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Choosing the Best Cryptocurrency Exchange for Yourself in Japan

Wall Street, New York

 Hi, what's up!

 Before talking about the detail, let's assume that you have already heard of Bitcoin, Ethereum or Ripple(some people call it XRP). If not, the short answer is: They are virtual currencies or digital assets or so called cryptocurrencies, which they have their own nature as electronic cash, blockchain framework or banking payment system, however, many people trade them & seek chance to gain profits.

So are you looking for a place to buy or sell cryptocurrency as your investment?

 Do you have difficulties choosing exchange among a few candidates or don't even have candidate yet?

 I am Vito and I have been working on product management and software development in Cryptocurrency Exchange for almost 2 years. In this post I am gonna go through the way down to explain (1) what is Cryptocurrency Exchange and (2) what are the different user needs & for each user need, what are the most suitable exchange products they should pick to get their things done. OK, here we go!
What is Cryptocurrency Exchange?

 So just like securities and foreign currencies in financial world, in order to trade them, people usually to go a market either online through Internet or offline doing it face to face, similarly, a cryptocurrency exchange is an online software platform or an offline market to buy and sell cryptocurrencies.

 As long as trade happens, no matter where it is, a bar where people buy and sell XRP, a cafe where you send Bitcoin to your friend and they give you cash, an online website where you deposit money and buy Ethereum..., it is literally an cryptocurrency exchange. 

 But since the online cryptocurrency exchanges are the places where most of people gather and do trades, let's focus on this type of platform today.

 A typical online cryptocurrency exchange could look like this.

User Needs & Selection of Exchanges

 While a number of people trading cryptocurrencies, they have quite distinct opinions on how far these things can go. Some think they are just like gamblings and can't take it as life investment such as houses or collections. But some others really believe in its potential and future adoptions widely in financial industry. And there are flip-floppers, quite a large number of actually, who jump in and out as markets fluctuate.

 And because of that, people devote different energy, spend different time, use different approaches in it. So they have their own needs and process during the trading activity.

There are several dimensions we can separate these user needs. And under each dimension there are category of requirement, in which I will list several cryptocurrency exchanges providing corresponding features that can fulfill this user need. I call it 3P. It's Purpose, Picking and Profession.

1. Purpose. Users with different purposes may need different functionalities in an exchange.

  - Easy and quick. This is for beginners or unprofessional users, they just want to buy at one time and sell at another time in the future in order to earn profit. This type of user usually has limited time or energy or interests to deeply understand its nature under the hood. So the functionality and UI/UX of the online exchange should be as simple as possible. 

 But the drawback is that usually there is a wider price "gap" (or if you've already known the proper wording: "spread") between buy and sell compared with advanced mode.

 Therefore these exchanges are considered suitable for you if you are just freshman in this area.
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Website on Mobile

- Limit/Market/Stop-Limit Order. In the above "quick and easy" way, you have to accept the best buy and sell price whenever you send order, you can't just set a price and make your order "hang up" there in a pair of lists (it's called order book or asks & bids) and wait for someone else to take it. What if you want to do that? Then it's the advanced mode exchange who can solve your problem, order book exchange. Usually in the order book mode, it's like free market, where user can set whatever price they like, so the spread between best bid and ask is relatively small.

 The thing is, for beginners, it may take some time to learn and understand how it works in the order book, chart and order form.

 So here are candidates which provide multiple order types for you.
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Mobile App (iOS)

- Security. So there are also some users who really have doubtful and uncertain mind about most of exchanges, think of them as sandbox as the hacking issue of exchange keeps happening in Japan. They over care about the security of their funds and would rather put their money in somewhere which is regarded as highly safe. Then this is the option they could count on, SBI VC Trade. This is an exchange backing by the mother company SBI Holdings as one of the biggest enterprise in investment industry.

 2. Picking. If you know more about different coins or tokens, and decide to distribute the choices as well as risks in your portfolio, then you need an exchange which provides a large number of tradable pairs.

  - Multi-pairs available. Here are some options which contain relatively more trading products than other exchange.
  • Mobile App (iOS)

3. Profession. If you are some how confident about your strategies and want to adopt some techniques and trade frequently, the exchanges that offer you advanced features are considered perfect.

  - Margin/Leverage/FX(Future). This is for professional traders who not only are planning to borrow money from exchange but also looking for opportunities when market goes both up and down (FX or Future trading), somebody call it long and short. These exchanges are considered as professional and have margin/leverage/FX functionalities.
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Mobile App (iOS)
    • Mobile App (iOS)

 - API Trading. This is for engineering traders who are capable of building trading bot program which does trades atomically based on code logic. The following choices provide pretty good API for developer to integrate.

You really come all the way down here? That's cool, good job! Comments are welcome if there is anything missed or needs to be updated.

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Location: Meguro City, Tokyo 153-0042, Japan

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