Luna is a blockchain protocol that combines the benefits of fiat currency stability with blockchain decentralization to provide international transactions. Its native token, LUNA, is pegged to its stablecoin UST to manage inflation and deflation against supply and demand.
Luna has risen steadily since the end of 2021 with some harsh dumps around February falling from $80 to $50; its use cases and integration with the business world make it an exciting prospect for traders.
We will detail everything you need to know about trading Luna, including where to buy it, how to buy it, and our top tips when doing so.
Best Brokers to Buy Luna in 2023
There are a few different ways you can purchase Luna, so we have put together a list for you with the best providers available.
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 8.7 | Visitetoro.com | Don’t invest unless you’re prepared to lose all the money you invest. | |
 | 9.8 | Visitplus500.com | 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | |
 | 9.0 | Visitpepperstone.com | Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | |
 | 8.8 | Visiteightcap.com | ||
 | 8.3 | Visitwebull.com | ||
 | 8.4 | Visitcoinbase.com | ||
 | 7.4 | VisitChangelly.com | ||
 | 8.4 | Visittrading212.com | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. |
Key Takeaways
Luna’s primary use-case is to facilitate transactions that are as stable as in the traditional financial system via the use of stable coins.
You can buy Luna outright or as a CFD using a broker like eToro.
You can buy Luna using an exchange, broker, DEX or P2P marketplace.
Luna is more likely to buy a long term hold.
Newcomers may be better suited to an exchange, and experienced traders to a DEX.
What Is the Difference Between Owning Luna vs a Derivative Product
There are two core ways in which you can purchase a cryptocurrency.
The first is via physical ownership – you buy the asset for a specified price and then store it in your wallet. You own the asset and you hold it.
The second is through other financial products like CFDs, futures and EFTs. CFDs are a contract you agree to when you complete your purchase. They pay you rewards if the asset price rises or you incur losses if it goes down. You do not own or hold the asset with derivatives.
Most derivative products are only for the core group of coins, meaning altcoins are often not supported or applicable. You need to check with the relevant brokerage to see if they offer these products.
Disclaimer: 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Different Ways to Buy Luna
You can buy Luna using any of the following platforms:
Brokerage: Luna is available on a good range of brokerages. Some include: eToro and Libertex.
Exchange: Most exchanges will list Luna because of its increasing popularity; they provide slightly lower fees than most brokerages but can be more complicated. Two of the most popular exchanges with Luna are Binance and Coinbase.
Decentralized Exchange (DEX): These operate in the same way as a traditional exchange, but are unregulated and are not owned/operated by a singular entity. Two of the most popular are PancakeSwap and UniSwap.
P2P: Person to person exchanges offer great rates as they have no middle man; it's best to think of this as swapping rather than trading. There are a few platforms designed just for this (Paxful) and the main exchanges also offer P2P services (Binance).
Where to Buy Luna
Here are two of the best ways you can buy Luna:
Binance
The world's largest cryptocurrency exchange. You can buy over 500 cryptocurrencies on the platform and access several tools to improve your trading experience.
- Some of the most competitive fees of any exchange or broker on the market
- A platform that specializes in crypto trading
- Insurance on some of your purchases
- Centralized
- Can be difficult and costly to transfer funds into external wallets
- Not as trusted or regulated as eToro
eToro
One of the most accessible and well recognised brokerages on the market, eToro is great for beginners and experienced traders.
- Highly respected and regulated
- Easy to store your funds with no need for a wallet
- Highly accessible, offering services to over 100 countries
- High non-trading fees
- Spreads can be more costly than fees found on exchanges
- Customer support is below the industry average
How to Buy Luna Online?
The process of buying a cryptocurrency can be complicated, especially if you are new to the space. Check out this step by step guide for how to buy Luna on Binance:
Step 1: Go to the Official Website
Step 2: Verify Your Identity
Step 3: Deposit Funds
Step 4: Use the Search Bar
Step 5: Click the Buy Button
Here are all of the steps you need to follow to trade Luna. You can do this on any of the platforms mentioned on Different Ways To Buy Luna. It's worth noting that it might be easier to use a broker if you’re new to the space, but exchanges like Binance offer better rates and also have good educational content specifically for crypto trading.
