​How Luno Keeps Your Bitcoin Safe With Bank Grade Security

Team Luno
Team Luno
Sep 24, 2018 · 4 min read

“Customers have to be confident their money is safe in your hands. Without security you don’t have trust, and without the trust of customers, you don’t have a business.”

We aim to be the best and most secure way for customers to buy and store Bitcoin.


Public key cryptography works like a post box.

Anyone with your post box address can send money to you, but the only way to spend that money again is to have access to that post box’s key.

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There are 2 main ways to store Bitcoin securely which we use in combination:

  • Offline: Storing Bitcoin on a computer not connected to the internet is known as cold storage. This makes the keys secure, but difficult to access
  • Online: Bitcoin wallet keys stored on a server connected to the internet- a hot wallet. This is easy to access but is less secure.

At Luno, we go a step further in keeping your Bitcoin secure.

The majority of our customers’ keys are kept in physical bank vaults inside safety deposit boxes.

  • Only specific individuals have access to the safety deposit boxes, and the same person does not have access to more than one safety deposit box.
  • Private keys in the safety deposit box are encrypted, so it is impossible for a bank employee to steal them.

So for day-to-day operations, a small percentage of Bitcoin is kept in a combined-strategy system, using offline cold storage and an online hot wallet.

This allows us to ensure we always have Bitcoin available during the day.

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Credit: https://www.flickr.com/photos/stuartconner/

In addition to our internal security measures, we have also integrated a co-signing partner as our hot wallet co-signing service.

The only way to spend Bitcoin from our hot wallet is if both Luno and our partner authorise the transaction using multi-sig keys. They also offer additional security measures like daily and lifetime key spend limits.


When signing up for a new Bitcoin service/exchange or installing a wallet, ask the following questions:

  • Do I trust the people building the product or service?
  • Do they understand and implement secure key storage?
  • Do they have a strong technical and engineering background with sufficient resources to stick around for a long time?
  • Do they have security features like two-factor authentication or integrate with security partners?
  • Do they undergo regular security and financial audits?
  • Is the company backed by world-class investors?

Summary

When choosing who to trust with keeping your Bitcoin safe, do your research and pick a reputable company that is backed by top-class investors, has a solid engineering team in place, that makes security paramount, and that implements various methods to keep Bitcoin secure.


Luno Publication

Luno.com

Team Luno

Written by

Team Luno

We write about all things crypto. Our articles convey the views of Luno and the many unique opinions and characters within our team. Tweet us @lunomoney

Luno Publication

Luno.com is a global cryptocurrency company, with over 2 million customers in 40 countries. We make it safe and easy to buy, store and learn about BTC and ETH. We strive to educate, and open the doors for dialogue and discussion on cryptocurrency, fintech, finance, and more.

Team Luno

Written by

Team Luno

We write about all things crypto. Our articles convey the views of Luno and the many unique opinions and characters within our team. Tweet us @lunomoney

Luno Publication

Luno.com is a global cryptocurrency company, with over 2 million customers in 40 countries. We make it safe and easy to buy, store and learn about BTC and ETH. We strive to educate, and open the doors for dialogue and discussion on cryptocurrency, fintech, finance, and more.

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