On-Ramp for Crypto: Business Cases

On-Ramp for Crypto: Business Cases

In the recent few years, Web3 and Decentralized Finance (DeFi) have been gaining popularity at an incredible pace. As a result, more and more people are trying to enter the crypto world regularly, but some people experience problems with it. That is why it is one of the essential tasks for every crypto business to provide their users with a reliable option for seamless onboarding into the crypto world and make the adoption of Web3 as easier as possible.

The only proven way to enter this world and become part of this big and fast-growing community is with the help of a special tool that makes it possible to convert fiat money into the needed cryptocurrency. And the name of this tool is crypto on-ramp (sometimes, it can be spelled onramp).

Previously, we have dived deeper into the topic of crypto on-ramps and explained the basics of crypto on-ramps. However, this time, we will discuss the importance of crypto on-ramp solutions for different projects related to different crypto businesses and give you the solution that will help your business scale globally and make the onboarding process to the crypto world as seamless as it is even possible. So, let us make everything clear and learn more about the importance of on-ramps for crypto businesses.

The importance of on-ramp for crypto businesses

It is a piece of cake to understand the importance of on-ramps for crypto businesses, especially when you are familiar with the idea of on-ramps.

As the essential aim of crypto on-ramps is to give crypto users a shot at converting their fiat currencies into crypto, the importance lies in giving this shot in order to get the needed cryptocurrency to be able to join the crypto community.

On the other hand, crypto on-ramps are specifically designed to bridge the gap between two financial systems — the traditional one and DeFi. And if the world is going to replace the traditional financial system entirely, crypto businesses should be ready for such a great shift and change.

How do crypto on-ramps work?

From a technical perspective, the working algorithm of on-ramp widgets is extremely complicated and sophisticated. However, we will explain how this algorithm seems for regular users who want to convert their fiat money into digital assets (cryptocurrency).

As an example, we take our on-ramp solution (most on-ramps have the same working principle). The algorithm is based on 3 straightforward steps.

First of all, the user should fill in a special form while specifying the order details to convert fiat into crypto. It means that there is a need to establish a currency pair, like the US dollar (USD) and Bitcoin (BTC), enter the amount of money for the crypto purchase (it is also possible to enter the amount of crypto that the user wants to get), and provide the service with an actual crypto wallet address of the user where all crypto will be sent.

The second step requires the user to complete the mandatory KYC verification. We have an AI-based KYC module, so the identity verification process is a matter of a twinkling eye (it will not take more than 3 minutes). However, many on-ramp widgets make KYC extremely complicated and time-consuming for regular users, so the process may take hours or even days.

And finally, the user should make a payment with the help of the most suitable payment method to get the needed amount of crypto.

Three easy steps and the user’s fiat currency is converted into the needed cryptocurrency. Thus, the onboarding is completed, and the user has the needed token to use it for different purposes. What is more, there is no need for registration while using Utorg’s widget. No registration means a better conversion rate and more satisfied users. Meanwhile, there is one more advantage for your business — an additional source of income from transaction fees. While users make transactions, you receive money from the transaction fees.

To sum up the working flow, it is worth highlighting three main stages of interaction between the user, the on-ramp, and the crypto application:

  1. The user converts fiat to crypto via the on-ramp.
  2. The user leverages crypto to use the crypto app.
  3. The crypto app earns transaction fees.

Now, you got how it works. Nevertheless, there is one more moment that is highly advisable to figure out — what businesses need on-ramps.

In the next sections, we will explain what crypto businesses undoubtedly need on-ramps and why.

Crypto on-ramp for crypto wallets

Let us start the list of crypto businesses with the need for on-ramps — crypto on-ramps for crypto wallets. As mentioned earlier, the crypto community has been growing, and consequently, more and more people need to store their digital assets somewhere. That is why a lot of business persons think about the development of their own crypto wallets.

To make the functionality of a crypto wallet more effective, why not consider the option to integrate a fiat-to-crypto gateway? With the help of a simple integrated on-ramp, your wallet will not only provide the users with a shot to store their digital assets but also purchase them directly from the dApps (without the need to be redirected to other third-party services).

This additional functionality and high level of convenience are going to increase conversion and retention rates while making your crypto project even more profitable.

