How to make money with Luno in South Africa revealed. We have researched several ways South Africans can earn an income with Luno to identify the best one.
This is a complete guide to How to make money with Luno in South Africa.
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How to make money with Luno in South Africa – 9 Key Point Quick Overview
- ✅ How does Luno Work?
- ✅ How to make money with Luno in South Africa
- ✅ Luno Savings Wallet Terms and Conditions
- ✅ How to open a Luno Savings Wallet
- ✅ Benefits of a Luno Savings Wallet
- ✅ How to choose which cryptocurrency to trade with Luno in South Africa
- ✅ The Best Crypto Brokers in South Africa
- ✅ Conclusion
- ✅ Frequently asked questions
In this in-depth guide, you’ll learn:
- How does Luno Work?
- How to make money with Luno in South Africa
- How to choose which cryptocurrency to trade with Luno in South Africa
- The Best Crypto Brokers in South Africa
How does Luno Work?
The Luno Exchange, like any other market, is only a meeting place for buyers and sellers. Luno does not act as a cryptocurrency exchange or determine the value of individual tokens.
This is based on the laws of supply and demand. For those looking to make a purchase or sell an item, Luno is merely the medium via which this might occur.
New orders are always compared against existing orders in the order book, with the best-priced order serving as the baseline. A transaction is executed at the best price if and only if it is consistent with the limit price of the new order.
In the event of a tie in pricing, the order in which the orders were placed will determine fulfillment. This process continues until no more exchanges can be made. The order is then recorded in the order book. In contrast, a canceled order is not recorded in the order book.
A buyer can be found on one side of the Luno Exchange, with a buyer waiting on the opposite side of the deal. A buyer can choose to either match an existing order (known as a “taker order”) or place their own order on the Luno Exchange (maker order).
Suppose there is demand and supply for the goods and services traded (in BTC and the local currency). In that case, additional buyers and sellers will enter the market and place new orders, which may be at higher or lower prices.
At some point, a buyer and a seller will find each other on the market and settle on a mutually agreeable price.
South Africans must remember that the platform (the Luno Exchange) will charge a small fee to offer these exchange services, platform integration, customer support, and security, and ensure that the persons trading on the exchange are trustworthy.
Regarding fees, Luno uses the standard “maker/taker” arrangement. Market producers pay nothing under our pricing structure, while market takers pay a small fee.
How to make money with Luno in South Africa
Luno is not only a comprehensive and trusted exchange and platform where South Africans can buy, sell, hold, and exchange cryptocurrencies. Luno also allows investors to earn interest on their cryptocurrency holdings with Luno Savings.
A simple method to generate money on your cryptocurrency holdings is using the Luno Savings Wallet. In addition to the minimal trading costs, this platform allows you to purchase, sell, and store your cryptocurrency.
You can easily invest your Bitcoin, Ethereum, and USDC in the Luno Savings Wallet and earn interest on your holdings. You will get the interest at the end of each month since it is calculated daily. Users can expect the following interest according to their crypto holdings:
- BTC – up to 1.5% interest in BTC.
- ETH – up to 2% interest in ETH.
- USDC – up to 7.6% interest in USDC.
Interest rates are variable, meaning that they could be higher or lower than the stated percentage, depending on the state of the market.
Interest payments will be made every day at a rate that varies. Interest is calculated daily and paid out once per month in cryptocurrency, equal to the total interest earned during the previous month.
Luno Savings Wallet Terms and Conditions
With the Luno Savings Wallet, you may accumulate interest on cryptocurrencies stored in a separate wallet. Because the Savings Wallet is a loan product, it is important that you get acquainted with Luno’s Savings Wallet Terms.
The Luno Savings Wallet only works with a subset of cryptocurrencies currently. However, Luno may add support for other cryptocurrencies there in the future. When you create a new Savings Wallet, you will get a list of the cryptos that can be stored, which could vary by country.
By using the Savings Wallet, you understand that Luno plans to earn interest on cryptocurrency held there by borrowing the cryptocurrency from you and investing it with third-party service providers.
Lending Partners that borrow cryptocurrency from Luno may sometimes use that cryptocurrency to make investments, such as loans. You give Luno the right when you lend cryptocurrency to Luno, to keep that cryptocurrency in Luno’s name or another name.
