Which cryptocurrency exchanges in Japan do you recommend?

Recently, games that allow users to earn virtual currency (crypto assets) have been released, and virtual currency can now be used for payment in daily life, so many people have come into contact with virtual currency in some form or another.
Opening a virtual currency account is basically free of charge, and there are no annual membership fees.

Here, we will explain how to open an account without making mistakes, even for beginners who do not know much about virtual currency (crypto assets).

What you need to open an account

PAKUTASO

Opening a virtual currency account can be done at places (services) called "exchanges" or "exchanges.
Before opening an account, you need to prepare the necessary items.

To open a virtual currency account, you will need the following three items

• A PC or smartphone to access the exchange
• An email address
• Identification documents

Identification documents are either a driver's license, passport, my number card, residence card, or other document that shows a picture of your face.
If you have moved and forgotten to update your documents, you will not be screened, so be sure to update them before applying.

Criteria for Selecting a Virtual Currency (Cryptocurrency) Exchange

Virtual currency can be bought and sold on exchanges.
Once you have prepared the necessary items for application, choose the exchange (exchange) where you would like to open an account.

Some exchanges do not handle certain currencies, while others offer different fees and services.
The following is a detailed explanation of the criteria for selecting an exchange.

Check the level of security.

In the past, there have been several high-profile cases of exchanges being hacked and hundreds of millions of dollars of virtual currency being stolen.
Although the exchanges were able to refund the lost amount, it is not always possible for an exchange to do so if they cannot afford to do so.

Therefore, let's check the " List of Registered Crypto Asset Exchangers " registered with the Financial Services Agency as a high security level operator.

List of Registered Crypto Asset Exchangers

*As of July 20, 2022

Although the vendors registered here are not 100% secure, we can judge that they offer basic security, so we recommend choosing one of these as much as possible.

Check for low fees!

There are a variety of fees involved in trading virtual currencies.
Fees vary from exchange to exchange, so it is recommended to choose a service that does not cost too much for your investment style.

Please refer to the following comparison of fees at five popular exchanges.

Trading commission: "Maker" refers to the person who places a new order by placing a limit order (pre-order) on the trading board, and "Taker" refers to the person who places the order.
Deposit commission: A fee charged for depositing money into an account.
Withdrawal fee: Fee charged when profits are converted to Japanese yen and deposited into your account.

Check the currencies they handle!

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Different exchanges handle different types of currencies.
Even if the conditions such as commissions are good, it will be meaningless if the exchange does not handle the currency you want to hold, so be sure to check the currencies they handle.

Please see below for the currencies handled by the five most popular exchanges.

Whether leveraged trading is possible

There are two types of virtual currency trading: physical trading and leveraged trading.
Physical trading refers to buying the currency as it is, while leveraged trading allows you to trade more than the amount of money you have on hand by depositing margin at the exchange. For example, if you have 100,000 yen and the leverage is 2x, you can trade 200,000 yen.

Some exchanges allow leveraged trading while others do not, so if you want to trade with leverage, choose an exchange that does.
In Japan, leverage is generally limited to 2x, but there are exchanges overseas that offer leverage of 100x or more.
While leveraged trading offers the potential for large profits, be aware that it can also lead to large losses.

How to open an account at an exchange

Once you have prepared the necessary items for opening an account and have chosen an exchange, proceed with the application process.
The process for opening an account varies slightly from exchange to exchange, but the general procedure is as follows.

0. Access the exchange's website ⇢1. Register your e-mail address ⇢2. Set your password ⇢3. Agree to the terms and conditions ⇢4. Fill in the required information ⇢5. Complete the process ⇢6.

The " Terms and Conditions" section is a long, formal document, but please be sure to read and agree to it as it is very important.
There is basically nothing difficult to fill in, and it will only take about 5 minutes if you follow the form.

Once you have opened an account, you will be able to deposit funds into your account and purchase virtual currency.

Notes for those who are just starting out with virtual currency

Here are some cautions for beginners who are just starting out with virtual currency.

Beware of scams

As with stocks and FX, virtual currency also offers a "surefire way to make money! The number of cases called "scams," such as selling information materials with contents such as "You will surely make money!

Many of them are recommended by friends, people you met on matching apps, or people you met on social networking sites, etc. Do not believe in sweet talk and invest in reliable currencies on reliable exchanges at your own discretion.

If you think it might be a scam, please contact the Financial Services Agency or a consumer protection company. If you think it might be a scam, contact the Financial Services Agency or the Consumer Affairs Agency.

• FSA Website
  https://www.fsa.go.jp/policy/virtual_currency/index.html
• Consumer Affairs Agency Website
  https://www.caa.go.jp/policies/policy/consumer_policy/caution/caution_001/
• Beware of the "guaranteed profit" of crypto assets! Troubles triggered by matching apps and SNS are on the rise｜Government Public Relations Office Online
  https://www.gov-online.go.jp/useful/article/201705/1.html

Make a reasonable investment amount.

Although those who start investing may envision themselves as successful and profitable investors, keep in mind that investments can fail.
You should not use your savings for living expenses, but rather use surplus funds, otherwise you will not be able to make the right decision at the right time.

