Fiat is a term used in the world of cryptocurrency to refer to traditional forms of money such as paper currency, coins and other types of legal tender. Fiat currencies have been around for centuries and are still widely accepted today. They are issued by governments or central banks, who guarantee their value within certain countries or regions.
In contrast to cryptocurrencies like Bitcoin which operate on decentralized networks, fiat currencies rely heavily on centralized financial systems that control how much money can be printed at any given time as well as when it can be exchanged. This means that government regulations play an important role in determining the rate of exchange between different fiat currencies from different parts of the world.
It’s also worth noting that most major exchanges offer trading pairs with both fiat and digital assets so users can easily convert their funds into either form without having to move them out manually first. However, due to its lack of decentralization some people prefer using cryptocurrencies over regular cash because they believe it provides more privacy and anonymity than using USD directly through a bank account or credit card provider would provide them with accesses more investment opportunities than what’s available through traditional exchanges alone could give them access too while reducing fees associated with exchanging one type currency into another (ethereum/bitcoin vs dollars).