In addition, when users register a Luno Savings Account, they allow Luno to:
- Lend
- Pledge
- Repledge
- Transfer or use any amount of such cryptocurrency, alone or with other property, with all attendant rights of ownership, and for any length of time and without maintaining a corresponding amount of cryptocurrency in Luno’s custody or control.
Because it is neither a checking account nor a savings account with a conventional bank, the money in your Savings Wallet is not insured against loss.
To earn a return, Luno will invest the cryptocurrency it borrows from you by on-lending, selling, pledging, rehypothecating, assigning, investing, using, commingling, or otherwise disposing of it to counterparties.
Genesis and Luno have collaborated to create this convenient savings card. Digital Currency Group includes Genesis, another firm.
To better serve their customers hedging, speculating, institutional market-making, and working capital requirements, Genesis is the world’s biggest lender of digital assets. They have been going strong since 2013 and quickly became a household brand in their field.
How to open a Luno Savings Wallet
Add a savings wallet
- In the Wallets menu, click the button labeled “Build a portfolio.”
- Add a savings wallet by clicking the “Choose an investment.”
- To add a new savings account, click “Next.”
- Please review the savings account details and then proceed by clicking NEXT.
- When setting up your first savings wallet, you will be asked to agree to the conditions shown there. When you are ready to commit, click the “I AGREE” button after checking the “I have read and understand the terms and conditions” box.
- Your newly established savings wallet may be seen on the Wallets screen under the expandable Total Savings heading.
Transfer crypto from your wallet to a savings account
- To deposit funds, either tap “Transfer in” or go to your freshly created “Savings” wallet from the Wallets page.
- To initiate a transfer, enter the desired amount on the “How much do you wish to transfer?” page and click “Next.”
- The amount you are transferring, the charge associated with that transfer, the wallet you are sending the money from, and the wallet you are sending it to can all be seen on the transfer screen. Tap the “Confirm” button if everything seems in order.
Benefits of a Luno Savings Wallet
- In addition to the gains from price fluctuations, you can earn compound interest on two of the most popular cryptocurrencies and one of the most prominent stablecoins.
- You get access to a hands-free method of generating compound interest.
- You can set the wallet up and manage it easily.
- There are no additional costs.
- You can access your crypto funds anytime, day or night.
How to choose which cryptocurrency to trade with Luno in South Africa
Recently, the market for trading cryptocurrencies has been quite active. The blockchain is a revolutionary technology that keeps a real-time public database of all cryptocurrency transactions. Many people are stepping forward to invest in cryptos.
However, if you are just getting started in the crypto world and have no clue where or how to put your money, here are some things to think about before putting your money into any cryptocurrency.
Whitepaper
In information technology, whitepapers are often regarded as technical writings that explain novel technologies, ideas, and solutions.
A whitepaper is the standard document in the cryptocurrency industry that combines business strategy with technical details about the following:
- The project
- The team
- The project’s vision
- The objectives and use cases of the project
- The token economy
- The underlying blockchain technology
These metrics can help potential investors make an informed decision. A cryptocurrency whitepaper is a non-verified document released by the project itself that follows best practices but is not governed by any external authority.
Therefore, a whitepaper must be scrutinized and used with some caution. A professional crypto whitepaper should include vision, staff, technology, reputation, partners and advisers, token economy, use cases, and other details.
Maximum Supply
The value of a fiat currency is directly proportional to the total quantity of that currency in circulation.
Value is created from scarcity, but when dealing with a cryptocurrency, this becomes more complicated since tokens are distributed according to a timetable. Therefore, both a maximum and a total number of tokens are available.
Maximum supply is the maximum number of tokens that will ever be created for a certain currency. In contrast, total supply defines the total number of tokens in circulation at any moment.
The completely diluted market capitalization accounts for the maximum possible security issuance. In contrast, the total market capitalization considers the existing float.
The overall market cap and the completely diluted market cap must be considered when deciding whether the current token price is attractive relative to the project’s market cap.
Initial impressions of value might be deceiving since the true maximum supply in the diluted market cap may be far more than first assumed. If there is a large disparity between the two, it is prudent to proceed with care since more tokens might drive down the price in the future.
