Review on Luno Wallet by Merve Duru
luno has been renewed
The Crypto Exchange Now Offering Interest
Luno has established itself over a number of years, servicing the needs of Crypto users throughout the world with a focus on the South African market. Luno was established in South Africa and has recently been acquired by Digital Currency Group. Luno is quite an authority within the Crypto space, servicing 5 million customers in over 40 countries! The exchange has processed in excess of $14 billion in transaction volume to date and looks set to grow even further.
On the 19th of October, the company announced the addition of the BTC Savings Wallet, which is the equivalent of a BlockFi account. Funds held in the savings account will receive up to 4% interest per annum, which is not amazing but users that are utilizing Luno as an exchange and a wallet may find it appealing. BTC funds need to be transferred into the savings wallet in order to qualify for interest rewards, fairly similar to the Binance savings account.
It appears more and more exchanges and Crypto platforms are offering a combination of both staking and interest bearing accounts. This trend is set to continue and grow in my opinion, as financial structures continue to reinvent themselves.
Targeted 4% APY
Though Luno are targeting a return of 4% per annum, the rate is not guaranteed and is susceptible to market conditions. There are no admin fees involved in the management of funds to and from the Savings Wallet and users are free to withdraw funds at any time. Earning interest involves lending, which incurs risk and Luno have openly disclosed the possible risks involved.
Luno have partnered with Genesis, a Crypto assets lending company that has been in business since 2013 and though reputable, no guarantees can be made.
I am glad that Luno have chosen to take this step and I am sure many users that are currently holding BTC with the company will opt for the Savings Wallet. However, I do think that BlockFi is currently a better solution. Firstly, the interest offered by BlockFi is 6% as apposed to 4%. Secondly, BlockFi offer a suite full of solutions including Ethereum, Litecoin, PAX Gold and other stable coins.
Currently, Luno are only offering interest on BTC, which is a great start but doesn't compare to BlockFi in my opinion.
This is however not investment advice, so perform your own due diligence and choose accordingly.
Pros
- process security
- ease of operation
- high interest
Cons
- The Crypto Exchange Now Offering Interest
