- How does Shakepay make money with commission-free service?
- Get the inside information on their business model and revenue generation.
- Review their competitors and growth strategy.
Shakepay is marketed as the ‘easiest way for Canadians to buy and sell Bitcoin’. It is a cryptocurrency exchange that facilitates commission-free trading of Bitcoin and Ethereum for Canadians. Shakepay does not support any cryptocurrency other than Bitcoin and Ethereum.
Some have questioned Shakepay’s prospects since it is a commission-free service. If you are also wondering how Shakepay can operate when so much of its service is free, you’ll find your answer below in our explanation of Shakepay’s business model.
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What does Shakepay do?
Shakepay is a Canada-based crypto exchange where users can buy, sell, and store the world's two biggest cryptocurrencies (Bitcoin and Ethereum) with zero trading fees and fast transaction times.
It is a beginner-friendly and easy-to-use platform aimed squarely at beginner crypto investors who are not interested in more speculative altcoins like Dogecoin, Polkadot, Polygon, and Solana.
How does Shakepay work?
Shakepay works much like any other crypto exchange. You have to open an account on Shakepay to start trading crypto directly.
Shakepay also has a recurring purchase feature whereby you can automatically buy crypto tokens at regular intervals, i.e. monthly, weekly, or daily. This is a way to dollar cost average.
One of their best known features is the ability to earn free tokens with Shakepay’s ShakingSats. All you have to do is open the Shakepay app once during the day and shake your phone to get free crypto tokens in your account.
How does Shakepay make money?
Shakepay makes money from the spread they charge on Bitcoin and Ethereum trades made on their platform.
Spread
When you buy Bitcoin or Ethereum on Shakepay, they sell you the token themselves. Similarly, when you sell your Bitcoin on Shakepay, they buy from you.
The price at which you can buy and sell cryptocurrencies on Shakepay is determined by the exchange.
This slight difference in price between what customers pay to buy crypto and the price at which they sell it is called the spread.
Future growth engine
Shakepay is working on three key areas to support their growth in what is now a hyper competitive market.
- Firstly, they aim to be completely frictionless, i.e. they want to truncate transaction processing time to nanoseconds.
- Secondly, they want to maintain transparency in pricing of tokens.
- Lastly, they continue to improve their customer service by directly solving the problem of each customer.
Another obvious way for them to grow would be to list more coins and compete in terms of tradable assets.
Competitors
Some of Shakepay’s top competitors in Canada are fintech companies, crypto exchanges, and investment apps.
Exchanges such as Binance and KuCoin, although widely used, do not appeal to the same type of beginner-level user.
