First, what is Fiat money…? fiat money is that money what you use in your daily life to purchase daily essentials and also making banking transactions, Fiat money is the currency that a government declared as legal tender, government controls the supply and you can pay your taxes with it.
But another hand cryptocurrency is not controlled by any government, the algorithm controls a supply of cryptocurrency you cannot pay your taxes with it.
But fiat money is usable to buy the cryptocurrencies like Bitcoin, Ethereum, Ripple, etc.. This means fiat money is needed to buy any cryptocurrency, so fiat money plays an important role in buying and selling of cryptocurrencies.
Here is some importance of Fiat money in trading of Cryptocurrencies
For trading on cryptocurrencies firstly you should have any cryptocurrency, mostly all over the world crypto exchanges are set bitcoin as the primary currency to start trading, so to buy bitcoin you most have the fiat currency.
These days most of the crypto exchanges are looking for adding more Crypto Fiat currency medium, rather than Bitcoin because now Bitcoin transfer feeses are high and also time-consuming, so adding Ethereum, Ripple, as primary Fiat Crypto medium of exchange.
Fiat money plays important role in the withdrawal of cryptocurrencies Because if anyone sends you bitcoin then bitcoin is still in your wallet as a number, so convert those number into hard cash your Fiat money is playing an important role.
Fiat money had a wide range of usage than the cryptocurrencies if you have fiat money than you are able to trade in cryptocurrencies without any fiat money you are not able to start the trade or purchase any cryptocurrencies.