In general, payment IDs and destination tags are used to identify transactions to large merchants and exchanges. This extra identifier allows for the transaction at play to be matched internally with a particular order. ShapeShift requires a payment ID or destination tag for all incoming deposits in XMR, XRP, and STEEM.
For note, Payment IDs are used in Monero whereas destination tags are used in XRP and STEEM.
Sending XMR to ShapeShift
When trade XMR for BTC, for example, you will need to include a payment ID on the incoming deposit to ShapeShift. This payment ID is provided by ShapeShift on the Order ID page.
In most wallets, there will be an optional field to include a payment ID when sending the XMR. This ensures that we know where the funds are coming from. This way, we can exchange them successfully for the outgoing asset.
Sending XMR as the Outgoing Asset to a Wallet at an Exchange
Certain XMR wallets at exchanges and merchants require a payment ID for all incoming deposits. If XMR is the outgoing asset and your wallet requires one, you must include it in order for your wallet to detect the funds. If you are unsure if your wallet requires this, it is best to check with your wallet provider before initiating a trade.
Sending XRP to ShapeShift
When trading XRP for BTC, for example, you will need to include a destination tag on the incoming deposit to ShapeShift. If you are using an XRP client wallet, you will need to use the special format we provide on the order page. It will look something like this: "rwfGzgd4bUStS9gA5xUhCmg1J86TMtmGMo?dt=10002653".
If you are using an exchange, a third-party wallet, or a multi-coin wallet, there may be separate fields for the address and the destination tag. You will separate them both and only include the numbers at the very end of the string in the destination tag field (Ex. "10002653").