Shapeshift.io Review

in #bitcoin4 years ago

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I have been using Shapeshift.io for over a year now, and I like this exchange, so I will post here my review about it, and let me know in the comments if you agree or not with it.

NOTICE:

  • This review is not endorsed by Shapeshift.io
  • I am not affiliated in any way with Shapeshift.io
  • This is just my opinion about Shapeshift.io as a happy customer


Shapeshift.io

Shapeshift.io is a cryptocurrency exchange that started up in August 2014. It was founded by Erik Voorhees, a famous and reputable person in the Bitcoin community. Voorhes is also known from Satoshi Dice, he founded that too, but it was sold since. Shapeshift.io seems to be in good hands.

Their goal is:

ShapeShift’s goal is to be the fastest, most private, and most convenient way
to swap digital currencies, and the exchange rate will always remain
competitive.

This seems to be true since the exchange is pretty quick, the fees are low, and no account is needed, therefore the amount of personal information collected is minimal, much less than for other exchanges. For this privilege, it also has a drawback since they operate with a "No Fiat" policy, this means that you can't trade cryprocurrencies into fiat money here, probably for regulatory reasons. But I think its a good compromize, since you can atleast keep your privacy.

They claim that they can:

ShapeShift can change currencies in under ten seconds, no account
required.

This is certainly true in my experience, I have been trading here since 2015 and for coins that have a small confirmation time it is very fast. When I convert Bitcoins, then I think it waits for 1 confirmation, so it can take up to 15 minutes in some cases, but I have no problem with that. Certainly signup up to an exchange, verifying phone numbers, verifying e-mails, would take at least 30 minutes, so for the privilege of just exchanging your coins at the spot without further hassle, I think it's very much worth it.

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The GUI is very charming, with big buttons and a good contrast of colors. It's easy to understand, the instructions how to exchange coins are right there, so the chance of a mistake from the customer's part is pretty low. Although in some currencies you need to send a message or token with the transaction, and there it might get complicated. For example in Steem transactions you also need to send a code in a "Memo" with the transaction. So it's recommended to pay attention to the instructions there.

The best feature of Shapeshift.io is that they don't hold the customer's funds, or at least not for long. This is very advantageous since even if the website gets hacked, the damage will be minimal for the customers. It is a priority in my opinion to be in control of your money, and I don't like keeping large sums in 3rd parties hands. Shapeshift.io has resolved this issue, the exchange happens there, and the money goes to your wallet that you hold. Pretty simple and elegant.

I have been using it since 2015 and I'm pretty happy with their services, I have had a few issues occasionally, but their support is very good, and helped me resolve it in less than 24 hours, in all cases. In other exchanges you sometimes have to wait 1 week until the support gets to you, but here any issue is resolved very fast.

Shapeshift.io is definitely an easy way to trade STEEM, although they don't support SBD currently, so for that you need other exchanges. Or you can trade the SBD in the Steem internal market, and trade the STEEM at Shapeshift.io. However you choose, it's your choice. My STEEM trades are smooth.

So if you want to trade STEEM, you can probably do it through Shapeshift.io very quickly and smoothly. They also have a Steemit account, and they wrote a few blog entries here too.

Website: https://shapeshift.io
Overview: https://info.shapeshift.io/site/sites/default/files/ShapeShift_2016_Press_Kit.pdf
About: https://info.shapeshift.io/about
Customer Support: https://shapeshift.zendesk.com/hc/en-us/requests/new



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Shapeshift.io is awesome and is one of models of future exchanges. @blocktrades (https://blocktrades.us/) is another one.

They seem to be smaller to I guess Shapeshift has better spread, but we will see.

Although blocktrades supports SBD and STEEM POWER, so it's very interesting.

There is 1 issue with the exchange model though, and this is not the fault of Shapeshift, this is just an issue with OTC markets.

The problem is that they always need a liquidity provider, since all exchanges happen on the spot, and people also put limit orders or pending orders, so there is no orderbook in spot trades.

I believe they use Bittrex and Poloniex as their LP, so without a centralized exchange acting as main LP, an OTC market can't exist. It's like how you can exchange foreign currencies at currency exchanges, but they all need to have a bank to give them liquidity and they put a premium on the price. It's the same business model for all OTC exchanges.

So we will need the centralized exchanges unfortunately to act as LP, but this OTC exchange business model that Shapeshift uses is very very useful for many people. I am happy to pay an extra premium for an instant exchange with no account needed.

Great point. One way to mitigate that problem is to network with as many points of exchange as possible to decentralize and make use of the distributed order book.

Yes a distributed order book technology would be cool, some kind of blockchain ledger that would keep the order books in a distributed way.

don't forget about me when you launch this venture!

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I have used it sucessfully several times, very fast, only time it stuck was when btc had plenty of unconfirmed transactions, resumed after 1/2H and one not delivered with quick support response resolving the issue.

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