bitFlyer Review (May 2022): Why We Don’t Like It

May 8, 2022
Reviews

bitFlyer is a Japanese cryptocurrency exchange that was founded in 2014, and it’s one of the biggest crypto exchanges in the world today, with a user base of 2.5 million users across North America, Europe and Japan. It’s simple to use and it has many different order types if you use the advanced trading platform, but considering its limited array of supported crypto and its high spread rate of up to 6%, I wouldn’t recommend it as a top crypto exchange for Canadians to use.

Instead, I recommend CoinSmart, Bitbuy or Newton, since they all offer more features and charge lower fees than bitFlyer. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

CLAIM MY $50 BONUS
Offer ends May 19.

What Is bitFlyer?

bitFlyer is a cryptocurrency exchange platform currently located in Tokyo, Japan. It was founded in 2014 by Yuzo Kano, who used to be a derivatives and bonds trader at Goldman Sachs. It’s one of the largest crypto exchange platforms today, with a user base of around 2.5 million users across North America, Europe, and Japan.

bitFlyer currently offers support for 11 different cryptocurrency tokens, and the platform is usually favoured by its users because of its instant account verification and because of just how easy it is to use the platform to buy and sell cryptocurrency.

To start off this bitFlyer review, let’s take a deeper look at bitFlyer’s pros, cons and features.

Why you should trust me

  • Experienced
    I bought my first cryptocurrency (Bitcoin) in 2013, bought Ethereum in 2017, and have held active accounts with at least 5 exchanges since 2018.
  • Unbiased
    All of my selections are supported by multiple data points, including crypto thought leaders, security experts, and TrustPilot reviews.
  • Deep Research
    My team and I spent more than 100 hours researching exchanges before choosing our top picks, and we update them almost daily as the industry continues to change.
My top pick →

bitFlyer Pros & Cons

bitFlyer Pros

  • Simple to use platform that caters to beginners.
  • Grants access to an advanced trading platform.
  • Slick and intuitive mobile app.
  • Instant account verification.
  • Competitive trading fees (0.20% for spot trades).
  • Solid regulation in Europe, the U.S., and Japan.
  • A wide array of order types.

bitFlyer Cons

  • A limited array of supported cryptocurrencies (11 different coins)
  • Surprising lack of regulation in Canada.
  • The mobile app doesn’t allow you to use the advanced trading platform.
  • Not a lot of customer support options.
  • Has a high spread rate (up to 6%).

bitFlyer Features

1. bitFlyer Desktop Platform

bitFlyer’s basic desktop platform is very easy to use and navigate around: it makes buying crypto as easy as buying stocks, which will greatly benefit those who are new to crypto investing. The platform’s dashboard will allow you to view your balances, enter trades, and update your account information effortlessly, and there’s also a dedicated area for Bitcoin separate from other altcoins.

For the more seasoned crypto traders, there’s also bitFlyer Lightning, which is the advanced version of the trading platform that operates separately and uses a different trading fee structure. In it, you’ll be able to use sophisticated trading charts, an order entry form, and an open order book to aid you in your crypto trading.

If you’re using the basic desktop platform, you’ll only be able to place limit orders and market orders, but the bitFlyer Lightning platform will let you have more variety in that regard, allowing you to place order types such as stop orders, stop-limit orders, trailing stop orders, and even order types such as Good ‘Til Cancelled orders, Immediate or Cancel orders, and Fill or Kill orders.

The exchange’s trading fees are also pretty competitive, with spot trades incurring a 0.20% fee that can be lowered even more depending on your previous 30-day trading volume. However, you won’t be able to trade Bitcoin and other altcoins for other crypto tokens: lacking this feature is very strange, especially as crypto exchanges become more and more sophisticated.

2. bitFlyer Mobile App

bitFlyer also has its own mobile app, which is just as easy to use and navigate as the desktop platform is. However, you’ll be limited to the functionalities of the basic desktop platform (and order types such as market orders and limit orders only), so you’re out of luck if you want to conduct any advanced trading on the go.

