A list of cryptocurrencies that can be traded in Japan
There are many types of crypto assets (virtual currencies), including Bitcoin (BTC), and it is said that there are more than 24,000 types worldwide (as of October 23, 2024).
In fact, there are so many types that many people who want to start managing crypto assets (virtual currencies) may not know which one to choose.
So, this time we will introduce a list of the most representative crypto assets (virtual currencies) that can be traded in Japan.
We will explain what types of brands are available and what characteristics they have, based on the key points for choosing crypto assets (virtual currencies), so if you are thinking of deepening your knowledge of crypto assets (virtual currencies) or starting to manage them, please use this as a reference.
For cryptocurrency trading, Coincheck is recommended! It offers 31 types of tokens and allows you to invest with as little as 500 yen.
List of types of crypto assets (virtual currencies)
Crypto assets (virtual currencies) are broadly divided into two types. One is Bitcoin (BTC) and the other is "altcoin".
Altcoin means "alternative coin" and refers to all the countless crypto assets (virtual currencies) other than Bitcoin (BTC). For those who have just started to learn about crypto assets (virtual currencies) or are about to learn, it is fine to think of it as "Bitcoin or other crypto assets (virtual currencies)".
We will introduce the characteristics of 15 types of crypto assets (virtual currencies), including Bitcoin (BTC), the representative crypto asset (virtual currency), as well as the representative altcoins.
Bitcoin (BTC) is a cryptocurrency (virtual currency) issued in 2009 and is the cryptocurrency (virtual currency) with the longest history. It is also the cryptocurrency (virtual currency) with the highest market capitalization. You can see that it is a special existence from the expression "Bitcoin or other altcoins".
Many historic altcoins were created with reference to Bitcoin (BTC), and many of the issuing mechanisms adopted a model similar to Bitcoin (BTC). Currently, many cryptocurrency (virtual currencies) are issued, so this is not necessarily the case.
It is well-known and is basically handled by most cryptocurrency (virtual currency) exchanges, so it can be said to be one of the brands that even beginners can easily invest in.
There are also an increasing number of cases overseas where Bitcoin (BTC) is being adopted as a payment method in stores. In El Salvador, located in Central America, it has even been adopted as legal tender.
Bitcoin (BTC) is issued through a process called mining, and in this process, a period called the "halving" occurs approximately once every four years. This is when the amount of Bitcoin (BTC) issued is halved, which also leads to an increase in the scarcity of Bitcoin (BTC).
In fact, Bitcoin (BTC) tends to increase in price significantly after a halving, and with the next halving scheduled for around spring 2024 in sight, there are growing expectations for future price increases.
Ethereum (ETH) is a representative altcoin and is the second most valuable cryptocurrency after Bitcoin (BTC).
One of its major features is the use of a technology called "smart contracts." Its strengths are that it allows contracts and payments to be made systematically without the need for an intermediary, and there is a low risk of tampering.
Another feature is that "dApps (decentralized apps)" and cryptocurrencies are being developed based on Ethereum (ETH). There are many cases where the Ethereum (ETH) blockchain is used in NFTs (non-fungible tokens), which have seen an increase in the number of companies and the number of people entering the market since around 2021, and in decentralized exchanges called "DEXs" that have no administrators.
Ethereum (ETH) is regularly updated and continues to be improved. In particular, there is a tendency for the price to rise every time a major update is made due to improved convenience and expectations of further increased demand.
▶Smart contract
A mechanism in which contracts are automatically executed according to a pre-built program.
At the end of 2017, Anatoly Yakovenko and others founded Solana Labs, a company that develops the Solana blockchain. The name Solana seems to come from the beach in California, where Yakovenko is said to live.
Solana (SOL) is said to be a high-speed and scalable blockchain platform, and its biggest feature is that it uses a unique consensus algorithm called "Proof of History" and is said to be able to process up to 65,000 transactions per second.
On the other hand, there are also issues such as the fact that it has experienced multiple outages due to excessive transaction loads and improper updates.
Solana's native token SOL is used for transaction fees and network staking. It provides smart contract functionality, and active development of DeFi (decentralized finance), NFTs (non-fungible tokens), and decentralized applications (dApps) is taking place. It is nicknamed the Ethereum Killer because it offers some superior performance to Ethereum, the second largest market capitalization in the world.
