Shapeshift experiences - The crypto exchange review

Overall Rating: 
5/5 stars

Quality

speed

cost

Crypto exchanges are now a dime a dozen because they are becoming increasingly popular among crypto fans. The various cryptocurrencies are also spreading more and more, which brings many new traders with it. In addition to the many traders, there are also many new providers in the field of crypto exchanges. However, beginners who are looking for a suitable portal for crypto trading might have a hard time. Although there is no lack of crypto exchanges, there is a lack of transparency.

Which crypto exchanges are recommendable and which are scammers? Because wherever people invest larger and smaller amounts, sooner or later there will be fraudulent freeloaders.

So it's not only about understanding how cryptocurrencies work, but also about understanding how crypto exchanges work. Because only those who have at least basic information in both areas have a chance of making profits by trading with cryptocurrencies. In this article, we will go into all the important areas surrounding the valuation of cryptocurrencies and take a close look at the crypto exchange Shapeshift. Does Shapeshift operate reputably or is there a Shapeshift scam? We will find out in our Shapeshift test.

The key data for Shapeshift at a glance

Key data

Shapeshift

Minimum deposit

$ 1

Crypto offering

45

user friendliness

High

Max. Leverage

1: 1

fees

low

FAQ

Yes

Fiat currencies supported

No

Headquarters

Switzerland

security

Inadequate

For those in a hurry: Is Shapeshift recommendable?

Basically, Shapeshift is a thoroughly reputable provider. However, there are some points about the platform that users dislike and that can lead to problems, such as:

    1. there is no demo account available for testing.
    2. an unusually large amount of data has to be entered during registration and verification is not secure.
    3. previous users report lost coins and a customer service that is difficult to reach.

Our recommendation is therefore to open an account with a trading platform that does not have these disadvantages. The test winner from our comparison is eToro.

Shapeshift Review: The offer

Shapeshift Review

Shapeshift has been online since 2014. The platform was founded by Erik Voorhees. Currently, the platform has a daily trading volume of 200,000 euros. Shapeshift has 16 major investors, such as Earlybird, FundersClub, Blockchain Capital, Access Venture Partners, LakeStar, Digital Currency Group and Pantera.

The exchange also offers its own Bitcoin wallet. As with many crypto exchanges, the no-FIAT currency policy also applies here. Shapeshift is a classic crypto-to-crypto exchange. So traders can't do much with FIAT currencies here. Instead, well-known crypto giants, such as:

    Bitcoin,
    Ethereum and
    Litecoin are of course also in the game.

Thanks to the large selection of different digital coins, users can realise many different types of trading here.

What is not part of Shapeshift's offer are other assets. Shapeshift is really only about trading digital currencies. 

This can sometimes be complicated, because not every trader wants to use another exchange to acquire digital coins beforehand.

The crypto exchange itself advertises the high efficiency of the trades. The average processing time of a transfer is said to be 562 seconds, which is quite remarkable compared to other crypto exchanges. This means that the more than 1000 coins can be traded with above-average speed.

Shapeshift offers the following cryptocurrencies:

    Bitcoin
    Litecoin
    Etherum
    Tether
    ZCash
    Startcoin
    Dogecoin
    BitShares
    Ripple
    Dash

Here you can trade

In addition, another platform is to be launched in the near future.

Shapeshift Experience Report: The Fees

Of course, Shapeshift also charges fees, after all, the platform has to finance itself somehow. What is unusual is that Shapeshift does not charge fees for selling or buying, depositing or withdrawing, but for exchanging. According to the operator, a fee of 0.5% is charged here.

However, reviews by various users indicate that the fee structure is not quite so clear after all. Users describe that they were repeatedly surprised by the high fees.

Dorsey stressed that
Shapeshift charges 50 euros for sending coins to non-matching wallets. So anyone who sends Bitcoins to a Litecoin wallet may pay an expense fee of 50 euros. The company will try to arrange the return of the coins, but this is not always possible. Either way, however, fees are incurred.


However, reviews by various users indicate that the fee structure is not quite so clear after all. Users describe that they were repeatedly surprised by the high fees.

Shapeshift charges 50 euros for sending coins to non-matching wallets. So anyone who sends Bitcoins to a Litecoin wallet may pay an expense fee of 50 euros. The company will try to arrange the return of the coins, but this is not always possible. Either way, however, fees are incurred.

    If you compare Shapeshift with other competitors, the fees here nevertheless seem relatively low and manageable.

Tip: Before starting the trading adventure, every user should study the fee regulations very carefully, because changes can be made with every update. The description of the fees can be found in the FAQs.

What deposit and withdrawal options are accepted?

