Quick inner navigation:
You’ve probably heard of the stock exchange where stockbrokers and businesses trade shares of stock and other securities. This is similar to cryptocurrency exchange where traders buy and sell different cryptocurrencies in exchange for other cryptocurrencies or for fiat money such as US dollars. Trading occurs in an open market where the price and value of the cryptocurrencies are determined.
What is shapeshift?
Shapeshift is a mobile, web and API platform used to provide a swift way of exchanging digital blockchain assets or currencies with the maximum level of user protection and efficiency. The company has a strict “No fiat money” policy hence it does not involve the use of any fiat currencies in its services. The company was formed in August 2014 allowing users to swap 25 digital currencies and has grown ever since to the current over 40 different digital currencies available for trade. Shapeshift is headquartered in Switzerland and its services are available in all countries worldwide.
How does Shapeshift work?
- Shapeshift exchange does not require any personal data from its clients and it exchanges one digital currency to another without depositing the client’s funds into the company’s account.
- To use this platform the user visits shape shift’s web page or mobile application and selects the input and output digital currencies to trade in.
- The user then provides the refund address and destination address to which the output currency will be deposited and then starts the transaction.
- Shapeshift then processes the transaction and instantly deposits the currency to the destination address using the latest market rates at the time of the transaction.
What are the available cryptocurrencies supported by Shapeshift?
The platform supports 50+ cryptocurrencies which include:
What exchange options Shapeshift offers?
Shapeshift has over fifty supported cryptocurrencies and hence provides 940+ trading pairs between the different digital currencies.
- Some of the common trading combinations include ETH/BTC, BTC/LTC, DOGE/ETC, DOGE/BTC and many more options.
- Shapeshift also provides a functionality where the user specifies a precise amount of output coins to receive. In this case, you just click “Need a specific amount” when placing your order.
- Shapeshift provides a highly convenient service which makes the user anonymous since it does not require any personal data such as email addresses, passwords, and locations.
- Shapeshift can also be used by mobile and web applications as an API and its advantage is that it can seamlessly allow movement of currencies from one to another.
- Shapeshift advice its clients to be sure not to send an amount over the deposit maximum or under the deposit minimum. If a deposit limit is exceeded then the overpayment is returned automatically to the address it was sent from.
- One advantage of Shapeshift is that there is no “price slippage” which means that the price of an order remains constant regardless of the size of that order. For instance, the exchange rate for one Litecoin is the same for ten Litecoins.
What payment methods Shapeshift supports?
- Shapeshift only supports crypto to crypto exchanges which means you can use Shapeshift only if you have a cryptocurrency such as Bitcoin, Altcoin, Monero and other Altcoins.
- Shapeshift does not support any fiat currency hence it’s not suitable for use by first-time buyers. It’s, however, the best option for investors looking to widen their portfolio of altcoins.
- It does not support the various bank payment options since it does not facilitate the use of fiat money.
What are the Verification requirements when trading using Shapeshift?
- Shapeshift is an anonymous trading platform that does not require the user to create an account or ID with them in order to exchange. This offers great convenience and flexibility when using it.
- The company is completely open with their trading fees which vary depending on the currency being traded. The different fees charged are openly displayed on Shapeshift’s site.
- Shapeshift does not have any exchange (deposit or withdrawal) fees or service fee and the only fee deducted is the miner’s fee.
- The miner’s fee varies from one coin to another. A misunderstanding of this has led to ‘Shapeshift scam’ allegations which are brought about when a user is deducted a higher fee in one altcoin compared to another. Hence it’s necessary for a user to check the miner’s fee for a given coin before trading it.
Does Shapeshift have some special features?
Some of the special features offered by the platform include:
- It’s one of the few platforms where you can trade cryptocurrencies without any account.
- Shapeshift allows users to pay for goods and services with altcoins. It also allows the users to receive payment in form of altcoins as a merchant.
Is Shapeshift safe?
What is the user community’s opinion on Shapeshift?
- As mentioned before, using Shapeshift is remarkably simple which has attracted millions of users ever since it was launched.
- Due to Shapeshift’s nature of being fast, frictionless, private and very convenient, it has gained 5-star reviews as an effective platform for cryptocurrencies.
- On the flip side, some users have reported having their coins disappear after having failed transactions with no refund from Shapeshift.
What security protocols does Shapeshift employ?
- On the user’s side, there are no authentication procedures for identifying a user which may make some users paranoid.
- Since it does not hold user accounts and hot wallets, it makes it difficult for hackers to raid.
- In case of a failed transaction, the company’s account holds the funds until a refund request is made which is usually done within 90 days.
- Shapeshift rebuilt and enhanced their security infrastructure after being hacked in 2016 and have since never been attacked by hackers.
Shapeshift Customer support
- Due to congestion and a constant influx of new users, response times are generally slow.
- To ask for assistance, one can visit Shapeshift’s webpage and click on the “Support” tab where you can submit a request.
- The support team is committed to response within 2 to 3 days after the request is submitted.
Is Shapeshift legit?
- Shapeshift is committed to complying with all government regulations in all the regions it operates.
- It, however, closed its operations in certain states in the US such as Newyork and Washington since the policies there infringed on their user’s privacy.
How to use Shapeshift?
- Navigate to Shapeshift’s webpage and then select both the input and output cryptocurrencies you would like to trade.
- You can either choose quick or precise orders depending on the transaction you want and click “continue.”
- Then enter the destination address, refund address and agree to the terms and conditions.
- Click the “start transaction” tab and wait for the exchange to complete.
- For instance, if I have Litecoins and I want to exchange them for Bitcoins, I will first select litecoins in the input field and bitcoins in the output field.
- I will then provide bitcoin address from my bitcoin wallet by clicking in the top box (destination address).
- Then I will provide my Litecoin address by clicking on the return address tab and then click on “Agree on terms and conditions.” Then click on the start transaction button.
- Shapeshift processes the transaction and deposits the bitcoins in my address destination in a moment.
Shapeshift Review Summary
Can I trust Shapeshift? This platform has proven itself to be the most efficient and fastest way to exchange digital currencies either on your own or using applications that rely on it and hence I highly recommend it. It provides you with the power to swap different currencies hence making you able to grow your altcoins portfolio very fast.
- It protects and ensures the user’s privacy and anonymity.
- It is fast and reliable for currency exchange.
- It supports a lot of altcoins.
- It does not support any fiat currency.
Keep visiting our website more often in order to keep up with various news of the crypto world. Thank you and until next time.