As for the app’s ratings, you can expect to see 3.6 out of 5 stars based on 4,600 reviews on the Google Play Store, and 4.3 out of 5 stars based on 200 reviews on the Apple Store, which indicates mixed user satisfaction. Common critiques of the app include the camera taking too long to load whenever you want to go through the KYC verification process and unexplained account bans, which is concerning to hear.

3. bitFlyer Security Features

One of bitFlyer’s more robust aspects is its security: for starters, the platform hasn’t been hacked to date, and it also has not had any major security breaches or data leaks. Additionally, bitFlyer has industry-standard security measures in place, such as SSL encryption, a web application firewall (WAF), IP Anycast to prevent DDoS attacks, an 80% cold storage policy, and they even went through a security audit with Ernst & Young.

Additionally, you can set up two-factor authentication to protect your account (although this can be disabled), and you can set up login alerts and review your login history for added protection. You’ll also need to complete the KYC (Know Your Customer) verification if you want access to unlimited deposits and withdrawals.

bitFlyer also has quite the regulation record in Europe, as it has a license to operate in the European Union and was granted a Payment Institution (PI) license by the Luxembourg Ministry of Finance. It also has been supervised by the Commission de Surveillance du Secteur Financier (CSSF), which is impressive. However, it’s not a registered Money Services Business (MSB) in the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and it’s also not registered in the Ontario Securities Commission (OSC), meaning that it lacks plenty of regulation in Canada. Additionally, their assets are not insured.

4. bitFlyer Customer Support

bitFlyer has a pretty extensive FAQ section that will keep you up to date with the exchange’s most common inquiries. In case your inquiry goes beyond the FAQ’s scope, however, you can reach the bitFlyer customer support team by calling their phone support or by filling the customer support inquiry form they provide. Additionally, the platform has a Facebook and Twitter page, but don’t expect too much help if you seek customer support from these channels.

  • Phone: (888) 676-2035 (U.S., 24 hours)
  • Email: Ticket submission
  • Live chat: Not Available

Curiously, they don’t have a live chat feature, which is strange considering that many crypto exchanges offer such a functionality right now. Although bitFlyer’s customer support team is responsive, the amount of channels that you can use to reach them are very limited.

5. bitFlyer “Recurring Buy” Feature

bitFlyer also has a Recurring Buy feature that will allow you to set up automatic daily, weekly, bi-monthly, and monthly crypto purchases. However, be aware that cryptocurrency will be bought regardless of the price if you set this up and your account has enough funds to do so, so you should only be using this feature if you really know what you’re doing.

This service doesn’t incur any extra fees, and you’ll also be able to cancel the purchases you make with this feature. Also, you can only set up Recurring Buys with 7 coins: Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Bitcoin Cash (BCH), Monacoin (MONA), Lisk (LSK), XLM (Stellar Lumens), BAT (Basic Attention Token), XTZ (Tezos), and DOT (Polkadot).

Cryptocurrencies On bitFlyer

Currently, you can only buy 11 different crypto assets in bitFlyer. Here’s the full list of supported crypto coins:

Bitcoin (BTC)Litecoin (LTC)Polkadot (DOT)
Ethereum (ETH)Lisk (LSK)Stellar Lumens (XLM)
Ethereum Classic (ETC)Monacoin (MONA)Tezos (XTZ)
Bitcoin Cash (BCH)Basic Attention Token (BAT)

bitFlyer Fees

Trading Fees & Spreads

bitFlyer has a pretty easy to understand trading fee structure, and their trading fee rates are very competitive. They are as follows:

30-Day Trading Volume (USD)Lightning Spot Trades FeeCrypto Buy/Sell Spread
$0 – Less than $50,0000.10%Between 0.1% and 6.0%
$50,000 – Less than $500,0000.09%Between 0.1% and 6.0%
$500,000 – Less than $1,000,0000.08%Between 0.1% and 6.0%
$1,000,000 – Less than $5,000,0000.07%Between 0.1% and 6.0%
$5,000,000 – Less than $10,000,0000.06%Between 0.1% and 6.0%
$10,000,000 – Less than $50,000,0000.05%Between 0.1% and 6.0%
$50,000,000 – Less than $500,000,0000.04%Between 0.1% and 6.0%
$500,000,000 or more0.03%Between 0.1% and 6.0%

As you can see, however, there’s a substantial fee between 0.1% and 6.0% that may apply in the event of sudden price changes and the liquidity of the market. That is a huge fee to pay, and it will considerably eat into your investment returns.