Deposits and withdrawals are a sensitive issue. There are still providers who proceed in an extremely one-sided and unimaginative manner. In the meantime, there are more than enough possibilities to make deposits and withdrawals very user-friendly without much effort. Since Shapeshift has a no-FIAT policy, the question of deposit and withdrawal options is quickly answered.

Apart from cryptocurrencies, traders should not expect much here. The digital coins cannot be bought and paid out with US dollars or euros, as is the case with many other crypto exchanges.
The payment methods at Shapeshift

At Shapeshift, no fiat currencies are supported, but buying cryptos with a credit card is possible. Further, Sofort, Skrill, Neteller as well as Paysafe and of course cryptos are accepted.

Here is an overview of the payment methods at Shapeshift:

    Credit cards
    Sofort
    Skrill
    Neteller
    Paysafe
    Cryptos

Shapeshift - The Platform

In addition to the official platform, Shapeshift is also present on social media channels such as:

    Instagram,
    Twitter and
    Facebook.

This is not a matter of course and shows that the operators make some effort to represent the crypto exchange widely. Very few fraudulent providers are likely to make this effort.

The platform is not only available, but also in English, Spanish, French, Hindi, Italian, Japanese, Korean, Dutch, Polish, Portuguese, Russian, Arabic and Chinese. Again, a sign of the provider's seriousness, because which fraudulent provider invests in this variety of languages here?

Shapeshift - The Platforms

Otherwise, the platform has a rather minimalist design and is thus not very overwhelming. This clear structure should help newcomers in particular to find their way around the homepage.

Details about the providers can also be found on the platform. In the case of Shapeshift, unfortunately, this is not so easy. It is not easy to find out much about the Shapeshift operators.

    You won't find a proper imprint here. The registered office and any licensing by the authorities are also not listed here.

This should scare off experienced traders, because there is no reason for reputable providers to hide behind a veil.
Transparency ensures trust between investors and operators - and this should also be in the interests of the operators!

Now, due to the lack of information about the operators, it is not possible to speak directly of a Shapeshift scam. However, there are certainly crypto exchanges that are much more forthcoming with their contact details.

Fee comparison between Shapeshift and other providers

Here is an overview of Shapeshift fees compared to the competition:


Shapeshift

eToro

Libertex

Coinbase

Deposit

no

no

no

3.99%

Purchase fees

no

1.9%

3.08%

1.49%

Sales charges

no

1.9%

3.08%

1.49%

Holding fees

no

no

no

no

Payout

no

$ 5

no

$ 0.15

Spreads

no

no

no

no

Inactivity fee

no

no

no

no

Exchange fee

0.5% per transaction

no

no

no

Miner fairy

Crypto dependent

no

no

no

Extraction Fee (when sending to
invalid wallets)

50 €

no

no

no

Recommended alternative to Shapeshift: eToro

 If you want to buy Bitcoin quickly, we recommend the broker eToro. In addition to a clear user interface, state regulation and copy trading, the big advantage of the platform is that both Bitcoin CFDs and real Bitcoin are available for trading. Moreover, with ~1.8% total costs, eToro also proves to be the top dog in terms of price.

  • Stock exchange and wallet in one
  • Regulated provider
  • Deposit with PayPal, credit card, SOFORT transfer and more
  • Over 14 other cryptos tradable
    Equities and ETFs also available

Licence and security with Shapeshift

One thing first: Shapeshift is not the ideal platform. We recommend other providers such as eToro, because there are obviously security gaps at Shapeshift. The crypto exchange has already been hacked in the past! According to the provider, this was only possible because an employee apparently cooperated with the hackers. Since then, security measures have been increased, according to Shapeshift.

In general, it should be noted that one should never click on sent links or Google Ads.

Shapeshift protects the website through SSL encryption, but relies on the anonymity of its users. The service does not require the creation of an account, which means that no personal data has to be disclosed. Transactions are processed directly in the instant exchange. Money is not kept on Shapeshift, but paid out immediately.

Investous - User friendlinessd

Additional offers from Shapeshift

Although Shapeshift does not require an account, users will be able to benefit from five levels of membership in the foreseeable future. The first level (Level 1) is free of charge and will remain so. Levels 2 to 5 are only possible for investors who own FOX tokens. However, these levels are only in the planning stage and are not yet available.

Levels 2 to 5 are supposed to have higher trading limits, more advantageous prices and earlier access to new coins, services and products, and larger trading volumes are supposed to be rewarded. Users will also receive private market and trading data.

Deposit and withdrawal
In addition, it will be possible to view transaction history and access personalised customer support and trade shortcuts.

Other special features of Shapeshift include FOX tokens. The basis of this is a standard Ether-based token, which has the abbreviation FOX. At Level 1, it is not necessary to be in possession of FOX tokens.

Members also receive the tokens in the form of bonuses on trading volume and via promotions.

