There are many crypto exchanges that you can use to buy cryptocurrency.
2 of them include Luno and Binance Singapore.
Which one is better and which one should you choose?
Here’s what you need to know:
Table of Contents
- The difference between Luno and Binance Singapore
- Number of currencies
- Methods of funding your account
- Methods of buying crypto
- Withdrawal of funds
- Sending and receiving crypto
- Limits and minimum amounts
- Earning interest on your crypto
- Luno Referral (Earn SGD $5 in Bitcoin)
The difference between Luno and Binance Singapore
Luno charges you much lower trading fees compared to Binance Singapore. However, you can only trade in 6 currencies on Luno, compared to the 8 currencies you can trade with Binance Singapore.
Here’s an in-depth comparison between these 2 exchanges:
Luno is based in London and was founded earlier in 2012.
Meanwhile, Binance Singapore was launched in 2019. It was launched as a separate exchange from Binance.com.
Luno can be found in 8 countries, such as Singapore and Malaysia.
Both of them seem to be rather reputable companies that have a strong background in the cryptocurrency scene.
Number of currencies
Luno allows you to trade in 6 currencies:
These currencies are the more well-known ones that have been around for quite a while!
Binance Singapore allows you to purchase 8 currencies
Meanwhile, Binance Singapore gives you slightly more variety. This is because you can purchase 8 cryptocurrencies.
One advantage that Luno has is that it allows you to trade in the stablecoin USDC. This allows you to use these coins to earn a rather high interest rate with crypto savings accounts!
Methods of funding your account
To start buying crypto on either exchange, you will need to fund your SGD wallet. Both exchanges allow you to deposit SGD using your Xfers account.
Xfers is a payment solutions that allow you to transfer your money securely into the crypto exchanges.
It sort of acts like the middleman between your bank accounts and the exchanges.
However, you will need to first transfer your SGD to your Xfers account via FAST. After that, you can transfer your SGD from your Xfers account to either Luno or Binance Singapore.
Methods of buying crypto
For both exchanges, you can use SGD to purchase your crypto.
Binance Singapore only allows you to buy the 8 currencies directly from SGD. It does not allow you to exchange between currencies.
However for Luno, you are able to exchange between different cryptocurrencies.
You are able to buy crypto directly from SGD, or exchange it from another currency.
This makes Luno’s platform slightly more flexible.
You are buying crypto directly instead of trading
When you are purchasing crypto on either exchange, you are buying it directly based on the prevailing market rate.
This is slightly different from trading, where you get to choose the limit price that you pay!
As such, the exchange rate of the crypto that you’re paying may differ slightly.
Here is Luno’s rate,
and Binance Singapore’s rate at around the same time.
The rates for Luno are much higher compared to Binance Singapore!
Withdrawal of funds
Both Luno and Binance Singapore allow you to transfer your funds to your Xfers wallet.
Sending and receiving crypto
Both Luno and Binance Singapore allow you to send and receive crypto from external wallets.
This makes it easy for you to transfer your crypto to another exchange.
You can also send your crypto to a savings wallet that earns you high interest, such as:
The most important thing when it comes to trading crypto are the fees. You should try to minimise your fees as much as possible!
Here are some of the fees you may incur when using either exchange:
#1 Depositing and withdrawing fees
There are no deposit or withdrawal fees for either platform.
This is better compared to Coinhako, which charges you:
- 0.55% deposit fees (if you use Xfers)
- $2 for every withdrawal
#2 Buying and selling crypto
Here are the fees that you’ll be charged for both exchanges:
Luno has lower fees if you use their Exchange platform
If you want to use Luno’s instant buy function, you will incur a 1% fee.
However, Luno has an exchange platform as well.
Luno charges you the trading fee based on your 30-day trade volume:
|SGD 0.00 – SGD 349,999.99||0.10%|
|SGD 350,000.00 – SGD 699,999.99||0.09%|
|SGD 700,000.00 – SGD 1,399,999.99||0.08%|
There are much higher trade volumes, but I do not think you will hit those amounts.
Even at the lowest tier, the fee charged by Luno is really low.
At 0.10%, it is cheaper compared to most platforms!
The only drawback is that the Luno Exchange only has BTC/SGD as their SGD trading pair.
If you wish to buy other currencies, you will have to make at least 2 trades.
Binance Singapore charges 0.6% for each trade
When you make a buy or sell order on Binance Singapore, you will be charged 0.60%.
The fees are 6 times higher compared to Luno!
If you are just looking at fees alone, Luno is definitely more cost effective.
