Changelly Vs Shapeshift | Which is 2020’s Best Instant Exchange?
Looking to buy Bitcoin in Canada? If so, you will typically be best served by homegrown Bitcoin exchanges like MyBTC.ca. However, using Bitcoin to invest in other altcoins isn’t as straightforward. Here, in our 2020 Changelly vs Shapeshift review, we’ll, therefore, look at two of your best options..
Changelly Vs Shapeshift - What are Instant Exchanges?
Before delving into our Shapeshift and Changelly review, it’s worth looking at what instant cryptocurrency exchanges are.
By and large, even novice crypto investors are familiar with cryptocurrency trading platforms like Binance. However, if you are a novice investor, trading platforms like Binance and Coinbase aren’t exactly user-friendly.
• Creating buy and sell orders on large exchanges can be confusing for new investors.
• Some exchanges only allow users to buy specific altcoins.
• Many exchanges are custodial. This means that they encourage users to store all coins in exchange wallets.
For the most part, instant cryptocurrency exchanges like Shapeshift charge higher fees than larger exchanges. However, investors and traders can buy coins easily in seconds. This offers more convenience, especially for new to market investors.
Changelly Vs Shapeshift
Taken at face value, Shapeshift and Changelly are very similar. Both instant cryptocurrency exchange platforms support several different altcoins. Both also have a reputation of trust. Shapeshift and Changelly also integrate directly with several mobile wallets.
In the case of top mobile wallets like Coinomi, users can use both Changelly and Shapeshift to buy and exchange cryptocurrency. However, as of 2020, there are a few key differences between the exchanges.
Changelly Review - Low Fees & Fantastic Altcoin Support
On paper Changelly and Shapeshift charge comparable transaction fees to larger exchanges. Typically, though, altcoins will always trade at a premium on all instant exchanges. This means that every time you buy coins, you will (usually) pay more than on bigger exchanges like Binance.
In 2019, Changelly and Shapeshift fees came under the spotlight. As a result, both exchanges now attempt to lure users with different incentives. Overall, though, Changelly currently offers the lowest fees and supports more altcoins.
• Fees on Changelly are fixed at 0.25% per transaction.
• Changelly supports 150+ altcoins. (Shapeshift supports just 40+.)
• On average, transactions on Changelly take just 12-minutes to complete.
Many altcoin traders and investors also prefer Changelly over Shapeshift for ease of use.
Like most exchanges, Changelly does ask some users to verify their identity by uploading their ID. However, most users can start using Changelly by signing up via email, Facebook, or through wallet apps like Coinomi — all without verifying their identity.
It is also worth noting that to date, Changelly has not been hacked, nor made headlines in response to serious security breaches.
Shapeshift Review - Higher Fees and Poorer Altcoin Support
When it comes to Changelly Vs Shapeshift, most users simply want to know which exchange offers the best value. Sadly, Shapeshift becomes a hard sell in this respect.
According to Shapeshift official documentation, Shapeshift charges zero fees. Instead, Shapeshift only passes on blockchain miner fees to users. Overall, though, Shapeshift does admit that it makes 0.5% profit on transactions. To do this, Shapeshift leverages cryptocurrency exchange rates in their favor.
Some instant cryptocurrency exchange users find Shapeshift’s zero-fee promise disingenuous. This is thanks to the fact that in real terms, fees (even though they are not called fees) still rest at (approximately) 0.5% per transaction.
• Overall, many users find that using Shapeshift incurs higher costs than when using Changelly.
• Shapeshift can be argued to lack transparency and presently supports fewer altcoins than Changelly.
• Shapeshift transactions typically take seconds to complete, but can also take several hours.
Shapeshift is also known to employ stricter Know Your Customer (KYC) security. As a result, most users are required to verify their identity before buying or exchanging cryptocurrency.
Shapeshift is currently trying to give new users an incentive to verify accounts. This takes the form of verified users being rewarded with 100 of Shapeshift’s own Fox Coin altcoin. However, under the gloss of incentives, ID verification is mandatory.
Shapeshift Security Woes
As well as higher fees and stricter KYC ID verification, Shapeshift falls short when it comes to security. Shapeshift has suffered several hack attempts in recent years. In late 2019, it was also discovered that KeepKey Shapeshift hardware wallets can be hacked relatively easily.
When it comes to Changelly Vs Shapeshift, Changelly comes out on top in most side by side exchange comparisons. It should be noted, though, that both exchanges do have several merits, especially when it comes to overall convenience.
Posted by: Duane Seamans, MyBTC.ca CEO