You would have heard about all the major exchanges like Binance, Bittrex, Coinbase etc. However, they have one limitation, none of these exchanges have all the cryptocurrencies. This is why we will review a website called ‘Shapeshift’ which allows you exchange various cryptocurrencies.
- 1 What is Shapeshift?
- 2 Shapeshift Review
- 3 Pros
- 4 Cons
What is Shapeshift?
Shapeshift is not just a normal cryptocurrency exchange where you can buy and sell different cryptocurrencies. It is a simple cryptocurrency conversion tool that lets you convert one crypto asset into another. Price and value of cryptocurrencies vary depending on the market condition.
A little more on Shapeshift.
It is a cross-compatible platform available for mobile, web and API for exchanging digital assets swiftly with great efficiency and protection. Founded in August 2014, with the aim to provide simple cryptocurrency conversion between bitcoin and altcoins.
Shapeshift describes itself as “A simple and beautiful piece of financial innovation” which explains its fantastic features like you do not have to create accounts or sign up and provide personal information. Moreover, they do not take Fiat money in their transactions and hence you can only exchange in digital assets.
How do you use Shapeshift?
The platform is powerfully designed to provide a great cryptocurrency ecosystem wherein you can exchange and swap between assets instantly.
A simple might help you understand how you can use Shapeshift.
Suppose you need to transact a certain amount of Ether in exchange for Bitcoin.
- You just need to mention Bitcoin as the Input and Ether as the output.
- Provide both the addresses in the respective boxes i.e your Bitcoin address in the refund address box and Ether wallet address in the destination box.
- Next, click on “I agree to Terms” and then click on the Start Transaction Button.
- Shapeshift will generate a Bitcoin deposit address wherein you can send your bitcoins from your wallet. Keep in mind to restrict the amount of bitcoins between “Deposit Max” and “Deposit Min”.
This is it! The process is quick, short and smooth and hence, provides the user with the assurance of secure transaction of their digital assets.
You do not need any email id or passwords or any tedious signup process. Along with that, you do not have to maintain any account information or any bid or ask orders. Thus, giving freedom to you to use it in a more convenient way.
Which currencies can you transact on Shapeshift?
The platform is capable of supporting 50+ cryptocurrencies which are:
- Bitcoin (BTC)
- Ethereum (ETH)
- DogeCoin (DOGE)
- Litecoin (LTC)
- Monero (XMR)
- Ripple (XRP)
- Zcash (ZEC)
- Augur (REP)
- BitShares (BTS)
- Golem (GNT)
- Lisk (LSK)
These are just a few to list and there are many more altcoins.
What trading options will you get on Shapeshift?
It has been known that Shapeshift offers more than 940 trading pairs and thus making it the most useful exchange of the time.
- Though there are numerous trading options, but these are the most common one’s ETH/BTC, BTC/LTC, DOGE/ETC, DOGE/BTC.
- One functionality that makes Shapeshift stand out is the fact that it helps users specify the precise amount of output coins to receive. To do this, just click “Need a specific amount” while placing the order.
- While using Shapeshift, you are always anonymous as it does not require any personal details like passwords, username, email id or locations.
- It is always advised to send the amount that doesn’t exceed the maximum deposit limit and hence if exceeded the extra amount is returned automatically to the address specified earlier.
- Also, there is a great advantage while using Shapeshift for a large size of order as there is no “price slippage”. That is the exchange price of one Ether is the same as the price for ten Ether.
What payment methods can be used?
- One thing to be kept in mind is that you could only exchange cryptos while using Shapeshift.
- It is not a good option for first-time buyers as the exchange does not support fiat currencies.
- Along with this, it also doesn’t support any bank payment options.
Who are its investors?
A very important piece of information in verifying its authenticity is that the list of investors should be known.
Here are Shapeshift’s investors:
- Earlybird Ventures
- Access Venture Partners
- Pantera Capital
- Blockchain Capital
- Digital Currency Group
- Erik Voorhees
- Roger Ver – The founder of Bitcoin Cash
Shapeshift Trading Fees
The company does charge a certain fee according to the type of currency you are buying so do check out the rate before starting any transaction. Here is a list of the breakdown of some fee charged:
|Bitcoin Cash||BCH||0.0002 BCH|
|Ethereum Classic||ETC||0.01 ETC
However, there is no transfer fee or deposit fee or withdraw fee so you can smoothly use this service like a wallet to wallet transfer. They only charge a miner’s fee which varies according to the coin and it is advised that you check the miner’s fee before trading it.
How safe is Shapeshift?
While on the user’s side you do not have to be concerned about the safety as there is no personal information compromised, however, there are some unanswered questions regarding Shapeshift.
There are no hot wallets or accounts to hold on the assets and therefore no issue of hacker or malware is there but there is no clarity as to where does your funds go when in a failed transaction. So, you need to trust Shapeshift and their security protocol.
Shapeshift was also in news due to a hack in 2016, where a huge amount of assets worth $200K were taken away in just two-week period showcasing the vulnerability of the site. They still made an effort to work on their security after that and had rebuilt the website. Its founder had tried to offer an honest explanation as to what had happened giving evidence that it was done due to the betrayal of an employee of the company who tried to take away the Bitcoin wallet. Well, still facts remain facts and should not be ignored.
How about Customer Service?
It is common that due to constant usage and adding of new users, the site is slow and less responsive. If ever you were in need, you could just go on to the Shapeshift official site and then click on the “Support” tab where you can submit the request. They have promised to get back to your query within 2-3 days.
Also, Shapeshift is known to comply with all rules and regulations of the government and operates well in all regions. It has recently shut down its services in New York and Washington due to the violation of laws implemented thereon user’s privacy.
Now we will summarize the review with some pros and cons:
- It is secure from user’s side with no requirement of user’s account.
- It supports a lot of altcoins.
- It is fast, convenient and reliable form of currency exchange.
- If you do enough research and use this exchange in the right way, the fee charged is quite low.
- There are awesome reviews about the site and when the service is smooth and efficient it has got 5 star rating also.
- There are many negative comments about the exchange by some users who have lost a lot of funds due to some mishap or hidden exchange rates.
- There are also reports of coins disappearing after a failed transaction with no response from Shapeshift side.
- It is very smooth when exchanging crypto to cryptocurrency however it doesn’t support fiat currencies and hence cannot be used for the first time.
- There is also lack of information available regarding the deposit limits and transaction speeds.
Conclusion on Shapeshift Review
Known to process roughly 10,000 Bitcoin orders per day, it is amounting to 2% of total Bitcoin Network. For simple anonymous crypto asset conversion, shapeshift if the way to go as the conversion happens very quickly and the converted funds are deposited into the wallet address that you give.
However, use the platform carefully as it leads to losing funds if the conversion of very small amounts is done. Also, I would recommend you to have a look at Changelly which is the top competitor of Shapeshift.
Moreover, Don’t forget to comment down your experience with Shapeshift so that it helps other cryptocurrency enthusiasts.