What Is A Crypto On-Ramp?
It is not surprising that to enter the decentralized financial market, it is necessary to have crypto. The only possible way to get this crypto is via special services. Nowadays, many crypto businesses provide their customers with services to buy different tokens, like USDT or BTC. However, purchasing crypto will be impossible without one simple solution - crypto on-ramp.
In this article, we are going to talk about a crypto on-ramp: what it means, how it works, the areas of its application, and what is more important — how to integrate it into your crypto business and give your customers a shot to join this innovative world of the decentralized financial market.
Definition: What does a crypto on-ramp mean?
As you already assume, the definition of a crypto on-ramp refers to the exchange of fiat money into crypto tokens. For businesses, it is a special integrated widget that allows them to offer their clients (users) an option to buy different crypto tokens most conveniently. Simply put, a user gives their fiat money, like US Dollars or Euros, and exchanges this money into a cryptocurrency they need. By the way, the reverse process is called off-ramp. But let us figure out how a fiat-to-crypto on-ramp works in practice.
Explained: How does a crypto on-ramp work?
It is easy to understand how it works (if we consider the perspective of a regular customer). Once the crypto on-ramp solution is integrated into your business, users can purchase crypto while following three simple steps:
- Step 1. A user should specify the details of the order, meaning it is necessary to set up a currency pair (for example, if the user wants to exchange their dollars for USDT, the pair will be USD-USDT) and the amount of fiat money you want to put in (or the amount of crypto the user wants to receive). In addition, the service requests you to provide it with the contact details, like the user's actual email address.
- Step 2. During this step, the fiat-to-crypto on-ramp service will obligate the user to verify their identity, namely to go through the KYC (Know Your Customer) verification process. Usually, this process requires the user's ID card and the liveness check (to rotate their head in front of the web camera) and takes from several minutes to 30 minutes.
- Step 3. When the verification is completed, it is a required step to make a payment. The total sum of payment is generally displayed during the first step.
After going through these three steps, the user needs to wait a little until they receive the crypto. This waiting time can vary between a few minutes and several hours (depending on the chosen exchange service).
For users, who already have used the exchange service, this process will be faster because there is no need to go through the second step, which can be time-consuming.
And talking about crypto businesses, they just need to integrate a turnkey solution, and that is all.
Advantages of a crypto on-ramp
Definitely, every fiat on-ramp crypto solution has positive sides. And it is worth knowing all of them to have a better understanding and a clearer picture of what a crypto on-ramp solution can offer you and what to expect from it.
The first evident advantage of using any crypto on-ramp is the great opportunity for users to get rid of their fiat money and exchange it for crypto while entering the world of the decentralized financial market.
The second benefit lies in the simplicity of the purchasing process. Of course, users who make their first steps into the crypto world should deal with the mandatory registration process and KYC verification, which takes some time, but experienced users (who have already completed these processes) can skip this stage and buy crypto almost immediately.
And finally, as mentioned above, most fiat on-ramp crypto solutions come with the built-in anti-fraud and KYC tools to decrease the level of fraud to its minimum. Thus, this solution protects users as well as businesses and prevents them from any fraudulent activities.
Is a fiat-to-crypto on-ramp regulated?
Any crypto on-ramp solution is regulated. And that is why all services that provide users with the opportunity to purchase crypto implement reasonably comprehensive KYC and AML (Anti-Money Laundering) measures. These measures usually require providing some basic personal information and identification documents. It is the minimum required for many services, especially exchange services.
Everything should be very transparent about what is needed. While cryptocurrency proponents often prefer absolute anonymity, others feel that their platform actively discourages criminal activity. While cryptocurrency ATMs have traditionally been entirely anonymous, this is also beginning to change, and more identity verification is now required before making purchases.
Why is a crypto on-ramp solution so important for the crypto industry?
A fiat-to-crypto on-ramp solution is essential to attract new users and new investments to the crypto market. It is also a core tool to bridging the gap between the traditional financial system and DeFi.
