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Exchange Reviews

Coincheck Review: The Simplest Way To Exchange Your Cryptocurrency In 2024

October 21, 2023 - Around 10 mins mins to read
In this Coincheck review, we cover the following aspects of the Coincheck platform: its safety, the cryptocurrencies it supports, the fees it imposes, the quality of the trading experience it provides (both on desktop and mobile), and its customer service. In this lesson, you will learn how to create a Coincheck account, how to make a trade, how to deposit assets, and you will also receive an overview of the trading platform.

Introduction of Coincheck

Coincheck Review: The Simplest Way To Exchange Your Cryptocurrency

The amount of Bitcoin transactions on Coincheck in 2017 was the highest of any exchange in Japan, making it one of the major cryptocurrency exchanges in Asia. The Android and iOS apps offered by Coincheck are used by a greater number of individuals than those offered by any other Asian cryptocurrency exchange. Coincheck was established in 2012 by Keisuke Wada and Yusuke Otsuka, whereas the cryptocurrency exchange itself didn’t start doing business until 2014. Wada is currently acting as CEO, while Otsuka is currently serving as COO, and both founders continue to be active directors. Coincheck is nominally a Japanese exchange; yet, it may be accessed anywhere around the world.

The Japan Blockchain Association has verified the legitimacy of the exchange and issued it with a license to trade in digital currencies there. In addition to that, it is a member of the General FinTech Association as well as the Japan Virtual Currency Business Operator Association. It has been reported that the capital reserves amount to 92 million.

Coincheck is a cryptocurrency exchange that also provides merchants with a payment mechanism that enables them to accept cryptocurrency payments and have those funds automatically converted into the currency of their choice. Another option is a ‘loan’ arrangement, which functions very similarly to a savings account at a traditional bank. Coincheck users have the opportunity to earn up to 5% interest on their deposits by lending the platform bitcoin funds. The company even offers electricity provision with bills that can be paid in Bitcoin, which is very off-topic from its principal services because it is offered in partnership with some of the most important power providers in Japan. Coincheck also offers a prepaid Visa debit card, which may be loaded with bitcoin and then converted into fiat currency automatically for use in transactions.

Coincheck functions

As one might expect from a Japanese company that is driven mostly by technological innovation, Coincheck’s technological prowess is one of its key advantages. New users and those who have little to no prior experience with financial exchanges will appreciate the exchange’s well-made and user-friendly interface. The exchange itself is quite nicely built. Coincheck also provides hosting services for bitcoin wallets, in addition to mobile apps for Android and iOS that function as digital wallets. The iPhone operating system can also be used to fund exchange accounts.

The exchange offered by Coincheck allows users to trade Bitcoin in addition to a number of other cryptocurrencies. On the exchange, you’ll also be able to trade cryptocurrencies such as Ethereum, Ethereum Classic, Lisk, Ripple, Zcash, Dash, Litecoin, and Monero. Additionally, you can exchange Dash. It does, however, have a tendency to focus on the larger cryptocurrencies, which means that users who are trying to diversify their holdings into more obscure options should not use this exchange.

Coincheck Review: The Simplest Way To Exchange Your Cryptocurrency

Fees for deposits and withdrawals

Coincheck account holders can fund their accounts using a bank transfer or by using a debit or credit card to add fiat currency. Deposits in Yen are not charged, while deposits in USD are charged a flat fee of $25 or 2500 from bank accounts outside of Japan. If account holders want to make cross-cryptocurrency purchases, they can transfer supported cryptocurrency holdings into their account. As the base currency, all prices are denominated in yen.

Withdrawals can be made to a bank account or credit card in addition to cryptocurrency wallets that hold fiat dollars or cryptocurrency. The fee for withdrawing money in yen is 400, whereas the fee for withdrawing money in US dollars is 2500. Since Coincheck does not now charge any fees for trading transactions, it is currently free to buy and sell cryptocurrencies on the platform. However, this is likely to change in the not too distant future.

Security and privacy

Coincheck, like most cryptocurrency exchanges that accept fiat money deposits and withdrawals, provides two categories of accounts with two levels of personal identity verification criteria. Depositing or withdrawing up to $500 each day takes only an email address and a verified telephone number for SMS verification. Account holders who want to use larger deposit or withdrawal limits must produce personal identification documents such as a passport or other type of government-issued ID, as well as proof of residency.

Coincheck wallets provide 2-factor authentication security and ‘cold storage’. This means that someone who hacked the exchange will not be able to access them online. Wallets only become ‘hot’ when a transaction is completed.

Lending in Cryptocurrency

Coincheck provides a cryptocurrency lending platform that pays interest to users who lend their cryptocurrency to borrowers. Coincheck offers up to 5.0% APY on these crypto loans, but the interest is not due until the loan term is up. Loan periods range from 14 days to 365 days, with interest rates varying according to term length.

