How to Convert Fiat to Crypto on Polygon with Dharma (and Skip the Bridge Fees!)

If you’ve ever bridged funds from the Ethereum network to the polygon network, you know that gas fees can be astronomically high. Recently I cancelled a bridge transaction that would have cost me $87 USD!

A search for lower gas fees led me to several exchanges that now include direct fiat on-ramps to the Polygon network. A fiat on-ramp is the ability to purchase crypto directly with fiat, typically with the intention of sending those funds somewhere else. This kind of service has been around for a long time with Ethereum but is slowly starting to catch on with Polygon.

With Polygon fiat on ramps, you can avoid the insane Ethereum gas fees and go directly to Polygon with your hard-earned cash.

In this guide, we will focus on the centralized exchange called Dharma. In addition, KogeFarm and Dharma have partnered to provide new users $50 worth of Ether after sign up. Just click this link.

If you’re not interested in Dharma or are not based in the U.S., check out Binance, Kucoin, Gate.io, Crypto.com or OKEX for other Polygon fiat on ramps.

How Fiat → Polygon Works on Dharma

This article will be a step-by-step tutorial. But before we get into the specifics, let’s first cover a quick three-step overview on how this process works.

1. We’ll buy crypto on the Polygon network directly with fiat on Dharma.

Note that Dharma does require a know-your-customer (KYC) process before you can buy crypto.

2. Wait six days for the funds to settle.

3. Transfer your purchased tokens to a wallet where you can interact with various DeFi applications such as KogeFarm.

You can use any wallet you’d like but the most popular wallet with the best community support is the MetaMask wallet. Learn how to set up a MetaMask wallet here.

Going through the KYC Process with Dharma

Let’s now get down to brass tacks and see how to cheaply buy tokens on the Polygon network without those sky-high Ethereum gas fees!

1. On your mobile device, download the Dharma wallet app. Dharma is available on iOS and Android. Below is what you’ll see the first time you open the app.
2. Select the network switch drop down in the upper left corner and select Polygon.
3. Click Buy Crypto.
4. Next, tap Add Bank Account then tap Level 2 to start the KYC process.
5. Complete all verification steps until you get to the last step to select your method of identification.

Left: opening dharma for the first time. Middle: selecting the correct network. Right: Clicking on Buy Crypto

Connecting Your Bank Account

Once you’ve KYC’ed yourself, Dharma will ask you to link your bank account (since you selected that option in step 4). Unfortunately this only works for people with U.S. bank accounts. For non U.S. users see our list of other direct onramps towards the beginning of the article.

Click Continue on the Plaid screen, search for, select your bank and provide your bank credentials.

To add your bank account you’ll need to provide your phone, email, and identity verification using one of the options above

Buying Crypto Tokens to Transfer

At this point, you’re all set up and ready to make your first fiat buy on Dharma. To demonstrate, we’re going to purchase USDC. Why? Because Dharma charges zero fees to buy USDC!

If you are looking to buy KogeCoin to buy the dip with fiat funds, Dharma and KogeFarm have partnered to allow you to do that!

Dharma charges different purchase fees depending on the token. When in doubt, buy USDC. If you don’t buy a stable token like USDC, the value may change over the six-day waiting period you must endure.

To buy crypto on Dharma, select the token you’d like to purchase (USDC in this case), how much you’d like to purchase, tap Confirm and Execute, and you’re done! You have nothing else to do for six days while the funds settle.

Input the amount you want to buy, and select the token

Getting MATIC Tokens to Pay for Gas Fees

Once you’ve waited the obligatory six days, you can technically transfer your crypto tokens wherever you’d like. But, to perform any action on a blockchain, you must have some funds to pay for gas fees. Gas fees are the fees charged by the blockchain to support a transaction.

Depending on the network/blockchain you’re using, the gas fees are charged in a different token. For Ethereum, that token is ETH but on Polygon, the token is MATIC. So, to transfer tokens from your Dharma wallet to a DeFi wallet, you must get some MATIC.

Gas fees on Polygon are notoriously cheap (100x cheaper than Ethereum). Performing a single transfer transaction will realistically cost less than 0.01 MATIC. But it’s always wise to have more MATIC than what you need for future gas fees.

To pay Polygon gas fees, you’ll need to have MATIC in your Dharma wallet. You can get this MATIC one of two ways. You can either transfer MATIC from an existing wallet or purchase MATIC with fiat directly on Dharma.

Buying MATIC on Dharma is the same process as buying USDC as demonstrated in the Buying Crypto Tokens to Transfer section. But note that Dharma charges $2 USD to buy MATIC.

Sending MATIC to Dharma

If you already have MATIC in a wallet somewhere, you can send that MATIC to Dharma to pay for your transfer gas fees. To do that:

1. First, click on the button in the top right corner.
2. Next, confirm that if you send tokens to this wallet address from any other network besides Polygon your tokens will be lost.
3. Copy and paste the wallet address you see on the screen below, paste that wallet address in your source Polygon wallet and send some MATIC over.

When sending tokens from wallet to wallet, always be sure you’re sending tokens across the same network. If you attempt to send a token on the Polygon network directly to the Ethereum network, your tokens will most likely be gone forever!

Finding your Dharma wallet address so you can send some matic to it from a different wallet. Ignore the dollar amounts (in the first picture I hadn’t transferred my $100 out yet)

Transferring Tokens to your DeFi Wallet

At this point, you should have your token to transfer (USDC) plus some MATIC tokens to pay for the transfer. You’re now ready to transfer your tokens over to your DeFi wallet.

1. First, click on the token balance of the token you’d like to transfer.
2. Tap the send icon, as shown below, to open the transfer window.
3. Next, input the amount you’d like to transfer and paste your destination wallet address into the box. Dharma does not allow you to manually type in the wallet address to help prevent mistakes of mistyping. You must always paste in a wallet address.
4. When you’ve added the amount to send and provides the wallet address, tap Preview Action to submit the transaction.

Ignore the Ethereum Address inside the UI box. This is a UI mistake that Dharma needs to update to Polygon Address.

This was the least intuitive part for me. Click your balance, click the arrow, then transfer!

At this point, you’re all done! Wait a few minutes for the transaction to complete and your funds should appear in your destination wallet!

My funds appeared in my wallet in less than a minute

Completing the Cycle

Made some profit? Getting your money back into your bank account is the same process just in reverse.

1. Send your profit to your Dharma wallet address (see “Sending Matic To Dharma”)
2. Select your tokens in Dharma and click Sell
3. Enter the amount you want to send to your wallet (there is a $5 minimum for bank transfers out of Dharma)
4. In the Select a Token field select your bank account
5. Hit Preview Swap and confirm the transaction

It took my funds 4 days to appear in my bank account. You can see when your funds will arrive in your bank account by checking your pending transactions

Conclusion

Dharma is a great way to substantially reduce the fees you’ll pay on Ethereum. If you intend to buy tokens on Polygon directly with fiat, Dharma is a low cost and easy way to do so.

If you have any other questions, please stop by the KogeFarm Telegram or Discord communities, where you’ll always find someone willing to help you out.