On-Ramping: What Does This Term Mean In The Cryptocurrency Industry?
NDTV
The world of cryptocurrencies is filled with jargons that need the patience to understand
With the advent of personal computers, various terminologies have found a place in our vocabulary. Some of them are so popular that we sometimes use them as if by default. For instance, we store data on files that are in turn stored in folders. When we open a file, a window pops up. Closing all the open windows shows the desktop. Similarly, we use analogies in the world of cryptocurrencies as well. For example, we store money in a wallet (online or offline), which in reality isn't a wallet but a pair of digital keys needed to open the wallet.
As for computers, analogies for cryptocurrency are also inspired by real life. Consider the process of obtaining or spending crypto coins as getting on to a highway or getting off it. These processes are called on-ramps and off-ramps.
How does this work?
The simplest way to join the crypto industry is by making an investment, meaning you buy coins by exchanging fiat money. Most people do this through online exchanges. Not all exchangers, however, allow for direct fiat purchases. Thus, when you receive crypto coins in exchange for fiat money, you are using an on-ramp. When you spend cryptocurrency for something that is not a digital asset, you are using an off-ramp.
