Web3 is emerging as a compelling vision of a decentralized internet that isn’t dominated by a handful of huge corporations.
This decentralized digital ecosystem will replace monolithic websites with secure discrete apps, data sources, and services that we will access smoothly and automatically as needed.
Web3 will also serve as an essential foundation for the metaverse, a customizable three-dimensional user interface that supports interaction, entertainment, and business.
Blockchain technology and Web3 solutions
Blockchain technology’s support of security, data storage, and decentralization makes it a natural element of Web3. In fact, blockchain-based decentralized financial applications – DeFi apps – are among the first real-world examples to show the benefits of the Web3 architecture.
Across the globe, visionary teams are creating digital building blocks, protocols, and specifications, computer code that will instantiate a new internet that is free from today’s corporate website domination. They intend Web3 and the metaverse to be accessible to everyone with an internet connection, no matter where they are or how little expertise they have with blockchain technology, cryptocurrencies, cryptographic keys, and decentralized apps. For Web3 to fulfill its promise, it must be available to all.
Life will be good in the Web3 digital fast lane when everyone is aboard.
The blockchain bottleneck
But there’s a problem. Users who wish to secure access to a DeFi app or create in-game NFT avatars or invest funds at a staking service website must first cross the divide separating today’s offline fiat reality from the new ecosystem of blockchain-based digital assets. The most innovative Web3 app can’t succeed if would-be customers don’t have any money on the blockchain.
That’s where crypto ramps come in. A crypto ramp is an essential tool, a web service that serves as a fiat-to-crypto onramp for onboarding users and a crypto-to-fiat off-ramp that allows users to cash out.
That’s a lot of jargon packed into the flow of a few words. Let’s unpack it and see the job that crypto ramps do and why they are increasingly important to our Web3 future.
What is a crypto on-ramp?
A crypto on-ramp is a website or app that allows users to buy BTC and other digital currencies with fiat money like euros, British pounds, American dollars, and so on. Some people refer to crypto on-ramps as fiat on-ramps, but in reality, both terms refer to the same kind of service. Whether you call it a crypto on-ramp or a fiat on-ramp, it’s a place you convert fiat money into cryptocurrency. Users buy crypto today by accessing a variety of solutions.
Major fiat gateways like cryptocurrency exchanges, crypto-compatible money-transfer services, and Bitcoin ATMs are all crypto on-ramps according to the strict definition. And they play a role in helping increase the base of potential users for any Web3 app or platform. Any one of them can be a fiat onramp.
Users can also gain access to crypto through mining – dedicating computer power to a blockchain network in return for coins or tokens.
Buying and selling with crypto
They can also sell goods or services and accept cryptocurrencies as payment. Kriptomat’s KriptoPay service is a fiat onramp platform for entrepreneurs and gig workers who would like a streamlined for exchanging crypto for services and sales.
The sad reality is that crypto-fiat gateways based on these solutions face significant drawbacks.
Integrated crypto on-ramps
Many Web3 businesses have found it beneficial to incorporate onramp features into their app. This lets them vouch for the quality of the fiat-to-crypto conversion experience and strengthen their relationship with users. If you send would-be customers elsewhere to buy crypto, they may get distracted, frustrated, or lost – and never return. Web3 companies are sustaining customer engagement by offering an on-site on-ramp.
Millions of people around the world have purchased Bitcoin, Ethereum, and other digital currencies – but many new users still find the process, concepts, and terminology challenging. The best crypto on-ramps handle account creation and crypto purchases in a straightforward, easy-to-learn way. The world’s next million users will need a simpler solution: a fiat onramp that doesn’t require a degree in computer science.
When a customer wants to buy crypto with a Web3 app or website, it’s called blockchain onboarding. It’s an essential step in turning interested strangers into customers.
What is a crypto off-ramp?
Although an increasing number of brick-and-mortar retailers and online businesses accept one or more cryptocurrencies to pay the price for purchases, for the foreseeable future people will need two kinds of money: cryptocurrency for their online activities in the metaverse when using Web3 apps and government-issued fiat currencies for offline transactions.
What is fiat?
“Fiat” is a jargon word when it is used to refer to plain old money. Years ago, money was backed by the issuing nation’s store of gold reserves, so the cash had value based on the price of gold.
That’s not true anymore. Nations on every continent have abandoned the gold standard. As they did, critics said their new currencies had value only by fiat – that is, by declaration. They had value because the government said so, not because it represented a share of the country’s physical store of gold reserves.
