Definition ∞ Fiat to crypto refers to the exchange of traditional government-issued currency for cryptocurrency. This process involves converting conventional money, such as US dollars or Euros, into digital assets like Bitcoin or Ethereum through centralized exchanges, peer-to-peer platforms, or crypto ATMs. It represents a primary gateway for individuals and institutions to enter the digital asset market. The ease and cost of fiat to crypto conversions significantly influence overall market accessibility and liquidity.
Context ∞ The “fiat to crypto” on-ramp remains a critical point of interaction between traditional financial systems and the digital asset economy. Regulatory scrutiny often focuses on these conversion points to ensure compliance with anti-money laundering and know-your-customer regulations. Continuous improvements in infrastructure and user experience are essential for broadening participation in the cryptocurrency space.