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
A US bank-to-bank electronic transfer commonly used to fund and withdraw from exchange accounts.
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.
KYC
KYC, or know your customer, is the process financial and crypto service providers use to identify and verify customers.