Crypto on-ramp for centralized exchanges (CEXs)

The second business that, without a shadow of a doubt, needs a crypto on-ramp is centralized exchange services or CEXs. For some users, CEXs become their starting point in the crypto world. And under these circumstances, these users have an extreme need to exchange their fiat money for digital tokens. Of course, it can be done with a crypto on-ramp only.

It is beneficial if your centralized exchange platform provides a seamless onboarding process and a simple way of buying cryptocurrency.

With an integrated on-ramp widget, the level of convenience is extremely high, and this is exactly what crypto users are looking for. In other words, satisfied users equal loyal users.

Crypto on-ramp for decentralized exchanges (DEXs)

After talking about the need for a crypto on-ramp for centralized exchanges, it is worth mentioning decentralized exchange services (DEXs) as well. These services give unlimited power to users dealing with crypto. However, it is necessary to have cryptocurrency to get all the advantages of using such services because on DEXs, users trade crypto against crypto. So, a crypto on-ramp is a must-to-have widget to enable users to buy crypto for trading and paying blockchain transaction fees.

The more convenient usage of the service (in terms of crypto purchasing), the better user flow, and an increased level of conversion is expected. For this reason, it is getting easier to provide comfortable and effortless onboarding with integrated on-ramps.

Crypto on-ramp for swap services

Swap services are a kind of DEXs but are represented as their simplified version. These services enable users to exchange (swap) one token for another within the same network.

Many Layer-2 chains have recently appeared, each of which has its swap service.

To make a swap, a user must pay network fees with the blockchain native token on which this swap service works. Therefore, when a user wants to use a swap service that operates on the L2 chain, it is necessary to look for a cross-chain bridge to transfer the required funds from the L1 chain to L2. In most cases, it takes a lot of time and requires additional fees. Furthermore, there is not always an official bridge, and this moment adds risks of losing funds.

When the swap service has a built-in on-ramp solution, this completely solves all problems. The user buys the necessary tokens using a bank card or another payment method and receives tokens for the chain they need. Moreover, it helps to save time and money and eliminate the risks of losing funds since a crypto on-ramp is a licensed business that is regulated by relevant international regulators.

Crypto on-ramp for cross-chain bridges

Knowing that swap services do not have popularity among people who do not yet have crypto, a crypto on-ramp for cross-chain bridges should be considered. Why? The answer is the usefulness of the service. In addition to the opportunity to transfer cryptocurrencies between two different blockchains, a crypto on-ramp for cross-chain bridges will add an option to buy tokens, which are needed for paying blockchain fees.

The decision to integrate an on-ramp widget with the cross-chain bridges will definitely benefit your business because you will have more customers as well as increase your revenue.  

Crypto on-ramp for DeFi games

You have probably heard something about DeFi games or P2E games, like Alien Worlds, Axie Infinity, or Walken (if not, you can read our article to get to know these games better). These games are played by hundreds of thousands of players around the globe and require in-app purchases in crypto.

But what will users do if there is no crypto on-ramp integrated into the DeFi game and there is no way to buy crypto for these in-app purchases? They will simply leave this game and will be looking for an option with the ability to buy crypto. Thus, a crypto on-ramp for crypto games is a must.

Crypto on-ramp for portfolio trackers

One more project category that needs an on-ramp is portfolio trackers. These are apps that track the total amount and value of cryptocurrencies across the user’s wallets.

It happens that users often decide to buy a certain token based on price changes. To save time, the users want to make the decision as soon as possible. And if a portfolio tracker app gives them a shot to purchase the needed crypto in a few clicks and within the app, it will positively impact the user experience.

The beneficial side of on-ramp’s integration lies in an additional income source from all the app commissions. Furthermore, with the help of a built-in crypto on-ramp, you can add more functionality to your decentralized application related to portfolio trackers. As a result, you will be able to get even more regular customers, especially when you will integrate the most suitable on-ramp widget into your app.

Crypto on-ramp for NFT platforms

For one year, NFTs have been booming the industry, and this boom has caused an increased number of NFT platforms and marketplaces.

Often, people want to buy NFTs, but they are struggling with the topic of crypto — they do not have it, and it is complicated for them to buy it (because many exchange services have confusing and time-consuming processes of crypto purchasing). To avoid such an inconvenience, the best way is to provide them with an option to exchange their fiat money for needed tokens within an NFT platform so they can buy the desired NFTs quickly and with ease.

To present this option, it is necessary to have an on-ramp widget because all NFTs can only be bought for crypto. So, that is the primary reason this business should integrate a crypto on-ramp.

