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Acctual Team
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Jun 8, 2024
Unify your fiat to crypto processes and avoid any crypto accounting challenges. Although managing your fiat to crypto transactions seems complex, this guide is here to help you through the process, ensuring you can pay invoices through crypto without any issues.
If you’re having trouble with fiat to crypto invoice payments, Acctual's crypto accounting software is the solution. With our platform, you can easily manage your fiat to crypto transactions, giving you peace of mind when paying invoices through crypto.
Table of Contents
What Is Fiat To Crypto Exchange?
A fiat to crypto exchange is a platform that allows customers to exchange traditional currencies (USD, GBP, EUR) for digital assets. These platforms act as intermediaries to facilitate fiat and crypto exchanges.
Fiat-to-Crypto Exchanges in the Web3 Ecosystem
Fiat-to-crypto exchanges are extremely important in the Web3 ecosystem. They are integral to helping people smoothly convert their stablecoins into cash and vice versa. Fiat-to-crypto exchanges work similarly to brokerage platforms with a few key differences. Instead of going to a third party, you buy bitcoins directly from a fiat-to-crypto exchange. These exchanges purchase large quantities of digital assets, store them, and sell them to users.
Using a Fiat-to-Crypto Exchange
Using a fiat to crypto exchange resembles a regular exchange transaction. You begin by creating and verifying your account and depositing funds using a traditional currency. Then, you can choose where to store your digital assets.
From Depositing Funds to Receiving Crypto
The exchange usually displays the digital asset amount you will receive in exchange for your chosen fiat currency. If the exchange rate is beneficial and you decide to purchase, the system will immediately take the needed amount from your preferred payment method.
Beyond Buying Crypto - Trading and Conversions
Some fiat to crypto exchanges allow you to swap your purchased crypto for other digital assets. It depends on their supported offerings. You may turn your crypto back into fiat cash using a fiat to crypto exchange. You may use the exchange platform to transfer your Bitcoin holdings into fiat currency and withdraw the funds back to your original payment source.
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How Does Fiat To Crypto Exchange Work?
Once you have chosen an exchange platform and verified on a trading platform that allows for fiat-to-crypto exchange, you can convert your fiat into crypto. Some platforms only allow fiat-to-Bitcoin exchange, while others offer other assets and stablecoins such as USDC, USDT, or Ethereum.
Variety Of Fiat-to-Crypto Exchanges
The types of fiat they accept will also vary by exchange; some will have a wide range of fiat currencies they accept, while others may only accept one or two. In addition, some exchanges will have crypto trading on their exchange while others will solely act as brokers to purchase crypto, in which case you must send your assets to a peer-to-peer crypto exchange.
Beyond Conversion: Additional Services Offered by Fiat-to-Crypto
Using a fiat to crypto exchange to convert your money to crypto is fairly simple. You can select from their payment method options: debit card, credit card, bank transfer, or wire transfer. Each one of these options will incur various fees, though some options may have no fees, and some exchanges have specials where they waive the fees.
Once you pick how you would like to pay, with what fiat currency, and for what crypto, you will simply need to complete the steps on the exchange. They will take your payment method, convert it into the asset you chose, and deposit it either into a wallet on the exchange or, in some cases, send it directly to a wallet address that you have specified.
Acctual's Complete Solution
Acctual is crypto accounting software for businesses and freelancers transacting in digital assets. It simplifies accounts payable and receivable, making it easy to pay bills and send invoices in crypto. Our flexible options let you pay in crypto while vendors receive fiat, receive crypto while clients pay in fiat, or receive fiat while clients pay in crypto. We also integrate with your accounting system, saving you time on month-end reconciliation.
Key features:
Multi-level approvals for bills
Fiat-to-crypto and crypto-to-fiat payments
Built-in AML screening
Crypto invoice links
Automatic payment notifications
With our smooth AP/AR process, automated bookkeeping, built-in internal controls, and flexible payment options, you can simplify your financial operations with us.
Book a call with our team today to learn how you can pay bills and send invoices in crypto with our crypto accounting software!
