Shakepay Review: A Simple Way to Trade Bitcoin and Ethereum
Shakepay is an up-and-coming Montreal-based Canadian crypto exchange that lets you trade bitcoin and ethereum. You can fund your account with Canadian dollars or transfer crypto from your own crypto wallets. They’ve been around since 2015 and have served more than 600,000 Canadians. In this Shakepay review, I’ll cover all of the basics, from fees to privacy and security, and I’ll let you know how they compare with another fast-growing crypto exchange.
Getting Started with Shakepay Exchange
You can open your Shakepay account and buy bitcoin within minutes. Head to the “Get Started” button located at the top right of the Shakepay homepage. You’ll be asked to come up with a @shaketag (username), and to provide an email address and password.
Shakepay will send you an email to confirm your account before proceeding to the identification stage. Shakepay uses 2-Factor authentication for additional security. You’ll have an opportunity to set this up at the time of account opening.
What Coins are Supported with Shakepay?
Unlike some other cryptocurrency exchanges, Shakepay Exchange users are limited to trading Bitcoin (BTC) and Ethereum (ETH). If you’re looking to trade a range of crypto, including some of the alternative coins, you may want to look elsewhere. It will be interesting to see if they expand their lineup of coins. That said, if Bitcoin and Ethereum are all you need, Shakepay has you covered.
Shakepay Exchange Fees
Canadian cryptocurrency exchanges vary in the way they charge fees. Some, like Bitbuy, charge a commission fee when you trade. Shakepay makes money on the spread, which is built into the price when you buy or sell.
When it comes to fees, Shakepay likens itself to a retail store. They own the bitcoin and they sell it to you at their price. That price is a little bit higher than the actual market price. The difference is the spread, and it’s how Shakepay makes money.
My personal preference is to pay a commission fee because it feels more transparent. You know exactly what you’re paying, whether the fee is .20% or .60%. I can’t tell you what Shakepay will charge you to buy, say 10,000 CAD worth of bitcoin because the spreads can change at any time.
What I do like about Shakepay fees is that they don’t charge you to transfer funds in and out of your account. Several other crypto exchanges charge deposit and withdrawal fees.
Summary of Trading Fees
There are no commission fees when you trade from your mobile phone or desktop.
Shakepay makes money on the buy and sell price, by charging a slight premium to the buyer and seller. You can find the buy and sell prices on the Buy and Sell page of the Shakepay app.
How Do I Fund My Shakepay Account?
There are two ways to fund your account with Canadian dollars, and you can also transfer crypto from your bitcoin wallet into your Shakepay account.
|Interac e-Transfer||Free||Within minutes||$5 to $10,000|
|Bank Wire||Free||1-2 business days||$5,000 to unlimited|
|Bitcoin (BTC)||Free||20 min||No min or max|
|Ethereum (ETH)||Free||20 min||No min or max|
|Interac e-Transfer||Free||Within minutes||$5 to $5,000|
|Bank Wire||Free||1-2 business days||$5,000 to unlimited|
|Bitcoin (BTC)||Free||Instant||.0001 to unlimited|
|Ethereum (ETH)||Free||Instant||.05 to unlimited|
Note: Shakepay covers bitcoin miner fees and Ethereum gas fees on crypto withdrawals.
Is Shakepay Safe?
Shakepay is transparent regarding the privacy and security of its customers. With one click from their homepage, you can access their security commitment, which includes an “independent review of their internal procedures for storing funds and processing transactions.” CipherBlade, a Blockchain Investigation Agency, conducted the review, and a link to the report is available right on the page.
When you open your Shakepay account, you are required to set up 2-factor authentication (2FA), also used by Canada’s big banks to secure their online banking. In addition, Shakepay uses email confirmations for withdrawals, and will notify you of any transactions, account logins, and password changes via email or SMS.
They also appear to be registered with FINTRAC, Canada’s money laundering and terrorist activities watchdog. Here are some other ways Shakepay keeps your information and your crypto safe.
Offline Cold Storage
According to Shakepay, most Bitcoin and Ethereum held by them are stored offline in cold storage wallets, in partnership with a regulated cold storage provider.
Most of the cryptocurrency held with Shakepay is protected by an insurance policy. The coverage includes damages, theft, and the loss of private keys.
All customer funds are kept separate from Shakepay’s money. This includes Canadian dollars, which are held in Canadian bank accounts, and crypto, which is held in offline cold storage, separate from Shakepay’s own funds.
Shakepay Customer Support
On their website, Shakepay commits to responding to customer service issues within hours any day of the week. If you have a question of a general nature, you may be able to get your answer via their FAQs, which have plenty of information.
Shakepay vs. Newton
I’ve reviewed a lot of Canadian cryptocurrency exchanges, and if you ask me, Shakepay is most comparable to another up-and-coming exchange, Newton. Like Shakepay, Newton does not charge fees on deposits and withdrawals, and they also offer e-Transfer and Wire transfer funding methods.
Another similarity is in the trading fees. Newton does not charge commission fees but makes money on the spread, much like Shakepay. The biggest thing differentiating the two companies is that with Newton, you can trade over 25 currencies, one of, if not the highest total for a Canadian crypto exchange. For more information, check out my full Newton review.
Shakepay Pros and Cons
Shakepay is great for beginners because they make it so easy to trade crypto. Here’s my list of the benefits and drawbacks:
- Easy to understand cryptocurrency trading platform
- Affordable (no fees for deposits and withdrawals)
- Transparent about fees and customer security
- protected by an insurance policy and cold storage
- Only two coins offered (bitcoin and ethereum)
- Lacks an advanced trading platform for sophisticated traders
Final Thoughts on Shakepay
If your only crypto goal is to buy bitcoin in Canada or ethereum for that matter, then I highly recommend that you give Shakepay a close look. It’s a great place to buy and sell bitcoin. You can transfer in fiat currency or crypto without paying any fees. Shakepay will make money on the spread, but they cover mining fees, which is a nice touch. If you need access to more digital currencies, I recommend Newton as a suitable alternative.