Ripple (XRP) is a cryptocurrency created for use on the international remittance platform "RippleNet" with the aim of speeding up international remittances.
Its features are its fast remittance speed and low fees. It is expected that this will solve the problems of long remittance times and high remittance fees that have been a problem with international remittances in the past.
Another feature is that transactions are not approved through mining like Bitcoin (BTC), but are processed by a transaction approver called a "validator". Because it is issued in large quantities, it is one of the brands that is cheap and easy for beginners to get their hands on, even compared to other crypto assets (virtual currencies) with high market capitalization.
Ripple, which issues Ripple (XRP), is currently increasing its partners mainly in Europe and Asia, and is also focusing on the "digital version of legal currency" area called CBDC (central bank issued digital currency).
Ripple may further increase its presence in the remittance area in the future, so the price of Ripple (XRP) may rise accordingly.
Dogecoin (DOGE) is a cryptocurrency based on the Shiba Inu of the internet meme "Doge".
It was created in 2013 by software engineer Billy Markus and Jackson Palmer, who used to work in the marketing department at Adobe. It originally started as a frank project to lampoon and have fun with other cryptocurrencies such as Bitcoin, but it has gained support from the community and has become very popular. It has been particularly active on social media, and has become widely known thanks to the support of Elon Musk.
Dogecoin's technical foundation is based on Litecoin (LTC), which itself is derived from the Bitcoin (BTC) codebase. Specifically, it is based on Litecoin's hard fork "Luckycoin", which initially had the feature of randomly giving rewards, but later changed to fixed rewards. Since there is no limit to the token supply, it is designed to be theoretically infinitely issued.
Currently, it is mainly used for small payments such as tips and donations, and is mainly used for the purpose of enjoying and supporting the community.
TON is a blockchain platform originally developed by the Durov brothers, founders of Telegram. Initially, it was being developed under the name "Telegram Open Network", but Telegram withdrew from the project due to regulations by the US Securities and Exchange Commission (SEC). Later, an independent developer community established the TON Foundation to take over the development of TON, which has now been renamed "The Open Network".
TON supports smart contracts and decentralized applications (dApps), and is used for purchasing NFTs, in-game payments, and various use cases within Telegram, with a particular focus on streamlining data transfer and payments.
To solve the issue of transaction processing speed, there is a master chain that plays a role in coordinating the safety and consistency of the entire network, a work chain that provides the resources necessary to run decentralized applications and smart contracts, and a shard chain that functions as a blockchain to speed up transactions within the work chain. It consists of these three levels of blockchain.
Avalanche (AVAX) is a blockchain platform developed in 2020 by Professor Emin Gün Sirer and his team. It is being developed by Ava Labs, a blockchain company where he serves as CEO.
Avalanche's biggest feature is the "Avalanche Consensus Protocol," which enables high scalability and fast transaction processing.
In April 2021, the company implemented a liquidity mining program called "Avalanche Rush," which caused the price of its native token "AVAX" to skyrocket and attract a lot of attention.
Avalanche also has excellent interoperability between different blockchains, making it easy to connect different assets and applications. In particular, it has an EVM (Ethereum Virtual Machine) and is compatible with Solidity, the most widely used programming language for building smart contracts on the Ethereum blockchain, making it easy to migrate Ethereum dApps to Avalanche as is.
These features have also been praised, and Avalanche is attracting attention as an innovative platform for a future where multiple blockchains coexist.
SUI is a layer 1 blockchain developed in 2023. Development is led by Mysten Labs, which was founded by developers involved in Meta's (formerly Facebook) Diem project, and it uses a programming language called Move, adopting a mechanism that is less prone to bugs and security vulnerabilities with the aim of enabling users to make transactions quickly and at low cost, especially in areas such as games, NFTs, and DeFi. It can be said that it inherits the technical elements of Diem.
Sui's characteristic is that it adopts a unique "Object-Centric Model," which optimizes the execution speed of smart contracts and realizes efficient resource management.
In conventional blockchains, transactions are often processed sequentially, limiting processing power, but SUI can process multiple transactions simultaneously based on object independence. Because objects are managed individually, state changes can be processed in parallel without affecting other transactions, improving transaction processing power.
