The place to buy and sell virtual currency is the virtual currency exchange. Since the virtual currency boom in 2017, many users in Japan have been repeating virtual currency transactions daily. Although there were few opportunities to be covered in the news in 2019, cryptocurrency trading continues to be active. I wonder if some people are thinking of gradually increasing their assets through virtual currency investment. Here, we will explain the basics of virtual currency exchanges you should know before starting virtual currency trading, and introduce recommended exchanges.
First, I will briefly introduce the mechanism of the virtual currency exchange and the transaction format.
・Place where virtual currency can be bought and sold
In the case of domestic virtual currency exchanges, it is common to buy virtual currency in Japanese yen and you can make a profit by selling virtual currency when the price increases.
Key points when a beginner chooses an exchange
・Choose from an exchange approved by the Financial Services Agency
In order to protect users, the Financial Services Agency issues business licenses only to exchanges that have passed the examination. When using a virtual currency exchange in Japan, be sure to select from an exchange approved by the Financial Services Agency.
Unlicensed crypto exchanges are not just unlicensed. There are also illicit traders aiming for personal information and assets. Avoid opening an account on an unauthorized exchange.
・If you want to keep the fees as low as possible, check the spread and fees
In order to trade on a virtual currency exchange, there may be a charge for deposits and withdrawals or transactions. Also, in the case of the sales office format, there is a price difference between the selling price and the buying price called a spread, which is also a de facto commission.
If you place importance on such fee costs, we recommend that you check the fee list and spread values on the official website before opening an account.
・Confirmation of virtual currency handled
When choosing a virtual currency exchange, be sure to check the type of currency you are handling. Virtual currency exchanges in Japan handle around 5 to 10 types of currencies including Bitcoin and Ethereum.
Some virtual currency exchanges do not handle Altcoin, such as Monacoin, Litecoin, and Nem, which have the third or lower market capitalization ranking. The currencies handled are listed on the top page of each exchange site, so you can check them before opening an account.
・Check security measures and past cases
Not only virtual currency exchanges but terminals connected to the Internet are always exposed to hacking risk. Authorized cryptocurrency exchanges have passed the regulatory standards for security measures, but there are still some exchanges that have been hacked, so it cannot be said to be 100% perfect.
The cryptocurrency exchange that suffered hacking may temporarily suspend account opening. Please confirm the current account opening and security status in the notification etc. of each official website so that you cannot open even though you prepared.
