Crypto on-ramp and off-ramp

Crypto on-ramp and off-ramp refer to the conversion of fiat currency (currency issued by the government, also known as legal tender) into cryptocurrencies (on-ramp), or the conversion of cryptocurrencies into fiat currency (off-ramp).

These bridges are essential for entering or exiting the cryptocurrency market.

They are particularly important because they are crypto actors who handle funds or cryptocurrencies on your behalf, and as such, they are actors similar to banking actors but originally with less regulation.

They are also important because, in the case of exchanges, investors often leave their cryptocurrencies on these platforms, making their role more significant and, in turn, taking more risks.

On-ramp: On-ramp involves acquiring cryptocurrencies using fiat currency such as the dollar or euro. To do this, you need to register and complete the necessary verification procedures on a cryptocurrency exchange platform or an on-ramp platform.

Once the verification is complete, users can deposit money via bank transfer or credit card into their exchange account and then purchase cryptocurrencies.

Off-ramp: Off-ramp is the reverse conversion of cryptocurrencies into fiat currency. Users sell their cryptos on a cryptocurrency exchange platform or an off-ramp platform and withdraw the funds to their bank account. In case of profit, they may have to pay taxes based on their country of taxation.

These conversions are also important because they allow authorities to control the flows, either for legitimate reasons when it comes to combating money laundering, or in a more questionable manner when it comes to imposing a very top-down functioning on citizens.

Crypto on-ramps and off-ramps play a crucial role in enabling individuals to participate in the cryptocurrency ecosystem. They provide a bridge between the traditional financial system and the world of cryptocurrencies, allowing users to enter or exit the market in a convenient and secure manner.