What is Cryptocurrency On-Ramps and Off-Ramps?
In the world of cryptocurrency, getting money in and out of the ecosystem required the use of Cryptocurrency On-Ramps and Off-Ramps. Simply stated on-ramps and off-ramps are cryptocurrency exchanges that allow for deposit and extraction of value from a Cryptocurrency Exchange.
Cryptocurrency On-Ramp
When a person decides to invest in cryptocurrencies, the first step is to purchase a cryptocurrency using cash money. A Crypto Exchange that allows for the deposit of fiat currency (cash) into the system and converts the funds to cryptocurrency is called an On-Ramp. It is referred to as On-ramp since they allow you to acquire crypto tokens that enable your participation in the cryptocurrency ecosystem.
For many people, the hardest part of crypto investing is getting verified with a Cryptocurrency On-Ramp Exchange. This is because most countries have created laws governing this process. The laws are in place to ensure that money laundering is not possible.
Cryptocurrency Off-Ramps
A Cryptocurrency Off-Ramp, on the other hand, refers to a cryptocurrency Exchange that enables people to convert crypto assets for products, services or the deposit of cash in their bank account.
A business that allows people to purchase products or services from online businesses is a Cryptocurrency Off-Ramp. Additionally, a Crypto Exchange that allows customers to exchange crypto coins for local (fiat) currency is also an Off-Ramp.
On-ramp and off-ramp are therefore not very symmetrical since On-Ramps only pertain to fiat currency, while an off-ramp can refer to a company that processes cryptocurrency transactions for real-world products and services.
When it comes to the off-ramp, there is not as much regulation as with on-ramps when transactions are settled in crypto assets. For instance, when you are moving digital assets from one Exchange to another. Often times you are only required to pay a transaction fee. A large number of Crypto-To-Crypto exchanges do not require user verification.
Nonetheless, if you wish to extract your funds out of the cryptocurrency ecosystem, you are still required to become a verified user.