So…What Exactly Are Fiat On-Ramps and Off-Ramps?
If you’re reading this, you’re not too late. In fact, you’re still incredibly early.
Because despite all the notable steps toward recognition and awareness of cryptocurrency in recent years, the era of true mass adoption is still a thing of the future.
Why haven’t we reached mass adoption?
Simple. Because for the vast majority of people on this planet…
Buying and selling crypto is HARD.
For blockchain technology to reach global mass adoption, users need to easily move in and out of crypto assets with the ease and comfort they feel when shopping on Amazon or ordering food on Postmates.
And for this utopian crypto world to become a reality, we need seamless “fiat on-ramps” and “fiat off-ramps”.
Confused? Don’t worry. We’re here to help :)
In this article, we’ll define fiat on-ramps and off-ramps and explain why building efficient fiat <> crypto payment flow is critical to onboarding the next generation of crypto users!
What is a Fiat On-Ramp?
The name might give it away, but a fiat on-ramp is any tool that allows users to go from fiat currency (dollars, euros, yen, etc) to a crypto currency (bitcoin, ethereum, space-doge-elon-moon coin, etc).
For a blockchain or crypto project, having a seamless fiat on-ramp (like ours) is essential for several reasons:
1. A fiat on-ramp can drastically increase the total number of potential users for any project.
The logic here is simple. If you launch a blockchain today, you’re likely years away from being listed on a globally accessible exchange like Coinbase or Binance. And even when you do get listed, your new token holders will lack the sophistication to send from their exchange account to a network wallet and truly boost your on-chain activity.
This is a massive problem for any blockchain — but especially daunting for new ones. Because without a centralized exchange sending you new users, your only hope is to onboard the same pool of crypto natvie users as everyone else. In other words, every new blockchain is competing for the same pool of multi-chain users, and that pool represents a tiny fraction of the world.
It’s a massive problem. But luckily, it can be solved in large part with the integration of a simple (and powerful) on-ramp.
Imagine you launch a new chain and integrate C14’s seamless fiat <> crypto on-ramp. Now, any user in our growing list of coverage areas can use fiat currency to ramp directly into your blockchain!
Not only are you adding new holders and on-chain users which other blockchains can’t access, you’re allowing non-crypto natives to engage with on-chain protocols that they never would have been able to access before!
2. A fiat on-ramp can democratize access to crypto.
Right now, the vast majority of people around the world can only access a tiny fraction of crypto assets.
Sure, you can pretty easily buy ethereum or bitcoin no matter where you are; but only crypto natives — and those lucky enough to live in a country serviced by centralized exchanges — have access to the long-tail assets that can truly build wealth.
An easy fiat on-ramp gives people around the world access to crypto assets that have the potential to change their lives. Early supporters can buy early and reap the rewards no matter their location or level of crypto sophistication.
This is what crypto democratization looks like. And you know what? It’s a noble goal :)
3. A fiat on-ramp makes crypto EASY
We saw in past articles how hard it can be for normal people to go from cash to crypto without a seamless on-ramp. So we’ll be brief here…
When done right, fiat on-ramps make it easy for anyone to buy the crypto they want.
No setting up multiple wallets. No confusing and risky network transfers. And no months-long KYC process (my Binance KYC took 9 months, no joke). In the simplest terms possible, fiat on-ramps make buying crypto easy.
The Importance of Fiat Off-Ramps
While the immense value of a fiat on-ramp is clear, having an efficient fiat off-ramp can actually be even more impactful for many people around the world. And that’s because a fiat off-ramp allows users to easily transfer the value of their crypto holdings back into local fiat currency.
Let’s imagine you bought a token early using a seamless on-ramp (thanks C14), and now your token is up 10X from your entry point.
You want to sell, but you don’t know how to do it quickly and efficiently. How do you capture that value back into local fiat?
The same issues that discourage users when they’re trying to buy crypto (multiple network transfers, lengthy KYC, etc) are present for users that have assets in a crypto wallet and want to easily sell them. And fiat off-ramps solve these issues.
A seamless off-ramp allows any user to capture the value of their assets and transfer it back to a fiat currency, which they can then use to buy anything in the real world.
That’s why C14 is focused on building a seamless fiat <> crypto payment flow that includes both on- and off-ramps. Having bi-directional flow is critical to making the user experience easy and allowing crypto to truly reach global mass adoption!
Let’s Be Frens
At this point, you should have a clear understanding of fiat on-ramps and off-ramps — and why they’re critical for crypto to truly reach mass global adoption.
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