ShapeShift is a well-reputed crypto exchange platform, which makes switches among different digital assets simple and quick. This Swiss-based exchange is made for regular crypto users that need to quickly transfer between Bitcoin, Litecoin, Ethereum, Monero, and other altcoins. You need to understand that ShapeShift is simply a way to swap among different cryptos. You cannot trade crypto here or sell them for fiat.
This quick guide will touch upon the pros and cons of ShapeShift while detailing its background, fee, funding options, and other features.
Why Should Beginners Choose ShapeShift?
Easy to use interface
Secure and private exchange
No sign-up or email address
What’s not to like?
Just 50+ cryptocurrencies
Way higher trading fees than Changelly
Brief Background of ShapeShift
ShapeShift has been in operation since 2013. It has received multiple rounds of funding from several major investors, including the popular exchange, Bitfinex.
What are the Fees on ShapeShift?
ShapeShift is completely upfront about their transaction fee. This varies as per the crypto you are looking to purchase. The fee is separately displayed in plain view at the ShapeShift site whenever you go to make a purchase. You must check individual rates to understand what you would be paying. The rates can differ greatly based on miner fees for each crypto.
This is how some fees looks like:
BTC – Bitcoin Miner Fee: 0.0025BTC
BCH – Bitcoin Cash Miner Fee – 0.0002 BCH
ETH – Ether Miner Fee: 0.001 ETH
ETC – Ether Classic Miner Fee: 0.01 ETC
ZEC – Zcash Miner Fee: 0.001 ZEC
XRP – Ripple Miner Fee: 0.5 XRP
XMR – Monero Miner Fee: 0.02 XMR
LTC – Litecoin Miner Fee: 0.001 LTC
DOGE – Dogecoin Miner Fee: 2.0 DOGE
You should take note of the exchange rate since ShapeShift is bound to have a profit margin here.
How Does Fox Token Help?
Fox Tokens are ShapeShift’s native utility token. They are used towards membership rewards on the ShapeShift platform, which includes free trading. You get you $10 of free trading with every FOX token you hold. This volume is renewed on a rolling-basis of 30 days.
ShapeShift gives $1,000 of free trading credit in the form of 100 FOX tokens just for signing up. This means that low-volume traders do not have to worry about paying significant fees on the platform.
How to Deposit and Withdraw Funds?
ShapeShift is a non-custodial crypto exchange platform. This means you do not have to deposit any money in the platform. ShapeShift never holds on to your money. Whenever you need to make a swap, the funds are released as soon as the platform receives the money.
You would need to send your tokens to ShapeShift when you are looking to make a swap. You can deposit or withdraw any one of their 50+ cryptocurrencies without having to pay any additional fee. The only charges taken by ShapeShift are transaction costs.
Recently, ShapeShift added the feature to purchase crypto with USD from your bank account. This incurs a fee of less than 1% and is open to only US customers. However, first-time users cannot purchase crypto with fiat money.
Is ShapeShift Versatile in Terms of Trading?
ShapeShift provides its services across the globe. It is a crypto-to-crypto swap facilitator. You cannot trade on this platform. You can only swap one token for another. Regular users of the exchange are allowed to purchase crypto using fiat currency, but that is not available to all countries.
Support is limited with ShapeShift accepting only 50 cryptocurrencies on its platform. However, it does allow swapping of some of the more popular coins, such as Bitcoin, ETH, BCH, etc. There some altcoins listed on the exchange as well, including Augur, Gnosis, Potcoin, ReddCoin, BlackCoin, etc. The only area where ShapeShift allows options is trading pairs. Users can swap any Bitcoin for altcoin and vice versa. Users can also swap among altcoins.
How User-Friendly is ShapeShift?
There is a highly convenient service offered by ShapeShift, which is very user-friendly. You don’t have to waste time signing up or providing your email address. Although, there are benefits associated with signing up in the form of FOX tokens. There are very few platforms that allow trading or crypto exchanging without signing up.
ShapeShift Customer Service
Customer support is a mixed bag with many glowing reviews and some disappointing ones. However, the average consensus is that it can be difficult getting ahold of the company.
The Bottom Line
ShapeShift offers great features and a very transparent fee structure. This is a great platform for beginners looking to swap their tokens. However, you won’t be able to make your entry-level purchase here unless you are a US citizen.