If you are not making as much profit as you would like, it is recommended that you step away and resume when you have accumulated enough surplus funds to use in virtual currency.

If profits exceed 200,000 yen per year, you need to file an income tax return.

If profits earned from virtual currency exceed ¥200,000 per year (¥330,000 or more for dependent housewives and students), you are required to file an income tax return in March of the following year.
Then, you must pay tax at the tax rate determined by the total amount of profits and salary you earned.

Tax evasion is of course a crime, and even if you fail to file a tax return, you will pay an additional 15% to 20% on top of the amount of tax you originally paid.

Be careful not to miss out on promotions.

Some exchanges offer campaigns such as "Get 3,000 yen for opening an account! Some exchanges offer campaigns such as " Open an account and get 3,000 yen!
However, if you do not read the conditions carefully, such as " those who deposit 0 million yen during the campaign period" or "those who trade more than 0 yen," you may miss out on the prize, so be careful. Be careful.

As a beginner, it is difficult to spend your own money unnecessarily, so use the money you get from the campaign as a tutorial to get a feel for investing.

Recommended virtual currency (cryptocurrency) exchanges for beginners

As mentioned above, there are still more than 20 exchanges registered with the FSA, so some people may have a hard time deciding which one to choose.

Here are three companies that we particularly recommend for beginners and the reasons why.

Coincheck

Coincheck

Coincheck is operated by Coincheck, Inc., a subsidiary of Monex Group, Inc. and is probably the most well-known exchange and exchange (only Bitcoin is traded on the exchange, altcoins are traded on the exchange).
(Only bitcoin can be traded on the exchange, altcoins are traded on the sales office).

The number of currencies handled is 17, and although there is a fee for withdrawals, there is no deposit fee for bank transfers, so basically you can proceed with your transactions without worrying about the cost.
The service is now one of the most secure services in the industry due to a hacking incident in the past, so even beginners can use it with peace of mind.
*Leveraged trading is not supported.

GMO Coin

GMOコイン

GMO Coin has no transaction fees on the sales floor, but on the exchange (physical trading), Maker: -0.01% or -0.03% / Taker: 0.05% or 0.09%.

The "maker" is the person who places a limit order (pre-order) on the trading board to create a new order, and the "taker" is the person who places the order.
Nevertheless, commissions are quite low, and the number of currencies handled is large, and leveraged trading is also supported, making it a good choice for beginners.

Now they are running a campaign where 10 people can win 1,000 yen every day if they purchase virtual currency, so please actively participate in the trading.

bitFlyer

bitFlyer

BitFlyer is the "No.1 Bitcoin exchange for 6 consecutive years.

*According to Bitcoin Japanese Information Site. Annual volume of crypto asset exchanges in Japan from 2016 to 2021 (including settlement for difference / futures trading)

The exchanges charge a commission of 0.01% to 0.15% of the volume of trades, but there is no commission on the exchanges.

Deposit fees are waived for deposits from SBI Sumishin Net Bank, and 330 yen from other banks.
Withdrawal fees are 220 yen (including tax) for deposits less than 30,000 yen and 440 yen (including tax) for deposits of 30,000 yen or more from Sumitomo Mitsui Banking Corporation, and 550 yen (including tax) for deposits less than 30,000 yen and 770 yen (including tax) for deposits of 30,000 yen or more from other banks.

In addition, there is a unique service called "Get Bitcoin" where you can earn Bitcoins by shopping online, making travel reservations, and registering for services.
You can also earn bitcoins through everyday payments, making it convenient for those who are not good at saving extra funds to accumulate bitcoins.

Frequently asked questions on virtual currency for beginners

Q.Is there a fee to open an account?

A.You do not need to pay any fees to open a virtual currency account. You may be charged a fee for deposits and transactions, but there is basically no fee for opening an account or for annual membership.

Q.How long does it take to open an account?

A.It takes about 10 minutes to open an account at the fastest exchanges, and it may take as long as 2 or 3 days.
Also, even if you open an account, you may not be able to trade immediately. You can start trading as early as one hour after completing the application.

Q.There are many exchanges, but what are the differences?

A.The number of currencies handled, the level of security, various fees, the ease of use of the application, the availability of leverage, and promotions. There is not enough difference to make a big mistake since the providers are competing with each other, but it can be expected that companies with a budget will respond faster in terms of the speed to handle altcoins that will be the focus of attention in the future and the speed to add new features.

Q. Is there a screening process?

A. There is an examination to open an account, although it is not as strict as the examination for credit cards or loans. If there are false (false) information in the application, incomplete documents, or if you do not meet age restrictions or other requirements, you may be rejected.
However, this is not limited to virtual currency exchanges. Even regular bank accounts cannot be opened if there are incomplete documents or information, so the screening process is almost the same as for a bank account, or in some cases, easier than for a bank account.

Q.How old do I have to be to start? Can I be a student?

A.You can start an account even if you are a student if you are over 18 years old. On the other hand, minors under the age of 18 are not allowed to start.
Even if you are a student, you are required to file an income tax return if your annual profit exceeds 330,000 yen, so please do not forget to do so.