The cryptocurrency market is growing, and many new users join it daily. With this growing trend, newcomers need to know how to buy digital assets with fiat. This article explains on-ramps and off-ramps for beginners in crypto.
Briefly About Off and On Ramping
On ramping means buying digital assets with fiat money. Off-ramping is the opposite action, where you convert your crypto assets into fiat currencies (government-backed).
Large crypto exchanges use technology to power on and off ramps for their users. For example, WhiteBIT Institutional services allow fiat-to-crypto on and off ramps, allowing customers to deposit and cash out of crypto using bank cards and alternative payment models.
What is Crypto on Ramp?
If you want to buy crypto, you may do it through a crypto exchange. If you care about protecting your funds, you will likely use a regulated exchange like we mentioned above. The first step in such exchanges is registration and verification (KYC). Passing KYC means providing the necessary documents that will help verify your identity and address. Next, you come up with a password and install 2FA to protect your account.
To buy crypto assets, you need to deposit fiat money (euros, dollars, etc.) into your newly created exchange account with your bank card transfer. That may be a debit or credit card or other method. For that purpose, you link your card to your account and make your deposit. Check out what fiat-to-crypto pairs the platform offers. That may be USD BTC, EUR ETH, or other variations. This is how on ramp crypto transactions take place.
What is Crypto Off Ramping?
In contrast to on-ramping, off-ramp transactions mean converting digital assets into fiat and cashing out. This option is required when investors want to withdraw their profits into the real world. The off ramp crypto transaction looks as follows:
- Choose a crypto exchange. It is optional to use the same exchange where you bought crypto. If you pick a new platform, you need to transfer your crypto to this new exchange. For that purpose, you will again have to create an account and become a verified client.
- Move the needed assets from your wallet to the exchange’s account. Choose the crypto-to-fiat pair (BTC EUR, ETH USD).
- Choose the withdrawal method (p2p, bank transfer, etc.).
- Approve and receive fiat currency to your bank card.
Understanding on-ramps and off-ramps crypto is crucial for new investors in the crypto market. Using exchanges that offer these services can make buying and selling digital assets much more streamlined and convenient, ultimately leading to a better experience for the user.
