Coincheck Review

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Bottom line:

Coincheck offers a small selection of crypto but is the top Bitcoin exchange in Japan with deep liquidity. It also offers an intuitive mobile app, an advanced trading terminal, and crypto lending to earn interest on crypto. The downside of Coincheck is its limited list of supported crypto, high spread fees, and lack of supported fiat currencies other than JPY. You also cannot purchase crypto with a debit or credit card. Moreover, Coincheck does not offer margin or derivatives which is a disadvantage for those looking for a good exchange to trade crypto with margin.

Coincheck Overview

Coincheck is a top crypto exchange that offers Bitcoin and other popular cryptos with zero trading fees. Founded in 2014 and headquartered in Japan, Coincheck allows users to buy, trade, and sell 17 cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP). In addition, Coincheck also offers OTC trading for larger purchases, as well as a new NFT marketplace for buying, selling, and minting NFTs.

Coincheck is designed for both beginners and active traders, with a simple order form for basic trading, and TradingView charts for more advanced trading strategies. Coincheck only accepts Japanese Yen (JPY) fiat currency, but crypto can be deposited to the platform for trading as well. It is available in most countries around the world but is not available to residents of the United States due to regulatory reasons.

Coincheck offers several notable features, including:

• Japan’s largest Bitcoin exchange (by trading volume).
• No trading fees (only spreads apply).
• Adheres to strict regulatory requirements set out by Japan's Financial Services Agency (FSA) and audited by the Japan Blockchain Association.
• A low minimum purchase amount of 500 JPY.
• A crypto lending service where users can earn a maximum of 5% Annual Percentage Yield (APY).
• Cold wallet storage of digital assets.
• An NFT marketplace.
• An OTC trading desk for larger crypto trades.

Exchange Name	Coincheck
Fiat Currency	JPY
Cryptocurrency	17
Payment Type	Cryptocurrency, bank transfer (JPY only)
Trading Fee	0.1% – 5.0% (depending on market)
Deposit Fee	None for crypto and JPY deposits via bank transfer Free crypto deposits. Fees may apply to different deposit methods
Withdrawal Fee	Varies by withdrawal method and currency
Mobile App	Yes

Coincheck Compared

These exchanges offer a viable alternative to Coincheck which offer similar features and ease of use. These platforms are available worldwide and are examples of top-rated exchanges based on Hedge With Crypto's reviews.

EXCHANGE	CRYPTO ASSETS	TRADING FEES	RATING	PROMOTION	WEBSITE	REVIEW
Binance	385	0.1% (spot) and 0.02% / 0.04% (Futures)	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.8 / 5	Up to $100 welcome bonus	Visit Binance	Binance Review
ByBit	331 (608 trading pairs)	0% (spot), 0.06% / 0.01% (futures)	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.8 / 5	0% trading fees for 30 days (spot only)	Visit ByBit	ByBit Review
Kraken	222	0.16% (maker) and 0.26% (taker)	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.8 / 5	None available at this time	Visit Kraken	Kraken Review

What Is Coincheck?

Founded in 2014 by Keisuke Wada and Yusuke Otsuka, Coincheck is a Japanese cryptocurrency exchange established to provide Japanese residents access to Bitcoin trading. It has since added more cryptocurrencies and crypto products and services and is available in most countries around the world (except the United States of America). Coincheck aims to be the top exchange in Japan.

Coincheck is regulated by Japan’s Financial Services Agency (FSA) and is also part of the Japan Virtual Currency Business Operator Association. The platform is un and received regular audits from the Japan Blockchain Association. Coincheck currently supports 15 different cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and XRP. Coincheck also offers crypto lending that pays up to 5% APY on deposited crypto, and an OTC trading desk to support larger clients.

Coincheck recently announced a merger with Thunder Bridge Capital Partners IV Inc to become a publicly-traded company on the Nasdaq exchange in the USA. The deal is expected to close in late 2022.

Is Coincheck Safe To Use?

Coincheck is a highly regulated and audited exchange by Japan’s government and cryptocurrency-related organizations including the Financial Services Agency, Japan Virtual Currency Business Operator Association, and the Japan Blockchain Association.

Coincheck possesses a bank-like security framework and protocols to ensure the integrity of user funds and assets. Security features include the storage of crypto in offline cold storage vaults and end-to-end encryption with daily backups. User funds are not used for lending or any other purposes and they are backed up by Coincheck's reserve funds.

While Coincheck is currently a very secure platform, it was hacked back in 2018 and lost over $500 million in user NEM crypto tokens. This was due to storing all of the NEM tokens in a publicly accessible hot wallet, which they no longer do for any crypto on the platform

Are US Investors Allowed?

No, due to regulatory reasons investors residing in the USA are not able to use the Coincheck platform. Investors and traders located in the USA will need to seek an alternative crypto exchange that is licensed in their respective states.

Best Features on CoinCheck Reviewed

Buy Bitcoin & Other Major Cryptocurrencies

Coincheck supports 17 cryptocurrencies that can be bought on the exchange including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. There is a limited number of available trading pairs as supported crypto can only be purchased using JPY or BTC.

