What are crypto on-ramps?
The point at which someone converts traditional (or fiat) currency into cryptocurrency is called an on-ramp.
A crypto on-ramp is a tool, typically a website or an app, that allows users to easily exchange fiat currency for cryptocurrencies. Exchanges provide this service by pairing with banks and other financial institutions, which allows them to accept fiat currency deposits and then convert them into cryptocurrency.
On-ramps serve two main purposes:
- They let users convert fiat money (government-issued currency) into crypto through their bank accounts or credit cards.
- They provide access to tokens for use decentralized applications (dapps) that are not directly related to buying and selling, but offer value through other products or services they provide.
Users of certain on-ramps can also perform other functions, such as storing or transferring their cryptocurrency.
While the main feature of on-ramps is an essential part of getting users started with crypto, on-ramps can also be used for other purposes besides buying and selling cryptocurrency.
For example, they can be used to transfer funds between wallets or exchange one type of crypto for another type of crypto through a peer-to-peer transaction (P2P). Some apps will even use on-ramps to allow users to conduct other financial tasks like setting up direct deposit payments and paying bills online using crypto as the payment method instead of traditional currencies like USD or EURO
Historically, on-ramps may be overly complex or expensive for users.
While crypto is still in its infancy, there are already well-established ways to enter the ecosystem. But for many people, those options are daunting or confusing. Additionally, well-known exchanges that offer convenience and familiarity may charge high fees for simple transactions, or feature lengthy delays before crypto is cleared for deposit into user accounts.
This cost and difficulty represents a barrier for a wider market who many be interested in conducting financial activities in crypto.
Embed on-ramps into your app Conduit
With the Conduit API, you can embed invisible on-ramps into your app to give your users a seamless entry into crypto-backed activities.
With a float account, your users' on and off-ramp transactions will be nearly instant, with low fees and low developer complexity to integrate.
Learn more about Conduit on and off-ramps here.