In recent years, cryptocurrencies like bitcoin, ethereum, or tron, have gained enormous popularity worldwide. As a result, more and more people are interested in investing and trading these digital currencies. In this article, we will try to explain the differences between cryptocurrency exchanges and brick-and-mortar cryptocurrency exchange offices.
A cryptocurrency exchange is an online marketplace where transactions can take place in the comfort of one’s home, from a computer or smartphone. Meanwhile, a brick-and-mortar cryptocurrency exchange office is a place where you have to go in person, typically located somewhere between a kebab shop and a newsstand. It’s a local hub for exchanging virtual money.
It’s worth noting that both cryptocurrency exchanges and brick-and-mortar cryptocurrency exchange offices have their advantages and disadvantages. The choice between them depends on individual preferences, needs, and the availability of services in a given location. In the table below, we present a detailed comparison of the differences between cryptocurrency exchanges and the brick-and-mortar cryptocurrency exchange office Quark:
| Criterion | Cryptocurrency Exchange | Brick-and-Mortar Exchange Office Quark: |
| Type of Service | Online platform | Physical place providing cryptocurrency exchange services |
| Availability | 24/7, globally | Specific opening hours |
| Internet required | Yes | No – when buying cryptocurrencies (a QR code is enough), Yes – when selling cryptocurrencies |
| Commissions and fees | Lower commissions, but they can vary depending on the exchange | Higher commissions and margins on transactions |
| Anonymity | Registration and identity verification required | No registration, possible anonymity up to a certain amount |
| Safety | Risk of hacker attacks, exchange failure | Risk of robbery |
| Payment Methods | Bank transfer, credit/debit card | Cash |
| Speed of transactions | Transactions are faster, but depositing and withdrawing funds from the exchange can take several days, depending on the chosen method | Transactions take place instantly at the time of the exchange |
| Number of cryptocurrencies | Larger selection of cryptocurrencies for exchange | Smaller selection of cryptocurrencies |
| Exchange for FIAT currencies | Depending on the exchange, the possibility of exchanging for various FIAT currencies | Possibility to exchange only for PLN |
| Customer support | Online, email, chat, sometimes with response delays | Direct customer service, faster help in case of problems |
| Support for beginners | More difficult for those unfamiliar with technology | Easier for beginners, due to direct contact with the staff |
| Possibility of investing | Yes, trading and investing in cryptocurrencies | No, only exchange of cryptocurrencies for cash |
| Financial leverage | Yes, on some exchanges | No |
| Use of API for automation | Yes, on most exchanges | No |
| Probability of lightning striking the object | Very low | Low |
Accessibility
Cryptocurrency exchanges are online platforms that allow users to buy, sell, and exchange various cryptocurrencies. As online services, they are available 24/7, giving investors more flexibility in managing their cryptocurrency portfolio.
Brick-and-mortar cryptocurrency exchange offices are actual points where you can exchange digital currencies for fiduciary currencies (e.g., zlotys, euros, dollars) or other cryptocurrencies. Brick-and-mortar exchange offices have limited opening hours and may be closed on weekends or holidays.
On a cryptocurrency exchange, you can make an exchange at any time of day or night. Sometimes it’s hard to break away from monitoring rates, which can lead to an unhealthy lifestyle. On the other hand, the brick-and-mortar cryptocurrency exchange office closes at night, giving you a chance to take a break from the virtual world of finance and focus on reality.
Anonymity
In the case of cryptocurrency exchanges, the registration and identity verification process can be more rigorous. Exchanges require users to provide their personal data and send scans of identification documents, such as ID cards, passports, or driving licenses. This is due to the applicable anti-money laundering (AML) and KYC (Know Your Customer) regulations.
Brick-and-mortar cryptocurrency exchange offices often offer more anonymity, as they allow exchanges to be made without the need to provide personal data or go through a verification process. However, it’s worth noting that for larger transactions, exchange offices may also require identity verification.
