Understanding Fiat Gateway.
 |
|---|
Hi friends! how are you doing? Welcome to my blog, it's super good to have you back here. I trust you got value from my last post. I bring to you another interesting content, one that I believe you would find interesting as usual. In my previous post, we explored the concept "Casascius Coin", you can check out my blog to read through if you haven't.
Today, we would be looking at Fiat Gateways, what it is and what it stands for... it's actually another topic of interest I stumbled upon and felt like sharing with y'all. I hope you guys learnt one or two things from this write-up.
The crypto world is still in search of folks who would come in as investors into it space and anyone who would want to invest might want to hold some of these coin as a newbie. The first challenge they would then have is how to go about this since they only have Fiats and not these crypto coins.
How would they get cryptos using Fiats as their capital. This is where fiat gateway comes in to save the situation for those who would like to get their Fiats exchanged for crypto and allow folks who are interested in this terrain come in with ease. Let's get to explore what the term Fiat Gateway means.
Fiat Gateway is a combination of two words and I will like to break down those words for the sake of comprehension. We have first the word Fiat which simply means government issued currency which is used within a particular jurisdiction. Example includes NGN, USD , EURO, GBP , CAD etc. I think by now you have an idea.
 |
|---|
Now to the second word Gateway. This simple means a way, methods, path through which something can gain access. For the sake of the lesson we are looking at, I would say it a method or way through which something can be done or achieved.
If am to link both definition together, you can be sure of what we would arrive at as it definition. Anyway I would still go ahead to define it. The Fiat gateway is(are) ways through which we can use our fiats to get or purchase cryptocurrencies of our choice.
Another term that can be used instead of fiat gateway is Fiat onramp, it spells the same meaning, I mean a viable method of converting or exchanging your fiat i.e USD, NGN, GBP...to cryptocurrency. While fiat offramp is the inverse of this definition.
Many of you would agree with me that the first cryptocurrency you got and had in your wallet was purchased on a Centralized exchange platform. Well that just the way it works for most newbie and that because centralized exchanges seem to be more accommodating,user friendly and easy when compared to Decentralized platform.
Decentralized platform are far better when it comes to getting these cryptocurrencies but they are not easy to interact with especially when you're new to this space and most of them do not have the gateways that most people can relate with such as bank transfer, Debit cards and the like. Let's get to explore the common gateways utilized by these platforms
• Bank Transfer: This seems to be one of the easiest and cheapest. Not all CEX has it though but it's comes with a level of comfort as you can just send directly into the authorized bank of the exchange and then get your equivalent cryptocurrency in return.
 |
|---|
• Card Payment: Another reason why most people like CEX exchanges is because of this particular gateway which exist on almost all CEX platform. All you need do is just to transact using your card. Although it comes with some amount as charges for the transaction and this seems like a disadvantage when compared to using a DEX.
• Bitcoin ATM: Bitcoin ATM is another innovation that has been around for a while now. It can also be used to purchase your BTC. They function just exactly the way a typical ATM machine does but this time the machine is specially built for cryptocurrency related services.
• Authorized Outlets: These are designated outlet where fiat onramp service are done. But you must be careful to just approach any so you don't fall for some scam. Most of these outlets are usually over-the-counter exchange. They could also be of help but don't forget to be cautious.
• Buying directly from People: This is one of the riskiest gateways especially when you are dealing as a newbie. You could be exploited. You really need to deal with somebody you trust, I would like to add that it must be someone you really know, if not, you could just be scammed.
The first benefit of fiat gateway is it ability to convert fiat into cryptocurrency. In order words, they bridge the gap between the traditional finance and the web3 space and it does this seamlessly.
The second benefit is that it makes the process seamless, easy and flexible. With these gateways one could transact directly even as a novice and achieve ones desired result especially when using CEX.
The third which would also double as the last point is that it's gives rooms for wider adoption of Cryptocurrency. Many people would now find it pretty easy to become an investor in this space because of these pretty easy gateways.
Fees are attached to this services and sometimes they are usually on the high side as you have to pay deposit fee, withdraw and other kind of fee associated with the service You're getting
Another risk is that it's vulnerable to breaches. Physical Attacks is another negative vices that these gateways are vulnerable to. Some insiders could also be threat to some of these things because sometimes they might want to manipulate data or steal funds for their personal benefit.
I believe by now you understand what the Fiat gateways are and how to use them to your advantage. As my usual custom is, I would always encourage that you DYOR to be sure of every financial step you would want to take as I won't be liable for any form of loss encountered by you.
Feel free to share with me your thoughts in the comment section. Thanks for your time once again. Gracias!
Disclaimer: This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your own research and consult a financial advisor.
Regards
@lhorgic♥️
https://x.com/lhorgic1/status/1822646791189250283
Upvoted! Thank you for supporting witness @jswit.
Note:- ✅
Regards,
@theentertainer