The Shapeshift app

The Shapeshift offer is also available as a practical app for on-the-go. Quite practical, because users can access the Shapeshift offer and exchange coins anytime and anywhere. As with many other crypto exchanges, for example Markets.com or bitcoin.de, the Shapeshift app is also free. There is both an Android version and an iOS version. The advantage is that the app only consumes a small amount of storage space.

Users do not seem to be very fond of the Shapeshift app. In the Google Appstore, the app has only received a rating of 3.4.

    Some criticise the fact that users have to transfer personal data to register.
    Users also criticise that the transactions take longer than average, which would sometimes lead to losses in value.

So anyone hoping for fast trades could be disappointed when using the app.

The Shapeshift apps

Shapeshift - The customer support

Of course, customer support also plays an important role. In case of problems with trading, users naturally want to receive comprehensive information as quickly as possible. However, Shapeshift has a rather limited offer here. While many other crypto exchanges offer telephone and written service around the clock, Shapeshift only offers a classic contact form. In case of difficulties with trading or the account, users have to contact the customer service via the contact form.

Unfortunately, users cannot upload attachments to the contact form, which would sometimes be helpful in solving problems. A quick solution via a direct conversation with a hotline employee is unfortunately not possible.

The various user reviews give a rather mixed picture of the customer service. They complain that customer service sometimes takes months to get back to them and that problems cannot be solved satisfactorily. The reliability of the customer service was not checked in our test.

    In addition to the contact form, the FAQ section is also available to users. Here you can find information on various areas of the website.
    In addition, there are various explanatory videos on YouTube about trading with cryptocurrencies.

Shapeshift - The customer support

Shapeshift - The account opening

The account opening is also an important topic when it comes to evaluating a crypto exchange. This is where traders can usually see how important the security of the users is to the operators. If questionable information is requested here or the registration is not secured via SSL encryption, this reflects badly on the operators.
Tip:Users should also increasingly make sure that they are not redirected to external, mostly unlicensed brokers after registration.

Most crypto exchange providers work with a multi-step verification process during registration. This gives the operators the security that no money laundering is taking place on the platform. This also creates a safe trading environment for the users.

Step 1: Registration

To open a customer account at Shapeshift, users must provide some personal data. To begin with, it is sufficient to enter an e-mail address and set up a secure password. You will then receive a confirmation link by e-mail that will take you to the account opening page.

Now you have to provide further information such as your surname, first name, telephone number, date of birth, country and address. So far, this is not an unusual procedure.

However, you will search in vain for proof of the security of the data.

To open a customer account at Shapeshift

Step 2: Verification

Nothing works at Shapeshift without verification. As already explained, this has advantages for operators and users alike. Of course, this verification involves a little effort, but if you are serious about crypto trading, you will have to take on this little extra work.

However, the verification process at Shapeshift is not without its security loopholes. Users have to upload some documents, either a copy of their passport, identity card or driving licence. Of course, it should be clear to everyone that these documents can easily be forged and changed. That is why many crypto exchanges use an additional video verification or a PostIdent procedure at this point. Shapeshift does not do this, which is why trading can begin after the uploaded files have been approved.

Step 3: Trading

Trading with Shapeshift is relatively simple. Here you simply select two assets:

    One for the digital currency that you own, and
    one for the coins you would like to receive.

Once this is done, you can choose between "Quick" and "Precise".

With the "Quick" transaction, traders can specify a value between a minimum and maximum value. There are no predefined amounts. The deposit address can also be reused here if the coins are to be reused.

With "precise" trading, traders set a fixed value beforehand. Then the traders receive a deposit address and after five minutes the trading is completed. There is no guarantee of good prices here, but there is a chance of achieving significantly better trades than with "quick" trading. After the successful transaction, both parties receive a link to transfer the coins.

Trading with Shapeshift

Customer reviews of Shapeshift on the Internet

Shapeshift experiences are almost exclusively negative.

Shapeshift's rating on Trustpilot is currently 106 with an average of only 2.2 out of 5 stars. Only 26% of users have given the platform the highest rating. 55% find the platform inadequate.

Here are a few reviews:

Steven Wine Jr wrote on 16/01/2021:

Icon "Horrible customer service and slow at that! Haven't received my funds from a trade and it's going on over a week so they tell me to refresh the app and this and that but nothing! I want my money back!"

"Terrible customer service and slow to boot! I didn't receive my money on a trade and have been waiting for a week now. They tell me to reload the app and this and that! I want my money back!"

Felipe, who left a review on 06.01.2021, doesn't like Shapeshift either:

"Stay away from these guys. I bought 500 USD in ETH 1 hour ago, so far no coin. The price was 1.145=~.. they showed in the app the correct amount and when paid the amount was lower !!! they ended up charging me 1.200usd + for the ETH when it never reached that value. And still no coins ... Stay AWAY from these guys... find better options like Binance or Coinbase."