Market Capitalization
Market capitalization is the most straightforward metric when choosing a coin since it consists of a single figure. Market cap is determined by taking the current token price and multiplying it by the total number of tokens in circulation.
Coins are classified into several groups according to their overall market capitalization, simplifying the process of comparing different cryptocurrencies. Over time, market volatility tends to decrease as market capitalization rises.
As a company’s market capitalization rises, so does its liquidity, making it easier to initiate and exit trades at any moment. Conversely, the risk-reward ratio tends to improve when a company’s market capitalization decreases.
Cryptocurrency investment is risky in general, but if you stick to the coins in the top 10, you can be certain that the project has been professionally researched and has the support of prominent venture capital companies or institutional investors.
Use Cases
The basics and the technicalities of the currency or token are just the beginning. You must research the practical implications of an essential item before investing or even HODLing (buying and holding long-term) it.
Look out for ICOs
When raising funds and introducing new cryptocurrencies to the market, digital currency start-ups often turn to Initial Coin Offerings (ICOs). Bets are placed on which firm will successfully provide the goods and generate profits, much as in the stock market.
You may find a wonderful chance to invest in a cryptocurrency of your choice via ICOs. But unfortunately, you cannot rely on historical data to help you.
Therefore, you must depend on your familiarity with the service, its competitive advantages, and the people behind it. Beginning from nothing, investing in a successful initial coin offering (ICO) is a way to amass substantial profits quickly.
Investigating prior successful offers and being up on current developments in the sector can put you in a better position to identify the next lucrative ICO.
Risk Factors
When looking at the cryptocurrency market, most altcoin values are tied to the price of Bitcoin. Keep in mind that cryptocurrency is very volatile compared to fiat money. The basic rule to remember is that as the price of Bitcoin rises, the price of altcoins falls, and vice versa.
Beware of “FOMO”
Many individuals hear about cryptocurrency trading from others and form opinions based on what they hear, such as that it is very profitable or against the law.
However, this is not how crypto trading works. If you do not get in on the digital currency action, others could capitalize on your FOMO. Therefore, investors must watch for red flags and signs of danger.
Fundamental Analysis is your friend
2022 will be known for a greater focus on understanding cryptocurrencies. With new competitors appearing daily, familiarity with tokenomics, roadmap, market capitalization, and utility is crucial.
Even if you are unfamiliar with fundamental analysis, you can be certain that only tested, safe, and reliable tokens will be listed on reputable exchanges.
Alternative Coins
Most altcoins lose value after a certain period, so it is crucial to understand that you should never retain an altcoin for the long term without being prepared to sell it.
Day-to-day trading volumes are the greatest indicators of coins well suited for long-term investments. Therefore, the hint here is to pay close attention to the charts of these currencies and the many price surges they have seen.
Diversification
Given the outlandish nature of cryptocurrencies, diversification is the best strategy for navigating beyond a few key areas of certainty.
When the value of one crypto falls to another asset, like the US dollar, the value of any remaining crypto also falls. Thus, growth might be a fantastic resource for backing the crypto industry.
The Best Crypto Brokers in South Africa
In this article, we have listed the best brokers that offer crypto trading to traders. In addition, we have further identified the brokers that offer additional services and solutions to traders.
Best MetaTrader 4 / MT4 Crypto broker in South Africa
Overall, Eightcap is the best MT4 Crypto broker in South Africa. Eightcap offers South Africans a range of derivatives that can be traded using powerful platforms like MT4. In addition, Eightcap offers competitive spreads, and traders can easily deposit and withdraw funds.
Best MetaTrader 5 / MT5 Crypto broker in South Africa
Overall, AvaTrade is the best MetaTrader 5 Crypto broker in South Africa. AvaTrade is a well-regulated broker that offers a wide range of crypto CFDs that can be traded via powerful software such as MT5.
In addition, AvaTrade offers some of the best market analyses to help traders refine their crypto trading strategies.
Best Crypto broker in South Africa for beginners
Overall, eToro is the best Crypto broker in South Africa for beginners. South African crypto traders can expect access to many educational tools and materials when they sign up with eToro.
