Are you interested in bitcoin or altcoin and want to trade? Don’t know how to purchase them? Suppose many of you are thinking about this.
There are several crypto asset exchanges in Japan alone, and that alone can be a factor in getting confused about which exchange is best.
In this article, we will explain how to deal with Coincheck, one of the most well-established crypto asset exchanges.
If you are looking for how to start trading crypto assets for the first time, Coincheck is a recommended exchange.
Let’s take a look at how it works.
- 1 What is Coincheck at first? Features of Coincheck
- 1.1 What is Coincheck?
- 1.2 Feature #1: Handling the largest number of currencies in Japan
- 1.3 Feature #2: Easy-to-read and easy-to-use trading screens
- 1.4 Feature #3: No. 1 in Japan in terms of app downloads
- 1.5 Feature #4: Easy and speedy account opening and trading operations
- 1.6 Feature #5: No exchange transaction fees
- 1.7 Feature #6: The operating company is trustworthy
- 1.8 Feature #7: Complete Security Measures
- 2 Difference between Coincheck’s Exchange and Selling Office
- 3 How to use the Coincheck Exchange
- 4 Advantages of using Coincheck
- 5 Disadvantages of using Coincheck
- 6 Summary of the differences between the Coincheck exchange and the sales office
What is Coincheck at first? Features of Coincheck
Coincheck is a Japanese crypto exchange that allows users to buy and sell 15 different crypto assets, mainly Bitcoin. You can also buy bitcoins for as little as 500 JPY, allowing you to purchase crypto assets that fit your budget.
The company is a member of the Japan Blockchain Association (JBA), which aims to develop bitcoin and blockchain technology in Japan by addressing consumption tax issues, regulating the use of virtual currency, and becoming a certified self-regulatory organization.
What is Coincheck?
Coincheck has a long history as a crypto asset exchange, starting its service in August 2014 as an exchange where Bitcoin can be bought. Its industry is securities and commodity futures trading business, and its business is registered as a crypto asset exchange. (Registered as Director of Kanto Local Finance Bureau No. 00014 and as a member of Japan Crypto Asset Trader’s Association)
The company is a member of the Monex Group and is listed on the Tokyo Stock Exchange as a stock company.
The number of outstanding shares is 1,781,467 and the share price is about 550 yen/share. (as of May 10, 2022).
Capitalization is over 100 million yen and net assets are 2.827 billion yen. (As of March 31, 2020)
The company is located on the 12th floor of E. Space Tower, 3-6 Maruyama-cho, Shibuya-ku, Tokyo, and has 168 employees.
Feature #1: Handling the largest number of currencies in Japan
Coincheck features the largest number of cryptocurrencies handled in Japan. There are 15 types of bitcoins and altcoins: ETH, XRP, XEM, LSK, LTC, BCH, MONA, IOST, QTUM, BAT, ENJ, OMG, PLT, and XRM. Basically, transactions are conducted in Japanese yen.
The crypto assets sold are coins that have been carefully selected by Coincheck, so you can trust them. All exchanges that are approved by Japan’s Financial Services Agency have gone through a rigorous screening process. If a coin handled by one of these exchanges were to disappear due to a bad project, Coincheck itself would be held responsible.
Therefore, you can buy coins from Coincheck with peace of mind.
Feature #2: Easy-to-read and easy-to-use trading screens
One of Coincheck’s unique features is its easy-to-read transaction screen. Especially on the smartphone version of the Coincheck app, access to the issue you want to trade and the transaction amount are displayed in large size so you can grasp the price at a glance.
You can choose between two types of charts: line charts and candlesticks. If you are a debut investor from crypto assets, the line chart is fine, and if you are familiar with stock charts, the candlestick is a good choice.
The time settings of the chart can be displayed in hours, days, weeks, months, and years for the line chart. Candlesticks can be displayed in units of 5 minutes, 15 minutes, 1 hour, 4 hours, and 1 day.
You can also choose between two types of asset displays: one in Japanese yen and the other in BTC.
The Coincheck application also comes with a widget function that allows you to view information on your smartphone’s home screen without having to launch the application.
The widget function allows you to keep track of the price of crypto assets at a glance without having to open the application. This is a service that allows you to check prices when you are busy, which is appreciated.
