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- >Shakepay vs Bitbuy
Shakepay vs Bitbuy
Shakepay and Bitbuy are two of the most popular and well-known bitcoin exchanges in Canada, and both offer the kinds of features that are best suited for new cryptocurrency users who want to purchase their first coins. These user-friendly cryptocurrency exchanges make it easy for anyone to get started in the crypto asset space, which can be a pretty daunting task at first glance. That said, there are a few differentiating features found at both of these exchanges that help them stand out from some of the other options in the Great White North.
Let’s take a closer look at the key differences and similarities between two of the largest bitcoin exchanges in Canada.
CryptoVantage Staff | Jun 8, 2021
- One of the most user-friendly exchanges
- Licensed as an official Money Service Business in Canada
- Incredibly fast with purchases taking minutes rather than hours
- All assets on Shakepay are stored offline
- Fantastic UI for new cryptocurrency users
- One of the highest levels of security for a Canadian cryptocurrency exchange
- Lists all seven of the major cryptocurrencies including Bitcoin, Ethereum and EOS
- Supports Interac (including instant e-Transfers) and bank transfers for easy deposits
Shakepay vs Bitbuy Complete Breakdown
With Shakepay the fee structure is a little bit complicated. This is because the platform does not actually charge any direct fees on buy or sell orders. Instead, Shakepay uses the spread between their buy and sell rates to turn a profit. This spread usually ends up being an effective fee of around 1.75% per trade. It should be noted that users may also be charged fees on deposits and withdrawals, depending on the specific payment method chosen.
The fee structure is a bit more transparent on Bitbuy; however, there are also more different types of fees that you may need to worry about. First of all, every deposit and withdrawal made to and from this cryptocurrency exchange will have a fee attached to it, and this fee can range from 1.5% to 3.5%. The lowest fee of 1.5% is associated with deposits and withdrawals made via the Interac e-Transfer system. These fees may seem like a bit much at first, but the reality is Bitbuy’s trading fees are pretty competitive, especially if you’re using the part of the platform that is targeted towards more advanced traders. For pro traders, fees are only 0.1% or 0.2% depending on what side of the trade the user has taken. However, if you’re using the simple buy and sell interface for beginners, then you’ll be hit with a 0.75% fee for buy orders or a 0.5% for sell orders.
When you’re comparing the fees charged by these two platforms against each other, the cheaper option is going to depend on your specific needs. If you just want a simple interface to buy or sell cryptocurrency quickly, then Shakepay is going to be slightly cheaper. However, those using Bitbuy’s advanced trading engine will find lower rates than what can be found on Shakepay.
In terms of special features, the best attribute of both Shakepay and Bitbuy is that they are focused on the Canadian market. This means both platforms work seamlessly with the existing financial infrastructure, which is not something that can be said for many of the larger exchanges that are focused on a global market. Both platforms also offer over-the-counter (OTC) trading options for those looking to move large amounts of money through the platforms.
Both of these cryptocurrency exchanges also have some individual features that help them stand out from some of the other platforms on the market. Although Bitbuy is mostly focused on offering a simple interface for buying or selling bitcoin for the first time, they also offer a more advanced trading engine that allows those who have been around for awhile to gain access to different order types and much lower fees.
With Shakepay, there is a rather unique offering in the form of Shakepay Change. This additional feature works similar to some other traditional financial apps on the market in that it allows users to instantly and seamlessly purchase some bitcoin or ether every time they make a retail purchase with their debit card or credit card. Every time a purchase is made with a traditional card, the transaction amount will be rounded up to the next full dollar amount. The difference between the actual transaction amount and the rounded full dollar amount will be used to purchase a small amount of cryptocurrency.
Both Bitbuy and Shakepay are focused on simplifying the process of buying and selling cryptocurrency, which means they also want their users to be able to go through the trading process as quickly as possible. In most cases, this means that using the Interac e-Transfer system through either platform will be the quickest option available. It should be noted that both platforms require users to go through a Know Your Customer and Anti Money-Laundering process before they can make their first purchase, but the platforms work smoothly after the user’s identification has been verified.
