Wintersmith is a static site generator built on Node.js, which can be easily hosted on Netlify with continuous deployment. To set up Wintersmith on Netlify, first install Wintersmith globally using `npm install -g wintersmith`, then create a new project by running `$ wintersmith new wintersmithnetlify`. This will generate a new directory with the necessary assets for developing the site in Wintersmith. The project can be initialized as a Git repository and connected to Netlify, allowing for continuous deployment of updates without manual deploying. Once set up, Netlify takes care of building the site, including giving it a temporary name, adding a custom domain, and making it live for public viewing.