"Stay away from them. I invested 500 USD in ETH an hour ago and haven't received a coin yet. The price was 1.145 = ~ ... they showed the correct amount in the app, and after paying, the price was lower!!! In the end they charged me 1'200 USD + for the ETH - a value this cryptocurrency never reached. And I'm still waiting for my coins. Stay away from these guys...there are better options like Binance or Coinbase."

Hermes Sanchez, on the other hand, had a good experience. He wrote on 29.11.2019:

"Everything working as intended. Been using it since a long time, it's great! Eric Voorhees is also a funny chap :D."

"Everything worked as I intended. I've been using Shapeshift for a long time; the platform is great! Plus, Eric Voorhees is also a funny chap :-)."

The opinions on Shapeshift are therefore different. We definitely recommend eToro as a Shapeshift alternative, a regulated broker that convinces on all levels.

The advantages and disadvantages of Shapeshift at a glance

Shapeshift, like any other crypto exchange, comes with its advantages and disadvantages. It is then in the eye of the beholder which of these advantages and disadvantages are weighted more heavily and how attractive the offer is accordingly.

The advantages are clear:

Pros

  • Shapeshift advertises low fees and fast transfers.
  • The offer includes more than 1000 different digital coins.
  • A free app is available.
  • The test reports are positive.
  • Shapeshift maintains its own digital wallet.
  • The FAQ section is quite detailed and there are some YouTube videos for explanation.
  • The homepage is clearly structured.

Cons

  • Some user reports are negative, and some coins are said to have been lost.
  • Users have to enter an above-average amount of data when registering.
  • Verification is not secure.
  • Shapeshift does not offer a demo account.
  • FIAT currencies cannot be deposited.
  • The customer service is sometimes heavily criticised by users and can only be reached via a contact form.
Licence and security

The bottom line on Shapeshift

Shapeshift is the place on the internet where crypto enthusiasts can trade over 1000 different coins. Only a few crypto exchanges offer this scope. However, Shapeshift has the disadvantage that FIAT currencies are not supported here at all. Traders who do not happen to already have a repertoire of cryptocurrencies could possibly be put off by this.
When registering, users have to disclose an above-average amount of data about themselves. This is likely to deter more traders, because cryptocurrencies are all about anonymity. As far as anonymity is concerned, the operators are quite clever when it comes to their own data. There is not much of that to be found on the platform. Here, too, a minus point for Shapeshift.

Customer service also seems to be in need of improvement. On the one hand, it can only be reached via a contact form, and on the other hand, users complain that they often had to wait several weeks for an answer instead of 48 hours as stated by Shapeshift.

In the various crypto tests, however, the Shapeshift crypto exchange comes off quite well. Some of the user reviews are critical of the service. The customer service and the security of the coins are criticised. Shapeshift has some catching up to do here. Verification also does not live up to its promise. Shapeshift does not use video verification, which makes the entire verification process, including uploading documents, seem nonsensical.
Conclusion: All in all, a not entirely satisfactory crypto exchange.

Recommended alternative to Shapeshift: eToro

 If you want to buy Bitcoin quickly, we recommend the broker eToro. In addition to a clear user interface, state regulation and copy trading, the big advantage of the platform is that both Bitcoin CFDs and real Bitcoin are available for trading. Moreover, with ~1.8% total costs, eToro also proves to be the top dog in terms of price.

  • Stock exchange and wallet in one
  • Regulated provider
  • Deposit with PayPal, credit card, SOFORT transfer and more
  • Over 14 other cryptos tradable
    Equities and ETFs also available

FAQ

What is Shapeshift?

Shapeshift is a cryptocurrency exchange through which traders can trade cryptos.

How much money should I invest in Shapeshift?

The appropriate amount depends on your own liquidity and preferred cryptocurrency. Personal risk appetite also comes into play here. As a rule of thumb, one should only invest the money that would not hurt in the event of a total loss.

How long does Shapeshift take for a payout?

This platform processes withdrawal requests quickly. Processing time can take anywhere from a few minutes to two business days, depending on the withdrawal method.

What does it take to start winning at Shapeshift?

The prerequisite is knowledge of the financial instrument in which one invests. Basically, it must be noted that cryptocurrencies are highly volatile and trading is therefore always risky. However, if you are familiar with trading, the luck of the brave is not far away!

Hi, my name is Benzion. I have twelve years of experience in the Forex industry, and I have launched two successful crypto trading services. I have in-depth experience on several blockchain networks like Bitcoin, Etheruem, EOS, Cardano, Hyperledger, ICON, Komado, etc. I also have in-depth knowledge of blockchain techniques, including various consensus mechanisms, DLT, smart contracts, security, and privacy measures. Benzion Friedman