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bitFlyer Review: Is It The Right Exchange For You?

BitFlyer, a cryptocurrency exchange, is based in Japan with its U.S. headquarters in San Francisco. Although it does not support all digital currencies, its pricing model and features make bitFlyer a great choice for beginners to cryptocurrency. Professionals can also use the high-end active trading platform with a different pricing structure.

bitFlyer is a platform that makes crypto trading easy. It also offers a pricing model without any per-trade fees. Spread-based pricing is used instead. All costs are included in the currency’s price. Let’s take a look at bitFlyer so you can decide whether it is right for you.

BitFlyer Background

bitFlyer was established in Japan in 2014. Although it doesn’t list many currencies, bitFlyer claims to be the largest Bitcoin exchange by volume. It also has a U.S.-based subsidiary called bitFlyer USA.

This platform is ideal for intermediate to new cryptocurrency users who want to avoid high fees per trade. However, it can also lead to savings in certain cases for smaller orders. Lightning is a separate exchange that can be used by qualified users who have a qualifying account. Lightning has trading fees that are higher than the basic platform.

How bitFlyer works

BitFlyer allows you to buy and sell a limited number of major cryptocurrencies. The most prominent being Ethereum and Bitcoin. BitFlyer Lightning is its pro platform, and it offers a standard buy/sell option. If you wish to purchase on a set schedule, you can also create a recurring buying account.

You will need KYC information to create an account at bitFlyer. You will need to scan your ID, take a photo, provide your address and social security number. After bitFlyer has verified your information, your account will be open for funding and you can buy crypto. Your account class will determine your trading limits and features.

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MIN. DEPOSIT

$50

EXCL. OFFER

USER RATING

9.8

4.9/5

78% of retail investor accounts lose money 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.

MIN. DEPOSIT

$100

EXCL. OFFER

USER RATING

9.7

4.8/5

Trading forex or CFDs on margin involves a high degree of risk and may not be suitable for all investors. There is a possibility that you may suffer a loss equal to or greater than your entire investment.

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.6

4.5/5

Who is bitFlyer for?

BitFlyer is ideal for those who are just starting out in crypto and want to remain only in the realms of proven, trusted coins. Sorry, no Dogecoin. It’s also a great choice for serious traders, who may not be interested in altcoins or prefer to purchase them on a different platform.

BitFlyer’s low pricing gives it an advantage over well-known brands such as Coinbase and Gemini, which charge premiums to newcomers. Although bitFlyer’s user-friendly and beginner-friendly buy/sell platform charges a 0.10% fee, it is still a great deal. However, fees can sometimes be as high as 66%. Fees above 2% will be much more expensive than those on any other platform. Before you make a purchase through bitFlyer’s buy/sell system, ensure that your fees are competitive.

For those who want to learn while they make investments, bitFlyer’s educational materials are inferior to those on other top platforms.

Advanced users might appreciate the Binance.US-level lower fees, especially on a platform that is available even to those living in New York or Texas where Binance isn’t currently available. BitFlyer offers many security features, such as multi-sig. This allows users to make Bitcoin wallets more secure and requires multiple keys to withdraw funds from a Bitcoin wallet.

These are all great advantages, but bitFlyer is not the best choice if you need a wide range of coins to trade. For instance, ADA can’t be bought with bitFlyer.

No matter your level of experience, it is important to consider all aspects before investing in this or any other cryptocurrency exchange. You can’t protect yourself from such a volatile asset even if you have the best security and regulatory platform.

How to open a bitFlyer Account

If you have all the information needed to create an account at bitFlyer, it is easy and quick. To create an account, you will only need to provide your email address. After you have confirmed your email address, created a password and agreed to the account terms, you can start creating a “Standby Class” account.

To gain full access to your account, you must go through Know Your Customer (KYC). Upgrade to the “Trade Class” to unlock up to $50,000 per trade and $50,000 per withdrawal per day. Upgrade to “Trade Pro Class” for higher limits. Complete KYC verification involves uploading a photo ID and selfie.

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BitFlyer Features

JPY Crypto Purchases in USA

Although most exchanges allow crypto purchases using fiat currency such as dollars, this is usually limited to the local currency. BitFlyer recently introduced “cross-border trade,” which allows U.S. citizens to purchase and sell Bitcoin using Japanese yen, and thus gain access to the Japanese Bitcoin marketplace.

This feature may appeal to some investors but it is only being offered in a limited way. U.S. customers can’t deposit JPY directly to their bitFlyer accounts. Instead, they must use Bitcoin to purchase yen…which they then can use for more Bitcoin. BitFlyer doesn’t support JPY withdrawals from the U.S., so users may be frustrated.

bitFlyer Lightning Exchange

After you have completed the user verification process at the “Trade” account level, the bitFlyer Lightning exchange has been unlocked. Lightning works independently from the main platform, and has a different pricing structure.