Aptos (APT) is a layer-1 blockchain project founded by former developers of Meta (formerly Facebook)'s Diem project.
Aptos's main goal is to provide a blockchain infrastructure with extremely high processing power and security, and is designed with an emphasis on overall network efficiency and security. It uses a proprietary technology called "Block STM (Software Transactional Memory)", which makes parallel transaction processing more efficient.
Aptos' native token, APT, is used for transaction fees and staking within the network, contributing to the maintenance and security of the blockchain.
Litecoin (LTC) is a cryptocurrency (virtual currency) created based on Bitcoin (BTC) technology with the aim of compensating for the elements that Bitcoin (BTC) lacks, such as improving transaction processing speed. It is said to be the second oldest after Bitcoin (BTC).
Bitcoin (BTC) has 21 million issued coins, while Litecoin (LTC) has four times as many, at 84 million LTC.
As a cryptocurrency with a long history, it can be traded at many domestic cryptocurrency (virtual currency) exchanges, and is one of the cryptocurrency (virtual currency) with high name recognition in Japan.
In addition, Litecoin (LTC) is focusing on its use in the payment field, and is undergoing technical upgrades to further speed up transaction processing and improve transaction fees, so demand may further expand as cryptocurrency (virtual currency) payments increase in the future.
Tron (TRX) is a blockchain platform founded by Justin Sun in 2017, developed for the purpose of decentralized distribution of entertainment content such as videos and music. It aims to provide an environment where users can directly share and monetize their own content, eliminating centralized intermediaries.
Originally, the Tron Foundation led the operation and management of the platform, but the Tron Foundation was dissolved due to the maturity of the community. Currently, the Tron DAO is more democratically operated and managed.
Tron's native token, TRX, is used for payments and tipping within the platform, and Tron's blockchain has a smart contract function and can also be used to develop and operate decentralized applications (dApps).
The consensus algorithm used is Tron Proof of Stake (TPoS), a proprietary algorithm based on Delegated Proof of Stake (DPoS), in which block approvers are determined by voting.
It features high-speed, low-cost transaction processing, with lower fees than traditional Ethereum, and in recent years, projects have been developed in the fields of DeFi (decentralized finance) and NFTs.
Bitcoin Cash (BCH) is a cryptocurrency (virtual currency) derived from Bitcoin (BTC). Its major differentiating points are that it has faster processing speeds and lower fees than Bitcoin (BTC).
Bitcoin Cash (BCH) was created to solve Bitcoin (BTC)'s scalability problems. Although they are crypto assets (virtual currencies) derived from Bitcoin (BTC) and use the same mechanism, Bitcoin (BTC) and Bitcoin Cash (BCH) are not compatible.
Also, like Bitcoin (BTC), the number of stores that accept Bitcoin Cash (BCH) as a payment currency is on the rise, and demand is likely to expand further in the future, especially in the payment area.
▶ Scalability issues Since there is a limit to the capacity that can store data in blocks, the problem of delayed transaction speeds and increased fees occurs as the usage load increases.
Stellar Lumens (XLM) is a crypto asset (virtual currency) based on Ripple (XRP) and developed, managed, and operated by the non-profit organization Stellar Foundation.
While Ripple (XRP) focuses on large international remittances by companies, Stellar Lumens (XLM) was developed with the aim of facilitating small payments between individuals.
It has a unique transaction approval method, whereby the approver of the transaction is selected by voting. This shortens the time required for approval and enables quick transactions.
Like Ripple (XRP), Stellar Lumens (XLM) was created to solve the problems of international remittances, which require a long time for transactions and high fees, and is also used by migrant workers to send money to their home countries.
Demand is expected to continue to expand through such individual transactions, and as the number of usage scenarios increases, we can expect the price to rise accordingly.
Basic Attention Token (BAT) is a cryptocurrency (virtual currency) developed by Brave Software, the company behind the web browser "Brave." By using Brave, users are given Basic Attention Tokens (BAT).
Brave is characterized by its ability to block general web ads. In addition, when users view ads on Brave, they can earn Basic Attention Tokens (BAT) as a reward.
Since BAT is awarded simply by viewing ads using Brave, it is a major advantage that cryptocurrency can be acquired naturally in everyday life. It is also used as a way to give tips to creators, etc. As the number of Brave users increases, the uses and demand for the Basic Attention Token (BAT) are expected to increase, so the price is likely to be affected as it develops.