11 Best Fiat To Crypto Exchanges
1. Kraken
Kraken is a secure Bitcoin exchange with a user-friendly website. It supports the purchase of over 200 digital assets using six fiat currencies. While the fees may be higher than those of other platforms, Kraken is an excellent choice for security-conscious investors seeking to buy crypto with fiat.
Kraken has a reputation for reliability. The intuitive interface is suitable for beginners and experienced traders alike. The platform allows for quick conversion between crypto and fiat with competitive fees based on transaction size, asset, payment method, and market conditions. Deposits and withdrawals on Kraken are possible via various channels, including bank transfers and digital app shops.
2. eToro
eToro is one of the most used exchanges globally, with a user base of over 25 million people. Its fiat currency onramp makes it a top choice for the best fiat-to-crypto exchanges. The exchange incorporates features that place it high on our list, like free deposits. You do not pay deposit fees for using any of the many supported methods.
You can deposit using bank transfers, credit cards, PayPal, Skrill, and Neteller, but you’ll need to send in at least $10. Withdrawal fees are similar but cost $5 for amounts above $30. There are upper limits for single deposits depending on the payment method used and your geographical region. For example, the maximum single deposit you can make with a credit card is $40,000. With PayPal, Skrill, and Neteller, it is $10,000, while bank transfers are pretty much unlimited, although your bank may impose limits.
Once you have deposited funds, you can trade between the 63+ coins and crypto assets on the exchange at a 1% conversion fee.
3. Coinbase
When exchanging fiat currency for stablecoins, security must be one of the main factors to consider when evaluating the best fiat-to-crypto exchanges. Coinbase understands this and has implemented robust security measures to protect its users' funds and information. With features like two-factor authentication, SSL encryption, and biometric authentication, Coinbase ensures that your account and transactions are safeguarded against potential threats.
Supported Fiat Currencies
Such reliability and trustworthiness are also boosted due to the platform's versatility. The platform works with the most popular fiat currencies, namely USD, GBP, and EUR, making it accessible to users from various regions worldwide. This sets it apart when it comes to evaluating the best crypto-to-fiat exchange.
Transparency vs. Convenience
Cost-wise, Coinbase charges a fixed amount that depends on the currency and the method used. This is true for deposits and withdrawals (fiat-to-crypto or crypto-to-fiat trading). Instant Cashout services are also in place for US residents with enabled accounts or for Visa cardholders in the US, UK, and EU.
The fees are not disclosed on their website; you can only see them before purchasing. While Coinbase fees are high, it makes up for that with its user-friendly platform and robust security measures.
Fiat Onboarding and Offboarding
The hassle-free buy and sell feature makes depositing and withdrawing funds on Coinbase a smooth experience. Users can deposit funds using various methods, including bank transfers, credit/debit cards, and even PayPal in some regions. Strategic partnerships with various organizations are also strong points in favor of Coinbase. The exchange has partners everywhere in the vast crypto ecosystem, further enhancing its services.
Visa Debit Card and Ecosystem Partnerships
For example, Coinbase has partnered with Visa, allowing users to spend their digital assets with a Coinbase Visa debit card. This partnership provides users with the convenience of using stablecoins for everyday transactions, making it easier to use their digital assets in real-world scenarios.
4. Crypto.com
Founded in 2016, Crypto.com is a prominent crypto exchange platform with high security. It is accessible in more than 80 countries. Experienced traders prefer to use the Crypto.com App. However, it is also suitable for those starting to trade. The platform offers a secure crypto wallet for users to store their digital assets.
Crypto.com offers a wide range of currencies, 350+ digital assets, and 8 fiat currencies, including the most popular ones. Owning CRO, Crypto.com's native crypto, reduces trading fees on the platform. The platform also offers educational resources and in-depth research, making it a strong choice for beginners and dedicated users.
5. Binance
Binance’s daily trade volume of $76 billion, multi-currency support, and several payment methods, including the largest crypto peer-to-peer marketplace in the world, make it a great option for a fiat-to-crypto exchange. The exchange is currently the largest in the world, housing a coin selection and crypto assets that exceed 600 coins and providing support for 80 world fiat currencies. You can deposit to your Binance account using almost any major fiat currency.
