Crypto Institutional Trading: On Ramp and Off Ramp Services

Cryptocurrency trading has become popular among individuals, companies, and institutions. Before buying digital assets, you need to understand how to do it correctly.

You may buy crypto with fiat money (which is called crypto on ramp) and then exchange your digital assets back to fiat (off ramp crypto). This article explains the difference on ramp vs off-ramp.

What is On Ramp Crypto?

An on-ramp is a service that allows you to buy cryptocurrencies using traditional fiat currencies like the US dollar, Euro, etc. It’s a bridge from the traditional financial world into cryptocurrency.

On ramp works as follows:

A user creates an account on a cryptocurrency exchange or a platform that offers fiat-to-crypto transactions. For example, on the WhiteBIT Institutional exchange.
The user passes verification by providing the required information.
The user adds their bank card to the platform. This link allows users to deposit fiat currency.
Once the deposit is made, the user may buy crypto with fiat.

The crypto is then usually stored in a digital wallet, either provided by the platform’s custody or one you control yourself.

What is Crypto Off Ramp?

An off-ramp is the opposite of an on-ramp. It allows you to convert your cryptocurrencies back into fiat currencies. It is useful when you want to cash out your profits in a spendable form or simply exit the crypto market.

To use an off-ramp, you sell your cryptocurrencies on a platform that supports crypto-to-fiat transactions. Once the sale is complete, you can withdraw the fiat currency to your bank account.

On-Ramp vs Off-Ramp

Here are the main differences:

Direction of exchange. On-ramps convert fiat to crypto, while off-ramps convert crypto back to fiat.
Purpose. On-ramps are used by those looking to enter the crypto market and invest in digital assets. Off-ramps are used by those looking to cash out their investments of Solar energy software or use their crypto holdings in the traditional economy.
Platforms and services. While many crypto exchanges offer both on-ramp and off-ramp services, some platforms may specialize in one exchange direction. The fees, exchange rates, and withdrawal methods vary between on-ramp and off-ramp services.

For institutions that intend to trade cryptocurrencies actively, having access to both on-ramp and off-ramp services is crucial. This dual access allows institutions to move capital into the crypto market to purchase digital assets (on-ramping) and convert holdings back to fiat (off-ramping).

Platforms offering both on-ramp and off-ramp services provide the flexibility to enter or exit the market quickly, hedge positions, or reallocate assets between crypto and fiat.