The introduction of cryptocurrencies in the financial space led to an outburst of speculations and criticism from various critics and financial analysts. Many thought cryptocurrencies and the crypto market at large are just a bubble that will eventually explode. However, what we have today, 11 years after those speculations is a crypto industry that continues to experience considerable growth leading to more innovations and inventions.
Cryptocurrencies have gained vast acceptability in the financial industry and are greatly impacting how we go about businesses and pay for various goods and services. Lots of retail stores now accept various digital coins as payment methods which gives room for quick and transparent transactions.
Introducing cryptocurrencies into the financial market also carved a new market for investors and traders – the cryptocurrency market. The cryptocurrency market is a relatively new niche in the financial industry that allows traders and investors to exchange various digital coins for profits.
Considering the many exploits and feats achieved by the cryptocurrency market since its inception, investors and traders now consider the trading of various cryptocurrencies as one of the top investment options in the financial industry. And many investors who have dared to invest in the crypto market have been rewarded greatly, making huge returns on their investments.
The huge potential gains and opportunities present in the crypto market have been so attractive that more people continue to enter the cryptocurrency market with the hope of making huge profits from the market. However, it is important that new investors are not carried by these alluring opportunities but be made aware of the risks involved in participating in the crypto market.
With the high volatility of the crypto market, investors can easily lose their investments as easily as they could make profits. Hence, investors and traders need to concern themselves with the volatility of the crypto market and be very careful when executing trades so as not to lose their investments.
Starting your trading quest in the crypto market requires that you assign and register with an exchange platform. This is because exchange platforms are designed to be gateways into the crypto market as, without their services, no investor can participate in the market. As a result, choosing a crypto exchange platform then becomes necessary for every investor.
However, choosing a decent exchange platform in the crypto industry today has become quite a headache as the crypto space is filled with endless exchange platforms making it hard for investors to distinguish legitimate and decent exchange platforms from mediocre and scam exchanges. Owing to this reality, investors now have to research the operations and workings of various exchange platforms before they can come to a cognizant decision if an exchange meets their requirements.
However, we’ll be coming in to help with these researches to relieve the task off investors and offer them the luxury of just having to choose an exchange platform without having to carry out much research. We’ll be making reviews of decent and legitimate exchanges in the cryptocurrency market and a very good example is the Coincheck exchange platform.
In this Coincheck review, we’ll be explaining the overall workings, benefits, and features of the exchange platform. This guide is directed to give an understanding of the operations of the Coincheck exchange platform so that you can make the right decision as to whether or not the exchange platform is best for you.
|Security||Cold Wallet, Two-Factor Authentication (2FA), SSL Encryption, Know Your Customer.|
|Trading Fee||Zero commission|
|Payment method||Credit card and Wire Transfer|
|Trading platform||Web-based platform and Mobile App|
|Trading assets||Ethereum, Bitcoin, Ripple, Litecoin, Monero, and lots more|
|Withdrawal Fee||0.001 BTC|
Coincheck is the brainchild of Yusuke Otsuka and Keisuke Wada who conceived the Coincheck idea as early as 2012 and saw it brought to life exactly 2 years after in August 2014. The founders are currently directors in the company with Otsuka acting as the COO and Wada the CEO.
The Coincheck trading platform was founded in August 2014 having been registered under the authority of the Japan Financial Services. The exchange platform has its headquarters located in Tokyo, Japan where it manages and oversees its entire operations across the globe.
The Coincheck exchange platform is also an associate of the Japan Blockchain Association (JBA) which is an industry group that is categorized into two divisions with one managing blockchain technologies and the other is in charge of various digital assets. The exchange platform allows investors across the globe except US-investors to buy and sell various digital coins on its trading platform.
The Coincheck exchange platform offers a limited number of digital coins on its trading platform. Both the major cryptocurrencies and various altcoins such as Ethereum (ETH), Bitcoin (BTC), Ripple (XRP), Factom (FCT), and Lisk (LSK) are listed on the trading platform.
The exchange platform is also recognized for its Bitcoin spot trading which captures a large percentage of the entire trading volume transacted in the whole of Japan. Coincheck further offers a crypto lending platform to its clients. This platform enables investors and traders to loan their digital coins and receive a maximum interest of 5%. Furthermore, clients get to benefit from the margin trading and price alerts provided by the Coincheck trading platform.
Talking about the liquidity of the Coincheck exchange platform, it holds the 90th position on the list of top crypto exchange platforms in the world in terms of the daily trading volume. Coincheck recorded a peak daily trading volume of $62.8 million on the 4th of July 2019. Even though this is far from giant exchanges in the crypto industry that rarely record a daily trading volume below $1 billion, a daily trading volume of $62 million is not bad at all.
Security of funds and personal data will always be a thing of concern to many investors. This is because the widespread fraudulent activities and cyberattacks have become a menace in the crypto industry. And as such investors are always on guard and on the lookout for exchanges that will guarantee a safe and secure trading environment in the cryptocurrency space.
Considering the security measures put in place by the Coincheck exchange platform, it can be said that it is one of the few that provides a secure and safe trading atmosphere for its clients. Coincheck offers high levels of security such the two-factor authentication (2FA), Bank-level Encryption, Cold wallets, Know Your Customer Policy and the Secure Socket Layer (SSL) encryption.