NEM (NEM/XEM) is an abbreviation for New Economy Movement, and is a cryptocurrency (virtual currency) created with the intention of being used on the NEM (NEM) platform.
The transaction approval mechanism is different from other cryptocurrencies, and is designed to allow users who contribute more to the community to receive more rewards based on the amount of NEM (XEM) they hold, the period they hold it, the volume of transactions, etc. Furthermore, a major update to NEM (XEM) has led to the birth of a new platform and cryptocurrency called "Symbol (XYM)."
Symbol (XYM) is a project intended for use by legal entities such as companies and public institutions, and is currently attracting a lot of attention.
IOST (IOST) is a cryptocurrency (virtual currency) operated by the IOST Foundation in Singapore, and is characterized by its fast remittance speed, low fees, and a strong community with fans scattered all over the country. It is also characterized by its low price, making it easy for beginners to get started.
IOST (IOST) has its own transaction approval system, which increases the possibility of receiving rewards depending on how much you contribute to the IOST (IOST) network.
Another feature is that dApps (decentralized applications) can be created on IOST (IOST), and as the number of IOST-based dApps (decentralized applications) increases, there is a possibility that a positive impact will be seen on the price.
Ethereum Classic (ETC) is a cryptocurrency (virtual currency) derived from Ethereum (ETH) through a split.
In 2016, a hacking incident against Ethereum (ETH) called THE DAO occurred, and some communities who were distrustful of the company's response split Ethereum (ETH), which led to the birth of Ethereum Classic (ETC).
The difference between ETC and Ethereum (ETH) is that there is a limit to the number of coins that can be issued, and that it is issued using a mechanism similar to that of Bitcoin (BTC). Ethereum Classic (ETC) is also being developed with an awareness of its compatibility with the "IoT" field, which connects all household devices to the Internet and makes them smarter.
The IoT field is expected to develop further in the future, so depending on the development situation, the demand for Ethereum Classic (ETC) may increase along with the development of IoT.
Monacoin (MONA) is a cryptocurrency (virtual currency) that originated on the huge electronic bulletin board "2chan (now 5chan)". It was developed with the motif of "Mona", a famous ASCII art of "2chan", and is reflected in the design.
It was once used for cryptocurrency (virtual currency) payments, mainly in Akihabara, Tokyo. It is now also used as a tip within communities and on bulletin boards.
It has a relatively long history since its birth, and is a cryptocurrency (virtual currency) that originated in Japan, so it is well known in Japan. As a result, it is now available for trading at many domestic cryptocurrency (virtual currency) exchanges.
Crypto assets (virtual currencies) derived from internet culture may see their prices exponentially rise due to online excitement or the actions of celebrities.
Lisk was born as a platform for building dApps (decentralized applications). The crypto assets (virtual currencies) used there are also called Lisk (LSK).
It uses JavaScript as its programming language, which is familiar to many programmers, so it is a project that is relatively easy for many developers to get involved with. Another feature is that the approver of the transaction can be determined based on the amount of Lisk (LSK) held.
Furthermore, although there is no set issuance limit, the number of new issuances is reduced periodically, so the scarcity of Lisk (LSK) itself will increase, and as development using Lisk (LSK) increases and projects progress, further price increases can be expected.
Quantum (QTUM) is a cryptocurrency (virtual currency) that combines the stability and anonymity of Bitcoin (BTC) with the smart contract function of Ethereum (ETH).
By incorporating a function called "light wallet," it has become lighter and enables high-speed transaction processing. This light wallet allows users to download only the amount of data they need, which reduces the burden on the server and improves performance.
There is a possibility that the movement to utilize Quantum (QTUM) will become stronger.
OMG Network（OMG）
Stock name (currency unit): OMG Network (OMG) Cryptocurrency market capitalization ranking: 582th Price: $0.5778 As of December 6, 2024 (CoinMarketCap "OMG Price, Chart, Market Cap")
OMG is a cryptocurrency developed based on Ethereum (ETH), and was developed to improve the scalability of Ethereum (ETH). It is characterized by its fast processing speed and low cost.