Supported Crypto	Trading Pairs
BTC, ETH, ETC, LSK, XRP, XEM, LTC, BCH, MONA, XLM, QTUM, BAT, IOST, ENJ, OMG, PLT, XYM	JPY and BTC only

Coincheck's limited list of supported digital assets to buy does not include popular coins such as Solana (SOL) or Avalanche (AVAX). Stablecoins such Tether (USDT), USD Coin (USDC), and TerraUSD (UST) are also absent.

As such, Coincheck is not suitable as an altcoin trading option. Global crypto exchanges with large numbers of supported digital assets as well as allowing JPY to be deposited such as Binance, Huobi or KuCoin will serve as better alternatives.

Recurring Purchases (Reserving)

Coincheck provides investors with the ability to use Dollar Cost Averaging (DCA) for their crypto purchasing. Referred to as “Reserving”, the strategy allows users to incrementally use fiat currencies to purchase crypto in smaller volumes over a period of time rather than trying to ‘time' the market. This approach helps to mitigate against fluctuating prices.

Coincheck users simply need to link their bank account, select a preset amount of crypto to purchase, and choose a schedule (monthly or daily) to enable automate their crypto buying.

There is a minimum monthly purchase required of 10,000 and a maximum available of 1,000,000 JPY per month. Daily purchases will be made in 1,000 JPY increments at a minimum. There are also no deposit fees on these recurring plans, making them a low-cost way to regularly purchase crypto.

Crypto Lending

Coincheck has a crypto lending platform that pays out interest to users who lend out their crypto to borrowers. Coincheck pays up to 5.0% APY on these crypto loans, but the interest is not payable until the loan term ends. Loan terms are available from 14 days to 365 days in length, and interest rates vary by term length.

Users can deposit any of the 17 supported crypto for lending, choose a term length, and apply to become a lender. Once the application is approved, the coins are locked into the loan term, and unavailable for withdrawal until the loan term ends, or Coincheck chooses to re-deposit for crypto into a user’s account.

While lending with Coincheck can earn a modest interest rate capped at 5% APY, there are much better places to earn interest on crypto with higher rates and more crypto to choose from.

OTC Trading

Coincheck offers an OTC trade desk to allow larger purchases of a few select cryptocurrencies. Users can make high-volume purchases of any of Coincheck's supported 17 cryptocurrencies. This can result in lower spread fees, as well as less slippage, saving users money on larger orders.

There are minimum purchase amounts for OTC trading as listed below:

Crypto	Minimum Order
BTC	2.5 BTC
ETH	30 ETH
LTC	790 LTC
BCH	300 BCH

Note: XRP OTC trading has been suspended, though the asset is still listed in the OTC interface on Coincheck.

Coincheck NFT Marketplace (Beta)

Coincheck recently launched an NFT marketplace based on the Ethereum blockchain (ERC-721 standard) to allow users to buy and sell NFTs. Popular NFT projects such as Decentraland and The Sandbox are supported, as well as individual NFTs being listed on the exchange. There are no fees to buy or list an NFT, but Coincheck charges a 10% seller’s fee for NFT trades.

Coincheck also charges withdrawal fees to transfer your NFT off the platform. The fees are tiered based on the current network charges, and are as follows:

Withdrawal fee	Network charges tiers
0.01 ETH	Less than 0.01 ETH
0.02 ETH	Equal or more than 0.01 ETH and less than 0.02 ETH
0.04 ETH	Equal or more than 0.02 ETH and less than 0.04 ETH
0.08 ETH	Equal or more than 0.04 ETH and less than 0.08 ETH
0.16 ETH	0.08 ETH or higher

Note: The NFT marketplace is currently in Beta as Coincheck continues to improve the service and add features.

Coincheck Verification

Coincheck requires Know Your Customer (KYC) verification to be completed on all newly created accounts. Accounts that do not complete KYC cannot make deposits, place trades, or withdraw funds. Verification is required to comply with regulatory authorities and prevent money laundering on the platform.

To verify an account, users will need to provide a legal name, address, and personal identification number on the Coincheck “Identity” account page. Users will also need to submit a picture of a government-issued ID, including a photo of themselves holding the ID. A second ID will need to be submitted as well.

Finally, users will need to submit proof of residency documents, such as a copy of a utility bill showing a residential address, with a date stamp within the past 6 months. All documents will be submitted to Coincheck, reviewed for accuracy, and then the account will be manually approved for use.

Funding & Limits

The Japanese Yen (JPY) is the only supported fiat currency that can be deposited for account funding. JPY deposits can be made via bank transfer, convenience store, or the PayEasy network. Coincheck does not accept deposits via debit or credit card. Accounts can also be financed by transferring any of the 17 supported cryptocurrencies into the wallet.

There are no deposit limits for fiat or crypto deposits. Withdrawal minimums must cover the withdrawal fee for each asset, which varies by currency. A full list of deposits and withdrawal fees and minimums can be found on the Coincheck fees page.

