Fiat is a government currency not backed by a physical commodity, such as gold or silver. This is traditional money (euros, dollars, hryvnias) issued and controlled by the state authorities. Besides, fiat is used as an official payment method.
The issued currencies’ exchange rate depends on society’s trust, the ratio of supply and demand, and the balance between the government and the banking system.
There is a lot in common between state currency and cryptocurrency — they both are used for payments and investments. However, cryptocurrency is still at an early stage of development and is not widespread among the masses. Before the population accepts and recognizes cryptocurrency globally, the time has to pass, and the global economy has to change.
For many people, cryptocurrency is still something ephemeral and “fake” that exists only on the Internet. However, progressive society is increasingly joining the digital currency industry. Many cryptocurrency projects are being launched, attracting large investors. The online games market is developing using cryptocurrency as a payment for players, not to mention that Bitcoin has become the most promising asset for investment.
Why Do We Need Fiat On a Crypto Exchange?
Since cryptocurrencies fluctuate, they are a good tool for making money. Buying an asset at a low price and selling it when its price has risen is the essence of cryptocurrency trading.
A crypto exchange is a platform for conducting transactions (buying, exchanging, selling). Large centralized exchanges offer almost every possible digital asset and a complete set of trading tools.
What is fiat? Basically, any state currency. For example, our platform offers 150 fiat-to-crypto trading pairs, including BTC/UAH, BTC/USDT, BTC/USD, BTC/RUB, USDT/USD, USDT/EUR, USDT/RUB, ETC/RUB, NEO/RUB, XLM/RUB, USDT/UAH, ETC/UAH, and LTC/UAH. The fee is only 0,1%. You can deposit any government currency into the exchange using monobank, MasterCard, Visa, Qiwi, etc.