Hi friends! how are you doing? Hi there, it is so lovely to have you here at my blog again. Here is another piece of content that I thought might interest you and as per usual, I am not wrong.
Today we would be looking at Fiat Gateways, what it entails and what it means. .. it is in fact yet another topic of interest which I recently came across and thought might be interesting to discuss with you.
Introduction
The crypto world is still in search of people to invest in it space and anyone who would wish to invest could perhaps want to hold some these coins as a beginner. The first of them would then be how they would go about this bearing in mind that 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 rescue the situation for those who would wish to have their fiat changed to crypto and this creates an avenue for people interested in this area to walk in freely. Alright, let’s go directly to know what Fiat Gateway means.
What is a Fiat gateway
Fiat gateway is the combination of two words and for the ease of understanding I will try to break these two words down. First to have a look at the term Fiat, this has a simple meaning which is government endorsed currency that is used within a certain region. Examples include NGN, USD, EURO, GBP, CAD and the like… I believe you now have the idea.
Now I bring you the second word Gateway. This simple means a channel, rout, approach, a means or a process through which something can possibly get access. As far as the particular lesson which we are concerned with, I would say that it is an approach or procedure by which a thing can be done or accomplished.
And if I am to link both definition together, you can be rest assured of what we would have as it definition. However, I would still go ahead and define it anyhow. The Fiat gateway is(are) means that enable us to utilize our fiats to obtain or purchase other preferred cryptocurrencies.
Another word that can be used instead of fiat gateway is Fiat onramp, it means the same thing, I mean a practical way of converting or exchanging your fiat i.e USD, NGN, GBP…to cryptocurrency.
Fiat Gateway Platforms and Types
Most of you can argue with me on that the first cryptocurrency that you had in your wallet was bought on the Centralized exchange. well that just how it is for the majority of the new comer and that because centralized exchanges appear to offer more convenience, ease of use, compared to the decentralized platforms.
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.
It is now about the time to get to explore the common channels that are employed by such platforms.
• Bank Transfer: This appears to be another of the most convenient and least expensive. Not all CEX has it though but it’s associated with some level of convenience since you can simply send directly to the authorized bank of the exchange then get your equivalent cryptocurrency back.
• Card Payment: The second reason is that most people like CEX exchanges due to this specific gateway that is available in almost all CEX platforms. What is required of you is to make payments using the card in question for you to transact business. However, it comes with some amount as charges for the transaction and this looks more like a disadvantage in comparison to using a DEX.
• Authorized Outlets: These are designated outlets where fiat onramp services are carried out. But you need to ensure that you are not just approaching any so as to be trapped with some fake ones. Many of these outlets are often store counter exchange. They could also be of help but were also not without risk.
Buying directly from People: This is one of the risky gates most especially when you are trading as a fresher in the market. You could be exploited. I like to say that you should buy with somebody you really know, if not then you are simply giving your money to be scammed.
Benefit of Fiat Gateways
The first advantage of fiat gateway is that it offers to change fiat to cryptocurrency. In other words, they act as a link between the old economy and the new web3 economy, and it does this brilliantly.
The second advantage is that it simplifies the process, making it smooth, and not very rigid. With these gateways one could transact directly even as a novice and get a positive outcome, although this is highly dependent on what one wants to get out of it as seen when using CEX.
The third which would also double for the last is that it is gives rooms for wider adoption of Cryptocurrency. Using these pretty easy gateways many people would now consider it pretty easy to actually become an investor in this space.
Risk to Fiat Gateways
This services come with fees and at times these fees are relatively high since you are expected to pay for a deposit fee, withdrawal and other kinds of fees connected to the service You’re accessing. The other negative factor is that it is prone to hacks. Another evil that these gateways are susceptible to is Negative vices, more specifically, Physical Attacks. Some insiders could also be threat to some of these things because they may sometimes seek to alter data or embezzle cash for their own benefit.