If you've ever thought about buying cryptocurrency on an overseas exchange but hesitated because it seemed too complex, you're not alone. The idea of navigating a foreign platform can feel intimidating. This guide is here to simplify the process for you. We'll walk through the benefits, recommended exchanges, promising cryptocurrencies available abroad, key considerations, and practical tips to get you started confidently.
Why Consider Buying Cryptocurrency on Overseas Exchanges?
You might wonder why anyone would go through the trouble of using an overseas exchange. There are several compelling advantages that make it worth considering.
Vastly Expanded Selection of Cryptocurrencies
The most significant benefit is the sheer variety of cryptocurrencies available on international platforms. While a leading Japanese exchange might offer around 17 different coins, a major global exchange can list over 160. This means you have access to more than ten times the number of investment options. With thousands of cryptocurrencies in existence, these global platforms are where you might discover promising, lesser-known coins before they gain widespread attention.
Significantly Lower Trading Fees
Another major draw is the cost. Overseas exchanges often feature much lower trading fees. For instance, a popular global exchange charges a standard spot trading fee of just 0.1%. When you compare this to the average 1-3% total cost (including spread) on many domestic exchanges, the savings are substantial. Some platforms even offer additional discounts of up to 50% if you use their native token to pay for fees.
Access to High Leverage Trading
For those interested in more advanced trading strategies, overseas exchanges provide access to much higher leverage. While Japanese regulations currently cap leverage at a maximum of 4x (and are moving towards a 2x limit), some international platforms allow leverage of up to 500x on certain products like Bitcoin futures. This presents a high-risk, high-reward opportunity for experienced traders seeking greater potential returns.
A Simple 3-Step Process to Buy Crypto on an Overseas Exchange
The process of acquiring cryptocurrency on an overseas exchange is straightforward and can be completed in just three steps. If you already have an account with a domestic exchange, the entire process from sign-up to purchase can take as little as 10 minutes.
Step 1: Open an Account with an Overseas Exchange
The first step is to create an account on your chosen international platform. The registration process is usually quick and simple. Most platforms require only an email address and password to get started, with no immediate need for identity verification documents. You can typically complete this initial sign-up in under three minutes.
Step 2: Transfer Funds from Your Domestic Exchange
Currently, most overseas exchanges do not accept direct Japanese Yen deposits. Therefore, you will need to transfer cryptocurrency from your domestic Japanese exchange to your new international account. A common and cost-effective method is to buy a widely accepted cryptocurrency like Bitcoin (BTC) or Ethereum (ETH) on your domestic platform and then send it to your overseas exchange wallet. Using a domestic exchange that offers free crypto withdrawal fees can make this process more economical.
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Step 3: Purchase Your Desired Cryptocurrency
Once your transfer is confirmed and the funds appear in your overseas exchange wallet, you are ready to trade. You can then use your BTC or ETH to purchase any of the hundreds of other cryptocurrencies available on the platform. It's important to check which trading pairs (e.g., BTC/ALT or ETH/ALT) are supported for the specific asset you want to buy.
Recommended Overseas Exchange for Buying Crypto: Binance
For users primarily interested in buying a wide array of cryptocurrencies (spot trading), Binance is a highly recommended starting point. It is often regarded as the world's largest cryptocurrency exchange by trading volume.
Binance stands out for its immense selection, offering over 160 different cryptocurrencies. This makes it an excellent place to find coins that are unavailable on Japanese exchanges. Furthermore, its low trading fee of 0.1% makes it one of the most cost-effective platforms for traders.
Top Cryptocurrencies Only Available on Overseas Exchanges
The expanded selection on international platforms includes many projects with strong fundamentals and future potential. Here are three noteworthy cryptocurrencies not available on Japanese exchanges:
Waves (WAVES): A platform that allows users to create and launch their own custom tokens easily and affordably. Its smart contract functionality has even been used by major brands like Burger King for loyalty programs, indicating real-world utility and growth potential.
Binance Coin (BNB): The native token of the Binance ecosystem. BNB is used to pay for trading fees at a discount, participate in token sales, and more. Its value is supported by a quarterly "burn" mechanism where Binance buys back and destroys a portion of the coins, reducing supply and increasing scarcity.
Cosmos (ATOM): A project focused on solving blockchain interoperability— enabling different blockchains to communicate and transfer value with each other. Its ability to allow developers to build decentralized apps (DApps) in common programming languages positions it as a strong competitor to Ethereum.
Key Considerations Before You Start Trading
Before diving in, it's crucial to be aware of some important security and practical considerations.
Enable Two-Factor Authentication (2FA): This is an absolute must for securing your account on any exchange. It adds a critical extra layer of protection beyond your password.
Beware of "Get-Rich-Quick" Schemes: The vast array of available coins can include risky or dubious projects. Be highly skeptical of any investment that promises guaranteed returns or is heavily promoted by celebrities. Always conduct thorough research on a project's team, technology, and goals before investing.
Understand the Tax Implications: It's important to remember that profits generated from trading on overseas exchanges are still subject to Japanese capital gains tax. All earnings must be declared accurately to avoid penalties for tax evasion.
Frequently Asked Questions
Are overseas cryptocurrency exchanges safe?
Safety varies by exchange. They operate under different national regulations. It's not possible to blanket-label all as "safe." However, you can research an exchange's reputation, security measures (like cold storage of assets), and regulatory compliance before depositing funds to choose a trustworthy platform.
Can I use an overseas exchange if I'm not good at English?
Yes. Many major overseas exchanges, including some of the largest, offer full Japanese-language website and app support. For platforms without Japanese, browser translation tools can be helpful, though it's always best to use a platform you can navigate comfortably.
Can minors use overseas exchanges?
Technically, yes, as most overseas exchanges do not have the same strict age verification processes as regulated Japanese exchanges. However, a Japanese resident would still face the hurdle of acquiring cryptocurrency to deposit, as domestic exchanges require users to be of legal age. It's essential to understand and comply with all local laws.
Are profits from overseas exchanges taxable?
Yes. All profits from cryptocurrency trading, whether on domestic or international platforms, are considered miscellaneous income in Japan and are subject to taxation. You are legally required to declare these earnings on your annual tax return.
Final Tips for Success
Do Your Own Research (DYOR): Never invest based on hype alone. Always investigate the credibility of the project's development team, its use case, and its long-term roadmap. This research often leads to discovering other interesting projects.
Stay Informed: The cryptocurrency market is highly influenced by news and events. Follow reputable news sources and join community discussions to stay updated. Being among the first to react to significant news can be a major advantage.
In summary, using overseas exchanges opens up a world of opportunities with a wider selection of assets, lower fees, and advanced trading options. The process is simple: sign up, transfer crypto from a domestic exchange, and start trading. Prioritize security, conduct thorough research, and always stay informed to navigate this exciting space successfully.