Understanding the Differences Between Crypto "Exchange" and "Brokerage" Services: Which Is Best for Beginners?

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When starting your cryptocurrency investment journey, one of the first challenges you'll encounter is distinguishing between brokerage services (販売所) and exchange platforms (取引所). Both allow you to buy/sell assets like Bitcoin, but their mechanisms and user experiences differ significantly.

This guide breaks down the pros/cons of each, tailored for beginners in 2025.


Key Differences Between Brokerages and Exchanges

1. Counterparty Structure

2. Order Types

| Brokerage | Exchange |
|-----------------------------|-----------------------------|
| Market orders only (usually)| Limit/stop orders available |
| Instant execution | Slower matching process |


Pros and Cons of Brokerages

✅ Advantages

❌ Drawbacks

👉 Example: Coincheck’s brokerage service suits long-term holders with its "Buy & HODL" approach.


Pros and Cons of Exchanges

✅ Advantages

❌ Drawbacks

👉 Top-rated exchanges like bitbank offer P2P trading with tight spreads.


FAQs

Q1: Which is safer—brokerage or exchange?
Both are regulated in Japan, but brokerages simplify custody for beginners.

Q2: Can I use both services?
Yes! Many platforms (e.g., SBI VC Trade) offer dual modes.

Q3: How do spreads impact profits?
Brokerages charge wider spreads, making frequent trades costlier.


Recommended Platforms for Beginners

  1. Coincheck: User-friendly app with staking options.
  2. SBI VC Trade: Low-fee brokerage + exchange combo.
  3. bitbank: Best for P2P trading enthusiasts.

Note: Always verify fees and security measures before investing. Prices fluctuate—trade responsibly!

👉 Explore trusted exchanges to start your crypto journey today.