Luno is a well known bitcoin exchange in South Africa. In this basic guide will show you the how to begin using the exchange by registering, and then buying bitcoin.
Steps we go through are (click a step to jump ahead):
- Sign up for an account with Luno
- Verify your account
- Deposit money into Luno
- Buy bitcoin with ‘Instant Buy’
- Place a ‘buy order’ to buy bitcoin on the exchange
To buy and sell bitcoin on Luno you need to register first, to do this you can use our promo code (BKFEF) which will reward you and us with R10 in free bitcoin if you spend R500. Follow this link to register today https://www.luno.com
Sign up on Luno
Once you click to go to www.luno.com, your screen will look like the picture below. Follow the steps to register and redeem the promo code.
On the next screen you will be able to Sign up using your email address, and your password. Complete this step, then immediately check your email for the confirmation email that they send you.
In your email, click the blue “Confirm Email Address” button. When you do this, you will be taken back to the Luno website.
At the Luno website you will now be able to continue by pressing the “Continue” button.
Congratulations! You are now registered on luno.com, and can now verify your identity and make a deposit to buy some bitcoin.
Verifying your identity
As a new user on the exchange, you will be a Level 0 account, which means you have not yet verified your identity or basic personal details. Level 1 account means you are limited to a total of R15000 deposit and withdrawal. So it is important to verify your identity as soon as possible.
A level 2 account is limited to R50 000 per deposit and withdraw per month, and the level 3 account has no limits. Verify your account by submitting your ID and proof of residence, and you will have an unlimited account. Make it easy on yourself by having a digital copy of your ID and an up to date bank statement showing your address ready to upload to their website for review.
To start the verification process, click the “Settings” button in the left menu, and then the “Upgrade” link on the Personal details page.
Complete the steps, by adding all your details, and uploading your ID and bank statement. Once your documents have been reviewed, your account will be upgraded from Level 0 to Level 1, 2 or 3, depending on how much information you have submitted.
Depositing Rand so that you can buy bitcoin
Once you have verified your account, you will be able to deposit money and buy bitcoin. Once your deposit has cleared in the Luno bank account, it will display in the Rand wallet when you check your wallets in the Luno website. With that balance of Rand you can purchase bitcoin.
To make a deposit you need to click on “Wallets” in the left menu of the website. Once you are on the wallets page, you must click the “Deposit” link at the bottom of your ZAR wallet.
On the next screen you will see the main banks in South Africa. Click the bank you would like to use when you make a deposit to Luno.
Now that you have chosen a bank, you need to tell Luno how much money you will be depositing into your account.
After pressing “next”, you will be shown a screen with the reference you need to use for the payment, as well as the Luno banking details. Use the details when making an EFT from your bank account to the Luno bank account. Be sure to use your unique reference number as the beneficiary reference when doing the deposit.
Once you have made the deposit, you will need to wait for your funds to clear in the Luno bank account before they will show in your ZAR wallet. This can take up to 2 business days. As soon as you have your funds showing in your ZAR wallet, you will be able to buy bitcoin.
Buy bitcoin with ‘Instant Buy’
There are two ways to buy bitcoin on Luno. The first way is to make an “Instant Buy”, which is fast, but you pay a premium for your bitcoin. The second way to buy is to make a “buy order” on the exchange, and wait for someone to fill your order.
Once logged into Luno.com, press the “Buy” button on the home screen.
You will be taken to the Instant Buy / Sell screen. On this screen you will be able to switch between BTC and ZAR. When you are on BTC you will need to put in the amount you want to buy. When you are ZAR, you will need to put in how much you want to spend.
Once you have selected the amount of bitcoin you want to buy, or how much ZAR you want to spend, you can click the “Buy” button to complete the order.
Place a buy order to buy bitcoin on Luno exchange
To place a buy order you need to go to the Exchange after logging into Luno. Click the “Exchange” link in the left menu to place your order.
When you open the exchange, you will see existing Buy and Sell orders on the left.
You will see the “Place Order” box where you can place Buy and Sell orders on the exchange. When you place a buy order to purchase some bitcoin, your order will be matched with an existing sell order. If your buy order is not able to be 100% filled, then the remaining amount that has not been filled will be listed with the other buy orders until it is filled.
The Place order box has a BTC field, where you put in the amount of BTC you want to buy or sell. The second field is the ZAR field, where you put in the price per bitcoin that you want to buy or sell bitcoin at.
To buy quickly, you can make sure the ZAR field is the same as the best or lowest Sell order (in red on the left). This will mean your order will be able to be matched to an existing sell order. To match the lowest existing sell order, click the order in the order book that you want to match, to put that bitcoin price into the ZAR field in the Place Order box.
If you would like to spend all of your available Rand balance to buy bitcoin, you can click your available balance amount, and the BTC field will automatically update in the order box to the correct amount of bitcoin that you can purchase at the bitcoin price that you have chosen.
By matching with an existing order, you will be the taker of the order, and will pay 1% in fees for taking the trade.
When you are ready you can click the “Place Buy Order” button to place your order. A popup will appear, and you need to click to confirm your transaction.
Once you have confirmed your transaction, your balance will be updated. When you check your wallets on the exchange, your bitcoin wallet will be showing the bitcoin you have purchased, and your ZAR wallet will have reduced by the amount you spent on bitcoin.
If you have any specific questions on buying bitcoin, please comment below and we can answer and also add to this blog post.