Review
Updated
Founded in Japan and now available to U.S. residents, bitFlyer is a crypto exchange known for its topnotch security. It lets you buy and sell Bitcoin (BTC), Ethereum (ETH), and some other major cryptos, and it offers beginner-friendly and advanced trading platforms. While it's safe and easy to use, this exchange is light on features and has a small cryptocurrency selection. Read our bitFlyer review to figure out if it fits your needs.
Ratings Methodology
Bottom Line
A commitment to rock-solid security and following government regulations make this an extremely safe place to buy crypto, but it needs to expand its features to compete with other exchanges.
Fees:
bitFlyer: 0.1%-6.0% spread, bitFlyer Lightning: 0.03%-0.10%
Account Minimum:
None
Full bitFlyer review
This cryptocurrency exchange is a good fit for: Investors who put security first and are interested in trading a few of the largest cryptocurrencies. Those who get comfortable using its pro exchange will save thanks to its low fees.
Pros
- Industry leading security
- Easy to use
- Beginner and advanced platforms
- Low fees on pro exchange
Cons
- Expensive spread
- Small cryptocurrency selection
- No staking or lending program
- Light on educational resources
Top perks
Industry leading security
In terms of security, bitFlyer is one of the best in the business. It uses the most up-to-date security measures, including multisig Bitcoin wallets that require multiple signatures to send crypto, SSL encryption, two-factor authentication, and regular stress tests of its platform. The exchange also stores most of its crypto funds offline in cold wallets so they're protected from hackers.
SEE MORE TOP OPTIONS: Best Cryptocurrency Apps and Exchanges
Easy to use
bitFlyer has a user-friendly design that makes it easy to get started with investing in crypto. The account registration process doesn't take long. After you've done that and had your identity verified, you can add funds to your account and buy any of the cryptocurrencies the exchange offers.
Everything is explained clearly in your bitFlyer account, so there's hardly any learning curve. For example, when you want to deposit money, you just click the "Account Funding" tab. This page will show you the different funding options, as well as their respective fees (if any) and how long they take.
Beginner and advanced platforms
There are two exchange options with bitFlyer. Its default buy/sell option is a beginner-friendly platform where you input the amount of cryptocurrency you want to buy or sell. It also provides some information, including recent news stories about that cryptocurrency and a price chart. The downside is that it charges a variable spread, which can be expensive.
bitFlyer Lightning is a pro exchange available to customers with Trade Class or above. Customers may be upgraded to this level automatically after identity verification, but if you aren't, you can also contact bitFlyer to request it. bitFlyer Lightning offers enhanced trading tools, much faster trading speeds, and lower costs. For more experienced investors and anyone who wants to save on fees, this advanced platform is a great option to have available.
Low fees on pro exchange
Trading fees are quite cheap on bitFlyer Lightning. They start at 0.10% for customers who trade under $50,000 per month, and they go even lower for those who trade more.
Even among the top crypto exchanges, not many charge 0.10% or less in fees. If you want to keep trading costs as low as possible, you'll likely find that bitFlyer Lightning is one of your best options.
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What could be improved
Expensive spread on standard platform
With bitFlyer's normal buy/sell option, there are no trading fees for buying and selling digital currencies, but that doesn't tell the whole story. Instead of trading fees, bitFlyer charges a variable spread that typically ranges from 0.1% to 6%, and the spread can exceed that amount during periods of high market volatility.
Even though you're not technically paying a fee on these trades, you're most likely going to pay even more because of the spread. And at the higher end, it can be much more expensive than what you'd pay on other exchanges. If you want to use bitFlyer, the best option is to trade on bitFlyer Lightning to keep costs down.
Small cryptocurrency selection
U.S. customers can only buy and sell a limited selection of cryptocurrencies on bitFlyer. The exchange used to have just five types of cryptocurrency, and while it has gradually added more, it's still missing quite a few market leaders. It also doesn't give you the chance to buy any less-popular cryptocurrencies that could have more growth potential.
No staking or lending program
Several exchanges have introduced programs that let you earn interest on your crypto funds. One of the most popular ways to do this is crypto staking, which is when you pledge your crypto to help verify transactions. Another is crypto lending, where you allow an exchange to lend your crypto in exchange for interest payments.
bitFlyer doesn't have any staking or lending program available in the United States. Considering these programs are becoming a popular way to grow your crypto investments, not having one is a big drawback.
RELATED: Best Crypto Staking Platforms
Light on educational resources
This exchange has some educational content available, most notably a glossary with many important crypto terms. However, it's limited in this regard, and you probably need to look elsewhere if you're trying to learn more about cryptocurrency or keep up with cryptocurrency news. When you compare bitFlyer's content to the modules, videos, and encyclopedias that other exchanges offer, it doesn't quite measure up.
