Battle of the Titans: VALR vs. Luno in South Africa’s Crypto Scene
In the world of cryptocurrencies, South African investors and traders are presented with a tough decision between two heavyweight exchanges: VALR and Luno. These two platforms offer a range of unique features tailored to both newbies and seasoned traders, each with its own advantages and drawbacks.
Let’s take a deep dive into the core aspects of each contender, comparing their key features, fee structures, security measures, and regulatory compliance. By weighing the pros and cons of these South African crypto exchanges, users can ensure they are using a platform that aligns closely with their trading needs.
Key Features and Trading Options
VALR
provides a plethora of features for traders, offering specialized services and advanced tools through its Pro Trading interface for experienced users. Users can leverage up to 5x in Spot Margin Trading and access both spot and futures markets on this platform.
For beginners, VALR provides a simplified experience with its Simply Buy & Sell service, along with an Auto-Buy feature for automated crypto purchases. VALR Pay allows for instant and fee-free crypto transactions, while businesses can benefit from tailored solutions to stay ahead in the market.
Luno
offers an easy-to-use platform geared towards newcomers in the crypto space. Users can automate their investments through the Repeat Buy feature and enjoy fast fund transfers through a variety of payment partners.
Luno also provides an educational hub in its Explore section, along with price alerts to keep users informed of market changes. With the bundles service, similar to ETFs, users can diversify their portfolio effectively and earn passive income through Luno’s staking services.
Market Access
VALR supports over 90 cryptocurrencies through its Simple Buy & Sell service, with access to 33 spot trading pairs (including 11 for ZAR), 10 spot margin pairs, and 18 futures pairs. This wide range of market options caters to both new and returning traders.
Luno, while offering a smaller variety, supports 20 cryptocurrencies and over 120 trading pairs through its Exchange services, focusing on ZAR trading pairs. This broad selection keeps Luno competitive for those looking to trade with traditional local fiat currency pairs and spot markets.
Deposits and Withdrawals
Both VALR and Luno support EFT bank transfers for users looking to deposit and withdraw funds from the platform.
VALR allows users to deposit using Visa and Mastercard, while Luno offers instant deposits via the payment integration service, Stitch. Luno also provides normal and express bank transfer withdrawal options and enables instant crypto purchases through credit or debit cards for faster transactions.
Fees
When it comes to fees, VALR offers a competitive trading fee structure that benefits Makers with a -0.01% rebate on trades and charges Takers a small 0.1% fee. On the other hand, Luno’s fees vary based on trading volume, with Maker fees ranging from -0.02% to 0.4% and Taker fees as low as 0.05% based on 30-day trading volume. Luno also charges a set 3.9% instant card transaction fee and 2% for wallet transactions.
Security and Regulation
VALR ensures user funds are secure with a combination of hot and cold wallet storage, strict internal controls, and advanced security features like 2-FA. It is licensed by the FSCA in South Africa and is expanding its regulatory compliance to Europe, Dubai, and Mauritius.
Luno employs security measures such as 2-FA, deep freeze storage management, password protection, and multi-signature hot wallet setups. It holds licenses in seven jurisdictions, providing a secure and regulated platform for traders and investors.
The Winner?
Choosing between VALR and Luno depends on individual needs and trading preferences. VALR is ideal for those seeking comprehensive trading options and features, especially veteran traders. On the other hand, Luno is more suitable for beginners looking for an educational approach to crypto trading.
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