It was developed and used as the base currency for the cryptocurrency payment platform "OMG Network (formerly OmiseGo)", and attracted attention for its ability to perform high-speed transactions at low cost.
However, updates to the OMG Network have currently been suspended, and the project has moved to a new service called BOBA Network (BOBA). Therefore, there is currently no use for it, and it remains as the old version of BOBA Network (BOBA).
With the BOBA Network (BOBA) project still ongoing, it is unclear whether we can expect a significant price increase in the future.
Factom (FCT)
Name (currency unit): Factom (FCT) Cryptocurrency market capitalization ranking: -- Price: -- yen As of December 6, 2024
Factom (FCT) is a cryptocurrency (virtual currency) developed for the purpose of managing a decentralized management platform by multiple network participants and electronic data.
However, development has stalled due to the dissolution of the development company Factom, and handling at Coincheck, the only place in Japan where it was possible to trade, has also been discontinued, making it difficult to expect a price increase.
Enjin Coin (ENJ) is a cryptocurrency (virtual currency) that can be used on the "Enjin Platform", which allows the issuance of NFTs (non-fungible tokens) and other tokens. When an NFT (non-fungible token) issued on the Enjin Platform is no longer needed, it can be converted back to Enjin Coin (ENJ) through a function called "melting".
Enjin Coin is a cryptocurrency (virtual currency) that grew significantly when NFTs (non-fungible tokens) became popular, and it is said that there are still more than 20 million users of the Enjin Platform.
Partnerships with global companies such as Microsoft and Samsung have already been announced, and if it can make its presence felt in the gaming and NFT fields in the future, we can expect the price to rise further.
Points to consider when choosing a cryptocurrency to trade
When trading cryptocurrencies, we recommend checking the following three points when choosing a stock.
There are many cryptocurrencies, and each cryptocurrency exchange offers different stocks. Just like buying stocks, it is important to first understand the points to consider when choosing the cryptocurrency you want to trade.
1. Check the safety
First, before trading, check whether the cryptocurrency is safe. Some cryptocurrencies are so-called "scam tokens" that have no actual project or planning.
One easy-to-understand indicator is the market capitalization ranking and trading volume, so it is a good idea to check the stock you are considering trading on sites that collect cryptocurrency trading data such as "CoinMarketCap" and "CoinGecko".
In addition, users in Japan can only trade at cryptocurrency exchanges approved by the Financial Services Agency as a general rule. Although the number of stocks available at domestic cryptocurrency exchanges is smaller than overseas, there are many stocks that are relatively safe.
Therefore, if you are unsure whether to trade a cryptocurrency that has been recommended to you by someone or that has been featured on the Internet, it is best to check whether it is available for trading at a domestic cryptocurrency exchange.
2. Check if it has a future
An important point when selecting a stock to trade is whether the project or vision has a future. Just like stocks, the price of crypto assets (virtual currencies) is directly related to what the project will accomplish in the future and what impact it will have on society.
Therefore, it is a good idea to first choose a stock that is making visible progress in the form of frequent technological developments and updates, or new projects being implemented. Also, be sure to collect information on projects and daily news from economic information news sites, crypto asset (virtual currency) news sites, SNS, etc.
3. Check the magnitude of price fluctuations
The extent to which the stock you are considering will fluctuate is also an important point when choosing a cryptocurrency to trade.
Unlike the yen or dollar, cryptocurrencies are prone to sudden price increases and decreases, and sometimes even minor news can cause large price fluctuations. In addition, since trading can be done 24 hours a day, 365 days a year, it is possible that large price fluctuations may occur when you cannot check the price immediately.
If you trade during a period of large price fluctuations, you may sometimes incur losses, so when choosing a cryptocurrency, try to invest within the range of past price fluctuations and within the range that you can tolerate even if you incur a loss.
Recommended cryptocurrency exchanges
When managing cryptocurrency, it is important to choose not only the brand but also which exchange to use. Below, we will introduce four recommended cryptocurrency exchanges, so beginners should use this as a reference.
bitFlyer is one of the major exchanges in Japan, having been ranked No. 1 in Bitcoin (BTC) trading volume for six consecutive years. The fact that it is invested in by major companies and megabanks shows its high reliability.