Unavailable in 12 states
bitFlyer isn't available to residents of the following states:
- California
- Colorado
- Indiana
- Kentucky
- Maryland
- Michigan
- Missouri
- Montana
- Nevada
- Utah
- West Virginia
- Wisconsin
Alternatives to consider
If you want a safe exchange with high-quality educational content: Gemini is a crypto exchange that has it all. Its educational content is both detailed and presents advanced topics in understandable language. This exchange is also secure, and it even lets you earn interest through crypto lending.
If you want to stake crypto and earn competitive interest rates: Crypto.com is hard to beat for staking crypto. This exchange lets you stake over 40 cryptocurrencies, including stablecoins designed to follow currencies like the U.S. dollar.
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Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
$0.99-$2.99 orders < $200, 1.49% for orders at least $200 (default), 0% - 0.40% (Gemini ActiveTrader)
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Variable spread
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| Next Steps |
How bitFlyer works
bitFlyer is a cryptocurrency exchange where you can buy and sell a small selection of major cryptocurrencies, highlighted by Bitcoin and Ethereum. It includes a standard buy/sell option and bitFlyer Lightning, its pro platform that's available to customers in Trade Class. This exchange also lets you set up a recurring buy if you want to make purchases on a fixed schedule.
To create an account with bitFlyer, you need to provide KYC (know your customer) information. This includes a scan of your ID, a selfie, your address, and your Social Security number. Once bitFlyer verifies your information, you'll be able to fund your account and buy crypto. Trading limits and features will depend on your account class.
Fees overview
bitFlyer doesn't charge trading fees on standard buy/sell orders, but it does charge a spread. The spread is normally between 0.1% and 6%, although it can exceed this margin during sudden price changes.
On the bitFlyer Lightning platform, which is available to customers in Trade Class or above, trading fees are based on your past 30-day trading volume. Here's the fee schedule for bitFlyer Lightning:
| Past 30-day trading volume | Fee |
|---|---|
| Less than $50,000 | 0.10% |
| $50,000 - less than $500,000 | 0.09% |
| $500,000 - less than $1,000,000 | 0.08% |
| $1,000,000 - less than $5,000,000 | 0.07% |
| $5,000,000 - less than $10,000,000 | 0.06% |
| $10,000,000 - less than $50,000,000 | 0.05% |
| $50,000,000 - less than $500,000,000 | 0.04% |
| $500,000,000 or more | 0.03% |
Data source: bitFlyer
Bank deposits and withdrawals by ACH transfer are free on bitFlyer. Wire deposits through Fedwire are also free, whereas wire withdrawals have a $20 fee.
If you want to withdraw cryptocurrency to an external wallet, there's a small withdrawal fee that depends on the type of cryptocurrency.
Cryptocurrency selection
One of the drawbacks of bitFlyer is a limited cryptocurrency selection. It doesn't offer nearly as many as other top exchanges, and it mainly has well-known cryptos. Here are the highlights of what you can buy and sell on bitFlyer:
There are plenty of popular cryptocurrencies you can't buy on bitFlyer, including Cardano (ADA) and Solana (SOL). You also won't have access to any stablecoins that follow the U.S. dollar, such as USD Coin (USDC).
Is your cryptocurrency safe with bitFlyer?
bitFlyer takes security very seriously, and it's one of the safest crypto exchanges in the world. It's a Platinum Member in the Japan Blockchain Association (JBA), an organization devoted to the development of a sound business environment and user protections with digital currency and blockchain technology.
Here are some of the most notable ways bitFlyer keeps crypto safe:
- It keeps crypto funds offline in cold storage. Since cold storage devices are offline, they provide the highest level of security. According to the home page for the U.S. bitFlyer exchange, it stores 100% of clients' crypto in cold storage. On its bitFlyer LIghtning Pro Exchange, over 80% of Bitcoins are stored in cold wallets.
- It uses multisig Bitcoin addresses. These addresses require two or more separate signatures to send Bitcoin, making it much more difficult for a cybercriminal to steal those crypto funds.
- It supports two-factor authentication (2FA). This requires you to provide your password and a one-time code sent to your mobile device to access your bitFlyer account.
- It uses the highest strength encryption technology. Customer information and internal communications are SSL encrypted, and it has adopted SHA-2 standards for data encryption.
- It runs regular virus checks and hacking prevention exercises. These stress tests are designed to find any potential vulnerabilities so bitFlyer can fix them.
We also like how transparent bitFlyer is about its security features. It includes detailed security information on its website, which is something you don't find at every exchange.
bitFlyer is right for you if:
- You want an exchange that has high security standards and works hard to follow government regulations.
- You plan to keep it simple and only invest in a few of the top cryptocurrencies.
- You're looking for an advanced trading platform with low fees.
Our Cryptocurrency Expert
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Lyle Daly owns Bitcoin, Ethereum, Polkadot, Cardano, Solana, and USD Coin.
Lyle Daly has positions in Bitcoin, Cardano, Ethereum, Polkadot, Solana, and USD Coin. The Motley Fool has positions in and recommends Best Buy, Bitcoin, Cardano, Ethereum, Solana, and Target. The Motley Fool has a disclosure policy.