“Value by fiat” was a disparaging term used by people who objected to the abandonment of the gold standard. Today, “fiat money” simply refers to the everyday currencies issued by national governments. The term is mostly used to distinguish those government-managed currencies from the self-regulating cryptocurrencies that have emerged in recent years.
What crypto off-ramps do
Crypto off-ramps are on-ramps in reverse. They allow users to exchange cryptocurrency for fiat funds, which they typically receive via transfer to their bank accounts. Off-ramps are essential for a Web3 app because they guarantee users that they are not locked into the digital economy. They can withdraw everyday euros or dollars at any point.
Some Bitcoin ATMs can be used as off-ramps, but they are limited and they have high fees. Web3 companies that provide integrated on-ramp functions often include off-ramp solutions as well.
On-ramp and off-ramp technology are both vital to the success of Web3 and the metaverse. They serve unique functions in the effort to monetize users.
What is a crypto ramp?
Many people in the Web3 world use the terms ramp and on-ramp interchangeably. Technically, a crypto on-ramp only allows users to buy crypto with fiat funds. This logically suggests that “crypto ramp” ought to refer to a service that allows both the purchase and sale of funds. There is a difference. Ramp should be the generic term.
But logic doesn’t always account for the way words are used. Some people use the term “crypto ramp” to refer to a crypto on-ramp or resort to novel coinages like “fiat <–> crypto ramp” when speaking of fiat-crypto gateways that allow two-way conversion.
No matter what you call them, a crypto ramp serves as a bridge that connects the online ecosystem of Web3 apps with the everyday world of brick-and-mortar retail outlets. Easy-to-use crypto ramps are a key component of the emerging Web3 ecosystem.
What are crypto ramps good for?
We’ve established that a crypto on-ramp allows the prospective user to create an account, buy crypto, and establish a presence on the blockchain. It’s the first step in the process of accessing your blockchain-based Web3 application or service.
Here are some of the kinds of apps that benefit from a crypto ramp:
Crypto coins and tokens
For instance, Web3 projects that include a token for transaction fees or governance find a crypto on-ramp essential for letting users purchase the tokens without leaving the app or website.
Like swap services and DEXs, crypto exchanges are more useful if they provide simple, fast, trustworthy fiat gateways for acquiring crypto assets and converting them to fiat funds in their bank accounts.
Teams that develop a crypto wallet find it natural to integrate the ability to make fiat deposits and withdrawals. A fiat-to-crypto bridge makes wallets easier to use and more appealing. Fiat gateways make wallets more accessible.
Decentralized crypto exchanges (DEXs) are great for giving users control over their crypto finances. But of course they are of no use to users who don’t own any crypto. A crypto ramp manages the onboarding process for the app, making the DEX more accessible to more people.
Blockchain technology is bringing huge changes to the gaming community, but adoption is not as fast as it could be. Gamers need fast, easy, trustworthy fiat gateways to acquire crypto for paying the vendor for game acquisition, upgrades, and in-game purchases.
Users who want to join a mining pool need a presence on the blockchain and a convenient way to convert the crypto they earn into fiat money they can spend or deposit in the bank.
Non-fungible tokens have become big business, and marketplaces are springing up to support buying, selling, and swapping NFTs. A crypto ramp allows more users to participate in the NFT boom without requiring them to tackle the complexity of blockchain technology.
Portfolio monitoring is just one of the hundreds of DeFi applications that could benefit from a high-speed fiat-to-crypto ramp for implementing user onboarding.
Crypto-to-crypto swap apps aren’t in high demand among people who don’t yet own any cryptocurrency. Operators of these apps add a crypto on-ramp to give users an easy way to acquire crypto with a credit card or bank transfer, making the service more useful to more people.
Each application and service has its own flow profile for new users, but in every case, an easy-to-use crypto ramp can help developers increase conversion rates and boost the number of users. These are just a few of the blockchain and Web3 apps that benefit from integrating fiat gateways into a Web3 platform.
The case for third-party ramps
Web3 firms looking to add a global on-ramp to their online offerings face a variety of challenges. It turns out that writing the computer software to buy and sell cryptocurrencies is the easy part.
The hard part
Cryptocurrency regulations vary dramatically from one country to another. European Anti-Money Laundering and Know Your Customer verification regulations apply if your users are based in countries that are part of the European Union. So Web3 firms need to hire a compliance team to research the local regulations in every country where it does business to ensure that the crypto on-ramp and off-ramp comply. Ensuring compliance with local regulations can be expensive and time-consuming for Web3 companies, especially start-ups. But it’s essential in helping users feel confident in the onboarding process.
Web3 companies must also negotiate with banks and other institutional partners so they can manage fiat payments made with Visa, Mastercard, and bank wire transfers in every country where they have users.
