A “fiat on-ramp” is a process or service that allows someone to convert fiat currency (government-issued currency, such as the US dollar) into a digital or cryptocurrency. An example of a fiat on-ramp would be a cryptocurrency exchange that allows you to deposit US dollars into your account, and then trade those dollars for a cryptocurrency such as Bitcoin.
A “fiat off-ramp” is the opposite process, allowing someone to convert a digital or cryptocurrency back into fiat currency. An example of a fiat off-ramp would be a cryptocurrency exchange that allows you to sell your Bitcoin for US dollars, which can then be withdrawn to a bank account.
Fiat on-ramps and off-ramps are important because they provide a way for people to enter and exit the cryptocurrency market using their local fiat currency. This can make it easier for people to buy and sell cryptocurrencies, as they do not need to worry about the complexities of exchanging one cryptocurrency for another or finding someone willing to trade the cryptocurrency they hold for the one they want.
This page was last updated on January 7, 2023.