How to Use Shapeshift with Coinbase: Best Guide

Published: 2nd January, 2024 | Last Updated: 2nd January, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

You can use Shapeshift with both the Coinbase exchange and the Coinbase wallet. In this post, I will walk you through how to use Shapeshift with Coinbase.

Instructions on how to use Shapeshift with Coinbase

  1. On your desktop device navigate to shapeshift.com and click on launch dApp. 
shapeshift launch dapps
  1. A new tab will open which will take you to app.shapeshift.com
  2. Click on Connect Wallet and select Coinbase from the drop-down menu
shapeshift connect coinbase
  1. Click on pair
  2. You will see two options. Select the Coinbase app if you want to connect using the Coinbase exchange. 
  3. Open the Coinbase mobile app and click on the settings tab in the top left
  4. Click the scan icon and scan the QR code
  5. On Coinbase You will see a message that says Connecting to dapp and then it will say Connected. 

You can now use the assets on your Coinbase account with Shapeshift. 

What’s Shapeshift?

Shapeshift is a decentralized non-custodial cryptocurrency platform. While it touts itself as a crypto exchange the user experience is much more reminiscent of a wallet. The platform is available as a desktop and mobile app and the biggest difference with other exchanges is that 

  1. Shapeshift users are not required to KYC
  2. You hold custody of your funds. This means that Shapeshift does not have access to the private key of the addresses where your crypto is stored. 

The exchange does not rely on a central corporate intermediary but instead is managed as a decentralized autonomous organization (DAO) whose members collectively agree on decisions by voting on proposals. 

All you need to use Shapeshift is a wallet. If you do not have a wallet and are a complete beginner Shapeshift can create one for you. 

Shapeshift currently supports the following chains

  • Binance chain
  • Bitcoin which means you can buy native BTC.
  • Ethereum
  • Atom tokens
  • Osmo
  • Doge
  • Avalanche
  • Bitcoin cash
  • Litecoin
  • Thorchain
  • Dogecoin
  • polygon
  • arbitrum
  • gnosis

How does Shapeshift work?

To use Shapeshift you need to have a custodial crypto wallet. If you don’t have a wallet you can set up one up directly on Shapeshift.

Shapeshift supports the following wallets

  • Shapeshift
  • KeepKey hardware wallet
  • Portis
  • TallyHo
  • MetaMask
  • Keplr
  • XDEFI
  • Coinbase Wallet and Coinbase exchange. 
  • Ledger 
  • Trezor
  • or using Wallet Connect

See here for a comprehensive list

Once you connect your wallet you can then use the digital assets in your wallet to trade them for other assets in a private way. 

Metamask wallet users will be happy to know that they can use a feature called Snap that allows them to trade non-EVM coins using MetaMask. This means you can trade and store Bitcoin, ATOM, Litecoin, and more which wasn’t possible up until now if you had a MetaMask wallet. 

Does Shapeshift support Coinbase?

Shapeshift supports both the Coinbase Wallet, which is a non-custodial wallet, and the Coinbase exchange which is custodial.

What actions can I take once I connect Coinbase to Shapeshift? 

There are a growing number of defi opportunities you can take advantage of when you connect your coinbase account to Shapeshift. 

1. Trading

Shapeshift does not charge an exchange fee or service fee. The only fees you need to account for are the transaction fees paid to the blockchain. 

2. Buy and sell crypto

You can use a credit card, debit card, or bank transfer to buy crypto directly with fiat money through ShapeShift’s third-party integrations. Some of these do not require you to KYC yet. 

3. Borrow

You can provide your crypto as collateral in various DeFi lending pools

4. Earn 

You can earn a yield upwards of 10% at the time of writing by providing liquidity to various pools that shapeshift partners with. These include Uniswap, Thorchain, and the Shapeshift platform liquidity pools.

What are FOX tokens?

FOX tokens are ERC-20 tokens that allow you to vote on DAO proposals.