Deposit & Withdrawal Fees

Here are bitFlyer’s deposit fees:

Bank Deposits (ACH)Free
Wire Deposits (Fedwire)Free

Here are bitFlyer’s withdrawal fees:

Bank Withdrawals (ACH)Free
Wire Withdrawals (Fedwire)$20 flat fee

Additionally, there are a few crypto withdrawal fees that you need to be aware of. These are as follows:

CoinWithdrawal Fee
Bitcoin (BTC)0.0004 BTC (~17.67 CAD)
Ethereum (ETH)0.005 ETH (~16.39 CAD)
Ethereum Classic (ETC)0.005 ETC (~0.7882 CAD)
Litecoin (LTC)0.001 LTC (~0.12 CAD)
Bitcoin Cash (BCH)0.0002 BCH (~0.068 CAD)
Basic Attention Token (BAT)5 BAT (~0.19 CAD)
Stellar Lumens (XLM)Free
Tezos (XTZ)0.1 XTZ (~0.333 CAD)
Polkadot (DOT)0.1 DOT (~1.74 CAD)

3 Exchanges I Recommend Over bitFlyer

bitFlyer isn’t a bad exchange, but it’s also not the best in Canada: it has a very limited array of supported cryptocurrencies (only 11 coins), and you also won’t be able to trade these tokens for others as you’re limited to buying and selling crypto. Lastly, its high spread rate of up to 6% will certainly eat into your investment returns. That’s why I recommend any of these three exchanges over bitFlyer:

  1. CoinSmart: With trading fees of just 0.2%, quick deposits and withdrawals, and best-in-class customer support, there’s no questioning why CoinSmart is one of the most popular exchanges in Canada. Get your $50 signup bonus with CoinSmart here.
  2. Bitbuy: With trading fees as low as 0.1%, tight spreads, and a well-rated mobile app, Bitbuy is my go-to exchange for making large purchases due to its extremely low fees. Get your $50 signup bonus with Bitbuy here.
  3. Newton: With zero deposit and withdrawal fees, instant account verification, and a beautiful website and app, I recently signed up with Newton and have been loving it every step of the way. Get your $25 signup bonus with Newton here.

Here’s a quick summary of these three exchanges:

Best Overall

Trading fees: 0.2%
Security: 95% cold storage
Signup bonus: $50

Trusted by 200,000+ Canadians.

★★★★★

Rated 4.9/5

Lowest Fees

Trading fees: 0.1% – 0.2%
Security: 99% cold storage
Signup bonus: $50

Serving over 400,000 Canadians

★★★★★

Rated 4.8/5

Best For Altcoins

Trading fees: 0.4%
Security: 95% cold storage
Signup bonus: $10

Trade with 10x leverage.

★★★★

Rated 4.2/5

How To Withdraw From bitFlyer

To withdraw fiat (cash) from bitFlyer, follow these steps:

  • Go to “Account Funding”.
  • Choose the fiat currency you wish to withdraw.
  • Request a transfer to your registered bank account.

To withdraw crypto from bitFlyer, follow these steps:

  • Access bitFlyer’s “Account Funding” page.
  • Choose the cryptocurrency you want to withdraw.
  • Next, click withdrawal.
  • Click “register an external address” and go to your email inbox to finish external address verification.
  • Copy the address from your external wallet, and paste it into the “New [Coin] Address” section of the “Withdraw [Coin]” tab.
  • Add a label to your new address, and press “Add”.
  • Enter the amount of virtual currency you want to send from your bitFlyer wallet to your external wallet, and select the address you added as the destination you’re sending towards.
  • Press the “Proceed to Send” button.

