The Luno app was recently re-launched in Malaysia and I took it as a sign that it’s time to dip my toes into cryptocurrency.
Luno is the first cryptocurrency exchange in Malaysia to be fully approved by the Securities Commission (SC).
To put it in legalese, this means that they function as a Recognised Market Operator (RMO) that offers cryptocurrencies through a Digital Asset Exchange (DAX) that is legal, licensed, and regulated.
Getting On Board The Crypto Express
Registering on Luno is easy, but there were a few steps for me to go through before I could start buying crypto on the app.
Just like most e-wallet apps, I will have to verify that I am a real person by submitting identifying documents such as IC, Driver’s License, and a selfie to match it up. Registration could take up to two days and in my case, it did.
All About The Right Investment
After being recognised as a real user, I could then buy BTC from the app. While the minimum deposit amount is RM1, I needed to have at least RM3 in the wallet to be able to purchase BTC.
That was my very first taste into the world of crypto.
Right after, I tried to see if I could sell my RM3 investment for a quick profit as I saw the price going up, but it turns out I’ll need at least 0.0005 BTC in my account before I could sell (which equals to RM15.01 at the moment of writing).
If I wanted, I could also enable sending crypto to other users. But in order to reduce the chances of phishing or scamming, the Luno team advises users to turn it off when not used.
I also had to wait 24 hours before the feature was enabled. So, I tried sending my colleague who has a Luno account via his mobile number and it was instantaneous and free. Sending to a BTC address will incur charges though.
This is just one of the many safety measures that Luno has in place. With their history with building cryptocurrency systems for banks, the team is confident of their bank-grade security systems.
I could also activate two-factor authentication (2FA) to authenticate all my purchases, aside from the four-digit PIN that I created when registering on the app.
On Luno’s side, they have a security system comprising of two elements:
- multi-signature deep-freeze storage
- multi-signature hot wallet
Simply put, these solutions take parts of the user’s private keys, then stores it in different places—physically and digitally. In layman’s terms, hackers will have to go through multiple layers of security to obtain access to the wallet.
If I wanted to trade, I could place an order for the amount of BTC or ETH that I wanted to trade as well as the price that I want to trade it for. Then, it’s just a game of waiting to see if other users would meet me halfway and trade with me.
All The Comings And Goings
In my own experience, transferring from a bank to the wallet will take around an hour or two to get approved.
So, I decided to top up my Luno wallet with an additional RM27 and try to see if I could make some quick bucks investing into crypto.
The market was not in my favour that day—if I were to sell, I would lose a few cents (my total was RM30 invested).
Also, when depositing to Luno, they have a warning to not deposit the same amount within 24 hours. This is an industry-standard warning to prevent some common scamming tactics.
That said, the whole buying and selling process is super easy and hassle-free, but I’d wish to see the transaction process sped up. I could foresee someone wanting to jump into investing when it’s low, but by the time they are able to buy, the price shoots back up.
The Luno team mentioned that the process takes time because the team takes security very seriously and they want to ensure that there are no anomalies during the transfer.
Transferring the monies from my Luno account to my bank account could also take up to two to three business days as well.
According to the team, they are only currently supporting BTC and ETH with Ripple (XRP) support coming in the near future.
Invest Now, Features Later
While Luno can’t be used as a credit card replacement, I could still use it to deposit and withdraw actual ringgits on the account then use the money to buy stuff from my bank.
Speaking to the Luno team, they mentioned cryptocurrency is still in its early stages and they’re fully focused on educating the public.
They believe crypto is currently an instrument for investment, similar to digital gold—for now. The team has plans to add more features in the future as the public increase their knowledge of cryptocurrencies.
Personally, I found Luno to be a newbie-friendly app to start a cryptocurrency adventure with. They also have some extensive guides on what to do if a user wants to learn more about crypto.
Even as a newbie, I was able to purchase and trade crypto without much outside help.
I did keep in mind, as per most investments, that it is not advisable to dump all your fortunes into a single entity. As the saying goes: “Don’t put all your eggs in one basket.”