Shapeshift also issues another token called a fox success token. This was a unique way to raise funds The best way to describe this is like a call option that investors can exercise upon the success of the platform. In this case, the success is defined if FOX hits a strike price of $0.8.

If successful then each Success Token can be converted to FOX tokens. If FOX does not hit the strike price then each scuccess token can be converted 1:1 to a FOX token. Success Tokens use UMA’s Optimistic Oracle for resolution. UMA ( universal market access) is an Oracle provider that provides price feeds. The Success Token setup is considered one of the most innovative smart contract projects. If you want to dive into the weeds Shapeshift’s medium page has a good description.

Who is behind ShapeShift

Shapeshift was founded in 2015 by Erik Voorhees as a non-custodial exchange. Before Shapeshift Erik was head of communications for Bitinstant, a crypto exchange and before that, he founded and sold Satoshi Dice an online Bitcoin casino. Erik is well known amongst Bitcoin and crypto circles for his libertarian views. 

In 2021 Erik announced the decentralization of the company and issued the largest token airdrop ever. This Cointelegraph article covers shapeshift’s airdrop in detail. 

Shapeshift investors

In 2017 Shapeshift raised just over 10mn through venture capital firms. Earlybird Venture Capital led the round, with additional funding from Lakestar, Access Venture Partners, Pantera Capital, and Blockchain Capital.

In March 2024 Shapeshift was able to raise further capital with a strategic investment made by Coinbase Ventures and Chapter One.

Insert photo of Shapeshift founder Erik Voorhees

Wait other sites say I do need to KYC

You don’t need to provide any personal details to sign up with Shapeshift. Other sites are reporting outdated information. At the time of writing the only thing you need to do to use Shapeshift is connect a wallet. You may need to KYC if you decide to buy crypto via one of Shapeshift’s fiat onboarding partners but not all providers require you to KYC. Please note that because Shapeshift is a decentralized platform there is no option to set up two-factor authentication as is misreported by other websites. 

FAQs

Is ShapeShift a wallet?

Shapeshift is a decentralized platform for you to exchange cryptocurrencies and participate in DeFi. It works with any wallet but Shapeshift itself can also set up a native wallet for you. To Set up a Shapeshift wallet just click on Create new wallet and Shapeshift will issue you a 12-word seed phrase which you need to write down. This is your secret keyphrase that only you should have access to. Anyone with access to the seed phrase has access to your funds. 

Is ShapeShift crypto safe?

shapeshift is a non-custodial cryptocurrency exchange platform which means you hook up your personal wallet. Shapeshift is one of the older exchanges so it has stood the test of time. Having said that Shapeshift has been hacked in the past. In total the exchange was hacked three times within the space of a few weeks and $200,000 worth of crypto was stolen 

Can you send crypto from ShapeShift?

yes if you set up a wallet via Shapeshift you can then send your crypto in that wallet to any compatible wallet address you want. 

Is Shapeshift a Dex?

No Shapeshift is not a decentralized exchange. It is a non-custodial crypto platform. When you place a trade on Shapeshift, Shapeshift is the counterparty with whom you are trading. 

How much does ShapeShift charge?

Shapeshift does not charge any fees or spreads. The only fee you can expect to pay is the miner fee for validating transactions. 

Is Shapeshift available in the United States?

Yes, shapeshift is available globally. All you need to get started is to connect a wallet. 

Up Next

What Is the Difference Between Coinbase and Coinbase Wallet?

What Is the Difference Between Coinbase and Coinbase Wallet

Coinbase and Coinbase Wallet are two separate platforms that cater to different aspects of cryptocurrency management. While both are owned by Coinbase, they serve distinct purposes and target different user needs. I have extensive experience with both of them and have been using them since 2017. In this article, we will explore the various differences between Coinbase and Coinbase Wallet, delving into their features and user experience. Read more.

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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