Feature #3: No. 1 in Japan in terms of app downloads
The company’s TV commercials featuring Tetsuro Izukawa and Shota Matsuda have gained an outstanding level of recognition. With the launch of new services such as “Coincheck NFT” and “Coincheck IEO,” the number of app downloads tripled from the previous year, topping 4.76 million downloads in total.
This is the third consecutive year since 2019 that the Coincheck app has been ranked “No. 1 in Japan” in terms of downloads.
Feature #4: Easy and speedy account opening and trading operations
You can start trading with Coincheck in as little as one day with your smartphone. First, please download the application. Once the download is confirmed, open the app and register your account. From the Member Registration tab, register with your email address. You will receive a 6-digit PIN as SMS verification to your registered email address. For details, please click here.
Once authenticated, you will be asked to confirm basic information.
1. enter your name, date of birth, gender, occupation, address, etc.
2. enter your purpose of use, transaction experience, and check if you are not a foreign PEPs (only Japanese nationals are allowed to do business with us)
3. confirm that the basic information is correct and tap “Confirm”
After that, you will be asked to submit identification documents. You can submit a driver’s license, passport, or Personal Information Act card.
If you submit a driver’s license, simply take a picture of the front and back with your smartphone and upload it.
Finally, hold your face and the front surface of your identification documents facing your smartphone and photograph them together.
- Hold the phone so that your fingers do not cover your face.
- Project your face on the screen so that you can see the contents of your identification documents.
- Follow the instructions on the screen and move your face slowly.
The AI determines that the face on the driver’s license is the same as the actual face on the driver’s license, and that you are not a stranger. The thickness of the driver’s license is also checked. This is to confirm that it is not a fake driver’s license.
Once everything is clear and your application is complete, you can start trading with Coincheck.
Feature #5: No exchange transaction fees
Although Coincheck’s commissions may seem high, they are not particularly high compared to other domestic crypto asset exchanges because there are no exchange fees.
(Transaction fees are relatively expensive due to wide spreads.)
In addition, Coincheck’s exchange commissions are free, so there are no extra fees for those who want to buy and sell many times. Depending on how you use it, Coincheck can be a good value exchange.
Feature #6: The operating company is trustworthy
Coincheck operates as a wholly owned subsidiary of Monex Group, Inc. through an acquisition by Monex Group, Inc. Coincheck experienced the XEM outflow in January 2018. It is still fresh in our minds that more than 58 billion yen was leaked, which caused a public outcry.
At that time, the Kanto Local Finance Bureau of the Ministry of Finance issued a business improvement order, and the management of the company itself was put in jeopardy. At that time, the company was acquired by Monex Group, Inc.
Monex Group, Inc. is a financial holding company and a major online securities company. It also operates in Hong Kong, the U.S., and Australia, so its management foundation is solid. Coincheck is also under the umbrella of Monex Group, making it a trustworthy exchange.
Feature #7: Complete Security Measures
The following aspects of the safety and security of Coincheck’s services are listed below.
① Management of deposited money
The money deposited by us investors is never used by Coincheck to fund its operations, and is completely segregated.
② 2-step authentication by SMS and device
To strengthen security authentication, we employ two-step authentication by SMS and an authentication app provided by Google (Google Authenticator / iOS, Android).
Specifically, when logging in or making a transaction, the authentication number is sent to the SMS, and then the 6-digit authentication number is entered by opening the Google Authenticator app.
Anyone can use this service, and it prevents unauthorized access by malicious third parties.
③ SSL encrypted communication
Communication between us investors and Coincheck uses SSL encrypted communication, which cannot be intercepted by third parties.
SSL stands for Secure Socket Layer and is a procedural rule (protocol) for exchanging data in encrypted form.
A website that uses encrypted communication is indicated by a key mark in the URL field, and details of the SSL server certificate can be viewed by clicking on the key mark in the URL field.
Other security enhancements include stronger passwords for logging in, thorough identity verification, and ID selfies.
Difference between Coincheck’s Exchange and Selling Office
Coincheck has two different types of exchanges: a sales office and an exchange. The location of the exchange is very confusing, but once you know where it is, it is easy to trade. Please try to remember the location and trade.
