Earlier, if a South African wanted to buy Ethereum or any other altcoin, he had to go through a lot of steps. The step goes like this:
• Buy Bitcoin from Luno
• Send it to Poloniex or Shapeshift
• Convert it into Ethereum or any other altcoin
That was a process flow with a lot of hassles. There was a lot of transaction charges involved. And moreover, it took a lot of time too.
But now, buying Ethereum is an instant process, as Luno made it possible. This will make buying of other altcoins considerably cheaper too.
Bitcoin Not Needed for Buying Ethereum
With the purchase of Ethereum now available in the local currency, buyers can now save a lot while buying other altcoins.
Amongst a lot of other advantages, Ethereum has a much lower transactional fee and also the confirmation time is also lesser in comparison to Bitcoin.
While transacting with Ethereum, you spend approximately 3 South African Rand (R) as the transaction fee and the in a minute or two, the transaction will go through.
This is much quicker and economical than that of a Bitcoin transaction, which will cost approximately 280 South African Rand and will take near to or more than an hour for the confirmations.
The following are the average transaction fee on the blockchains of Bitcoin and Ethereum, as on 12.11.2017
The strange point to note here is that the transaction fee is fixed. Which means if you sent Bitcoin worth R3 to someone, you need to pay the transaction fee of R280.
The two options to buy Bitcoin from Luno are:
• Instant purchase
• Through exchange
For Ethereum, it can only be bought and sold through the instant purchase option as of now. But Luno has already announced that the exchange support will be coming in the future.