The companies need to develop procedures to handle risk mitigation, chargebacks, secure transactions, and fraud detection. They need to ensure that their ramp solution is compatible with the most widely used blockchains and cryptocurrencies among their target customers.
They need to do UX testing to ensure the fiat ramp solution is easy to use in every language spoken by potential customers. A great UX is necessary in helping non-technical users feel confident and secure when using crypto for the first time.
That’s why more and more blockchain developers are turning to third-party solutions that add value by minimizing the risk and handling customer onboarding with easy-to-use, secure, regulation-compliant crypto on-ramp and crypto off-ramp tools. Complete third-party software solutions bridge the gap between crypto and fiat currencies while reducing development time with a turn-key fiat onramp – and supporting user engagement at improved rates.
A complete crypto ramp solution
KriptoRamp is a free widget that establishes a crypto on-ramp that gives users easy access to buying crypto and accessing blockchain-based products and apps. The widget supports fast, simple integrations with DeFi apps, games, or crypto platforms with a few lines of code. The widget lets the Web3 developer’s clients buy crypto and begin using a Web3 app in minutes – with a great UX and optimized online buying experience.
Kriptomat handles KYC and AML user verification, anti-fraud safeguards, chargebacks, regulatory compliance, and even translation into 20+ languages spoken in Europe and around the world at this date.
KriptoRamp lets users acquire crypto with Visa, Mastercard, or SEPA bank transfer – in more than 10 of the most widely used currencies, including euros and US dollars. The widget supports the most widely used blockchains and more than 350 cryptocurrencies.
Kriptomat also offers the Crypto Exchange White Label API, which allows developers to use their own branding while integrating a full-featured cryptocurrency exchange into their project.
KriptoRamp and the Crypto Exchange White Label API give partners the ability to earn an adjustable share of the transaction fees clients pay when buying, selling, and swapping cryptocurrencies.
Kriptomat is an ideal ramp partner because its mission is to do the hard work of ensuring compliance, localization, security, and the other issues when users buy and sell cryptocurrencies:
- Kriptomat is the first European crypto platform to earn ISO 27001 certification for data security.
- It’s licensed and regulated in the EU as a provider of virtual currencies.
- Its KYC-compliant registration system has been fine-tuned in the onboarding of more than 300,000 customers to date.
- It supports crypto buyers and sellers in 42 European markets and more than 70 countries worldwide – with more added to the list all the time.
Kriptomat is Europe’s leading licensed and regulated exchange marketplace, an all-in-one platform designed to fulfill its mission of bringing crypto to every household in Europe. That hope and ambition extends to the customers of Web3 companies that adopt KriptoRamp and the White Label API.
In fact, many Web3 companies that are already implementing a third-party on-ramp solution add KriptoRamp to extend their reach in Europe and offer users more options – as well as some of the lowest fees they’ll find anywhere.
Adding the resources of a turn-key crypto onramp tool from Kriptomat is a simple five-step procedure that involves just a few simple documents.
It starts with the Partner Information Form, which provides brief information about the Web3 company’s business and needs.
Set up a Kriptomat user account, including KYC verification and two-factor authentication.
Next comes the Know Your Business form, which is required for doing business in Europe.
Once the Kriptomat compliance team has performed business identity verification, the company sends a commercial agreement for the Web3 developer to review and sign. This single contract is all it takes to get the ball rolling.
At this point, the Web3 company is granted access to the KriptoRamp widget or Crypto Exchange White Label API tool kit. The developers access what has been described as “just a simple SDK” with complete instructions that show how to integrate these components into a new or existing Web3 app or service using a robust yet simple API.
KriptoRamp and the White Label API even pay commissions based on customer transactions, allowing Kriptomat partners to monetize the on-boarding process.
The bottom line
The success of Web3 apps and the metaverse are limited by the relatively small number of potential users who don’t already use cryptocurrency and blockchain-based apps. That’s why crypto ramps have emerged as essential tools that allow blockchain developers to manage onboarding for users around the world.
What will happen when the 7.9 billion people who don’t currently use Bitcoin and other digital currencies get access to crypto ramps and the blockchain world? Stay tuned. It’s going to be a revolution.
Crypto onramp solutions from Kriptomat offer users a seamless, non-threatening introduction to crypto while minimizing the time and labor of onboarding users for Web3 development teams.
This text is informative in nature and should not be considered an investment recommendation. It does not express the personal opinion of the author or service. Any investment or trading is risky, and past returns are not a guarantee of future returns. Risk only assets that you are willing to lose.