Exchanges are where transactions are made between users
An exchange is simply a place where users of Coincheck trade with other users of Coincheck.
For example, suppose you want to buy some bitcoins. Let’s say 1 BTC is 5 million yen. However, from the buyer’s point of view, you want to buy it as cheaply as possible. You want to buy it for 4.8 million yen because you don’t have enough other money.
On the other hand, there are users who repeatedly buy and sell bitcoin, such as short-term traders, or users who buy bitcoin at a low price and are willing to sell for 4.8 million yen.
The price of both such parties will match and a transaction will be possible on the exchange.
A sales office is where you do business with Coincheck.
The sales office is an exchange where Coincheck sells bitcoin and other altcoins according to the market price. If you think you can buy at this price, you can specify the amount and buy immediately.
The tricky part is that when you buy on the Coincheck sales exchange, the Coincheck side sets the spread selling price wider than the market price.
Purchasing is easy, but be aware that the purchase price will suddenly become negative.
How to use the Coincheck Exchange
Let us explain how to buy and sell on the Coincheck Exchange. Bitcoin is gradually increasing in value, and the spread is also increasing in amount in proportion to the price of bitcoin. We recommend that you buy and sell crypto assets on the exchange anyway so that you do not immediately go into negative territory.
How to purchase on the Coincheck Exchange
Once the deposit has been made to the account designated by Coincheck, check to see if the amount is reflected in the app or on your PC. If the amount deposited is reflected in the “Total Assets” section, you can start trading.
To enter the exchange, click “Account” on the right side of the application. Scroll down to the bottom and click on the “FAQ/Inquiries” section.
When the page changes and you scroll down to the bottom, you will see the “Bitcoin Exchange” section at the bottom, click on it to enter the exchange.
If you are using the PC version, scroll down to the bottom of the home page, and you will see “PRODUCTS” on the left side. Under that, you will see “Bitcoin Exchange” and click on that to enter the exchange.
Enter the rate first from the Cash Transaction section. Now you will see a list of currencies on the right side, so please enter the price while referring to the price there.
If you want to get the crypto currency right away, you can set the price close to what you see in the currency list. If the current price is higher than you think and you want to buy at a lower price, you can set the rate lower than the current value.
However, you should keep in mind that you may not know when a crypto asset will go into a decline phase, so it is best to take into account that it may take some time for the transaction to be executed.
The order quantity is the number of crypto assets you wish to purchase. You cannot place an order for more than the amount of your deposit.
Enter the rate and the number of orders, and the amount will appear in the Estimate section. If you are satisfied with the amount, select “Buy” and click on “Place Order” to complete the order.
After that, if there is a buyer who matches the amount, the transaction will be executed automatically and you will receive the crypto asset.
How to sell on the Coincheck Exchange
The method of selling is almost the same as the method of buying, but of course you need to have the physical coin you are trying to sell in order to make the transaction.
If you own the physical coin and wish to sell it, first enter the rate from the exchange. Enter the amount you wish to sell for.
If you want to sell immediately, the closer you get to the current price, the faster you can sell.
Enter the number of lots you want to sell in the Order Quantity, and you will see the amount you will receive when you sell in the “Estimate” section.
Select “Sell” and click “Place Order” to complete the order.
Advantages of using Coincheck
We tell you about Coincheck’s exchange and sales offices, but what are some of the benefits you can get from using Coincheck?
We will explain below.
Easy to use even for beginners
The Coincheck transaction screen is very simple, with charts and current prices visible with a single scroll, making it easy for even beginners to trade.
I mentioned that the location of the exchange is difficult to find, but from Coincheck’s point of view, having both a sales office and an exchange makes the operation complicated, so it is not easy to operate.
If you are a newcomer to buying coins on an exchange, the price changes every second and you don’t know when you have made your purchase. To eliminate such concerns, the Coincheck application is designed specifically for beginners.
The smartphone app is convenient and easy to use
The smartphone app also offers a variety of Coincheck services, but the basic structure of the app is to buy and sell on the sales floor. Buying and selling can be done easily.