In addition to Bitcoin (BTC), it handles 33 types of cryptocurrency, all of which can be traded from 1 yen. Since you can invest even a small amount, even beginners can easily start managing crypto assets (virtual currencies).
Another feature is that it offers services such as "exchanging T-points for Bitcoin" and "using Bitcoin at Bic Camera stores and online shops." By utilizing various services, you can effectively manage your investments even with a small amount of your own capital, so it can be said to be one of the exchanges that beginners should open first.
SBI VC Trade is a crypto asset (virtual currency) exchange under the umbrella of SBI Holdings, a major financial group, and offers a wide range of services.
Specifically, it offers crypto asset (virtual currency) staking and lending services, as well as leveraged trading and savings services.
As a crypto asset (virtual currency) exchange run by a major company, the crypto asset (virtual currency) management system and the reliability of the operating company are relatively high, making it easy for even beginners to use with confidence.
GMO Coin handles 26 types of crypto assets (virtual currencies) and is one of the exchanges with a wide variety of brands.
A major advantage is that various fees required for managing crypto assets (virtual currencies), such as account opening fees, instant deposit fees, crypto asset sending fees, and withdrawal fees, are basically free. Since you can trade without worrying about fees, even beginners can feel safe.
Although it is a service limited to smartphones, it offers "simple identity verification" that allows you to start trading in as little as 10 minutes at any time of the day, so one of the attractions is the ease of starting immediately if you want to try crypto asset (virtual currency) investment.
Coincheck is the exchange with the highest number of downloads in Japan, and its smartphone app is simple and easy to operate, making it easy for beginners to use. In addition, the site handles 29 different crypto assets (virtual currencies), and the wide range of options available for trading is another attractive feature.
There are also services such as "Coincheck Electricity" and "Coincheck Gas" that allow you to use and receive Bitcoin (BTC) when paying utility bills, and since your daily life becomes part of your investment, it is a great advantage to be able to continue investing.
It is important to choose crypto assets (virtual currencies) with an eye to future potential
There are many types of crypto assets (virtual currencies) and their prices fluctuate rapidly, so you may often find it difficult to decide which stock to choose.
There are various options, such as starting with something that is immutably popular like Bitcoin (BTC) or something that is low in price and easy to trade. Nevertheless, one common point for making large profits is to "choose stocks that are likely to rise in price in the future."
To do this, it is important to collect information on a daily basis. If it is difficult to determine the authenticity of the information, it is a good idea to browse multiple news sites or refer to information from trusted accounts on social media.
MAGAZINE
Iolite Vol.11
January 2025 issueReleased on 2024/11/28
Interview Iolite FACE vol.10 David Schwartz, Hirata Michie
PHOTO & INTERVIEW Nakamura Shido
Special feature: "Unlocking the Future: The Arrival of the AI Era," "The Ishiba Cabinet is in chaos with hopes and fears intersecting. What will happen to Japan's Web 3.0 in the future?" "Learn about the tax knowledge necessary for cryptocurrency trading! Explaining the basics and techniques that can be used even now"
Interview: SHIFT AI Kiuchi Shota, Digirise's Chaen Masahiro, Bybit's Ben Zhou, Monex Group Inc.
Zero Office Head/Monex Crypto Bank Bandai Atsushi and Asami Hiroshi, Kaoria Accounting Office Representative and Active Tax Accountant Fujimoto Gohei
Series Tech and Future Sasaki Toshinao...etc.
MAGAZINE
Iolite Vol.11
January 2025 issueReleased on 2024/11/28
Interview Iolite FACE vol.10 David Schwartz, Hirata Michie
PHOTO & INTERVIEW Nakamura Shido
Special feature: "Unlocking the Future: The Arrival of the AI Era," "The Ishiba Cabinet is in chaos with hopes and fears intersecting. What will happen to Japan's Web 3.0 in the future?" "Learn about the tax knowledge necessary for cryptocurrency trading! Explaining the basics and techniques that can be used even now"
Interview: SHIFT AI Kiuchi Shota, Digirise's Chaen Masahiro, Bybit's Ben Zhou, Monex Group Inc.
Zero Office Head/Monex Crypto Bank Bandai Atsushi and Asami Hiroshi, Kaoria Accounting Office Representative and Active Tax Accountant Fujimoto Gohei
Series Tech and Future Sasaki Toshinao...etc.
