One of the largest obstacles to widespread adoption of cryptocurrencies is bridging the gap between traditional fiat currency and cryptocurrency. An example of fiat currency is the U.S. dollar. This is essential to realize the potential of Web3,
How do businesses onboard fiat currency to cryptocurrency?
While you may be tempted to invest in crypto using your credit card, this could result in huge fees. At least 7% in fees according to Motley Fool—because your credit card issuer will treat the purchase as a cash advance.
The most common way is to link a bank account to the account on the exchange. Once the account is verified, deposits can be made via bank transfer. The funds will then be converted into the desired cryptocurrency and made available for trading.
Another way to onboard fiat currency is to use a service that allows for the purchase of cryptocurrency with fiat currency. These services usually require the user to go through a rigorous verification process before being able to buy cryptocurrency. Once the desired amount of cryptocurrency has been purchased, it can be transferred to a centralized exchange and traded for other altcoins or tokens.
Investing in cryptocurrencies allows you to invest in a frontier technology that is expanding. Just make sure you do so thoughtfully.