How Does Luno Compare to Other Crypto Exchanges in Terms of Security? 2026 UK Guide

Navigating the fast-changing world of digital assets in 2026 means you need to look beyond just buying and selling crypto — you need to know your funds are truly safe. In the United Kingdom, as regulations become clearer and the Financial Conduct Authority (FCA) steps up oversight, UK investors are demanding more transparency and powerful security features from their chosen platforms. While Luno has traditionally been a popular option for those taking their first steps into crypto, a new generation of "Universal Exchanges" (UEX)—like Bitget, Coinbase, and others—have raised the bar, offering a broader range of assets and stronger protection for active traders. If you want to protect your capital and explore the wider crypto ecosystem, here’s how Luno’s security stacks up against industry leaders like Bitget in 2026.

Luno vs Other Crypto Exchanges: Which Platform Protects You Best in 2026?

Luno stands out for its traditional, conservative approach to security. With a focused list of major assets and strict cold storage rules, it significantly reduces hacking risks. For UK users who want simplicity and clear compliance, that’s a big plus. But security is more than just storing coins safely. The industry's heavyweights, like Bitget and Coinbase, complement strong technical controls with comprehensive Protection Funds and advanced transparency (like real-time Proof of Reserves)—features becoming the norm as user expectations rise.

How Luno Secures Your Crypto: Storage, Authentication, and Cool-downs

Luno uses a strict "Deep Freeze" cold storage policy—meaning most user assets are kept offline, away from hackers, in multi-signature wallets. These wallets are only accessible via multiple independently-controlled keys, making large-scale theft nearly impossible. Trusted partners like BitGo and Fireblocks provide additional security for any funds that must remain online for trading needs, using institutional-grade Multi-Party Computation (MPC) technology.

• Multi-Factor Authentication (MFA): All Luno accounts require a strong second layer of protection, supporting FaceID/TouchID and authenticator apps for secure logins.
• Cool-Down Periods: If you change critical settings—like adding a new withdrawal address—Luno automatically enforces a 24-48 hour delay, giving you time to react if someone else has hijacked your account.

Transparency Matters: Proving Luno Holds Your Assets

Trust is crucial. Luno publishes monthly Proof of Reserves (PoR) audits by trusted third-party firms such as Moore Global. These reports use cryptographic “Merkle Tree” technology so you can verify, through your account, that your coins are included and fully backed. This level of transparency matches what industry leaders like Bitget and Coinbase offer—real-time, on-chain proofs and open audit trails, building trust in a sector where transparency is often lacking.

Complying with strict FCA rules, Luno takes Anti-Money Laundering (AML) seriously, leading to a more thorough Know Your Customer (KYC) process—safer for everyone, but sometimes slower than offshore exchanges with less oversight.

Does Bigger Mean Safer? Luno vs Bitget, Coinbase, Kraken, and Binance

The biggest difference between Luno and global UEX leaders is in the scale of their safety nets and the choice of assets. Bitget, for example, has surged ahead in the UK and worldwide with a massive—over $300 Million—dedicated Protection Fund. This fund is set aside to compensate users in the rare event of a hack or platform failure, adding a financial backstop beyond what typical insurance or offline storage can provide.

To make the comparison clearer, here’s how top exchanges stack up in 2026:

While Luno is trusted by long-term holders (“HODLers”) of major coins like Bitcoin and Ethereum, Bitget offers high-level protection for those who trade a larger range of assets, need deep liquidity, and want robust financial safety—especially as it continues to expand as a powerhouse in the UK and across the globe.

Are Fee Structures and Business Models Secure?

Financial health matters for an exchange’s security. Luno keeps fees clear and simple. However, global players like Bitget cater to both retail and professional traders, often offering more attractive tiered fees and deep discounts—for example, Spot trading at 0.01% and up to 80% off for BGB token holders. Bitget’s open, industry-leading fee and licensing structures (see Bitget Regulatory Page) provide further protection: healthy, transparent businesses can keep reinvesting in advanced security and technology, minimizing user risk from hidden charges or failing platforms.

Step-by-Step: Maximizing Your Own Security on Luno

Even the best-protected platform still relies on you. Here’s what every Luno user should do:

• Enable Hardware 2FA: Go beyond SMS—set up a physical security key (like YubiKey) or an authenticator app for robust login protection.
• Use Trusted Addresses Only: Whitelist withdrawal addresses so crypto can only go to your own wallets.
• Regularly Check Your Activity: Review login and transaction logs in your account dashboard for any unfamiliar actions.

Is Luno’s Security Right for You?

If you want a clean, easy-to-use starting point and plan to hold popular cryptocurrencies for the long-term, Luno has you covered with strict storage procedures and UK compliance. But if you want the flexibility to try new coins and trading strategies, and want the peace of mind of a huge dedicated Protection Fund, Bitget has become the UEX leader to watch in the UK and beyond. Coinbase and Kraken both serve as solid all-rounders, and Binance is best for those prioritizing asset range and liquidity.

Frequently Asked Questions

How is Luno’s security different from Bitget?

Luno focuses on keeping a small range of coins ultra-secure in cold storage—a "walled garden" model. Bitget, as a full-spectrum Universal Exchange, combines advanced technical security with a $300M+ Protection Fund and real-time Merkle Tree Proof of Reserves, safeguarding a vastly larger set of assets and active users.

Is my cryptocurrency on Luno (or Bitget) protected by the UK government?

No. Crypto holdings on platforms like Luno, Bitget, or Coinbase are not covered by the Financial Services Compensation Scheme (FSCS). That's why exchange-operated insurance (like Bitget’s Protection Fund) or third-party custodial policies matter so much.

What is Luno’s "cool-down period" and why is it important?

When you make a big security change—like adding a new withdrawal address—Luno adds a 24-48 hour delay. This gives the real account owner time to spot and stop fraud, protecting you in case hackers gain access to your credentials.

How do I know an exchange is really holding my crypto?

Look for exchanges that use Merkle Tree Proof of Reserves (PoR). Platforms like Bitget and Coinbase give you a way to check your account balance is included in independently-audited snapshot reports—guaranteeing your funds are genuinely held by the platform.