In Summary

bitFlyer is a Japanese cryptocurrency exchange that was founded in 2014, and it’s one of the biggest crypto exchanges in the world today, with a user base of 2.5 million users across North America, Europe and Japan. It’s simple to use and it has many different order types if you use the advanced trading platform, but considering its limited array of supported crypto and its high spread rate of up to 6%, I wouldn’t recommend it as a top crypto exchange for Canadians to use.

Instead, I recommend CoinSmart, Bitbuy or Newton, since they all offer more features and charge lower fees than bitFlyer. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

CLAIM MY $50 BONUS
Offer ends May 19.

bitFlyer FAQs

Is bitFlyer Safe & Secure?

Yes, trading with bitFlyer is completely safe and secure. It has industry-standard security measures in place, such as SSL encryption, a web application firewall (WAF), IP Anycast to prevent DDoS attacks.

Is bitFlyer Legit?

Yes, bitFlyer is legit for several reasons: it has 2.5 million users worldwide, it was granted a Payment Institution (PI) license by the Luxembourg Ministry of Finance, and it has been supervised by the Commission de Surveillance du Secteur Financier (CSSF).

Is bitFlyer Legal In Canada?

Yes, bitFlyer operates legally in Canada. However, be aware that the exchange is not a registered Money Services Business (MSB) in the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and it’s also not registered in the Ontario Securities Commission (OSC), meaning that it lacks plenty of regulation in Canada.

Is bitFlyer Trustworthy?

Yes, bitFlyer is a trustworthy exchange for several reasons: it has an 80% cold storage policy, they went through a security audit with Ernst & Young, and they were granted a Payment Institution (PI) license by the Luxembourg Ministry of Finance.

Does bitFlyer Verify Accounts Instantly?

Yes, bitFlyer does verify some accounts instantly, though if your account needs to go through the manual verification process for some reason, these are the documents you’ll need to provide:

  • Your ID document (not a copy or photo). Front and back, if it is a National ID Card, Driver’s Licence or Residence Permit. Only 1 page (where your photo is visible) if it is a passport.

Is bitFlyer Good For Canadians?

bitFlyer is a decent exchange for Canadians, though if you’re looking for the best overall trading experience, I recommend using CoinSmart, Bitbuy or Newton instead. Each of them offers quite a bit more than bitFlyer, and I’m confident you’ll have a better experience with them.

How Well Is bitFlyer Reviewed On Reddit?

Reddit’s review of bitFlyer is uncertain: some Redditors have good things to say, while others don’t. Of course, Redditors are known for their brutally honest opinions, so take what they say with a grain of salt.

Can I Buy Dogecoin With bitFlyer?

No, you cannot buy Dogecoin with bitFlyer. If you want to buy Dogecoin, I suggest using CoinSmart, Bitbuy or Newton instead.

Is bitFlyer Insured?

No, bitFlyer’s crypto holdings are not insured.

bitFlyer Referral Code

You don’t need a referral code to get your signup bonus with bitFlyer. Simply sign up using our signup bonus link and then deposit $100 or more into your account.

Does bitFlyer report to the CRA?

No. Because bitFlyer is not a registered Money Services Business (MSB) in the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), you’ll need to report the income you make with this exchange platform to the Canada Revenue Agency (CRA) yourself.

The Best Crypto Exchanges In Canada

Best Overall

Supports: 16 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.2%

$50 bonus ends May 19.

★★★★★

Rated 4.9/5

Lowest Fees

Supports: 17 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.1% - 0.2%

Free account, instant verification

★★★★★

Rated 4.8/5

Best For Altcoins

Trading fees: 0.4%
Security: 95% cold storage
Signup bonus: $10

Trade with 10x leverage.

★★★★

Rated 4.2/5