Home » Crypto » Shakepay Cryptocurrency Exchange Review

Shakepay Cryptocurrency Exchange Review

 

Disclosure: Tech Daily is reader-supported. If you click-through, make a purchase or sign up for a service through our links, we may earn a commission or fee (at no cost to you). Learn more.

 

 

What is Shakepay?

Shakepay is a Canadian cryptocurrency exchange touted as the easiest way for Canadians to buy and sell bitcoin (BTC).

Shakepay users can also buy and sell ethereum (ETH) and access a mobile peer-to-peer (P2P) payment system released in October 2020.

Every user that creates a Shakepay account is assigned an individual CAD, BTC, and ETH exchange-based wallet to facilitate trading.

Like many Canadian cryptocurrency exchanges, Shakepay acts as the custodian of wallet deposits and holds the private keys to access them (the equivalent of a credit card PIN).

However, unlike many, Shakepay transparently outlines the process of transferring assets to a non-custodial crypto wallet or CAD bank account, near-instantly.

Although users can move funds out of their exchange-based wallets, Shakepay has integrated several security features to keep accounts safe and secure.
 

Shakepay Features

Shakepay provides a simple user interface with fewer features than similar platforms.

This streamlined user experience caters to newbie crypto investors looking for an efficient onramp to the digital asset class.
 

P2P Payments

In October 2020, Shakepay launched a P2P payment system out of beta that allows Shakepay users to instantly exchange CAD, BTC, and ETH — with no fees.

This service offering expands on the Shakepay mission of giving each user “self-sovereign” control over their wealth.
 

Account Activation

Shakepay accounts are easy to set up; users can create an account and purchase BTC within minutes.

The platform exceeds alternatives with less streamlined Known Your Customer (KYC) and Anti-Money Laundering (AML) protocols.
 

Shakepay Transaction Fees

As a commission-free platform, Shakepay doesn’t charge users for their deposits, withdrawals, or trades.

Like other Candian platforms, Shakepay allows users to deposit or withdraw CAD using e-transfer or wire transfer, each with different processing times.

Crypto withdrawals are exempt from mining fees, but transaction processing times depend on network congestion at the time of order placement.
 

CAD Deposit Fees

 FeeMinimumMaximumProcessing
E-TransferFree$5$10,000Available in Minutes
Bank Wire TransferFree$1,000No Maximum1-2 Business Days

 

CAD Withdrawal Fees

 FeeMinimumMaximumProcessing
E-TransferFree$5$5,000Available in Minutes
Bank Wire TransferFree$5,000No Maximum1-2 Business Days

 

Cryptocurrency Deposit Fees

CryptocurrencyMinimumMaximumFeeProcessing
Bitcoin (BTC)No MinimumNo MaximumFree2 Confirmations (Approx 20 Mins)
Ethereum (ETH)No MinimumNo MaximumFree60 Confirmations (Approx 20 mins)

 

Cryptocurrency Withdrawal Fees

CryptocurrencyMinimumMaximumMining FeeProcessing
Bitcoin (BTC)No MinimumNo MaximumNo Mining FeeInstant
Ethereum (ETH)No MinimumNo MaximumNo Gas FeeInstant

 

How Does Shakepay Make Money?

Shakepay is licensed as a Money Service Business (MSB) in all Canadian provinces and territories by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and Autorité des marchés financiers (AMF).

As such, users can be confident that the company adheres to regulatory requirements, which validates the Shakepay business model.

Shakepay acts as a market maker or intermediary by purchasing and selling digital assets directly to customers.

For example, when a customer purchases ETH on Shakepay, the exchange sells it to them.

Similarly, when a customer sells ETH, the exchange buys it from them.

The platform generates a profit on this practice by setting the buy and sell price of all digital assets.

At any given time, there will be a difference between the price customers pay for crypto and the price at which they can sell.

How Shakepay Makes Money

Source: Shakepay

Shakepay captures this spread as revenue to cover business expenses, maintain the exchange, and generate a profit.
 

Shakepay Security Features

Shakepay integrates several layers of security that protect specific data storage locations on the platform.
 

Money Security

Cold Storage: Most of the digital currencies held at Shakepay are in cold storage wallets. These are wallets residing on hardware devices without an internet connection and less vulnerable to hacking. Shakepay is in an active partnership with a cold storage provider regulated by the New York State Department of Financial Services and holds SOC 1 Type II and SOC 2 Type II certifications.