In addition, eToro offers copy trading, allowing beginners to follow and copy the crypto strategies of more experienced traders.
Best Low Minimum Deposit Crypto broker in South Africa
Overall, FBS is the best Low Minimum Deposit Crypto broker in South Africa. In addition, South Africans can register a dedicated crypto account with FBS via the FBS Trader.
Registering an account through FBS Trader will make traders eligible for a 100 USD no-deposit bonus, which means that traders can test the platform before risking their funds.
Best ECN Crypto broker in South Africa
Overall, FP Markets is the best ECN Crypto broker in South Africa. FP Markets is the best hybrid STP and ECN broker that offers crypto CFDs to South Africa via MT4 and MT5. Traders can choose from flexible account types when they trade digital and fiat currencies.
Best Islamic / Swap-Free Crypto Broker in South Africa
Overall, XM is the best Islamic / Swap-Free Crypto broker in South Africa. In addition, XM is the best broker for Muslim traders worldwide. XM does not apply any additional fees on its Swap-Free account, and traders can expect spreads from 0.0 pips on major instruments.
Best Crypto Trading App in South Africa
Overall, IC Markets is the best Crypto trading app in South Africa. IC Markets does not have a proprietary app but offers MT4, MT5, and cTrader apps on iOS and Android. Furthermore, South Africans can trade 18 crypto CFDs with leverage up to 1:5.
Best ZAR Crypto broker in South Africa
Overall, HFM is the best ZAR Crypto broker in South Africa. HFM is a hybrid broker that provides South Africans with a ZAR-denominated account and several crypto CFDs they can trade. In addition, HFM offers educational materials that help beginners and a free demo account for practice purposes.
Best Lowest Spread Crypto broker in South Africa
Overall, JustMarkets is the best lowest-spread Crypto broker in South Africa. JustMarkets is a regulated STP and ECN broker with spreads from 0.0 pips on major instruments. In addition, South Africans can choose from seven account types and expect some of the best liquidity from over 18 providers.
Best NDD Crypto broker in South Africa
Overall, Markets.com is the best NDD Crypto broker in South Africa. Markets.com is an FSCA-regulated broker that offers market and instant execution on trades, with spreads from 0.6 pips commission-free.
In addition, traders can choose between MT4, MT5, and the innovative and robust MarketsX platform to trade various instruments, including crypto CFDs.
Best STP Crypto broker in South Africa
Overall, FOREX.com is the best STP Crypto broker in South Africa. FOREX.com is a multi-regulated broker with an execution scorecard. FOREX.com is the best STP broker with spreads from 0.2 pips and affordable commission charges.
Best Sign-up Bonus Crypto Broker in South Africa
Overall, SuperForex is the best sign-up bonus Crypto broker in South Africa. South Africans can choose from 11 accounts to trade a range of crypto CFDs. In addition, SuperForex offers all newly-registered traders an 88 USD no-deposit bonus that they can use to trade or explore the markets.
Conclusion
The Luno platform is quite intuitive, and all you must do to start accruing interest on your cryptocurrency investment is make a purchase and then move the funds to your savings wallet.
However, a limited range of cryptocurrencies is supported for the savings account, and interest rates can be extremely low. Despite this, Luno is a trusted platform that guarantees a safe, fair, and transparent trading environment.
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Frequently asked questions
What is the minimum investment amount with Luno?
There is no minimum amount that you must invest in opening a Savings Wallet with Luno, and you can start with any given amount.
How can South Africans grow their money with Luno?
You can open a Savings Account with Luno to earn interest on your crypto.
How long do withdrawals take with Luno?
Withdrawals are processed once received, but it could take up to three business days for your withdrawal to reflect in your bank account.
What savings wallets can I open with Luno?
You can open a BTC, ETH, or USDC savings wallet with Luno.
Is it easy to withdraw funds from Luno?
You can easily withdraw funds from Luno by signing into the app, choosing the Wallet option from the menu, selecting the wallet from which to withdraw, selecting the bank account, and confirming the withdrawal.
Addendum/Disclosure
No matter how diligently we strive to maintain accuracy, the financial markets are volatile that could shift and change at any given time, even if the information supplied is correct at the time of going live.
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