On-Ramp
A crypto on-ramp is a service that allows users to convert traditional money, such as US dollars or euros, into cryptocurrency.
✦ Key Insight
On-ramps connect the traditional banking system with crypto markets. Without them, new users would need to obtain crypto directly from another person or through an existing crypto balance. On-ramp fees, supported payment methods, KYC requirements, exchange rates, and regional availability can vary significantly.
✕ Common Misconceptions
Ignoring total fees
Using untrusted providers
Sending to the wrong network
Failing KYC checks
Assuming all payment methods cost the same
Confusing an on-ramp with an exchange
Detailed Explanation
How It Works
A user selects a cryptocurrency and pays using a supported fiat method such as:
Bank transfer
ACH
Debit card
Credit card
Mobile payment
Local bank rail
The on-ramp processes the payment and delivers the purchased crypto to either an exchange account or a self-custody wallet.
FAQs
Does an on-ramp always require KYC?
Requirements depend on the provider and jurisdiction.
Can an on-ramp send directly to self-custody?
Some can.
In Practice
Dig Deeper
ACH Transfer
An ACH transfer is an electronic bank transfer processed through the US Automated Clearing House network. Crypto exchanges and financial platforms may support ACH transfers for moving US dollars between a user's bank account and their platform account.
Fiat
Fiat currency is government-issued money that is not backed by a fixed quantity of a commodity such as gold. Examples include the US dollar, euro, British pound, and Japanese yen.
Off-Ramp
A crypto off-ramp is a service that allows users to convert cryptocurrency into traditional fiat money and send the proceeds to a bank account, card, or another payment method.