BitFlyer Review - Everything You Need to Know About The BitFlyer Crypto Exchange
Before the idea of blockchain gained traction, and before the term “cryptocurrency” was on the lips of every investor, Japan was at the forefront of accepting and using blockchain via innovative enterprises. The Japanese have always been technological behemoths, and their products are admired all around the world. However, this open-mindedness is accompanied with a strong respect for discipline and regulations.
BitFlyer arrived in 2014 from the realm of incredible technical advances. It is not the country’s sole cryptocurrency exchange; Japan has a plethora of them. However, BitFlyer is probably the biggest wolf in town when it comes to Japan’s crypto exchange market share.
With this BitFlyer review, we’ll look at what makes BitFlyer the market leader in Japan. We’ll also go into the flaws that prevent it from cracking the coveted list of the top ten cryptocurrency exchanges in the world.
About BitFlyer Exchange
BitFlyer, based in Tokyo, Japan, is one of the most inexpensive exchanges for cryptocurrency traders, but many complain about its heavy regulation. However, if you trade in popular cryptocurrencies like Bitcoin and Ether, this exchange should pique your attention.
Takafumi Komiyama and Yuzo Kano, who had previously worked together at Goldman Sachs, established it. Since its inception, it has attracted financing from some of the market’s biggest players over the course of seven rounds of investment.
BitFlyer is Japan’s most popular cryptocurrency exchange and the market leader in terms of trading volume. It has the largest trading volume in Japan, and its fees are among the lowest in the world. Another significant benefit of this exchange is its low latency. Users benefit from minimal latency since they may trade twenty-four hours a day, seven days a week.
However, you may not hear much about this transaction, particularly if you reside outside of Japan. BitFlyer US is a distinct division of BitFlyer that caters on the American market. Similarly, BitFlyer Europe is a separate website that provides assistance for European nations.
One of the primary reasons for its customers’ confidence, particularly among Japanese users, is that it is one of the few regulated exchange and trading platforms. BitFlyer is a registered virtual currency exchange operator with the registration number 00003. It is supervised by the JFSA (Japan Financial Services Agency). It is also authorised by the Director of Japan’s Kanto Local Force Finance Bureau, giving it the confidence of locals as well as users worldwide.
One of the drawbacks of utilising BitFlyer is its lack of accessibility. At the time of writing, BitFlyer is only accessible in three regions: Japan, the United States, and Europe. Of course, there are other methods for access, such as utilising a VPN or third-party mediators that demand a small fee, but these are not recommended.
What distinguishes this exchange as one of the top 15 in the world? To discover out, read this BitFlyer review.
In This Review
BitFlyer Exchange Features
The exchange accepts a variety of payment options, including wire transfers and credit or debit cards, and it accepts all fiat currencies from the areas in which it operates. Users may purchase cryptocurrencies using JPY, EUR, or USD. Aside from that, there are many additional aspects of this transaction that people like, including:
1. Completely regulated
The exchange is completely regulated in all of its operational areas. We’ve previously seen the regulations for BitFlyer Japan. The US branch is located in Silicon Valley, California, and complies with all state and national regulations through the New York Department of Financial Services.
2. BTC Cold Wallet Storage
This cold storage ensures that your funds are secure from hackers. In addition, the storage is secured with physical locks and is constantly monitored to guarantee security.
3. Reasonably priced fees
BitFlyer’s costs are region-specific and intended to be extremely competitive with other exchangers in that area.
4. Wallet-Integrated Mobile Applications
They offer a mobile app for both Android and iOS users that enables you to trade while on the move.
5. Support for Over-the-Counter Trading
OTC Trading (Over-the-Counter) trading is very advantageous for customers that want to trade in large volumes. This guarantees that their transaction is based on current pricing and that the amount of their trade does not disturb market prices.
Drawbacks of BitFlyer
1. There is no support for crypto-to-crypto exchanges.
As of now, you can only purchase and sell using fiat currency. EUR, JPY, and USD are the fiat currencies that are accepted.
2. ‘Excessive’ Regulation
Because the exchange is regulated, certain functions may be restricted based on your region’s laws. Furthermore, since the exchange works with all regulators and follows all laws, it may disclose personal data with law enforcement authorities if necessary. This is seldom good news for people who value their privacy.
3. Coins and trading pairs are in short supply.
This is one of the most significant drawbacks of trading on BitFlyer. While it claims excellent security and many benefits, it is relatively limited in terms of cryptocurrency options. Unless you trade in one of the big cryptocurrencies such as BTC, ETH, BCH, MONA, LTC, and so on, you won’t find much diversity here. This may be terrible news for consumers seeking to diversify their holdings.
The table below contains a comprehensive list of all currencies available on the platform depending on your location.
BitFlyer charges very low fees and is completely open about the amount and its purpose. Everything is available on their website, and the costs differ based on whether you trade with BitFlyer Japan, BitFlyer US, or BitFlyer Europe.
We’ve highlighted the main costs based on your area – the fees are varied to reflect fee patterns in particular regions, so pricing will be comparable across regions.
A fee of 0.12 percent is paid for volumes ranging from $0 to less than $1 million during the course of 30 days. The costs are 0.07 percent for assets more than $1 million but less than $10 million. Anything above $10 million is taxed at a rate of just 0.02 percent.
Furthermore, there are no fees if you deposit USD into the exchange’s wallet through Fedwire or ACH. However, there is a $20 withdrawal charge for Fedwire, therefore ACH withdrawals are preferred since they are free.
On the exchange, buying and trading bitcoins is completely free. The costs shown above are for purchasing cryptocurrencies in USD.
Like BitFlyer USA, there are no fees for buying and selling cryptocurrencies, often known as crypto-to-crypto transactions. The fees for purchasing cryptocurrencies in EUR are based on a 30-day cumulative volume.
The trade volume categories are the same as above; the rates are 0.20 percent, 0.15 percent, and 0.10 percent, respectively. SEPA allows you to deposit EUR into your BitFlyer wallet for free. However, there is a modest withdrawal charge of 0.30 EUR for amounts less than 250,000 EUR and 0.10 EUR for amounts more than 250,000 EUR.
BitFlyer Japan customers pay according on a 30-day cumulative trading volume, similar to the aforementioned BitFlyer arms. The commission begins at 0.15 percent for amounts less than 100,000 JPY and rises to 0.01 percent for amounts equal to or surpassing 500 million JPY.
When using SBI Sumishin Netbank, users suffer no deposit or withdrawal fees.
BitFlyer was established after the breach of the then-giant bitcoin exchange Mt. Gox. BitFlyer, wary of hack attempts and many security problems, has added some cutting-edge security measures to guarantee its customers don’t have to worry about losing their money. Understanding these security methods is, in fact, one of the most essential aspects of the BitFlyer review.
These characteristics are as follows:
SSL encryption is used to encrypt every communication. This covers both internal (internal, between workers) and external (exchange-to-customers or vice versa) communication.
IP Anycast may be used to defend against Distributed Denial of Service (DDoS) attacks.
Multi-signature for Bitcoin addresses
All deposits and withdrawals are personally verified by people rather than automatically.
It employs its own Bitcoin daemon rather than the public Bitcoin daemon.
System testing for safety and stress are performed on a consistent and timely basis.
Authentication using Two Factors
Aside from these features, the verification procedure for registration to this exchange is manual (done by people rather than bots), and cold-wallet storage for BTC adds to the anti-theft safeguards. Physical locks secure the cold wallets, which are constantly monitored 24 hours a day, seven days a week.