Introduction to bitFlyer
bitFlyer is one of Japan’s biggest exchanges for the BTC/JPY pair and considered to be a highly reputable operation. The exchange is open to many parts of the world, including the U.S., and sees on average over $60 million in trading volume per day. Even though it doesn’t feature a whole lot of coins of trading pairs, the ones they do have are highly liquid, making bitFlyer a great exchange for those looking for some value or to do some automated trading.
bitFlyer makes a special effort to remain legally compliant within the jurisdictions where it operates. The exchange goes out of their way to make sure their customers know they are in compliance with all applicable laws. Part of this is performing a rigorous KYC process on new customers.
Why use bitFlyer?
bitFlyer is great for use by novice and pro traders alike. This is because they possess two of the most important qualities of any exchange: trading volume and a good reputation. For those who want to quickly get in and out of BTC or ETH trades, bitFlyer provides a competent and fair way to do so. Compared to their competitors, trading fees are on the low side, and withdrawals are processed in a timely fashion.
Before Getting Started
bitFlyer primarily serves customers in Japan but is open to traders almost all around the world, including many US states. Note that they are heavy on KYC so be prepared to give them a lot of information about yourself, including some not normally asked by other exchanges (such as phone number and social security number).
How to get verified on bitFlyer
All customers must perform at least some level of verification in order to trade at bitFlyer. Initially, they will request the following:
- Full name
- Date of birth
- Cell phone number
- Proof of identity (driver’s license, state ID, or passport)
- Social security number
Additionally, you will need to take a selfie holding your ID before you will be able to make a withdrawal to a bank account.
You must verify your mobile phone number with bitFlyer before proceeding. The ID verification process is usually pretty fast and handled within a matter of hours.
How to make a deposit
To make a deposit at bitFlyer, click the “Account Funding” option in the left panel. Here you will see of all the exchange’s different deposit options, which include:
- Bank deposit
- Wire deposit
There is a weekly deposit maximum of $5,000 for lower-level accounts. bitFlyer does not charge fees for deposits but notes that some banks may charge a fee when making a wire transfer to bitFlyer. Currencies accepted at bitFlyer include JPY, USD, and EUR.
How to trade on bitFlyer
After your deposit has arrived, you can get started trading on bitFlyer by clicking on the “Buy/Sell” option in the left menu column. After finding the coin pair you wish to trade, simply enter the quantity of coins you wish to buy or sell along with the price you wish to buy or sell it at. If you are buying coins and enter a price lower than the highest ask (sell) price, your order will enter the orderbook as a limit order. The same thing will happen if you place a sell order at a price higher than the highest bid (buy) price.
For those who plan on connecting a bot via bitFlyer’s API, or for those who want to place more sophisticated orders, bitFlyer Lightning offers an advanced trading screen that provides a great deal more information and options than the normal trading screen. Among the orders that can be made using Lightning are Market, Limit, Stop, Stop-Limit, and Trailing. Additionally, order types can be placed using sophisticated Once Cancels Other (OCO) logic, and can be made Good Till Canceled (GTC), Immediate or Cancel (IOC), and Fill or Kill (FOK).
Trading and withdrawal fees
Fees at bitFlyer are a flat 0.1% for both Maker and Taker orders when using the regular trading (buy and sell) screen. For those using bitFlyer Lightning, there is a discount on trades if you make at least $50,000 worth of trades per month. This discount is tiered according to trading volume, from 0.09% all the way down to 0.03%.
The withdrawal fee for Bitcoin on bitFlyer is 0.0004 BTC and 0.005 ETH for Ethereum. These are relatively cheap compared to many other exchanges bitFlyer’s size, and other coin withdrawal fees are even cheaper.
Overview of supported coins
The list of coins traded on bitFlyer is short but the trade pairs they do have see consistently good volume. This makes bitFlyer a great option for those who are looking to get a good deal when making a purchase or a sale. Cryptocurrencies listed include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Ethereum Classic (ETC)
Most of the exchanges $60+ million in volume is found only in the Bitcoin and Ethereum pairs, but the other coins are available for trading as well.
bitFlyer mobile app
bitFlyer is one of the few exchanges that has a dependable trading app for both iOS and Android devices. The app allows customers to make trades, deposits and withdrawals on the go, all with the push of a few buttons. It also makes it easy to view the value of your portfolio when you are away from your computer in a secure fashion.
bitFlyer takes the security of their funds and those of their customers very seriously. They use a combination of hot and cold wallets to make sure that most funds remain offline and unable to be hacked. bitFlyer is licensed to operate in many countries as well as 47 states, and any loss of customer funds incurred will be insured for the user, so they don’t have to worry about losing funds.
bitFlyer has a 2-FA system which is strongly recommended for all users — especially those who plan on leaving coins at the exchange. The exchange provides the opportunity for users to configure when they want 2-FA requests to appear and also keeps a log of account activity which makes it easy to spot malicious logins or attempts.
Benefits of bitFlyer
- Secure, honest exchange with big volume on major coins.
- Fast order processing and responsive trading screen.
- Available to traders in several countries.
- Makes buying crypto simple and safe.
Limitations of bitFlyer
- Requires several layers of KYC.
- Limited coin and trading pair selection.
- Limited number of payment processor options.
- No derivatives, futures trading or other trading vehicles.
Wrapping it up
In all, BitFlyer is a great exchange for those who value security and want to get some good prices when placing a buy or sell order. Their cryptocurrency selection may be a bit limited, and they don’t offer some of the fancier trading options seen at some of the bigger exchanges, but they provide a quality trading experience with modest fees and are a great option so long as you don’t mind performing a little more KYC than normal.