BlockchainBeginner#Infrastructure#Payments#Onboarding
Fiat On-Ramp
F
Definition
A service that allows users to convert traditional fiat currency (USD, EUR, etc.) into cryptocurrency, serving as the bridge between the traditional financial system and crypto.
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Concept Diagram
Key Takeaways
1
Fiat on-ramps convert traditional money (USD, EUR) into crypto — they are the gateway to Web3.
2
Embedded on-ramps (MoonPay, Transak) let users buy crypto without leaving dapps or wallets.
3
Fees range from 1% (bank transfer) to 5%+ (credit card), plus spread markups.
4
Banking relationships and KYC compliance are the biggest operational challenges for on-ramp providers.
Practical Example
A user in Colombia opens Rainbow Wallet and taps 'Buy ETH.' MoonPay processes the credit card payment, charges a 3.5% fee, and delivers 0.15 ETH to their wallet within 2 minutes — no exchange account needed.
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Related Terms
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CEX (Centralized Exchange)A platform managed by a central entity (e.g., Binance) that facilitates the buying and selling of digital assets.
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DEX (Decentralized Exchange)A P2P marketplace where users can trade cryptocurrencies directly without a central intermediary taking custody of funds.
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Fiat CurrencyA government-issued currency that is not backed by a physical commodity, such as gold or silver.
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StablecoinA cryptocurrency designed to have a stable price, typically by being pegged to a reserve asset such as the US Dollar.
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