The Benefits of Using a Web3 Onramp to Access Digital Assets
Posted on 2023-05-06 · 11 min read
One of the first challenges newcomers face in the Web3 space is how to convert fiat to cryptocurrency. Although several cryptocurrency exchanges exist, users face the challenge of having to purchase digital assets first on the platform and then withdraw them to a Web3 wallet.
What if there was a way to bypass the lengthy process and simply fund your Web3 wallet directly from your bank account or credit card? That is essentially what a Web3 onramp for digital assets means.
This blog will talk about the benefits of using a Web3 onramp to get access to digital assets. Whether you're a seasoned investor in cryptocurrencies or just getting started with Web3, if you understand the benefits of a Web3 onramp, it can help you take advantage of this exciting new world of digital assets.
Let's get right to it and look at the many benefits of using a Web3 onramp to access digital assets.
What is a Web3 Onramp?
A Web3 onramp is a platform that provides easy access to the world of Web3 by facilitating the purchase, sale, and exchange of digital assets on the blockchain. In other words, it serves as a bridge between traditional finance and the decentralized world of Web3, allowing users to participate in decentralized applications (dApps) and other blockchain-based services.
Web3 onramps can be considered a gateway to the decentralized ecosystem, where users can buy, sell, or trade digital assets, such as cryptocurrencies, Web3 domains, non-fungible tokens (NFTs), and other blockchain-based assets. They offer a straightforward transaction process with digital assets as users instantly have access to coins on their crypto wallet ready for us.
Web3 onramps play a crucial role in the growth and adoption of the decentralized ecosystem. They enable more people to participate in Web3 applications and services. Moreover, it provides easy access to the benefits of blockchain technology.
How Web3 Onramps Work?
Web3 onramps connect users to the blockchain, enabling them to buy, sell, and exchange digital assets. They typically require users to sign up and create an account, after which they can deposit funds using traditional payment methods like credit/debit cards or bank transfers. Once the funds are deposited, users can exchange them for various digital assets stored in their Web3 wallets.
The Benefits of Using a Web3 Onramp
Using a Web3 onramp to get to digital assets has many advantages, such as easy access, more privacy, and lower fees. In this part, we'll discuss these benefits to see how Web3 onramps can be a game-changer for businesses and individuals.
- Ease Of Access To Digital Assets
One of the best things about using a Web3 onramp is that it makes it easy to get to digital assets. In traditional finance, investors have to go through many middlemen to buy and sell assets. With Web3 onramps, investors can buy and sell digital assets. It makes it easy for anyone with an internet link to invest since anyone can get the information they need.
- Better Security
In addition to being easy to use, Web3 onramps offer better protection than most traditional exchanges. For one thing, users can skip the process of temporarily storing their funds on a centralized exchange.
Also, Web3 wallets are protected by private keys and unique cryptographic codes only the person can access. Its extra protection helps protect the user's digital assets from fraud and theft.
- Improved Privacy
When compared to traditional exchanges, Web3 onramps also offer more privacy. This is often because the know-your-customer (KYC) process is relatively light. Further, users can choose to use multiple addresses for receiving purchased assets, thus improving privacy. Lastly, there is usually no storage of transaction records, as would typically be the case on a centralized exchange.
Types of Web3 Onramps
- Web3 Gateways
Web3 gateways allow users to easily purchase digital assets for accessing various dApps and other blockchain-based services. They typically offer a simple and user-friendly interface, allowing users to immediately receive purchased assets on their connected wallet.
An excellent example is the Eternal Digital Assets Web3 onramp built with Transak integration. Using this service, users can easily buy over 160 cryptocurrencies and receive them directly in a connected wallet or different address. This provision allows users to easily onboard crypto and have assets to trade on the EDA marketplace for Web3 domains.
Web3 wallets are software programs that allow users to store, send, and receive digital assets securely. They typically offer a user-friendly interface and allow users to buy digital assets and also interact with dApps directly from their wallets. Metamask, Coinbase Wallet, and Trust Wallet are some popular examples of wallets that integrate a Web3 onramp.
- Centralized exchanges (CEXs)
CEXs are centralized platforms that act as intermediaries between buyers and sellers of digital assets. They typically offer a more user-friendly interface and have higher liquidity than DEXs. On most CEXs, users can easily fund their wallets using a number of fiat payment options such as credit/debit cards, bank transfers, peer-to-peer trades, etc.
Challenges of Using a Web3 Onramp
Web3 onramps have many perks, but users may still have to deal with the following:
KYC requirements: As the Web3 business grows, the government is starting to notice and is looking into ways to regulate it. It could mean that Web3 onramps will have to follow more rules and implement stricter KYC rules. Users must typically confirm the KYC requirements on their chosen Web3 onramp before initiating a deposit.
Technical problems: The Web3 environment is still new, and it can be hard for new users to figure out how to use it. Technical problems such as high network fees or failed transactions might be a challenge.
Non-User Friendly Interfaces: Even though many Web3 onramps have made their interfaces easier to use, new users still have to learn how to use them.
Future of Web3 Onramps
The Web3 industry is growing rapidly, and onramps are essential to this ecosystem. As more people become interested in Web3 and decentralized finance, the demand for onramps will only increase.
The impact of Web3 onramps on the financial industry is also worth noting. By providing easy access to decentralized financial products and services, Web3 onramps have the potential to disrupt traditional financial institutions and make finance more accessible to everyone.
Summing It Up
A Web3 onramp is a tool you need to easily buy digital assets directly to your Web3 wallet. Consumers and businesses are using these Web3 gateways more and more because they make things safer, save money, and make things easier to do. Web3 onramps give users a safe and easy way to get started with Web3 technologies.
At Eternal Digital Assets, one of our main objectives is to increase the ease at which people can go from fiat to crypto. Our Web3 onramp service is one of the most convenient options for users looking to get started on their Web3 journey.