How to open an exchange account

The first decision is where to open the account. If you want to deposit Japanese yen and trade domestically, choose from operators registered with the Financial Services Agency as crypto asset exchange service providers. The FSA publishes the register itself, so checking there — rather than trusting an operator's marketing copy — is the most reliable confirmation. For how to compare listings and trading formats, see 'How to choose an exchange'.

Applications generally start by registering an email address and password on the official site or app. Never reuse a password from another service here. You then enter basic details: name, address, date of birth, occupation, the purpose of your trading and your investment experience. Field names and screen layouts differ between operators, but the substance is largely the same because these checks are required by law.

Next comes identity verification. The common approach today is photographing an identity document — a driver's licence or My Number card, for example — together with a photo of your face. A single character of mismatch between the address on the document and the address you typed can send the application back, so copying the document exactly, down to the way the block number is written, is the practical trick. Some operators also ask for your My Number; that is a tax requirement and is not specific to crypto.

Your submission then goes to review. Approval usually arrives by email or an in-app notification, and some operators confirm your address by sending a postcard you must receive. Set up two-factor authentication around this point, before any money reaches the account — securing it first is the safer order. 'How to set up two-factor authentication' covers the steps.

Once trading is enabled, resist the urge to fund the account heavily. Deposit a small amount and make one real purchase first. Feeling how the deposit, the purchase and the withdrawal each behave, and how long each takes, saves a lot of panic later.