Many people in the world of Bitcoin and digital currency are familiar with the services offered by Shapeshift.io. as the name suggests, this platform lets users switch between supported digital currencies and exchange them on the fly. What sets this service apart from traditional exchanges is how users are not required to create an account.
But there are other notable differences between traditional cryptocurrency exchanges and Shapeshift.io, as the latter does not support just any digital currency. Bitcoin is supported for obvious reasons, as well as big names like Litecoin, Dogecoin, Ether, NXT, and Monero. Very few coins are added over time, as only those with a sustainable market cap and development team make it to the list. Not that there is anything wrong with some coins that are not listed on Shapeshift.io, but not all of these projects have a clear future.
As one would come to expect from a service that lets users exchange digital currencies without registration, there is a minor fee attached to using Shapeshift.io. However, this tiny amount is not an exchange fee, but rather the miner fee required to broadcast the transaction to that particular coin’s network. For example, Bitcoin transactions use the standard miner fee of 0.0001 BTC.
Convenience-wise, Shapeshift.io provides one of the most frictionless user experiences to be found in the world of digital currency today. Removing the need to sign up for an account is one step, but the platform will also automatically generate deposit addresses for its users. Additionally. there is no need for bid and ask orders, as all transactions are completed as soon as tey receive one network confirmation. Smaller amounts will be processed once they are visible on the blockchain.
Exchanging digital currencies is just one of the use cases for the Shapeshift.io platform. By using this particular service, users can pay Bitcoin bills with any of the supported alternative currencies, creating a huge use case for these altcoins, thanks to ShapeShift Lens. . This is another reason why not just any coin makes it to the Shapeshift.io platform, as there has to be enough liquidity at all times.
Last but not least, there are various tools and APIs at the disposal of developers and users. The Shifty Button lets any business accept Bitcoin and all of the supported altcoins in a matter of minutes. Furthermore, there is Shapeshift Skeleton, which can be integrated into any website to offer exchange opportunities for all visitors. Plus, there is also a mobile application available, offering the same identical feature as the web version.
One minor downside is how ShapeShift.io is not available to residents in New York state, due to BitLicense regulations.