Depositing to Binance
When depositing, you can deposit cash to your account or buy crypto directly with a fiat payment method. Sometimes, these options are fixed to certain deposit methods and currencies. For example, when making GBP deposits, you can use a bank card to deposit GBP into your Binance account or use credit cards to buy crypto directly with the fiat currency. The case is not the same for USD.
SWIFT Transfers and Direct Crypto Purchase Limits
With USD, you can only deposit cash using a SWIFT transfer. However, you can buy crypto assets directly with credit cards, Google Pay, and Apple Pay. Based on the fiat currency used, Binance imposes volume limits for the direct purchase feature, Buy Crypto. USD purchases have a minimum limit of $15 and a maximum of $20,000.
Once you have deposited cash or bought crypto, you can trade crypto at an affordable rate of 0.10% per trade.
6. ByBit
Bybit is a popular and user-friendly fiat-to-crypto exchange. It is known for its competitive trading features. It allows users to buy crypto assets and sell digital assets using any of 20 fiat currencies. Bybit offers various withdrawal methods: a bank transfer, a wire transfer, a credit or debit card, and an e-wallet.
Safe Trading Environment
The platform prioritizes security and employs multi-signature wallets, cold storage, and advanced encryption techniques. Bybit is a reliable exchange for fiat-to-crypto trading. It works with reputable liquidity providers and a diverse range of assets. Additionally, it provides automated trading features, including dollar-cost averaging (DCA) crypto bots.
Bybit Caters to Different Trader Needs
Bybit supports 1,190+ digital assets, offering diverse trading options. It also has good liquidity and volume for popular pairs, making it easy for traders to enter and exit positions.
Bybit’s insurance fund manages market risk, adding an extra layer of security for users.
7. Bitstamp
Bitstamp is a security-conscious crypto exchange with a fiat currency onramp. It offers 75+ cryptos, cold storage, and an instant purchase feature. This is one of the safest crypto exchanges, supporting eight major payment methods for cash deposits and instant purchases.
Cash deposit methods include:
Faster Payments
Sepa
ACH payments
Instant purchase methods include:
Credit or debit cards
Apple Pay
Google Pay
PayPal
Deposit and Withdrawal Fees
Depending on your location, you may not have access to all these payment methods. For example, European crypto market users may not have access to Faster Payments, as it is mainly a UK service.
Deposits for all cash transfer methods are free.
Withdrawals cost €2 for Sepa and £3 for Faster Payments.
Wire deposits cost 0.05% with a minimum of $7.5 (£5) and a maximum of $300 (£250)
Withdrawals cost 0.1%, and the minimum amount is $/£25. The minimum deposit amount for the exchange is $10.
Comparing Options and Considering Additional Costs
On the other hand, direct crypto purchases cost 4% across all available methods. If you intend to use a credit card, note that you may pay extra as your provider may also charge you.
Monthly trade volumes under $1000 do not attract trading fees.
Monthly trade volumes between $1,000 and $10,000 attract a 0.30%-0.40% trading fee
The fee decreases with increased volume until a floor of 0.03% for trade volumes above $1 billion.
8. CEX.IO
CEX.IO is a popular crypto exchange that supports multiple payment methods, making it a strong contender among the best fiat-to-crypto exchanges. It is known for being easy to use, allowing smooth deposit and withdrawal functions.
Global Reach and User Trust
The platform has a large user base, serving customers in over 220 countries. This enhances its credibility as a trusted choice for fiat-to-crypto trading. In practical terms, CEX.IO is known for its ease of use and intuitive interface, suitable for beginners and experienced traders.
Catering to Different Needs
Other useful features include its Instant Buy feature, which allows users to buy stablecoins using their credit/debit cards, Apple/Google Pay, bank transfers, and other payment channels. This can be ideal for users who want to quickly and easily purchase stablecoins without depositing fiat funds first. However, there is one drawback: the platform only supports USD, EUR, and GBP, which is not the widest range compared to other popular crypto-to-fiat platforms.
Liquidity and Fees
CEX.IO is known for its high liquidity and deep order books, ensuring users can easily buy and sell digital assets at the best market rates. Now, CEX.IO's purchasing fees vary depending on the payment method.
