Understanding Crypto On and Off Ramps
This post was originally published on Zelcore
Crypto on and off ramps are a critical part of the Web3 ecosystem and the key to bringing more users to the crypto space. Because traditional finance and DeFi are technologically distinct and near polar-opposite systems for managing personal assets, finding a way to make the two work symbiotically has become a key priority for many developers and Web3 users.
Crypto on and off ramps are the various methods, services, and platforms available for buying and selling cryptocurrency using fiat currency. Without them, it would be near impossible to participate in the crypto market, because you wouldn’t be able to use your fiat currency to buy crypto assets or convert your crypto assets back into fiat that you can spend out here in the real world while we wait for crypto payments to become ubiquitous.
This article provides an overview of crypto on and off ramps, including how they work, their importance in an emerging Web3, and examples of popular platforms, services, and methods.
A crypto on-ramp is a platform or method that allows individuals and institutions to purchase crypto using fiat currency or other forms of payment. Deposit methods allow investors to acquire cryptocurrency by exchanging fiat currency for the desired cryptocurrency.
Crypto on-ramps connect buyers with digital asset sellers or facilitate the direct purchase of cryptocurrency from the platform itself.
For example, a centralized exchange like Binance or Coinbase allows users to deposit money into their accounts and buy cryptocurrency at the current market price. A peer-to-peer marketplace like Localbitcoins, another crypto on-ramp, connects buyers and sellers who directly negotiate a trade’s price and payment method.
Another — and honestly, preferred — example are payment solutions like MoonPay, which can be integrated into various platforms (like Zelcore), allowing investors to buy cryptocurrencies using fiat via ACH, debit and credit cards directly.
Further examples of crypto on-ramps include:
- Crypto ATMs that allow cash purchases of cryptocurrency
- Brokerages and OTC desks that cater to institutional investors
- Bank wire transfers
- PayPal and other emerging online payment methods
A crypto off-ramp allows you to convert your cryptocurrency holdings back into fiat currency or other forms of payment. Off-ramp services make it easy to cash out crypto holdings and access your funds more traditionally.
Crypto off-ramps connect sellers with buyers or enable the direct sale of cryptocurrency to a third party.
For instance, users of a centralized exchange like Kraken can sell their cryptocurrency and withdraw the proceeds to their bank account. Similarly, peer-to-peer marketplace and payment solutions providers like MoonPay enable sellers to liquidate their holdings by selling directly to individual buyers or a third-party platform.
Many crypto on-ramps double up as off-ramps, allowing investors to purchase and sell cryptocurrency using one platform, service, or method.
On and off ramps give users an easy way to enter (or exit) crypto as they please, and are most likely the key to the future of mass adoption.
Crypto on and off ramps provide a convenient and accessible way for individuals and institutions to enter and exit the crypto market. Without on and off-ramps, it would be much more complex and time-consuming for people to acquire and liquidate their crypto holdings.
With various options for buying and selling crypto, investors can choose the platforms and methods best suited to their needs and risk tolerance.
For example, a centralized exchange may offer higher liquidity and faster trades, but it also carries a higher risk of hacking or theft. On the other hand, a peer-to-peer marketplace may offer more privacy and control over the trade process, but it also carries a higher risk of fraud or scams.
Liquidity refers to the ease with which an asset can be bought or sold without affecting its price.
Crypto on and off ramps help increase cryptocurrency’s liquidity by making it easier for buyers and sellers to find each other and negotiate trades.
They also allow market makers or liquidity providers to participate in the crypto market, which, in turn, helps stabilize the price of crypto and make it more attractive to investors.
On and off ramps also make it a lot easier for users to comply with government regulations for tracking cash and income transactions. While this isn’t exactly a fun or cool feature like fast liquidity, it’s going to be crucial as crypto reaches the space of mass adoption.
Being an on and off ramp provider requires jumping through some serious hoops in order to do what they do. Using a ramp provider to manage the flow of your crypto not only provides security, but also yields a formalized method to keeping your transactions legitimate and easily verified, making tax season and overall wealth management a whole lot easier.
Until stablecoins become universally adopted as payment, we’ll have to live with these accommodations to the current fiat currency system.
MoonPay is the on and off-ramp provider for major crypto websites like Bitcoin.com, Opensea, and Binance. Its integrations allow crypto investors to purchase and sell cryptocurrency securely and conveniently using debit and credit cards, and other payment methods
We are excited to announce that the Zelcore crypto wallet now integrates with MoonPay as an on ramp. As a result, Zelcore users will now be able to use MoonPay payment methods to purchase some of their favorite cryptos directly through the Zelcore platform.
We’ll be bringing in more options for secure on and off ramping soon. By providing users with different options for purchasing crypto, Zelcore gives users more control and options for managing their assets — a key feature of Web3 and DeFi.