUR depending on your country).

Follow the instructions to deposit funds into your Luno wallet through bank transfer or other methods.

How To Trade On Luno And Make A Profit: 5 Easy Ways

1. Buy And Hold

I started using luno in 2016.

I wish I held on to the crypto assets I bought then, but unfortunately, I was impatient and sold everything.

It makes me sad anytime I remember it.

One way to trade on luno and make a profit is to buy Bitcoin and other cryptocurrencies and hold for a while, depending on your risk tolerance.

During the bear market of 2020, many people bought Bitcoin for around $3000 and later sold it for a good profit in 2021.

You can also buy and hold, but to do so, you need to be skilled at technical analysis and able to analyze crypto assets that will rise in price over time.

2. Day Trading

You can day trade Bitcoin and other cryptocurrencies on the luno platform.

But you need significant capital to make good profit with day trading.

It’s also necessary to understand market sentiments each day you trade.

Buying directly on the luno dashboard is called “instant buy,” it incurs a 2% transaction fee, which I think is too high.

Instead, I recommend using the platform’s “exchange” feature, which allows you to set limit orders with a 0.1% transaction fee.

If you’re going to day trade on luno, you should monitor the market, take profits, or cut your losses quickly.

3. Arbitrage

What Is Crypto Arbitrage?

Crypto arbitrage is a trading strategy where you take advantage of the price variations of a cryptocurrency on different exchanges.

How Does Luno Arbitrage Work?

If you live in Nigeria or South Africa, you can take advantage of crypto arbitrage between luno and Binance.

Check the price of a particular crypto (such as Bitcoin) on the luno platform, then check the price on Binance. If there’s a sharp difference in prices between the exchanges, you can arbitrage it by buying on one exchange and selling on the other.

Although arbitrage opportunities are rarely available, you will find an opportunity if you check both exchanges consistently.

You have to execute arbitrage trades quickly because the prices might adjust and close the opportunity.

4. Staking

Staking on the Luno platform is available to Malaysia and South African customers.

What Is Staking?

Staking in crypto involves locking up a certain amount of cryptocurrency to support the operations of a blockchain network and enhance its security.

In return, the participants receive rewards, typically in the form of additional coins for helping to validate the transactions and secure the network.

How To Stake On Luno

To stake cryptocurrency on luno, follow these steps:

Choose stake from the menu at the top of the screen

After reading the details, click “Next.”

If you don’t have funds to stake, you will be asked to purchase crypto or make a deposit.

After adding funds to your staking wallet, enter your desired stake amount and click “Next.”

Then read the popup notification and click “Got It” if you’re satisfied.

Read the terms and conditions of staking on the luno platform and click “STAKE NOW.”

Note: when your staking earns a reward, it will be added to your staking wallet.

5. Refer A Friend

You can also make money by referring a friend to luno

When you refer your friend to Luno, and they buy crypto on the platform, you get rewarded in Bitcoin 30 days later.

To access the refer a friend feature, click “rewards” from the menu when you’re signed in

Select “refer friends.”

And share your referral code with your friends and family to earn a reward.

Frequently Asked Questions

Can You Make A Profit On Luno?

Yes, you can.

If you’re disciplined, you can make consistent profits by employing different strategies, such as buying and holding or day trading.

What Is The Minimum Deposit For Luno

The minimum deposit on luno depends on the country you reside.

There is no fixed amount because it varies based on country.

For instance, the minimum deposit for Nigerian customers on luno is N100.

How Do I Sell And Withdraw On Luno

To sell on luno, follow the steps below:

Click on the wallet tab to see a list of cryptocurrencies and their balances.

Click on the one you want to sell, and you will be asked which wallet you want to sell it into. For instance, if you want to sell Bitcoin in the BTC wallet, you will be asked if you want to sell it in fiat or convert it into another cryptocurrency.

After selling your crypto, withdraw funds into your local bank account.

To Withdraw Your Funds From Luno, Follow The Steps Below:

Choose Wallets from the menu

After choosing your local currency wallet then, click WITHDRAW

Choose your bank account (you’ll be required to link one if you haven’t).

After entering your desired withdrawal amount, click NEXT.

A screen with your withdrawal amount and transaction charge will appear. To finalize the withdrawal, choose CONFIRM.

If you’re using the mobile app, enter your Luno PIN, and you’re done.