ShapeShift, a company that provides digital asset trading platforms, released a statement this Wednesday confirming that it has acquired Bitfract. The Texas-based start-up, which enables traders to optimize their asset allocation, should make a welcome addition to ShapeShift’s service offering.
Founded only a few months ago, Bitfract enables users to exchange Bitcoin for thousands of different digital assets. The firm was founded to provide cryptocurrency traders with a more simple route to portfolio diversification.
Why was this needed? Well, many cryptocurrency exchanges, even major ones, offer a very limited selection of cryptocurrencies.
For instance, Coinbase, one of the largest exchanges in the world, only offers traders access to Bitcoin, Litecoin, and Ethereum. This is not entirely unjustifiable given that the bulk of traders only want access to those coins.
Finding a solution
Many traders, however, do want access to a wider variety of cryptocurrencies. Prior to Bitfract’s founding, this was possible but it was a convoluted process.
NEXT BLOCK SOFIA 2.0 + Fabulous Blockchain After-PartyGo to article >>
Traders would have to set up multiple wallets and open accounts on numerous exchanges. On top of this time-consuming element, it meant having to pay high fees to all of the various exchanges that offered traders their desired cryptocurrencies.
Bitfract’s technology simplified this process. Traders using the service can purchase multiple coins using their own cryptocurrency.
For example, a trader can use one bitcoin to purchase a set amount of Ethereum, Ripple, and Litecoin in one go. That means the trader can obtain their desired cryptocurrencies without having to go through multiple exchanges and make multiple transactions.
On top of this, Bitfract also offers back-testing capabilities and different data sets on which a trader can make a decision as to whether or not they should add a particular cryptocurrency to their portfolio.
Commenting on his firm’s acquisition, Bitfract co-founder, Willy Ogorzaly said: “We believe in a decentralized future where individuals freely control their digital wealth, and our team is honored to work alongside Erik [Voorhees, CEO of ShapeShift] and everyone at ShapeShift to make this a reality.”