How to Convert Bitcoin to Cash on Luno

Converting Bitcoin to cash on Luno involves several steps, which can be straightforward if you follow the process carefully. Luno is a popular cryptocurrency exchange platform that facilitates buying, selling, and trading cryptocurrencies like Bitcoin. Here’s a comprehensive guide on how to convert Bitcoin to cash using Luno.

1. Setting Up Your Luno Account

Before you can convert Bitcoin to cash, you need to have a verified Luno account. Follow these steps to set up your account:

• Sign Up: Visit the Luno website or download the Luno app from your app store. Click on “Sign Up” and provide your email address and create a password.
• Verify Your Email: Check your email inbox for a verification link from Luno. Click on the link to verify your email address.
• Complete KYC Verification: To comply with regulatory requirements, Luno requires users to complete Know Your Customer (KYC) verification. This involves submitting a government-issued ID and proof of address. Follow the instructions on Luno’s platform to upload these documents.
• Enable Two-Factor Authentication (2FA): For added security, enable 2FA on your Luno account. This involves linking your account to an authentication app like Google Authenticator.

2. Deposit Bitcoin into Your Luno Wallet

Once your account is set up, you need to deposit Bitcoin into your Luno wallet:

• Log In: Access your Luno account and navigate to the “Wallet” section.
• Deposit Bitcoin: Click on the “Receive” button next to Bitcoin. You will be given a Bitcoin address. Copy this address.
• Transfer Bitcoin: Use this address to transfer Bitcoin from your external wallet or another exchange to your Luno wallet. The transaction may take some time to process depending on the network congestion.

3. Selling Bitcoin for Cash

With Bitcoin in your Luno wallet, you can now sell it for cash:

• Navigate to the Trade Section: Go to the “Trade” section of the Luno platform.
• Select Bitcoin to Sell: Choose Bitcoin as the cryptocurrency you want to sell.
• Enter Amount: Specify the amount of Bitcoin you wish to sell. Luno will display the equivalent amount in your local currency.
• Choose Selling Option: You can select either a market order, which sells Bitcoin at the current market price, or a limit order, which allows you to set a specific price at which you want to sell your Bitcoin.
• Confirm Sale: Review the details of your sale and confirm the transaction. Once confirmed, the cash equivalent of your Bitcoin will be credited to your Luno account.

4. Withdrawing Cash to Your Bank Account

To withdraw the cash to your bank account:

• Go to the Withdraw Section: In the “Wallet” section, click on “Withdraw.”
• Select Bank Account: Choose the bank account where you want to transfer the cash. If you haven’t linked a bank account yet, follow the instructions to add your bank account details.
• Enter Withdrawal Amount: Specify the amount of cash you want to withdraw.
• Confirm Withdrawal: Review the details and confirm the withdrawal request. The cash will be transferred to your bank account. The processing time may vary depending on your bank and country.

5. Fees and Considerations

Be aware of the following fees and considerations:

• Transaction Fees: Luno charges fees for converting Bitcoin to cash and for withdrawals. Check the fee schedule on Luno’s website for details.
• Exchange Rates: The amount of cash you receive depends on the current exchange rate between Bitcoin and your local currency. This rate can fluctuate, so it’s wise to monitor the market.
• Withdrawal Limits: There may be limits on the amount of cash you can withdraw based on your account type and verification level.

6. Troubleshooting

If you encounter any issues during the process:

• Contact Support: Luno’s customer support team can assist with any problems you face. Reach out to them via the support section of their website or app.
• Check FAQs: Luno’s website also has a comprehensive FAQ section that may address common issues and questions.

Conclusion

Converting Bitcoin to cash on Luno is a relatively straightforward process if you follow the steps outlined above. Ensure that your account is properly set up, and be aware of the associated fees and exchange rates. By carefully managing your transactions, you can effectively convert Bitcoin into cash and transfer it to your bank account with ease.