An Introduction to What Fiat "On-Ramps" and "Off-Ramps" Means

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Friends today we are here again to discuss an interesting topic on what Fiat "On-Ramps" and Fiat "Off-Ramps" are in the crypto space. When it comes to the crypto space fiat is known as our local currency such as the US. Dollar, Naira, Kuwaiti Dinar (KWD), etc are issued and regulated by the government through the central bank which is known as the Apex bank of a country.

In this lesson, you will get to know what "On-Ramps" and "Off-Ramps fiat" are.

Simply put "On-Ramps" and Off-Ramps" refer to the process by which money is been transferred from cryptocurrency to fiat and vice versa. This means if you have ever used your local currency (fiat) to buy crypto, it means On-Ramps is what you have done.

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These two phrases fiat On-Ramps and Fiat Off-Ramps act like a road that connects another street which here connects fiat and cryptocurrency. This is the reason why you can be able to convert your local currency for crypto and crypto for fait.

On-Ramps is what enables crypto traders, Investors, and everyone to convert their fiat currency (local currency) for cryptocurrencies, which Off-Ramps is the opposite of On-Ramps. Let's talk about Off-Ramps now.

Off-ramps are means by which you can cash out your cryptocurrency which enables you to exchange your cryptocurrency for your local currency (fiat currency).

Let's study the simple image that illustrates how fiat is connected to fiat On-Ramps and Off-Ramps and imagine how the crypto space works.

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From the image, you can see there are two roads one of the roads is part of the fiat currency (local currency), and the other road is the road that leads to the crypto space. With this, it means if you are in the world of fiat currency (local currency) and you wish to enter the crypto space, you will need to make use of an on-ramp or an entrance ramp to access the crypto space.

On the other side, if you are in the crypto space and you wish to have access to the fiat world of local currency, you will have to use an off-ramp or exit ramp to have access to the fait world. With this illustration we have looked into, it means fiat On-Ramps and Off-Ramps, are what allow you to move your money through and flow between the crypto space and the fiat world.

These two phrases fiat On-Ramps and Off-Ramps are what bring in new Investors and money into the crypto market (space).

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Fiat On-Ramp

Let's assume you are new to the crypto space and you want you have created an account with a centralized exchange, If you want to get involved in STEEM and other cryptocurrencies, you will have to buy STEEM using your Fiat currency if the STEEM is not gifted to you by your friend.

For you to buy STEEM you will have to exchange the Fiat currency you have deposited into your wallet for STEEM or other cryptocurrencies through a process known as On-Ramp.

This means fiat On-Ramps that allow you to exchange your local currency for cryptocurrencies at any time you like. For example, I exchange NAIRA for STEEM as the cryptocurrency I want to get involved with. On-Ramps is what allows you to easily leave the world of local currency and enter into the decentralized crypto world.

Fiat Off-Ramp

Off-Ramps is the opposite of On-Ramps. This is a service that allows you to exchange your cryptocurrency for your local currency. This service makes you trust the crypto space that your money is not locked into a certain cryptocurrency which means you can leave the crypto world by selling your cryptocurrency for Fiat currency at any time you like.

Fiat On-Ramps and Off-Ramps allow you to enter and exit the crypto world at any time that you like and come back at any time that you like.

Fiat Currency

In the crypto space fiat currency means the local currency of your country which in Nigeria is Naira is the fiat currency Nigerians are using to buy cryptocurrencies.

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Fiat currency is issued by the government and is printed by the central bank of a country. Fiat currency is mostly paper money that can only be spent in a country that owns it. Like for example, Naira can't be used in a country outside Nigeria.

A good example of fiat currency is Nigeria's NAIRA, U.S. dollars, British pound, Chinese yuan, South African rand, Japanese yen, etc.

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Conclusion:

_{Fiat On-Ramps and Off-Ramps are means by which you can easily gain access to the crypto market and exit the crypto market back to the world of fiat currency at any time that you like. Note: this post is written solely for education and not as investment advice. Do well to ask a question in the comments section to learn more.}