Crypto on-ramp for utility coins and tokens

And finally, if your business has a utility token, without any doubt, it should provide users with all possible ways of getting the required coin(s) seamlessly and without leaving your application/website so that users use tokens to access your company’s services.

Logically, a crypto on-ramp is the most obvious and efficient way of doing this. With an integrated fiat-to-crypto gateway, your business can make sure that your regular users and potential customers have the option to buy crypto with ease and within your website/application. In this case, the convenience of purchasing crypto helps your business increase its profit.  

Every crypto business needs a crypto on-ramp

As you can see that whether you are building or running a crypto business, which is related to the NFT market, DeFi, crypto wallet, etc., it is unthinkable that you can deal without the presence of crypto on-ramps.

A crypto on-ramp solution intends to make the onboarding process of crypto users as simple and seamless as possible while making the adoption of Web3 to the masses faster and globally available. And if you run or build one of the businesses mentioned above in this article, you should seriously think about integrating an on-ramp to your dApp or service because its presence greatly affects the user flow.

How do on-ramps affect the user journey?

From the perspective of a user, it is better to have an integrated crypto on-ramp widget for your business rather than use the services of third-party exchanges or other related services, and there is one primary reason for this — the onboarding of users.

The onboarding of users to the crypto world should be seamless and have no difficulties. While using the third-party service to buy crypto, users start their first crypto journey on your site, but they will be forced to be redirected to somewhere else to make that purchase. This moment caused significant inconvenience. Thus, having such an issue will undoubtedly affect conversion as well as retention rates.

So, the integrated on-ramp solution is the perfect option for your business and for your customers. Nevertheless, there are so many companies that offer their unique solutions and it has become challenging to find a reliable option.

How to select a fiat on-ramp solution for your business?

At the present time, there are many companies that offer their in-house on-ramp solutions. However, not every solution will be suitable for your business, and that is why you need, at first sight, to consider different aspects before deciding whether you are going to use and integrate this or that crypto on-ramp widget. Among the primary aspects, it is worth considering the following ones:

  • Countries coverage;
  • Security;
  • Anti-Money Laundering (AML) process;
  • Know Your Customer (KYC) algorithm;
  • UX (User Experience);
  • The simplicity of integration;
  • The cost of integration;
  • Fees;
  • Supported currencies (both cryptocurrencies as well as fiat currencies);
  • The available payment methods.

After gathering the needed information and analyzing the needs of your crypto business, it will be much easier for you to make the right decision.

Utorg: the solution you are looking for

If you have not yet decided or found your perfect crypto on-ramp solution, consider our innovative and top-notch solution that is designed to enhance your crypto business with one simple integration. The integration takes no more than 24 hours and will cost you zero. To make it more attractive, our crypto-to-fiat gateway comes with the following advantages for your business:

  • 187 countries coverage;
  • 10+ payment methods;
  • 26+ local fiat currencies;
  • AI-powered KYC within 3 minutes;
  • AML/TF security system;
  • 24/7 live chat user support;
  • Personal integration manager;
  • Passive income from transaction fees.

Have some questions? Do not hesitate and book a demo to find the answers. And if you see that this option is suitable for your crypto business, apply now and make the onboarding process of your users to the crypto world seamless and your business prosperous.

FAQ

1. How does an on-ramp work?

Every crypto on-ramp has the same working algorithm that consists of three stages in order to buy crypto and join the web3 community: the specification of amount and receiving wallet address, completing KYC, and making payment. And that is how any on-ramp converts fiat money into cryptocurrency.

2. What is the difference between on- and off-ramp?

The only difference between a crypto on-ramp and crypto off-ramp lies in one simple moment: while on-ramps are designed to enable users to buy crypto for fiat, on the other hand, off-ramps give users an opportunity to sell digital assets and get fiat.

3. Why does your crypto business need a crypto on-ramp?

To enter the world of crypto a user needs a tool for converting traditional money (fiat) into digital assets, and crypto on-ramps are designed to complete the conversion in the most natural and convenient way. That is why a crypto-related business has a need for on-ramps.

4. What is crypto on-ramp good for?

A crypto on-ramp solution is greatly suitable for different projects, whether your business deals with crypto wallets, CEXs/DEXs, DeFi games, mining pools, NFT marketplaces, portfolio tracers, or swap services.