The ability to buy Bitcoin or other assets with the help of a debit/credit card makes the crypto world more accessible to anyone. Likewise, the ability to convert cryptocurrency back into fiat currency (off-ramp) pretty quickly makes cryptocurrency more attractive to new users since they are sure about the reverse option to withdraw money back. This flexibility removes some ambiguity associated with digital assets, making them more like any traded commodity.
Many believe that offering even more ways to move value between traditional finance and DeFi is a must if the world is to begin the transition to a new monetary system.
What is a fiat-to-crypto on-ramp good for?
It is also worth indicating where a fiat-to-crypto solution can be good and where it is possible to apply it.
Centralized exchanges
The first thing to indicate is the centralized exchanges (CEXs). CEXs often integrate crypto on-ramp solutions because their licenses do not always allow them to deal with fiat money. In addition, this integration will enable them to get rid of additional bank-related issues.
Some centralized exchanges integrate more than one on-ramp solution for one simple reason - such versatility allows them to cover more regions while giving users multiple options with different conditions and payment methods.
NFT marketplaces
These marketplaces are a new trend, and almost everyone has heard about Non-Fungible Tokens (NFTs) and their growing popularity. The need to buy NFTs is on the highest level, so NFT marketplaces have started using on-ramp solutions to allow users to purchase these tokens directly using their debit or credit cards.
Decentralized exchanges
And one more area of the application of any fiat-to-crypto gateway is decentralized exchanges (DEXs). As the crypto ecosystem has constantly been evolving and expanding, it experiences a shift while becoming more decentralized. DEXs implement on-ramp solutions to allow users to buy a needed token while using fiat money. This implementation enables decentralized exchange services to attract more users, independently of whether they already have crypto or want to purchase it for fiat money.
Play-to-earn games
Recently, more and more people have heard of play-to-earn games that allow them to earn money while simply playing these games. However, to play the games, it is required to have crypto. That is why a crypto on-ramp solution is a great option for this purpose. As a result, the developers of play-to-earn games provide their users with an opportunity to purchase the needed tokens for fiat money. Implementing a crypto on-ramp widget guarantees a better conversion rate and more new players.
How to integrate a crypto on-ramp solution into your business?
And the last questions remain: How to integrate a crypto on-ramp solution into your business, get new customers, and consequently have a substantial flow of money? The answer is a piece of cake. The only thing required (the most effective and fastest way) is to consider a crypto on-ramp solution, like Utorg with its innovative on-ramp widget, which is easy to integrate.
Just go to the official website, complete the survey (answer a few simple questions about your business), and the integration manager will contact you. The great news is that the integration process is free and takes a moment (within 24 hours, you will get the integrated on-ramp widget).
In addition, you will get a fantastic opportunity to get an additional source of income. This income has a simple logic: users purchase crypto with the help of this widget, and your business gets a part of each transaction fee.
And if you are ready to try Utorg’s crypto on-ramp solution, do not waste your time, apply right now and get your passive income alongside.
FAQ
1. What is fiat to crypto on-ramp?
A crypto on-ramp means a service that enables users to buy crypto for fiat money, making their payments with a credit/debit card or another available payment method. And for crypto businesses, thanks to the opportunity to buy crypto without the need of leaving the actual websites and applications, it increases the conversion rate and attracts new people.
2. Is it possible to buy crypto without KYC?
Presently, the KYC verification process is a mandatory procedure for most exchange services and platforms that deal with the purchasing processes of crypto, and every user should obtain this verification. It is compulsory because every on-ramp solution is regulated and is obliged to report to the relevant regulators. Additionally, this measure prevents money laundering and fraudulent activity.
3. How does a crypto on-ramp solution work?
A crypto on-ramp solution enables users to exchange fiat money for crypto tokens. To make this happen, the user should do the following things: specify the details of the order (to set up a currency pair and the amount the user wants to sell or receive), get the KYC verification, and pay for the needed crypto. Three simple actions and you have crypto, whether it is BTC, ETH, or whatever.
4. Is it simple to integrate a crypto on-ramp solution?
Yes, integrating the crypto on-ramp is effortless, especially when you and your crypto business deal with the on-ramp widget developed by Utorg. You need to provide some basic information about your business via contact form, and the integration manager will contact you. The integration process takes up to 24 hours and is free of charge.