There are either fixed charges (like $2,99 charged for SEPA deposits and withdrawals, for example) or ranges from 0.3% to 3% for withdrawals and 0.99% to 3.99% for deposits. You can find the full fee structure on CEX.IO.
9. OKX
OKX is a one-stop shop for crypto traders, investors, web3 explorers, and enthusiasts. It features several types of crypto markets, a simple and free conversion service, several crypto derivatives, and a portal to explore web3. It does not have a cash deposit option. You cannot deposit cash into your account; you can only buy crypto using one of the supported payment methods, which include credit cards, third-party on-ramps like Banxa, and peer-to-peer exchanges and marketplaces.
The card option lets you use services like Apple Pay, but there are fiat exchange transaction limits.
When buying crypto in GBP, you are limited to a minimum value of £9 and a maximum of £4,148.
For USD, it is between $10 and $5,000
For EUR, the range is €10 to €4,638.
Note that your credit card provider may charge transaction fees. Once you buy crypto, you can swap between 300+ other coins for free with the Simple Convert feature or trade crypto between 0.06% and 0.10%.
10. Bitfinex
Bitfinex is a crypto platform offering various services, including some of the best fiat-to-crypto exchange services. It has gained popularity among users due to its high level of security, advanced trading options, and powerful charting tools.
For deposits and withdrawals, Bitfinex offers the usual options for funding your account and cashing out your crypto using fiat. Namely, you can do that through bank wire transfers or via credit/debit cards. You can even use the Lightning Network to make instant deposits and withdrawals. Bitfinex supports many fiat currencies, including:
US Dollar (USD)
Euro (EUR)
Great British Pound (GBP)
Japanese Yen (JPY)
Chinese Yuan (CNH)
Regarding fees, Bitfinex provides users with competitive exchange rates and low transaction fees, making it an attractive option for users who want to trade stablecoins. Fiat-related deposit and withdrawal fees might vary based on the method used and the currency in question. You can see the exact fees before making the deposit/withdrawal, but the usual fiat deposit fee on Bitfinex is 0.1% (when making bank deposits). Internal transfers (digital asset withdrawals to another Bitfinex user's address) are free of charge.
11. Bitpanda
Bitpanda is a European fiat-to-crypto exchange that offers a traditional approach to crypto investing. It allows users to manage their cryptos and digital assets as a portfolio and diversify into other asset types like commodities and stocks.
The fiat deposits available depend on the exchange of fiat currency being used. The supported major fiat currencies are the following:
Euro (EUR)
US dollar (USD)
Swiss franc (CHF)
British pound (GBP)
Turkish lira (TRY)
Polish zloty (PLN)
Danish krone (DKK)
Swedish krona (SEK)
Hungarian forint (HUF)
Czech koruna (CZK).
Funding methods to buy crypto include Sepa transfers, Skrill, Neteller, bank transfers, Rapid transfers, and credit cards.
Skrill/Neteller transfers are subject to a daily deposit limit of £8,948
Withdrawal limit of £89,948
Every week, the deposit limit is £268,442, while the withdrawal limit is £1.7 million.
Using this method, you can deposit and withdraw a lifetime value of roughly £8.9 million.
Transaction Limits and Fees
Credit cards are limited to £2,237 a day and do not support withdrawals
Bank transfers are limited to a daily deposit limit of £447,404 and a withdrawal limit of £4.4 million.
With over 170 stablecoins on this reliable exchange, you’ll have options to choose from and swap at a 2% direct conversion fee. Note that the minimum deposit is €25 while the minimum trade value is €1 or equivalent in your chosen currency.
Our Crypto Accounting Software
Acctual is crypto accounting software for businesses and freelancers transacting in digital assets. It simplifies accounts payable and receivable, making it easy to pay bills and send invoices in crypto. Our flexible options let you pay in crypto while vendors receive fiat, receive crypto while clients pay in fiat, or receive fiat while clients pay in crypto. We also integrate with your accounting system, saving you time on month-end reconciliation.
Key features:
Multi-level approvals for bills
Fiat-to-crypto and crypto-to-fiat payments
Built-in AML screening
Crypto invoice links
Automatic payment notifications
With our smooth AP/AR process, automated bookkeeping, built-in internal controls, and flexible payment options, you can simplify your financial operations with us.