- Two-Factor Authentication (2FA)
This security measure is incorporated into the security system of the Coincheck exchange platform to protect and safeguard susceptible trading activities like withdrawals, logins, and modification of passwords. The 2FA primarily assists in protecting clients’ trading accounts from malicious third parties login attempts. To make use of the Two-factor authentication clients can make use of either Google Authenticator which is supported by both Android or iOS devices or SMS.
- Cold Wallets
The Coincheck exchange platform makes use of a flexible multi-stage wallet technique that ensures that 90-95% of digital assets entrusted with them are stored and secured in an offline location. However, the digital assets lefts are stored in hot wallets and made available to clients’ withdrawals and other trading activities.
To ensure adequate safety of cold wallets only chosen top officials have the clearance to move or have access to cold wallets and this access is only granted once all the necessary requirements must have been met.
- Know Your Customer (KYC)
The Coincheck exchange platform has zero-tolerance for terrorist funding, identity theft, and fraud. As a result, it complies with the Know Your Customer policy to make sure that all registered investors are well-identified before they can withdraw their earnings out of their trading accounts.
Instead of this, Coincheck mandates that every registered client must provide a means of identification to verify their identity. As such, clients are required to provide proof of ID (which can be National, Identity card, passport, or driver’s license), and proof of residence (which can be a utility bill).
- Secure Socket Layout (SSL)
The Secure Socket Layout is integrated into the Coincheck security system to guarantee privacy and data integrity. The secure socket layout establishes a network of communication security that connects all the computer systems used by Coincheck such that any security threat or breach is immediately detected and reported such that prompt and immediate action is taken to stave off such attacks.
A very important feature of exchange platforms investors can’t afford to make a compromise for is the trading platform offered. The trading platform is crucial to investors because it determines whether or not an investor will have a decent trading experience. This is because the trading platform is basically a software algorithm that controls and manages the overall trading activities performed by investors.
To this end, a mediocre trading platform will only spell doom for investors, seeing them have a poor trading experience and even in extreme cases causing investors to lose their funds due to poor system management and operation.
The Coincheck exchange platform is known to offer a decent web-based trading platform. The trading platform is highly intuitive, user-friendly, and has a very simple interface. The exchange platform also created its mobile app to allow its clients to monitor and manage their trades on the go.
Commissions and Fees
We cannot overemphasize how important it is for investors to always evaluate the fees and commissions charged by exchanges before going ahead to choose them. Traders and investors need to avoid exchange platforms with ridiculous commissions and fees to adequately maximize their returns in the cryptocurrency market.
The Coincheck exchange platform offers one of the best fees in the cryptocurrency market. Both its trading and withdrawal fees give it a competitive advantage over so many other exchange platforms in the crypto industry.
Coincheck Trading fees
Every exchange platform charges a trading fee on every trade executed on its trading platform, however, that’s not the case with the Coincheck exchange platform. Coincheck charges no commission on trades executed on its trading platform.
This is very rare to find in the cryptocurrency market! Coincheck began free execution of trades as a campaign but has made it permanent giving its clients the chance to maximize their earnings. For proper context, the industry’s average trading fee is around 0.20% – 0.25% of an entire order value. The zero commission on trades is a strong competitive advantage for the Coincheck exchange platform
Coincheck Withdrawal fees
Asides from the trading fee, exchange platforms also charge various fees on withdrawals and this time around Coincheck follows suit. The Coincheck exchange platform does not offer a great competitive advantage with its withdrawal fee as it does with its “trading fee”.
The Coincheck exchange platform on every BTC withdrawal charges a commission of 0.001 BTC. The withdrawal fee is quite expensive, especially when compared to the industry’s global average of 0.0006 BTC on each BTC withdrawal.
However, because no trading fee is charged on the execution of trades, paying an extra 0.0004 BTC on every withdrawal is still cheaper when compared to a 0.25% trading fee on trades executed.
Withdrawals and Deposit
The major reason why investors (both experts and newbies) come into the cryptocurrency to invest is to make huge returns. To achieve this goal, various digital coins are bought and sold against each other to earn a profit margin. To this end, funds must be withdrawn or deposited into a trading account.
A lot of exchange platforms in understanding how important withdrawal and deposit are in the cryptocurrency market provide several methods of payment to investors so that they can conveniently withdraw and deposit funds whenever needed.
The Coincheck exchange platform offers straightforward and simple methods of payment to its clients. Withdrawal and deposits of funds can be carried out either through credit cards or wire transfers. These methods of payments are well suited for beginners and newbie traders in the crypto market as both payment methods are simple and easy to use.
Coincheck exchange offers prompt and adequate support to its clients by providing a Help Center that has an email-based system of ticketing used in providing answers to various requests and complaints from its clients. The exchange platform also has an FAQ category that gives adequate answers to commonly asked questions by various investors.
With the services and features offered by the Coincheck exchange platform, it will be difficult to deny that it is an incredible crypto exchange platform. The technology employed by Coincheck is one of the latest and most advanced giving it an edge over various exchanges. Having said that, it is all up to you to decide if the exchange platform is good enough to cater to your trading needs.