LUNO has been an easy medium to easily add bank account or a credit card and purchase some of the “safest” and “largest” Cryptocurrencies using the funds deposited. However, after you get your LUNO, the fees that you rack up on each of your purchases and sales can be quite large and leave you second guessing any trading, instead of just holding. If you are buying, selling, and re-diversifying more than a handful of times on LUNO, this lesson will pay off!
To access the exchange, first login to your account and click the "Exchange" button from the left Navigation Menu.
By using the Naira you deposited on the LUNO Exchange, you can avoid the 1.5% fee by buying your favorite Crypto here. Instead, you will only be charged a 1.0% fee as a market taker and 0.00% as a market maker, since you are providing liquidity for all the people who don’t know this trick.
The next section you see is the order book. This section shows how many orders are present for each price point.
- Red ones show the sell orders which people are trying to sell their coins for.
- Green ones show the buy orders of individuals like yourself trying to buy some Crypto at various prices.
- Naira spread in the middle shows the difference between the lowest sell order and the highest buy order. This generally shows the demand and volume for certain digital currency on a certain exchange. If the traded volume is high and more people are buying and selling, this spread will be very minimal.
What is a Market Maker and Market Taker?
When you place any order on the order book and it is filled immediately, you are considered a taker and will pay a fee between 0.20% and 1.0%. When you place an order which is not immediately matched by an existing order, that order is placed on the order book. If another customer places an order that matches yours, you are considered the maker and your fee will be 0%.
- A maker order is when you place a price you are willing to buy or sell on the order book and someone agrees to that price.
- A taker order is when you are willing to pay for the cheapest sell order or sell for the highest buy order.
So if we can place Maker orders properly while buying and selling , there won’t be any transaction fees!
Here’s how to place a Limit Buy and Limit Sell, so that you will always be making an offer and your order will be charged 0 transaction fees:
On the Order Form “Limit Buy” is placing an order with conditions. Here you can specify the quantity and at what price point, it should execute.
Using the Bitcoin Order Book below if you enter a price of of ₦1,340,359 or less you are making an offer and it gets executed only when someone takes it.
On the Order Form “Limit Sell” is placing an order with conditions. Here you can specify the quantity and at what price point, it should execute.
Using the Bitcoin Order Book below if you enter a price of of ₦1,348,000 or higher you are making an offer and it gets executed only when someone takes it.
That’s how you avoid fees by placing smart Limit buy and sell orders and being a Maker.
This is not just for LUNO but can also be applied to other exchanges like Coinbase etc
If you don’t want to wait or analyze the charts to buy your crypto, you can be a Taker. Your order will be processed immediately and you'll be charged a fee between 0.2% – 1.0%, unlike 0% when you're a Maker.