#3 Sending and receiving fees
You may want to send or receive your crypto from an external wallet.
For Luno, the fees for most currencies that you send are dynamic. This depends on the network demand and traffic when you’re sending your crypto.
The only exception is the fixed fee for sending XRP (0.3%).
For Binance Singapore, the withdrawal fees are fixed. This depends on which crypto you’re sending:
If you send NEO, then you will not be charged any fees.
If you want to receive crypto from an external wallet, no fees are charged by either exchange.
However, you’ll need to consider the fees you incur when sending crypto from your external wallets!
Limits and minimum amounts
When you want to buy crypto on either exchange, you may be subject to certain limits and minimum amounts.
|Exchange||Minimum per Trade||Limits|
|Luno||SGD $20||SGD $30,000 (monthly)|
|Binance Singapore||SGD $20||SGD $20,000 (daily)|
Both exchanges have the same minimum amount to trade.
Earning interest on your crypto
This is similar to a savings account. Instead of earning interest on your fiat currency, you will earn it with Bitcoin!
Crypto.com has a similar programme with its Crypto Earn.
Luno projects that you can earn up to 4% p.a. on your Bitcoin. However, the interest rate may fluctuate!
If you intend to buy and hold your cryptocurrency, this is a great way for you to earn some interest!
You may have heard of how crypto exchanges can be hacked, and these hackers can steal your cryptocurrencies!
So how do these exchanges try and combat this?
Luno stores the majority of your currencies in a cold storage
- Deep freeze storage
- Hot wallet
This approach is quite similar to how Coinhako is doing it. Most of your funds are stored in the cold wallet.
However, some of your funds are in their hot wallet, in case you want to quickly withdraw them.
In the hot wallet, another set of keys are held with BitGo. They are considered to be a secure custodian of your crypto.
Once again, your crypto stored with Luno should be rather secure.
Luno provides 2FA to either your email or mobile phone whenever you login to your account.
Binance Singapore does not disclose their security measures
Unlike Luno, Binance Singapore does not disclose the security measures they have put in place. This may be slightly worrying if you are very concerned about security.
Although the platform is quite new, Binance Singapore has not been hacked so far!
Luno has both a web platform,
as well as a mobile app.
Meanwhile, Binance Singapore only has a web platform.
In my opinion, their platform is slightly ‘less stable’ and doesn’t really have the same ‘professional’ feel compared to Luno.
Here is a comparison between Luno and Binance Singapore:
|Number of Currencies||6||8|
|Methods of Buying||SGD Wallet||SGD Wallet|
|Withdrawal of Funds||Xfers||Xfers|
|Trading Fees||1% (Instant Buy) and |
|Sending Fees||Dynamic |
|Depends on |
|Minimum Per Trade||SGD $20||SGD $20|
|Bitcoin Wallet||Present (Up to 4%)||Absent|
|Security||Cold storage |
+ hot wallet
|Platform||Web + Mobile||Web only|
So which platform should you choose?
Choose Luno for lower fees
However, their instant buy option is more expensive compared to Binance Singapore (1% vs 0.60%).
The main limitation is that you can only buy 6 currencies on their platform. This makes it rather limiting, especially if you want to buy other currencies like DOGE.
Apart from that, Luno is a great platform to get some exposure into cryptocurrency!
Choose Binance Singapore for slightly greater variety
Binance Singapore allows you to trade 8 currencies, which is slightly higher than Luno.
Their 0.60% fee is also cheaper compared to Luno’s Instant Buy.
Overall, I do not really like the feel of the platform, however it could just be my personal preference.
Binance Singapore is also an easy way to get exposed to cryptocurrency. However, their higher fees may eat into your returns in the future.
Both exchanges allow you to purchase cryptocurrency directly from SGD.
The exchange that you ultimately choose depends on:
- The type of currency you wish to buy
- The trading fees that you wish to incur
- Whether you want to have a BTC savings wallet
Luno Referral (Earn SGD $5 in Bitcoin)
If you are interested in signing up for a Luno account, you can use the referral code ‘T5N74J‘ or my referral link to sign up for an account.
You’ll be able to earn SGD $5 worth in Bitcoin!
Here’s what you need to do:
- Sign up for a Luno Account
- Deposit and buy ≥ SGD $100 of BTC via Instant Buy
- Receive SGD $5 in Bitcoin
You will need to purchase BTC using the Instant Buy function. The fees that you incur will be 1%.
It would be best to buy only $100 SGD worth of BTC, which only incurs you a $1 fee. The $5 SGD bonus will be able to offset the fee!