Users can deposit any of the 17 cryptos supported for lending, select a term duration, and apply to become a lender. When an application is granted, the coins are locked into the loan term and are not available for withdrawal until the loan term expires or Coincheck chooses to re-deposit cryptocurrency into a user’s account. While lending with Coincheck can offer a modest interest rate capped at 5% APY, there are far better venues to earn money on crypto with greater rates and a wider selection of crypto.

Coincheck Review: The Simplest Way To Exchange Your Cryptocurrency

Purchases that are made on a regular basis (Reserving)

Coincheck allows investors to purchase cryptocurrency using Dollar Cost Averaging (DCA). The “Reserving” technique allows users to utilize fiat currencies to purchase crypto in smaller amounts over time rather than attempting to “time” the market. This method helps to protect against price fluctuations.

Coincheck users only need to link their bank account, choose a preset quantity of cryptocurrency to buy, and establish a timetable (monthly or daily) to automate their crypto purchases. There is a minimum monthly purchase requirement of 10,000 JPY and a monthly maximum available of 1,000,000 JPY. At the very least, daily purchases will be made in 1,000 JPY increments. These recurring plans also have no deposit fees, making them a low-cost method to buy cryptocurrency on a monthly basis.

Verification of Coincheck

Know Your Customer (KYC) verification must be completed for each and all newly created Coincheck accounts. Accounts that have not completed the Know Your Customer process cannot make deposits, trades, or withdraw funds until the process is finished. Verification is absolutely necessary in order to maintain compliance with the regulatory authorities and prevent money laundering on the site.

Users are required to provide their full names, addresses, and social security numbers on the “Identity” tab of their Coincheck accounts in order to verify that they are the rightful owners of those accounts. In addition to submitting a photo of oneself holding a government-issued ID, users are required to supply a photo of the ID itself. A second form of identification is going to be necessary as well.

In the end, users are required to produce evidence of their residency. This can take the form of a copy of a recent utility bill bearing a residential address and a date stamp that is less than six months old. Coincheck will receive all of the documents, do a check to ensure their accuracy, and then manually authorize them for use.

Trading in the open market

Coincheck offers an over-the-counter (OTC) trade desk for customers who wish to make larger purchases of select cryptocurrencies. Users have the ability to make large-scale purchases of any of the 17 cryptocurrencies that Coincheck now supports. This can result in lower spread fees and reduced slippage, both of which can lead to monetary savings for customers making larger trades.

Coincheck Review: The Simplest Way To Exchange Your Cryptocurrency

Fees for Coinchecks

Coincheck charges no trading fees for purchasing, trading, or selling cryptocurrency. Instead, a spread of 0.1% to 5% applies to deals where the spread is the difference between the asset’s purchasing and selling price. While this can be as low as 0.1% in regular markets, it can also be as high as 5% in volatile markets or when trading volume is low.

During initial testing, there was a 5% disparity between the prices (4,058,800 JPY purchase vs. 3,814,200 sell) when comparing the Coincheck price of Bitcoin on the “Marketplace (Buy)” form vs. the price of Bitcoin on the “Marketplace (Sell)” form, which is a very high charge. This price may be lower in less volatile markets, but it is critical to understand how much exchanges charge for trades.

Pros and Cons

Pros

  • A well-designed exchange that is simple to use.
  • Credit cards are accepted.
  • Wallet apps are available.
  • JPY and USD are accepted.
  • Trading without fees for a limited time.
  • Excellent reputation.
  • A wide variety of major cryptocurrencies are supported.

Cons

  • There is no telephone or chat-based customer service.
  • The verification process for overseas account holders is difficult.

Is it safe to use Coincheck?

The Japanese government and organizations associated with cryptocurrencies, such as the Financial Services Agency, Japan Virtual Currency Business Operator Association, and Japan Blockchain Association, regulate and audit Coincheck to a high degree. Coincheck is a cryptocurrency exchange.

Coincheck has a security structure and methods in place that are similar to those found in banks in order to secure the monies and assets of its customers. Offline cold storage vaults for crypto are included as part of the security features, in addition to end-to-end encryption and daily backups. The reserve reserves that Coincheck maintains are used to safeguard user funds, which are never loaned out or used for any other purpose.

Although Coincheck is a very secure website at the moment, it was compromised in 2018 and more than $500 million worth of NEM crypto tokens belonging to consumers were stolen. This was caused by the fact that NEM coins were kept in a hot wallet that was open to the public. This is something that they do not do any longer for any cryptocurrency on the platform.

Conclusion – Coincheck Review

Coincheck is a reputable cryptocurrency exchange that also offers some helpful additional services, such as Bitcoin-funded prepaid Visa cards. Coincheck is a leader in the industry. The technology that runs the exchange is not only among the most advanced that can be found elsewhere in the globe, but it is also incredibly user-friendly. It’s possible that some people won’t bother with the international account verification process because it’s a little bit complex. In addition to the US Dollar and the Japanese Yen, increasing support for other fiat currencies, such as the Euro, would boost the country’s appeal on the world stage.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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