Understanding Fiat On-Ramps
There are generally three ways to acquire cryptocurrencies and blockchain assets.
- Individuals can mine them by contributing computing power to a blockchain network and receiving coins or tokens as rewards.
- Cryptocurrencies can be earned by selling goods or services and accepting digital assets as payment. However, these methods may not be accessible to everyone.
- “On-ramp” is used because these platforms provide users access to the entire cryptocurrency ecosystem, enabling them to enter and participate in digital asset markets.
In contrast, cryptocurrency off-ramps allow individuals to convert their cryptocurrencies back into fiat currency or use them to purchase goods and services.
While on-ramps are used to enter the cryptocurrency ecosystem, off-ramps facilitate the exit from it.
Off-ramps are particularly useful as fiat currencies remain the primary medium of exchange for day-to-day transactions in many parts of the world.