bitFlyer USA Review 2024: Is This Japanese Exchange a Safe Bet for Your Crypto?

Find a Qualified Financial Advisor

Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. Start your search now.

The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

bitFlyer USA is a low-cost cryptocurrency exchange offering a small selection of popular digital currencies like bitcoin and ethereum with select cross-currency pairs. Its spread-based pricing makes it a decent option for crypto beginners. bitFlyer USA prides itself on having a 7-year no-hack streak and has an overall strong security reputation.

Introduction to bitFlyer USA

bitFlyer USA is a Japan-based web and mobile cryptocurrency exchange for trading bitcoin and other popular digital assets without fixed rate fees, including no recurring account fees. The exchange is available in the U.S., U.K., and Japan. New users can open a free bitFlyer account to access secure cold wallet storage, global liquidity, and programmatic trades.

Some of its standout features include its recurring buy feature and access to real-time market data and news. More experienced traders can upgrade to the Lightning Exchange platform for margin trading, spot trading, order books, and active trading charts.

Resources and account perks are limited compared to top competitor platforms like the ones featured on our list of the best cryptocurrency exchanges. bitFlyer USA's crypto selection is also limited. Trading volumes are objectively lower than similar platforms, which may make executing certain trades more difficult. Finally, the spread-based pricing model is volatile and may cost investors more during market downturns.

If you're new to crypto investing and want to trade on a secure and straightforward platform, bitFlyer USA could be a good match. It's a good option for beginners not yet ready for complicated charting features and trading tools.

bitFlyer USA: Overall Rating

How bitFlyer USA Works

bitFlyer USA Trade Account

bitFlyer USA has two account options: Trade and Trade Pro.

Here's what's included in bitFlyer USA Trade and Trade Pro account classes bitFlyer USA/Mac IOS Screenshot

A bitFlyer USA Trade account is the exchange's standard account class that allows investors to buy and sell a limited selection of cryptocurrencies, including bitcoin, ethereum, litecoin, bitcoin cash, and polkadot.

The initial account class for new users is the Standby Class, which doesn't allow you to trade crypto. You can upgrade your account class to Trade and start investing by completing the "Account Information" section on the homepage. With Trade, you can deposit or withdraw up to $50,000 in virtual assets or USD per day, including unlimited single transactions.

Trade Pro is bitFlyer's other account class option that offers unlimited daily deposits and withdrawals. To upgrade to Trade Pro, you must contact bitFlyer support and provide additional personal information, like a second form of ID and proof of residence.

Both bitFlyer USA account classes provide access to Lightning Exchange.

bitFlyer USA Lightning

If you're a more advanced trader, bitFlyer's Lightning Pro exchange could be right for you. Built by a former professional trader, the platform offers faster trade execution, efficient functionality, and highly secure crypto transactions, according to bitFlyer's website.

bitFlyer Lighting offers the following trade pairs to help reduce fees on individual trades:

• BTC/USD
• ETH/USD
• BTC/JPY
• ETH/BTC

A bitFlyer Lightning Exchange account gets you limit order options, custom alerts and themes, access to a professional trading chat room, bitcoin futures, margin trading, and spot trading.

You can start by signing up with your email, completing know-your-customer (KYC) documents, and funding your account.

bitFlyer USA Fees

bitFlyer USA offers a unique spread-based fee structure with no fixed per-trade fees on cryptocurrency trades. Fees are susceptible to sudden market changes. Depending on the market, you may pay less or more than you would with a flat fee. Lighting uses a different pricing model than its parent site.

A regular crypto-trading account with bitFlyer USA is free to open and requires a $1 deposit to start trading. The straightforward trading platform has no transaction, maintenance, or bank deposit fees (including wire deposits). But don't be mistaken; this isn't a fee-free platform.

Trades with Lightning Exchange have fees ranging from 0.03% (for balances above $500 million) to 0.10% (for balances below $50,000). Fees are calculated based on the previous 30-day trading volume.

Fees for regular trades range between 0.1% and 6.0%.

Pros and Cons of bitFlyer USA

bitFlyer USA has limited customer support with no available phone number or email. Users can request help through an inquiry form or use the pre-written FAQ responses on its website.

bitFlyer USA Trustworthiness

bitFlyer USA's BBB profile is under BiFlyer USA Inc. Currently, bitFlyer has a C+ rating from the Better Business Bureau. This rating is because bitFlyer has failed to respond to some customer complaints.

Even if the exchange were to have a proper bitFlyer profile, the BBB's ratings don't guarantee a company's reliability or performance.

In 2023, bitFlyer USA was fined $1.2 million by the NYDFS for failing to meet the state's cybersecurity requirements.

How bitFlyer USA Compares

bitFlyer USA vs. Crypto.com

Crypto.com is a reputable crypto exchange available on the web and mobile. It offers hundreds of cryptocurrencies, digital wallet storage, an NFT trading platform, and advanced trading features and tools.

Compared to bitFlyer USA, Crypto.com is a more comprehensive digital exchange offering investors a huge crypto and stablecoin collection, a DeFi wallet, Visa card perks, and shopping options where you can spend your cryptocurrencies on retail goods and services. If you're looking for a more flexible exchange with better offerings and a wider selection of assets, then Crypto.com is better.

However, bitFlyer USA is better for beginner crypto traders prioritizing account security over flashier features and services. bitFlyer USA has never been hacked and has built a strong reputation as a secure, trustworthy investment platform.

Crypto.com review

bitFlyer USA vs. Coinbase

Coinbase is one of the top exchanges for active investors who want to trade a wide selection of cryptocurrencies. The platforms offer low trading fees, goal-building and portfolio management tools, and human advisor access.

Coinbase is the superior platform to bitFlyer USA. With only a $2 minimum requirement, Coinbase users get access to various account options, ESG portfolio options, 24/7 customer support, institutional service options, and in-depth charting through Coinbase Advanced Trading.

If all the bells and whistles of Coinbase feel overwhelming, bitFlyer may seem more appealing. Coinbase is also currently being investigated by the SEC, which may dissuade investors from trusting the exchange.

Coinbase review

bitFlyer USA FAQs

Is bitFlyer safe?

bitFlyer USA is a safe and secure cryptocurrency exchange that prides itself on never being hacked in 7 years. This is notable as it's common for crypto trading platforms, including many of the most popular and reputable exchanges, to have a history of hacks, phishing attacks, and security breaches. bitFlyer USA is an exception to this industry expectation.

What are the fees on bitFlyer?

bitFlyer USA has a unique spread-based fee structure with no fixed-rate fees. Depending on the market, you may be able to pay less or more than you would with a flat fee. bitFlyer USA's Lighting Exchange uses a different pricing model than its regular platform.

Does bitFlyer offer margin trading or staking? 

You can access margin trading on bitFlyer USA through the platform's advanced exchange, Lighting Exchange. Staking is not available on bitFlyer USA.

Why You Should Trust Us: How We Reviewed bitFlyer USA

We examined bitFlyer USA using Business Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 0 and 5.

Cryptocurrency exchanges generally offer multiple assets, trading tools, fees, and other resources. Some investing platforms are better for more advanced investors or active investors, while others may better suit beginner investors and passive investors. bitFlyer USA was evaluated with a focus on how it performed in each category.

Read the original article on Business Insider

If you enjoyed this story, be sure to follow Business Insider on Microsoft Start.