Insurance Policy: Shakepay holds an insurance policy that covers all digital currencies in cold storage for damages, theft, and loss of private keys.

Multi-Party Approvals: Transactions on Shakepay require authorization from multiple people. Further, the company asserts that the two founders do not have access to cold storage wallets.

Segregated Accounts: Unlike some platforms, Shakepay segregates customer CAD and digital asset holdings from their accounts.

No Fractional Reserve: Conventional banks and some crypto exchanges utilize customer funds without their knowledge — they are only required to Shakepay does not employ this practice and

Strict Whitelisting: Cold wallet transactions are restricted to a whitelist of responsible parties, preventing unauthorized withdrawals.

 

Account Security

Encryption in Transit: Shakepay utilizes secure HTTPS connections between the app and server, while all passwords and data are encrypted before storage.

2-Factor Authentication (2FA): Shakepay accounts are secured with 2-factor authorization (2FA). This process is SMS-based by default, but a 2FA Authenticator app is recommended.

Device Lock: Customers can access the Shakepay app using Face ID, biometric unluck (fingerprint), pattern, or PIN code

Email Confirmations: Users can change their account settings so that digital currency withdrawals require email confirmation before processing.

Account Notifications: These notifications help users identify account activity such as transactions, logins, and password changes.

Rate Limiting: Shakepay rate limits excess login attempts and other interactions are to prevent credential stuffing and brute force attacks.
Personal Data Security
 

Personal Data Security

Encryption at Rest: User data is stored using 256-but AES encryption. As a result, even if someone were to access Shakepay records, retrieved data would be illegible.

Secure Document Storage: Shakepay utilizes an initiator/approver setup to handle sensitive shared data. For example, verification documents are archived after 30 days and aren’t retrievable unless a Manager provides approval.

Privacy Law Compliance: Shakepay complies with Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) and Quebec’s An Act Respecting the Protection Of Personal Information in the Private Sector.

 

Shakepay vs Newton

FeatureShakepayNewton
Pricing ModelThere are no commission fees on Shakeypay transactions nor crypto mining fees on withdrawals.No commission fees, but Newton will only cover crypto mining fees on withdrawals up to $5
APIShakepay doesn’t offer an API that third-party providers can use to access exchange-based data.The “Newton Pro” platform integrates an API that provides third-party platforms with access to Newton exchange data.
Supported Digital AssetsShakepay only supports two digital assets; BTC and ETH.Newton supports ten digital assets, including BTC, ETH, LTC, USDC, USDT, XMR, QCAD, XLM, XRP, and BCH.
FeaturesThe Shakepay pricing model generates profit from the “spread” of buy and sell prices on the market — there is no order book transparency.The “Newton Pro” platform introduces transparent order books, ample liquidity, and non-custodial asset management via Balancer.

 

Shakepay Pros

  1. Shakepay operates as a no-commission platform that benefits traders. Rather than charging fees on every transaction, Shakepay uses a broker-style model similar to platforms like Coinberry.
  2. Shakepay enables deposits and withdrawals via e-transfer and wire transfer. Users can also deposit or withdraw BTC and ETH at no cost — Shakepay also covers the mining fees.

 

Shakepay Cons

  1. As of April 2021, Shakepay only supports two digital assets — BTC and ETH.
  2. The Shakepay platform offers a simple, intuitive user interface that targets novice cryptocurrency investors. As a result, the platform doesn’t support the sophisticated trading tools many professional traders have come to expect.

 

Frequently Asked Questions

 

  • 1. Is Shakepay insured?

  • Yes, given most Shakepay assets are held in cold storage, the company has an insurance policy.

    This policy covers most damages, theft, and the loss of private keys.

  • 2. How do I cash out from Shakepay?

  • Shakepay users can withdraw CAD to their bank account via e-transfer or wire transfer.

    CAD withdrawals via e-transfer take a few minutes, while wire transfers typically take 1-2 business days.

    Users can also withdraw their BTC or ETH holdings to a non-custodial crypto wallet; this process takes 2 and 60 confirmations, respectively.

  • 3. How long does Shakepay e-transfer take?

  • Whether users are withdrawing or deposing CAD funds via e-transfer, the process is complete within a few minutes.

 

nv-author-image

Jordon Ahosaari

Jordon is a blockchain and cryptocurrency content writer and founder of Curated Cube. He works with startups and established tech firms to create content that resonates with diverse audiences.