If you have ever used cryptocurrencies, you’ve most likely also used a crypto onramp and/or a crypto offramp in the process. 🧐
And though these terms are unfamiliar to many, crypto ramps are essential to using cryptocurrencies and Web3 as a whole.
So what exactly are crypto ramps and why are they so important? 🤔
In this article you will learn all you need to know about crypto onramps and offramps, so you can navigate Web3 with confidence.
Let’s begin by looking at the wider picture. 👇
Why Do We Need Crypto Ramps?
We are all used to traditional, government-issued money (also called fiat). It is what everyone uses and what runs the world. 🌎
But it has its drawbacks – being highly centralized, non-transparent, and prone to mismanagement & creating inequality.
Today, many people see cryptocurrencies as a better alternative to fiat, being decentralized and transparent. And that is where crypto ramps come into play. Crypto ramps let you convert your fiat money into crypto and back.
And it’s not only about money conversion. Crypto ramps let people access to Web3 and everything it has to offer – from buying NFTs to exploring the Metaverse.
With these basics established, let’s look at crypto ramps in more detail.👇
What is a Crypto Onramp?
A crypto onramp refers to a system that allows people to transfer economic value from fiat money into cryptoassets. Simply put, it is a series of steps that you can take right now to exchange your fiat currency into cryptocurrency.
Importantly, the term onramp doesn’t refer to any particular platform, but rather a system that many different platforms can implement. And if before onramping was mainly done by big crypto exchanges, nowadays there exist many different platforms providing new solutions to the same problems.
We will come back to different platforms in a bit, but now let’s look at the opposite side of an onramp. 👇
What is a Crypto Offramp?
Now that you know what crypto onramps are, it will be easy to understand offramps.
A crypto offramp is a system that allows for the flow of economic value from cryptocurrency to fiat. If you’ve used some crypto cashout services – that’s basically what an offramp is.
And just like with onramps, there are now platforms providing efficient end-to-end solutions to offramping, as opposed to older exchanges that often provide long or limited options for withdrawing funds from their platform.
How do Crypto Ramps Work?
As we know, crypto ramps are optimized exchange mechanisms sitting between crypto and fiat. And since these are two completely different financial paradigms, there are multiple steps involved in performing the exchange.
For instance, some cryptos can only be purchased with other cryptos and only on certain exchanges. So to buy these with fiat, you would have to make multiple conversions, possibly on multiple exchanges! 😨
And that is the beauty of modern crypto onramps and offramps – these create a seamless and simple experience for the users, without having to manipulate different platforms and pay extra fees.
Usually, onramp providers organize the entire crypto purchasing process into a single flow that may include steps like:
- Identity verification
- Compliance checks
- Asset pairing
- Liquidity management
- Payment processing
- Fund delivery
And if traditional exchanges are better suited for trading crypto, designated crypto ramps are generally much simpler and faster for buying and selling your crypto.
Why Use Onramps?
Of course, crypto ramps will not suit everyone’s needs.
For example, professional traders may prefer to use traditional exchanges, because these provide a multitude of tools for high-stake and high-frequency crypto trading.
But the majority of people would prefer to focus on using their crypto, rather than buying it. And this is exactly what a crypto onramp can provide – a safe, fast and easy way to get the currency you need. 😌
Same goes for businesses as they require simple and efficient solutions that would let them focus on running their actual business, instead of worrying about transactions.
How to Choose a Good Onramp?
There are multiple onramp and offramp options on the market right now. But what should you look for when choosing one for you?
Let’s look at some important points you should look at when choosing a crypto ramp to use.
Note that these apply both for individuals wanting to buy or sell cryptos as well as companies looking for an onramp to integrate into their platform.
Security mechanisms 🛡️
Security is super important when it comes to managing your finances. AML (anti money laundering) and KYC (know your customer) are two mechanisms commonly used to protect customers against theft.
So when choosing an exchange, always check if the company has some kind of security policy in place to protect your funds if something was to go wrong.
Good customer support 🔔
In addition to good security policy, it is very important for an exchange to have good customer support.
Of course, it’s good to have someone there to ask for advice. But more importantly, a fast and professional customer support can help you recover your funds in case something goes wrong.
We would also advise you to check customer reviews for the platform you are planning to use and see not only what the customers are saying, but also how the company handles the feedback it gets.
Choice of cryptos 💰
The number of currencies offered is also an important factor.
As a business you want to target the largest possible audience when integrating an onramp.
And as an individual, you may not need a hundred cryptos at once, but it’s good to know where to turn when you need to buy some new altcoin. 😉
Payment options 💳
On the fiat side, it is common for some exchanges to have limited payment options, especially when it comes to cashing out crypto.
So you may want to check if the exchange you’re choosing has at least the most popular ones, such as credit and debit cards and bank transfers.
We believe that with the growth of Web3 technology and increased adoption of cryptocurrencies, crypto ramps will also grow in popularity and will help millions of people enter the world of blockchain.
We also hope that our article helped you get a clearer picture of how crypto ramps function and how to choose one for you.
And before you go, let us recommend a simple and efficient onramp platform for your business or personal use.
With Guardarian you can buy and sell over 300 different cryptocurrencies using 5+ payments methods. And you can do this with no registration and no hidden fees!
And for businesses – you can integrate Guardarian in a matter of minutes using our widget. Or use our API for a dynamic and convenient solution to increase efficiency for your business.
So come check us out at www.guardarian.com and bridge the gap between the worlds of fiat and crypto! 💫