Lightning is a better option for active traders who are experienced. It offers an active trading chart, an open orderbook, trade listings, and a quick entry form. Lightning has sound effects that you might find entertaining (or slightly annoying).

Exchange Markets

BitFlyer doesn’t offer as many cryptocurrencies as other major exchanges. However, the ones that they do offer are very liquid. BitFlyer’s main cryptocurrency is Bitcoin. It can be bought with Japanese Yen or USD for American clients. You can also exchange Bitcoin for other cryptocurrencies offered by bitFlyer, including Ethereum (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), Litecoin(LTC), Monacoin MONA (MONA) and Lisk (LSK). These other cryptos can also be exchanged with the Ethereum cryptocurrency. BitFlyer has a limited number of digital assets, but it offers fiat currency pairs that are uncommon among the most popular cryptocurrency exchanges.

Supported Cryptocurrencies

BitFlyer’s biggest drawback is the limited availability of cryptocurrencies. If you are a resident of the United States, here’s what you could buy or trade on the platform:

  • Bitcoin (BTC).
  • Ethereum (ETH).
  • Ethereum (ETC).
  • Litecoin (LTC).
  • Bitcoin Cash (BCH).
  • Polkadot (DOT)
  • Stellar Lumens (XLM)
  • Tezos (XTZ)
  • Basic Attention Token (BAT).

Lisk (LSK), and MonaCoins (MONA) can be traded if you are a member of the European Union (EU), or European Economic Area. Japanese users can access several other currencies.

bitFlyer Security

BitFlyer is a trusted and reliable cryptocurrency exchange. One of few cryptocurrency exchanges that is legally registered and regulated under the supervision of a respected regulatory body. As well the exchange implements the latest in security technologies such as Multi-sig Bitcoin security, SSL communication, SHA-256 technology, Google two-factor-authentication, and Anti Money Laundering (AML), and Know Your Customer (KYC) policies. These and many other security protocols and features ensure bitFlyer is a fair and safe cryptocurrency exchange.

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Alternatives

Gemini, a crypto-exchange that offers high-quality educational content, has it all. The educational content on Gemini is detailed and explains complex topics in a simple language. It is secure and allows you to earn interest via crypto lending.

Crypto.com is the best place to stake crypto and earn competitive interest rates. You can stake more than 40 cryptocurrencies on this exchange, including stablecoins that follow currencies such as the U.S. Dollar.

BitFlyer Fees

BitFlyer is transparent about their fees and very competitive. It is easy to open an account and deposit cryptocurrency onto it. While wire transfer is free for depositing fiat currencies, there is a fee of 324 JPY to make a quick deposit for the Japanese Yen currency. They range from 0.1% up to 0.15% for trading fees. Based on your 30 day trading volume, the fee percentage will be 0.01% to 0.15%. Clients who trade 500,000,000 JPY per month will receive 0.1% fees.

BitFlyer charges withdrawal fees as any other exchange. Below are the withdrawal fees for various cryptocurrencies.

  • Bitcoin withdrawal fee: 0.0004 BTC
  • The withdrawal fee for Ethereum is 0.005 Ethereum
  • Ethereum Classic withdrawal fees are 0.005 ETC
  • Litecoin withdrawal fees are 0.001 LTC
  • Bitcoin Cash withdrawal fees are 0.0002 BCH
  • Monacoin withdrawals are free
  • Lisk withdrawal fee: 0.1 LSK

Withdrawing Japanese Yen depending on how much you withdraw, fees can vary from 216 JPY up to 756 JPY.

Useability

BitFlyer’s user-friendly design makes it easy for you to start investing in crypto. It takes only a few minutes to register for an account. Once you have completed the registration and verified your identity, you can add funds and purchase any cryptocurrencies that the exchange offers.

Your bitFlyer account will explain everything clearly so that there is little to no learning curve. To deposit money, click on the “Account Funding” tab. This page will display all the funding options available, along with their fees and how long it takes.

Conclusion

BitFlyer is an excellent platform for beginners to cryptocurrency. It’s simple to use, and it doesn’t cost a lot if you trade in smaller amounts. BitFlyer’s mobile app is easy to use for crypto newbies.

Spread-based pricing and a restricted list of cryptos supported could make you look elsewhere for cryptocurrency trading, especially if your preference is to trade altcoins. BitFlyer is a great platform for beginners, but it does not offer advanced trading features.

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