Shredded coconut is mostly dry, but it usually retains more moisture than full-on desiccated coconut. But really, the main difference between shredded coconut and desiccated coconut (and flaked coconut, too) is the shape of the coconut. Shredded coconut comes shredded; it’s in thin strands or strips. Flaked coconut, meanwhile, comes is flatter, wider pieces. Still dry, though, and still coconut. Use shredded or flaked coconut the same way you’d use desiccated, ground coconut.