Also, the smartphone app is sufficient for deposits and transfers. The fascination of the smartphone application is that anyone can handle it because of its simple screen and easy-to-read interface.
You can purchase crypto assets directly from Japanese yen.
You can purchase crypto assets by transferring Japanese yen to the account designated by Coincheck as soon as approval is received. On weekdays, transactions can begin in about 10 minutes.
Coincheck also offers a service called Coincheck Tsumitate, which allows you to automatically accumulate a fixed amount of crypto assets each month for stable investment. Using the dollar cost averaging method, you can increase your crypto assets over the long term.
You can accumulate as little as 10,000 yen per month, which will be automatically withdrawn from your designated bank account to purchase crypto assets. Although a transfer fee is charged, this convenient service will always purchase bitcoins every month.
Can save you money on your electricity bill
Coincheck Electricity offers plans that allow you to earn bitcoins on your electricity bill or pay your electricity bill in bitcoins and receive discount offers. You can get up to 7% of your electricity bill in bitcoins every month.
The service is available nationwide (excluding Okinawa and remote islands). The electric power companies are Hokkaido Electric Power, Tohoku Electric Power, Tokyo Electric Power, Chubu Electric Power, Hokuriku Electric Power, Kansai Electric Power, Chugoku Electric Power, Shikoku Electric Power, and Kyushu Electric Power. It is a very affordable service that allows you to accumulate bitcoins just by paying your monthly utility bills.
Disadvantages of using Coincheck
Coincheck is a well-established and major Japanese crypto asset exchange. Although it is an exchange with many good things to offer, what are the disadvantages?
We will explain below.
Coins other than Bitcoin can only be purchased via a sales office
Coins other than Bitcoin, ETH, MONA, and PLT can only be purchased via the exchange. If you are attracted to these other coins and want to increase your trading volume and reduce spread costs, you may consider other exchanges.
Fewer stocks are handled on the exchange than on the sales office
There are only four stocks handled on the Coincheck exchange: BTC, ETH, MONA, and PLT. Other stocks have the disadvantage that they cannot be traded on the sales exchange.
If you want to sell other issues, you have to send money from Coincheck to an exchange that supports that issue and trade on that exchange. Or, the safest choice is to sell on the Coincheck sales office.
Leveraged trading is not available
Leveraged trading of virtual currency is a technique that allows you to trade many times the amount of your margin by depositing margin into your account and using it as collateral. It is different from the actual trading of crypto assets.
Japanese crypto exchanges such as Bit Flyer, GMO Coin, and DMM Bitcoin offer leveraged trading, but Coincheck does not support this service.
If you want to make large profits from leveraged trading, we recommend that you use other exchanges to support this service.
Widespread spreads and unnecessary costs
Spread is a term used in the financial world to describe the difference between interest rates and prices. The assumption is also that spreads fluctuate daily. The Coincheck exchange sets the spread when selling bitcoin and other altcoins.
As of May 13, Bitcoin was selling on the sales floor at 3,754,106 yen.
Because of the spread on that price, the actual selling price is sold at 3,869,600.
(Bitcoin’s selling spread is 6.2%)
The price difference of 115,494 yen is the spread.
With the Coincheck exchange, it only costs 0.05%, which seems very expensive. Hence, just by making a purchase, you are losing over 110,000 yen.
One way to avoid this is to reduce the number of transactions and cut down on unnecessary expenses for the spread price. Or better yet, buy bitcoins on an exchange.
Summary of the differences between the Coincheck exchange and the sales office
Here is a summary of the Coincheck exchange and sales offices.
① Coincheck Exchange has a wide spread, so there will be a divergence in price for both purchases and sales.
② The recommendation is to buy and sell crypto assets on the Coincheck Exchange. However, the location is difficult to find.
③ Only four types of crypto assets can be traded on the Coincheck Exchange. The only way to trade other crypto assets is to buy and sell them on the exchange.
Although there are many transactions of crypto assets, Coincheck may be said to be an exchange specializing in Bitcoin from the services it offers such as Coincheck Electricity and Coincheck Accumulation.
The transactions themselves are really accessible from both apps and PCs, and the screens are simple and easy to read. It is a recommended exchange for crypto asset beginners who want to buy bitcoin first.