We've used Binance as our example:
Step 1: Use the Search Bar
Step 2: Click the Sell Button
Step 3: Your Wallet Will Show the Cryptocurrency
Crypto Investment Strategy
There are two principal investment strategies with cryptocurrency: long term holds or short term swing trades.
Long Term Holds: Often known in the crypto community as HODLing, it refers to holding your crypto for a long time and waiting for the price to appreciate. This strategy means ignoring the market's volatility and just sitting on your assets until they gain significant value. The wider crypto community idolizes this strategy based on its bullish faith (HODL = hold on for dear life).
Short Term Trades: Often referred to as swing trading, this strategy relates to trying to make gains by trading within the volatility cycles. You buy at a dip and sell at a peak. Short term trades are risky and require an ability to analyze and read market trends.
How to Store Luna?
Once you have purchased Luna, you will need to store it in a wallet. There are two main choices available — and your trading volumes, plus how long you're holding your coins for will influence your decision.
Hot Storage
Hot storage refers to wallets that you need to sign in using an app or website. This method is a better choice if you're trading in the short term.
Coinbase and Binance are two examples of native hot wallets you can use to store Luna.
- Easy-to-use
- Better for short term trading
- Vulnerable to hacking
Cold Storage
Cold storage refers to wallets that require offline verification before you sign in, and it's better for holding larger amounts — or keeping your money for an extended period. Ledger is an example of a wallet that falls into this category.
- Extremely secure
- Good for large amounts
- Not good for short term trading
- Inaccessible without the password
What Are the Different Ways to Pay for Luna?
To buy LUNA on any platform you will need to use one of its deposit methods. Here are some of the most common:
Credit /Debit Cards: Use your card to directly buy cryptocurrency. Can incur some fees but is extremely convenient.
Bank Transfer: Transfer funds directly from a bank account linked with your chosen platform. One of the most expensive ways to deposit funds but very convenient and accessible to beginners.
Crypto Transfer: Connect a wallet to your platform that already has crypto funds. By far the cheapest method but can be difficult for beginners.
PayPal: Connect your account to some supported platforms and top-up your exchange wallet; Paypal now also accepts crypto.
What to Consider When Buying Luna?
Before buying LUNA you should consider some market factors that affect trades and the amount of money they cost. Here are some we suggest researching:
Different Fees: Different platforms have different fee structures which directly affect your returns. Fees to look out for are deposit/withdrawal, maker/taker, commissions, and non-trading fees.
Volatility: Crypto markets often rise and fall large amounts over short periods of time; while this means there are big gains to be made, you must be extremely careful with your money. LUNA has hit heights of $117 and lows of $44 in the last year with its second big rally.
Investment Strategy: Your strategy is your tool to manage the volatility of this market; utilize market trends and analysis to navigate through the peaks, troughs and support levels of an asset.
Regulations and Taxes: The regulation around cryptocurrency is ever changing. We advise you to constantly keep in check with the relevant taxes and regulations for your country. For example, some countries have now banned crypto trading, and others have enforced rules like double-taxation.
Is It Safe to Buy Luna Online?
Here are some of the ways you can make your trade as safe as possible:
Use a regulated broker like Coinbase or Binance
Use two-factor authentication with your accounts
Store holdings in a cold wallet
For hot wallets, complete KYC to ensure access to insurance
How to Sell Luna?
Step 1: Use the search bar
Step 2: Click the sell button
Step 3: Receive your new funds
Is It Worth Buying Luna Right Now?
The future performance of LUNA is difficult to predict. Over the past few years LUNA has established itself as one of the top cryptocurrencies available on today’s market. Most analysts agree it will continue to rise and could go past the $100 mark - but there is a potential for this to crash after this.
It currently sits at around $84 having fallen from $116 in the beginning of April.
We advise that you trade with caution and only invest in LUNA with what you're willing to lose.
Final Thoughts
The best method for buying Luna depends on your experience level. For newcomers to the space we recommend an exchange like Binance for good rates and an advanced interface, or a broker like eToro that is slightly more expensive but much easier to use.
For experienced traders, we recommend a DEX for cheaper fees.
