Fiat Onramps for Crypto: Methods and Key Differences на сайте Nedvio

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Fiat onramps allow users to convert traditional currencies into cryptocurrencies and vice versa. They form a key bridge between the fiat and crypto financial realms.

There are various mechanisms for onramping fiat, each with their own processes, pros and cons. Let’s examine some major onramp methods and how they differ.

Centralized Exchanges

Popular centralized exchanges like Coinbase and Binance offer direct fiat-to-crypto trading pairs and conversions. Users can deposit fiat via bank transfers or card payments and easily buy major cryptocurrencies.

  • Pros: Simple and beginner-friendly experience. Supports many payment methods. High liquidity.
  • Cons: Limited coin selection. Higher fees. Counterparty risk from holding funds on an exchange.

Decentralized Exchanges

Decentralized exchanges utilize automated market makers to enable swapping between cryptocurrencies. Users first need to acquire cryptocurrency from another onramp before swapping.

  • Pros: Non-custodial, users control funds. Access to a broad range of cryptocurrencies. Low fees.
  • Cons: Indirect fiat onramping, requires a preliminary step. Few fiat-crypto pairs offered directly. Lower liquidity.

P2P Trading Platforms

P2P platforms like LocalBitcoins connect buyers and sellers directly for crypto trading. Sellers offer a wide selection of payment methods including cash, wire transfer, PayPal, and gift cards.

  • Pros: High payment flexibility. Deals with reduced KYC requirements are accessible. Decentralized model.
  • Cons: Manual process exposes users to fraud and scams. Fragmented liquidity. Price volatility and uncertainty during trades.

Cryptocurrency ATMs

ATMs provide quick access to crypto by accepting cash and initiating wallet deposits in return. Users only need a wallet address to receive the funds.

  • Pros: Fast, simple, anonymous. Expanding geographic availability.
  • Cons: High fees averaging 8-12%. Daily limits constrain purchase amounts. Lightning network for BTC has limited capacity.

Debit and Gift Cards

Specialty cards by fintechs like allow users to load cryptocurrencies using prepaid debit cards purchased with cash or bank transfers.

  • Pros: Easy onboarding through familiar payment cards. Ability to spend crypto balance directly on the cards.
  • Cons: Limited selection of currencies. Subject to card issuer rules and availability restrictions. Higher fees are common.


Fiat onramps continue to expand, providing convenient bridges into crypto finance for new users. Direct integrations by centralized platforms offer simple yet regulated access.

For more advanced needs, P2P trading and decentralized apps offer alternatives with fewer intermediaries, but require more effort. As the ecosystem matures, expect onboarding friction to gradually abate.

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