On-ramp

An on-ramp is a way to turn regular money into crypto: buying with a card, bank transfer or cash through an exchange, broker-style app or payment service.

How it works

The name is from highways: the on-ramp is where you merge from a normal road onto the crypto highway. You pay with fiat (dollars, euros and so on) and receive crypto in a service account or straight to your own wallet. The usual methods are card, bank transfer, P2P exchange and cash at a crypto ATM.

Methods differ in price and speed. Card is usually fast but pricier: a service fee plus a markup in the rate. Bank transfer is often cheaper but slower. P2P is flexible but needs care to avoid scammers.

Almost every legal on-ramp requires identity verification (KYC), because this is where the regular financial system meets crypto. If a service promises large purchases with no checks at all, treat it as a warning sign.

Example with numbers

You buy $100 of USDT by card. The service charges 2.5%, which is $2.50, and you receive 97.5 USDT. With a bank transfer at 0.5% you would get 99.5 USDT but wait longer.

Common mistake

A common mistake is seeing "0% fee" and ignoring the rate. A service may charge no separate fee but sell crypto above market price. Before you buy, check how many coins you will actually receive for your money and compare with the exchange price. The final number of coins is the only honest figure.

Questions and answers

What is an on-ramp in simple terms?

It is any way to buy crypto with regular money: card, transfer or cash.

What is the cheapest way to buy crypto?

Often a bank transfer to an exchange and buying with an order, while the most expensive is usually card or a crypto ATM. Fees vary, so compare how many coins you end up with.

Do I need ID to buy crypto?

With legal services, almost always. Anti-money-laundering laws in many countries require it.

On-ramp

How it works

Questions and answers

Related terms

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