In terms of outright speed, Shakepay has a small advantage here, as users don’t need to worry about deposits and withdrawals. Instead, buy and sell orders can be made directly via Interac e-Transfer.
Both Shakepay and Bitbuy have pretty impeccable records when it comes to the security of customer funds. Neither exchange has ever faced a serious security breach, and that tends to be the best indicator of whether a particular exchange can be deemed secure or not. That said, Bitbuy has been around for a bit longer than Shakepay, so it deserves a bit more credit when it comes to the longevity of their pristine security record.
In terms of specific security features, Bitbuy has adopted many of the measures that have become standard practice among the regulatory-compliant platforms around the world. For example, the exchange requires KYC verification before users can start trading, 95% of user funds are held offline in cold storage wallets, and two-factor authentication is available for those who wish to add an additional layer of protection to their accounts.
Shakepay also has a number of advanced security measures in place to protect cryptocurrency holdings, user accounts, and personal data. These are the same sorts of measures that are seen at Bitbuy and elsewhere, although the focus on personal data security is a breathe of fresh air in a time when these sorts of less severe security breaches have become more common. Additionally, Shakepay hired a security firm to perform an independent review of the company’s cryptocurrency holdings and security practices, and the details of that review are available in a report available on the Shakepay website.
The number of cryptocurrencies available on Bitbuy and Shakepay is one key area of difference between these two bitcoin exchanges. At Shakepay, there are only two cryptocurrencies available in the form of bitcoin and ether, so you’ll need to opt for Bitbuy if you want to branch out beyond those two main cryptocurrency offerings. Here are some of the cryptocurrencies that Bitbuy offers on top of bitcoin and ether:
- Bitcoin Cash
It should also be noted that both of these platforms have native support for Canadian dollars as well, which means users don’t necessarily have to convert into a more dominant fiat currency before trading.
In terms of trading power, Bitbuy has much more to offer than Shakepay.
Shakepay has a much simpler interface aimed at newcomers, and there is a real trading engine for more advanced traders to use to look at the market and make different types of orders. Bitbuy does have a more advanced trading platform available to its users, but it’s nothing too crazy. That said, it is one of the few advanced trading platforms where users can trade a variety of cryptocurrencies against the Canadian dollar. Both of these platforms also offer OTC trading to users who wish to buy or sell large amounts of cryptocurrency.
Ease of Use
While Bitbuy has more trading power, Shakepay is probably a bit easier to use for the kind of person who is new to the cryptocurrency ecosystem.
Users do not need to worry about making a deposit or withdrawal and are able to purchase bitcoin or ether directly via an Interac e-Transfer from within the Shakepay app. Shakepay also makes it easy for users to transfer custody of their coins into their own, non-custodial wallets, which makes it easier for novices to learn how to take full advantage of the true power offered by this new, digital financial system.
Additionally, the Shakepage Change offering makes it easy for users to stack a bit of cryptocurrency on a daily basis without really thinking about it. Sticking with just bitcoin and ether also makes things less complicated when it comes to figuring out which crypto assets to put in one’s crypto portfolio.
Conclusion: Shakepay Ultimately Better for Crypto Newbies
Shakepay and Bitbuy are both strong platforms for buying and trading cryptocurrency but there’s a reason that Shakepay has won awards for its intuitive design.
Simply put: In an age when using crypto is still a little too difficult for the average person, Shakepay is a breath of fresh air. It’s easy to recommend Shakepay as an onboarding vehicle for new crypto users and a great way to earn a little extra Bitcoin on the side.
Meanwhile Bitbuy is probably going to be a little more compelling to more experienced crypto users thanks to its wide selection of different cryptocurrencies and cheaper fees on high volume trading.
The bottom line is that you can’t go wrong with either exchange.