Volume and Liquidity

In terms of trading volume, Coincheck is the largest exchange in Japan and transacts over $200 million in daily trading volume. The purchase of BTC using JPY is by far the most popular trading pair and forms the majority of the platform's trading volume.

Based on CoinMarketCap’s liquidity rating, which measures slippage on various order sizes, giving Coincheck an overall 638 rating (out of a potential score of 1,000). This liquidity is based mostly on the BTC/JPY trading pair. Investors looking to make larger trades of altcoins will want to explore larger crypto exchanges to avoid slippage and order issues.

Coincheck Trading & Ease of Use

Coincheck offers a basic crypto order form, as well as an advanced trading platform aimed at experienced traders. Here’s how trading works with Coincheck.

User Interface

The standard Coincheck interface provides a basic “buy” or “sell” order form that allows users to purchase crypto with JPY or BTC (except Bitcoin, which can only be purchased with JPY). There are also basic line charts available for each cryptocurrency to view the price history.

Users can easily choose one of 17 crypto to purchase or sell, select the amount of crypto they wish to trade, and execute the transaction. The price quoted for the crypto is set by the exchange and includes up to a 5% spread fee which is collected by the exchange. This spread is not obvious and may result in paying much more for crypto than it is currently worth. Learn how crypto spreads are calculated in this guide.

Coincheck also offers a more advanced trading interface referred to as “Tradeview”. The premium TradingView charts are integrated into the interface along with order books, and an active transaction history per asset. The buying and selling panel includes the option to apply stop-loss and market orders.

The TradingView chart integration allows advanced traders to customize their charts with different views, as well as add indicators to overlay on the chart. There is a wide range of time frames and tools to draw trend lines, add indicators, and chart patterns to perfectly time a crypto trade. Some of the indicators that can be applied include:

• Volume
• Relative Strength Index (RSI)
• MACD
• Simple Moving Averages
• Bollinger Bands
• Average True Range, and others.

Despite the inclusion of TradingView charting and its suite of advanced analytical tools and indicators, the interface is fairly basic and stripped back. Whilst this may be suitable for beginner or novice traders, serious traders will likely look elsewhere to platforms such as Binance or ByBit.

Placing Orders

To place an order on Coincheck, users can select their desired trading pair, select a limit or market order, and choose the amount to “Buy” or “Sell” in the order window on the trading interface.

Users can also set stop-loss orders to execute a trade in the case of a falling price, protecting gains or cutting losses in the event of a market downturn. Overall, the order forms are fairly basic but offer just enough control to allow traders to create a trading strategy on the platform.

Coincheck Fees

Coincheck charges zero trading fees for buying, trading, or selling crypto. purchases, trades, and sells. Instead, a spread between 0.1% and 5% applies to trades where the spread is the difference between the buying and selling price of the asset. While this can be as low as 0.1% in normal markets, it can also rise as high as 5% during a turbulent market or where the trading volume is low.

During initial testing, comparing the Coincheck price of Bitcoin on the “Marketplace (Buy)” form vs. the price of Bitcoin on the “Marketplace (Sell)” form, there was over a 5% spread between the prices (4,058,800 JPY purchase vs. 3,814,200 sell), which is a very high fee. In less volatile markets, this fee may be lower, but it is very important to understand how much is being charged by exchanges for transactions.

Here’s how Coincheck compares to a few other crypto exchange fees.

EXCHANGE	TRADING FEE	TOKEN DISCOUNTS
Coincheck	0.1% – 5.0%	No
Binance	0.1%	Yes
Huobi	0.2%	Yes
Gemini	0.5%	No
Coinbase	0.5%	No

Coincheck App

Coincheck offers a mobile app that is compatible with Android and iOS devices and has been downloaded by over 1 million users. Based on over 11,000 reviews, the app has an overall 3.7/5 star rating on the Android marketplace, which is not a bad rating, but not great. The app can be used to make trades, deposits and withdraw JPY and cryptocurrency, and submit ticket requests to customer support.

The majority of negative feedback related to the platform's high spread fees, ID verification problems, and the responsiveness of the app. Coincheck seems to respond to some of the complaints directly, but overall the crypto app seems a bit lackluster compared to others. For a list of exchanges with top-rated apps for crypto, read this article.

Security of Assets

Coincheck stores a majority of all crypto assets in cold storage, which is the most secure way to custody crypto assets. As a regulated exchange in Japan, Coincheck is also required to keep reserves in case of loss of user funds due to theft or other criminal activity. The amount of reserves is not stated.

Coincheck also requires Two-Factor Authentication (2FA) via SMS or Google Authenticator, and withdrawals must be verified via 2FA before executing. Client data is protected as well via SSL certificates, and all users must pass KYC before using the platform or withdrawing funds.

Frequently Asked Questions

How We Rated CoinCheck

Category	Hedge With Crypto Rating
Features	4.3 / 5
Supported Fiat and Deposit Methods	3 / 5
Supported Crypto & Trading Pairs	3.9 / 5
Fees	3.5 / 5
Ease of Use	4.5 / 5
Customer support	4.5 / 5
Security Measures	4 / 5
Mobile App	3.5 / 5