Explained | What are on-ramp and off-ramp transactions in cryptocurrency?

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Cryptocurrencies have grown explosively over the last few years. Despite severe market corrections triggered by developments across the globe, new investors continue to pour in money into the digital asset. But for those who are only exploring the crypto market yet, there is a lot to learn.For a novice, it may begin with a question as basic as how to convert their paper currency into a cryptocurrency and back into actual currency when they want to exit the market.

So let’s try and simplify this process of entering the world of crypto and how a user can exit.ON-RAMP TRANSACTIONSThis transaction involves spending your fiat currency (traditional paper money) to purchase some cryptocurrency. An on-ramp transaction leads you out of the centralised financial system and into the decentralised blockchain-powered financial system. Well, then, how do you make this transition between both worlds? Here are your entry points:1.

Centralised Exchanges (CEX)This is the most common entry point for most crypto transactors. Exchanges like CoinDCX, WazirX and CoinSwitch Kuber in India can help you foray into the crypto world. You can either use your debit card, credit card or even UPI to add funds to your exchange wallet.Every exchange requires you to create an account if you wish to avail of its services.