Security Compliance
Shakepay hold users’ funds in cold storage, though they do not publicize the percentage. Shakepay has existed since 2015, and so far, never has been hacked.
Shakepay states on its website that digital assets are backed by an insurance policy, though it does not mention any details.
Shakepay also offers two-factor authentication (2FA) for their customers, so you can be sure no one else is accessing your account. With Shakepay, you will also need to confirm via email when withdrawing funds. If you set up 2FA for your email account, you can be pretty sure no unauthorized person is withdrawing funds from your account.
Coinbase uses its own digital wallet for storing your cryptocurrency.
Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus.
Both Shakepay and Coinbase prioritize security measures to protect user funds. Shakepay employs cold storage to store the majority of its digital assets securely, and it holds insurance coverage for additional protection. Coinbase, as a publicly traded company, follows regulatory compliance requirements and holds a significant portion of its assets in cold storage. It also implements measures such as two-factor authentication (2FA) and encryption of wallets and private keys. While both exchanges prioritize security, Coinbase's established track record and regulatory compliance provide added assurance.
Regulatory Compliance
Shakepay is regulated as a Money Service Business (MSB) by FINTRAC. Shakepay is based in Montreal and is allowed to operate in every Canadian province.
Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.
In Canada, Shakepay operates as a regulated entity and adheres to local laws and regulations. The exchange is registered as a Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Similarly, Coinbase complies with Canadian regulations and operates as a Money Services Business under FINTRAC. Both exchanges are subject to monitoring and oversight by these federal organizations, ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements.
Customer support
Shakepay offers chat support, helpful FAQs and access to customer support via their website.
Shakepay claims it has “customer service that cares.” It offers a useful support section on its website that can answer some of the most common questions and you can contact support via email at help@shakepay.com. Shakepay claims that support tickets can be answered within hours, even on weekends. We reached out to the support team via email to see how quickly they would respond. We received a reply the next day, less than 24 hours later.
Coinbase customer support is very slow. It took them 4 days to address our request to a real person. Even though they offer 24/7 support and a live chat option, the quality of the support is bad due to a very high volume.
Shakepay and Coinbase both strive to provide satisfactory customer support. Shakepay offers email support and has made improvements by introducing 24/7 phone support. However, some users have reported delays or issues with support ticket resolution. Coinbase, being a larger exchange, has faced criticism for its customer support response times and ticket resolution. It provides email and live chat support, and recently implemented 24/7 phone support. While both exchanges have room for improvement in customer support, Shakepay's efforts in expanding support channels may offer an advantage.
Conclusion
Both Shakepay and Coinbase are reputable exchanges, but Shakepay emerges as the winner for Canadian users due to its targeted focus on the Canadian market, user-friendly interface, and commitment to customer support enhancements. Shakepay's simplicity, regulatory compliance, and insurance coverage provide a solid foundation for Canadian users looking for a reliable crypto exchange.
When comparing Coinbase to Shakepay, it's worth noting that Coinbase One introduces several new features that make it more competitive. These include zero trading fees, boosted rewards, and priority customer support. Additionally, the platform has increased its focus on staking, allowing users to earn rewards, such as 5.10% APY on USDC. While Coinbase’s fees remain high outside of Coinbase One, these added benefits can make the platform more attractive for users looking to maximize earnings while minimizing transaction costs, especially compared to exchanges with lower fees but fewer reward opportunities.
Shakepay distinguishes itself from other exchanges by emphasizing the security of its users' assets through cold storage backed by insurance. This secure offline storage method adds a significant layer of protection, particularly valuable for risk-conscious investors. While other exchanges may offer similar features, Shakepay's focus on insured cold storage ensures users can trust that their digital currencies are safeguarded against potential breaches, making it a solid choice for those prioritizing asset security
We recommend choosing Shakepay over Coinbase for your cryptocurrency trading needs. By opting for Shakepay through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither Shakepay nor Coinbase meets your requirements, we encourage you to explore our monthly-updated list of the best exchanges for Canadians to trade crypto. This list provides a range of alternative options that may better suit your specific needs and preferences.
