bitFlyer is among the popular cryptocurrency exchanges. It is well known for its top-notch security features and user-friendly interface. Whether you are a beginner or an advanced trader, the protection of your assets should be a top priority for you.
In this bitFlyer review, we will take you through the unique features, pros, and cons, and also check if the exchange is safe for you to use.
bitFlyer is a cryptocurrency exchange founded in Japan. It does not have a wide range of cryptocurrencies but it supports major ones like Ethereum (Eth), Bitcoin (BTC), and some others. bitFlyer is beginner-friendly because of its pricing model and features.
It is also suitable for advanced traders because of its high-end active trading platform.
bitFlyer now has a U.S subsidiary based in San Francisco known as the bitFlyer US.
Features of bitFlyer
- Exchange options – there are two exchange options available in bitFlyer and they are the buy/sell option and the bitFlyer lightning.
The buy/sell option is majorly for beginners or people who want to make a one-off purchase. Here, you will just select the amount of cryptocurrency you want to buy or sell. There is also a provision of some information about cryptocurrency and price charts. Although it is beginner-friendly, you might find it expensive because of the variable spread charges.
The bitFlyer lightning option is a pro exchange and it is majorly for advanced traders because of the advanced features it has. One way to enroll in the bitFlyer pro exchange is after your verification. After identity verification, users are automatically upgraded. However, if after verification and you are not upgraded, you can contact bitFlyer.
Other unique features of the pro exchange include increased trading speeds, open order books, recent trade listings, quick order trading form, and much lower costs. Lightning uses a different trading platform and performs entirely independently of the main exchange.
- Account Management – you can transact on bitFlyer using either the mobile app or website. They are both very easy to use and navigate and they make the trading experience fun. Once you scroll to the dashboard, you can easily view your balances, update your accounts, and also enter trades.
- Fees overview –
There are different fees attached to various transactions on bitFlyer
For bitFlyer lightning, trading fees are usually determined based on your trading activities for the past thirty days. The table below illustrates what the fees look like.
Previous 30 days trading volume Fees overview
Below $50,000 0.1%
From $50,000 – Below $500,000 0.09%
From $500,000 – Below 1,000,000 0.08%
From $1,000,000 – Below $5,000,000 0.07%
From $5,000,000 – Below $10,000,000 0.06%
From $10,000,000 – Below $50,000,000 0.05%
From $50,000,000 – Below $500,000,000 0.04%
From $500,000,000 and above 0.03%
There are no standard trading fees on bitFlyer. The exchange charges through spread which is between 0.1% and 0.6%. This range is not constant because it changes with the market condition.
For deposits – all deposits done through ACH transfer are free and wire deposits done through Fedwire are also free.
For Withdrawals – withdrawals done through ACH transfer are free, and the ones done through Fedwire attract a $20 withdrawal fee. When you withdraw your cryptocurrency to an external wallet, you will be charged based on the type of cryptocurrency.
- Security Features – These are the security features put in place to secure user’s assets:
- Storage – the exchange stores crypto funds using cold storage. bitFlyer, made it known that they store up to 80% of Bitcoin offline making it inaccessible for hackers.
- Multisig Bitcoin addresses – Before you can send your Bitcoin through these addresses, you will need to provide two or more different signatures. This makes it very hard for cybercriminals to tamper with the crypto funds.
- Two-factor authentication – with the two-factor authentication feature, it will be difficult to hack your account. Ensure that while registering your account, you provide the correct password.
- Encryption technology – bitFlyer uses high-strength encryption technology. For internal communication and customer information, it uses SSL encryption. For data encryption, it uses SHA-2 standards.
- Stress Checks – stress checks include regular virus checks and hacking prevention. With the tests, bitFlyer can easily detect threats and vulnerabilities, which will make them fix them early.
- Account opening – creating an account is fast and can be done in a few easy steps.
When you click to sign up, you will be asked for your email address. You will receive a confirmation email afterward. Set your password and click on “agree to account terms.” At this point, you already have a standby class account. If you wish to get full account access, you will go through the KYC process.
The know your customer process further helps to keep your account safe and verified. For the complete KYC verification, you need to upload a photo ID, bank account statement, social security number, utility bill, and a selfie.
Pros of bitFlyer
- Top security – bitFlyer is very particular about the security of their user’s assets. They have top-notch security features like Multisig bitcoin wallets. In other to send crypto through these wallets, you must provide multiple signatures. It also has SSL encryption, two-factor authentication, cold storage, a regular stress test of the exchange, and up-to-date security measures.
- User-friendly platform – bitFlyer has an easy-to-use platform. Everything is well detailed in your bitFlyer account. Also, the account registration process is easy and doesn’t take much time.
- Low fees on bitFlyer lightning – Users who are on the pro exchange enjoy low fees. For people who trade up to $50,000 per month, they can be charged as low as 0.1%. This is not common among some big crypto exchanges because only a handful can charge that low.
- Top exchange – bitFlyer is considered a top exchange in Japan and it has millions of users globally.
Cons of bitFlyer
- A limited selection of Cryptocurrencies – the exchange has only a few big cryptocurrencies and is completely lacking in smaller cryptocurrencies. This is a big limitation to its users. You can only buy, sell and trade with a few of the coins available. There are also just a few cross-cryptocurrency pairs available.
- High spread charges – bitFlyer won’t charge a trading fee when you buy or sell digital currencies, but they charge a variable spread. This spread can be quite expensive as it ranges from 0.1% to 6%. It can also be higher when there is high market volatility. This is to say that the transactions are not exactly free as they portray. If you find the 0.1%-0.6% spread charge expensively, then it is best if you only trade with the bitFlyer lightning pro exchange.
- Lack of passive income earning programs – Most of the big exchanges have programs that enable the users to earn passive income with their assets. The most popular of these programs include staking and lending programs. There is no option of staking and lending programs in bitFlyer exchange and it is a big limitation on their users.
Cryptocurrencies available on bitFlyer
The exchange has a limited number of Cryptocurrencies, especially those in the United States. Here are a few of the available ones:
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin (BTC)
- Ethereum Classic (ETC)
- Bitcoin Cash (BCH)
- Polkadot (DOT)
- Stellar Lumens (XLM)
- Tezos (XTZ)
- Basic Attention Token (BAT)
These are limited options. There are quite a good number of cryptocurrencies you can’t trade on bitFlyer. You won’t also be able to trade any stable coin. If you wish to trade more then you might as well consider other exchanges that have more options.
Is your cryptocurrency safe with bitFlyer?
bitFlyer has a good history with security and they are still continuously adding other security measures. Since the time of its launching, they have been no cases of hacking or breaching.
With a combination of technologies, users’ accounts and assets are well secure. Another spec to the exchange is that they make all the security features transparent and you can rarely find this with any other exchange.
bitFlyer is also a platinum member of the Japan Blockchain Association (JBA). JBA sees the development of a good business environment and user protection.
With the two-factor authentication, Multisig bitcoin addresses, high strength encryption technology, and cold storage options, your account can be said to be safe with
If you are looking for an exchange that has top security standards, follows government regulations, and also has an advanced trading platform, you should consider trading with bitFlyer.
This bitFlyer review shows that everything about bitFlyer makes it worth giving a try. The major limitation to the exchange is that it has just a few cryptocurrencies, so if you need to trade some less popular cryptocurrencies, you should consider other exchanges.