Exchange Rate
Quick Answer
In crypto payments, the exchange rate is the conversion price between cryptocurrency and fiat at the moment of transaction, typically locked for 60-120 seconds to protect both parties.
Full Definition
In crypto payments, the exchange rate is the conversion price between a cryptocurrency and a fiat currency (or between two cryptocurrencies) at the moment of transaction. Exchange rates are sourced from centralised exchanges, DEXs, or oracle networks. Rate volatility is a key challenge — payment gateways typically lock the exchange rate for a short window (60-120 seconds) so the customer and merchant both know the exact amount being settled. Rate locking protects both parties from price swings during confirmation.
Related Terms
ERC-20
ERC-20 is the standard for creating fungible tokens on Ethereum. Most stablecoins (USDT, USDC, DAI) are ERC-20 tokens, ensuring compatibility with any ERC-20-compatible wallet or payment gateway.
Ethereum
Ethereum is the most widely used blockchain for DeFi, NFTs, and crypto payments, supporting smart contracts and decentralised applications with its native token Ether (ETH).