26 September 2022
A crypto fiat on-ramp is a facility like an exchange or similar service that allows you to buy crypto with fiat currency, often with your debit card. It is where most people start their journey into the world of cryptocurrency. Buying some bitcoin on one of the major exchanges and then as they learn more about cryptocurrency, they realize that some of those first transactions may not have been at the best rates.
Not only that, but if you are doing things right, your on-ramp transactions should be a fraction of the size of your off-ramps, so that is where you will really notice the additional transaction fees. You will also note that larger businesses just like dealing with any large company, tend to be faceless and more distanced from the users when support is needed.
A crypto fiat off-ramp is usually exchange or other similar service that forms a gateway between the blockchain world and the conventional money system where you can exchange your crypto for fiat currency.
After all, you are likely to want to spend some of your hard-earned crypto profits in the real world, and although the number of places you can spend crypto directly is increasing all of the time and now covers most industries, depending on your location and arrangements it is most likely that you will still need to convert some of that crypto back into fiat currency, Dollars, Euros, or whatever your local currency is.
So, exiting the blockchain ecosystem and returning to the government-controlled monetary system is called a crypto fiat off-ramp. But hold on, even though it might be tempting for the uninitiated to go back to where you bought the asset in the first place, like Coinbase for example, there are many reasons that would be a bad idea. So before going back to the way you came in, let's consider some things in order to determine if that is the best course of action.
All good journeys must come to an end, and of course, the end need not be permanent, it's just a case of taking some money off the table when the time is right. If you have made a sufficient profit from your position then it makes sense to cash some in, or if you think that your chosen investment still has some distance to fall before it starts rising again. There is no harm in stepping off for a while, then getting back on again later when the exchange rate is right.
But in order to benefit you will need to get out and back in again at just the right time. So it is essential that you are working with a trusted partner, an exchange or trading desk that you can be sure will execute your transaction effectively when you need it and most importantly one that will facilitate easy transactions that are quick and trouble-free.
Governments are interested in the flow of currency into and out of their system and even more when it is entering and exiting across borders and into alternative money systems. So, you can expect some KYC (know your customer) requirements these days, particularly for larger transactions.
Although there is a lot of talk about crypto being anonymous, that is far from the case when nearly all money entering and leaving the decentralized ecosystem is associated with a confirmed identity, and every transaction in the major cryptocurrencies is recorded on a public ledger, it is actually far less private than some fiat transactions like cash.
Either way, once you have jumped through a few hoops with your preferred off-ramp provider, you are set up and ready to transact quickly whenever you need to.
Not all off-ramps are created equal by any means, in fact, there is generally 3 main types of crypto-fiat off-ramp available in the market.
Some of the biggest exchanges in the market offer on-ramp and crypto-fiat off-ramp services but they are also some of the worst exchange rates. These are generally regarded as custodial exchanges where you deposit your crypto or fiat like a bank and they hold the keys to it. The big names in this market are exchanges like Binance and Coinbase but there are many more of them.
There are now large numbers of app-based gateways that combine multiple third-party payment and crypto services to achieve on-ramp and off-ramp services, but they are often more suited to small payment service applications. There are many advantages of this kind of crypto payment app service and ultimately, they are one of the ways that crypto payments for goods will become adopted by the mainstream, but they have never been ideal for large off-ramp transactions.
Exchange services like Nextinter are more suited to cryptocurrency investors and traders, particularly if they are dealing with larger value transactions. Owned by NextHash, they also offer an OTC trading desk that will handle large transactions on behalf of the seller when the transaction may be too large for an exchange.
One of the advantages of using an exchange like Nexinter is the speed and convenience of executing large crypto fiat off-ramps. Transactions can be carried out quickly and easily in order to take advantage of market opportunities and to keep the whole process hassle-free.
Nexinter also offers extremely competitive exchange rates and high liquidity so you can be confident that you will be able to exit when you need to and at a single price point.
Why not register your account with Nextinter today so you are ready to take advantage of the next market opportunity? We are confident that once you have experienced the difference in detailing with a professional trading platform you will never go back.