How does Shapeshift work? [Internally]

allanr

full member

Activity: 345

Merit: 114

Quote from: favelle75 on March 03, 2018, 10:21:31 AM

I never used shapeshift cause of the fees. Their fees are really high for me. I prefer to buy from binance and sent directly to where ever i want.
But its good for lazy people

Yeah the fee is high cause they need that to cover fee for buying alt or bitcoin and transfer fee, and yeah send directly from an exchanger is cheaper but sometimes you just dont have time to do that, shapeshist creaated to make transfer cryptocurrency easier.

favelle75

hero member

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Merit: 501

I never used shapeshift cause of the fees. Their fees are really high for me. I prefer to buy from binance and sent directly to where ever i want.
But its good for lazy people

enervey

member

Activity: 76

Merit: 10

I'm guessing Shapeshift uses a method similar to Changelly. I was reading about it a couple days ago. They have a good article explaining their algorithm: https://changelly.com/blog/how_changelly_suggests_the_best_exchange_rates/

cryptorTUX

member

Activity: 238

Merit: 11

Quote from: escanor_shy on March 03, 2018, 10:12:00 AM

So I just tried shapeshift recently and thought it was pretty good. But from a technical standpoint, I was wondering how they actually perform the exchange of currency. Does anyone have a clue? My current assumption is that they're purchasing a target altcoin on demand when a request has been made (perhaps using something like bancor), then sending that altcoin to the recipient's designated address .

They have trading bots on various exchanges - like poloniex. On the other hand they have their own reserves of cryptocurrency. So whenever you trade there they see value and do trades with their bots. This is why if you trade with shapeshift you could be getting lower rates because they take some fee on top of providing you their service. However they are convenient way if you don't want to do verification processes or if you don't want to wait for deposit then trade and withdraw coins. It's fairly easy.

escanor_shy

newbie

Activity: 10

Merit: 0

So I just tried shapeshift recently and thought it was pretty good. But from a technical standpoint, I was wondering how they actually perform the exchange of currency. Does anyone have a clue? My current assumption is that they're purchasing a target altcoin on demand when a request has been made (perhaps using something like bancor), then sending that altcoin to the recipient's designated address .

Topic: How does Shapeshift work? [Internally] (Read 147 times)