Basics

Fiat money

Also called: fiat · fiat currency

In shortGovernment-issued money such as the dollar or euro, which has value because a state declares it legal tender.

In crypto, "fiat" simply means traditional money. Moving from fiat into crypto happens through an on-ramp, usually a centralized exchange, and back out through an off-ramp.

Fiat currencies are managed by central banks, which can expand the money supply. Bitcoin's fixed supply was designed as an answer to that.