You’ve heard of cryptocurrencies, but how do you get in and out of them easily? The terms “on ramp” and “off ramp” are essential to understand when navigating the transition from traditional money to crypto. Here’s everything you need to know in 8 points to turn your euros or dollars into Bitcoin (and vice versa).
2/8 - What is an "on ramp" in crypto?
The “on ramp” refers to the process by which you convert fiat currency (like euros or dollars) into cryptocurrencies. In other words, it’s the stage where you “move up” in the crypto ecosystem by purchasing coins or tokens with traditional currencies through platforms like Coinbase, Binance or Kraken.
3/8 - What is an "off ramp" in crypto?
Off ramp is the opposite: it is the process of converting your cryptocurrencies into fiat currency. This allows you to “step down” from the crypto ecosystem and transfer your earnings or funds in euros, dollars, etc., directly to your bank account. The same centralized exchange platforms, such as Kraken or Binance, usually allow this process.
4/8 - How do "on ramp" services work?
For an "on ramp," you use platforms or services that accept fiat currency deposits. These services often support payments via credit cards, wire transfers, or online payment services like PayPal. Once the deposit is made, you can purchase cryptocurrencies and transfer them to your wallet.
5/8 - How do “off ramp” services work?
Off ramps allow you to sell your crypto for traditional currencies. Once the sale is complete, the funds are transferred to your bank account. Some services offer crypto debit cards that convert your crypto instantly for purchases, acting as an off ramp without a sale beforehand.
6/8 - Differences between "on ramp" and "off ramp"
• Function: “On ramp” is for buying crypto with fiat currency, “off ramp” is for selling crypto for fiat currency.
• Usage: “On ramp” is used when you want to enter the crypto market, “off ramp” when you want to exit it.
• Payment Options: “On ramps” often support payment methods like cards and wire transfers, while “off ramps” typically transfer money to bank accounts.
7/8 - Platforms that offer "on ramp" and "off ramp"
Centralized platforms like Coinbase, Binance, Kraken, or Gemini offer both "on ramp" and "off ramp" services. Some decentralized platforms are also starting to offer solutions, but they are often more complex for beginners.
8/8 - Conclusion: Importance of on ramp and off ramp
On-ramps and off-ramps are key elements to connect the crypto ecosystem with the traditional economy. They allow users to buy cryptocurrencies and convert them into fiat currency, facilitating the adoption and use of crypto in everyday life.
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