Fiat
BeginnerFiat currency refers to government-issued money, such as GBP, USD, or EUR, that is not backed by a physical commodity like gold. Its value is maintained by the trust and authority of the issuing government. In the crypto space, fiat is often used to buy digital assets through exchanges. Fiat on-ramps and off-ramps are essential for bridging traditional finance with cryptocurrencies. While fiat remains the primary medium of exchange worldwide, cryptocurrencies offer decentralised alternatives. Understanding the role of fiat is crucial for users navigating between conventional and digital financial systems.