Book a call with our team today to learn how you can pay bills and send invoices in crypto with our crypto accounting software!
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What Is A Crypto On-Ramp & Off-Ramp?
Crypto on-ramps and off-ramps are essential components of the crypto market. Let's understand these concepts and how they work to make using crypto easier.
Crypto On-Ramps: Entering Crypto
When you decide to start on a crypto investment or trading journey, you need a fiat to crypto exchange to acquire your first digital assets. This is where a crypto on-ramp comes into play. These on-ramps allow you to purchase digital assets using fiat currency, such as USD or EUR.
Supported Methods and Considerations
To get started, you can deposit fiat into the system through various methods like debit or credit cards, bank transfers, or wire transfers. Bank transfers are the most common way to fund your exchange account. The type of fiat you can use and the stablecoins you can purchase depend on the trading pairs offered by the exchange.
Ensuring Compliance and Security
The on-ramp process typically involves identity verification to comply with anti-money laundering regulations. This step prevents illicit activities such as money laundering and terrorist financing.
Crypto Off-Ramps: Exiting Crypto
Once you've invested in digital assets and want to convert them back into fiat currencies or use them for goods and services, you'll need a crypto off-ramp. These exchanges allow you to convert digital assets into products, services, or traditional currencies.
KYC Compliance for Funding Your Crypto Account
Unlike on-ramps, off-ramps have fewer regulatory requirements when exchanging stablecoins for goods or services. However, when converting your digital assets back into fiat currencies, you'll need to undergo identity verification similar to the on-ramp process.
AML/CFT Regulations and Converting Crypto Back to Fiat
Government regulations surrounding money laundering, terrorist financing, and other financial crimes necessitate identity verification for converting digital assets into fiat currencies. This is a crucial step in ensuring the legitimacy of transactions within the crypto space.
What To Look For In A Fiat Exchange
Privacy
Privacy is a crucial factor to consider. When engaging in a fiat to crypto exchange, you will likely need to provide personal information for verification purposes. This process often involves submitting photos of your ID and documents to confirm your place of residence.
Limits
When selecting a fiat exchange, consider the limits imposed by the platform. If you plan to purchase a significant amount of crypto using fiat, ensure the exchange supports such large transactions. If you intend to withdraw a substantial amount of fiat after converting your crypto, ensure the exchange's withdrawal limits align with your needs. Otherwise, you might have to execute multiple transactions, potentially incurring additional fees for deposits or withdrawals.
Trading Fees
The trading fees an exchange charges for converting your money into crypto significantly impact your overall transaction costs. Fee structures vary among exchanges and payment methods. For instance, you might face a 3.5% fee when using a credit card but encounter zero fees for bank transfers. Research the fees associated with your preferred payment method on different exchanges to maximize your value and minimize incurred fees.
Speed
Another essential consideration is the speed at which your crypto assets are delivered post-payment. If an exchange takes days to process deposits, you should explore other options. Most exchanges currently offer rapid deposit processing, especially for credit card transactions. Withdrawal times typically require at least one day.
Security and Reputation
Before engaging in crypto-fiat transactions, it's fundamental to consider an exchange's reputation and security. Verify the exchange's longevity, regulatory status, and safety before depositing funds.
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Pay Your Bills In Crypto With Our Crypto Accounting Software Today － Book A Demo To Learn More
Acctual is crypto accounting software for businesses and freelancers transacting in digital assets. It simplifies accounts payable and receivable, making it easy to pay bills and send invoices in crypto. Our flexible options let you pay in crypto while vendors receive fiat, receive crypto while clients pay in fiat, or receive fiat while clients pay in crypto. We also integrate with your accounting system, saving you time on month-end reconciliation.
Key features:
Multi-level approvals for bills
Fiat-to-crypto and crypto-to-fiat payments
Built-in AML screening
Crypto invoice links
Automatic payment notifications
With our smooth AP/AR process, automated bookkeeping, built-in internal controls, and flexible payment options, you can simplify your financial operations with us.
Book a call with our team today to learn how you can pay bills and send invoices in crypto with our crypto accounting software!
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