According to EU AML regulations, the obligation to verify a customer in a stationary cryptocurrency exchange office arises when the value of the transaction exceeds the equivalent of 1000 euros. In such cases, customers are required to provide their personal information and present documents confirming their identity, so that the exchange office can meet the requirements of the law.
Fees
Cryptocurrency exchanges charge various fees, such as deposit fees, withdrawal fees, and transaction commissions. It’s worth checking the fee structure carefully before registering on a particular platform.
Fees are also charged in stationary cryptocurrency exchange offices, but they may be more transparent and fixed. Fees in exchange offices usually include a margin on the exchange rate. Compared to exchanges, fees in stationary exchange offices may be higher due to the cost of maintaining the premises and personnel.
As for Quark brand stationary exchanges, current exchange rates along with commissions are available on Quark exchange office websites. This allows customers to check transaction costs before going to the exchange office, making it easier to compare with offers from other institutions and cryptocurrency exchanges. Transparency of information about fees and rates is undoubtedly an advantage of Quark stationary exchange offices.
Speed of transactions
Cryptocurrency exchanges may offer faster transactions as they are fully automated. Depositing and withdrawing money on cryptocurrency exchanges can sometimes be cumbersome and take several days, especially when using traditional payment methods, such as bank transfers. In the case of quick deposits and withdrawals, such as debit cards, exchanges may charge significantly higher fees, affecting the cost of the transaction. When choosing the right payment method, it’s worth considering both transaction costs and the time it takes to deposit or withdraw to avoid surprises and delays.
In stationary cryptocurrency exchange offices, transactions are usually manually processed by office staff. As a result, the time needed to conduct the transaction may be longer compared to exchanges. In Quark exchanges, a transaction takes an average of 10 minutes. However, it’s worth noting that for some investors, the ability to directly contact the exchange office staff and personally handle the matter may be an advantage. Quark exchange office skillfully adjusts transaction fees so that transactions are confirmed and recorded in the blockchain as quickly as possible.
Security
The security of cryptocurrency exchanges is a topic that constantly arouses many emotions among investors. Cryptocurrency exchanges, as online platforms, can be exposed to various types of hacker attacks, which can lead to the loss of funds accumulated by users. From the very beginning of its existence, the world of cryptocurrencies has seen numerous cases of exchange hacks, resulting in significant thefts of money. Therefore, when investing in cryptocurrencies through exchanges, it’s worth being aware of the risk of losing savings that such an undertaking entails.
Another problem that users of cryptocurrency exchanges may encounter is when these platforms disappear from the network, closing access to the funds accumulated in the accounts. Such cases can be the result of both criminal activity and technical or legal problems that paralyze the operation of the exchange. Therefore, it is important to use reputable platforms that are properly secured and comply with applicable legal regulations. Additionally, always remember basic security principles, such as using strong passwords, enabling two-step verification, and storing larger amounts of cryptocurrency in private wallets rather than exchange accounts, to minimize the risk of losing savings.
Stationary cryptocurrency exchange offices are safer, as transactions are conducted directly with the office employee, and funds are transferred to the indicated wallet address. There is no risk of a hacker attack in the case of stationary exchange offices.
Support for beginners
A cryptocurrency exchange is a place where international language reigns, and phrases such as HODL, FOMO, or BTFD may seem mysterious. However, in a stationary exchange office, you can simply ask an employee to explain these abbreviations. At the Quark exchange office, we will make every effort to make all issues related to cryptocurrencies understandable to customers.
When entering a cryptocurrency exchange, you often have to teach yourself all the functions and issues, browsing internet forums or watching instructional videos. In a stationary Quark exchange office, our helpful staff will help you set up a wallet and guide you through the entire transaction process.
The atmosphere in the virtual world of cryptocurrency exchanges can be a bit nervous, related to constant changes in rates and complicated functionalities. In a stationary exchange office, on the other hand, the atmosphere is similar to that in a classic currency exchange – a bit of nostalgia for those times when the biggest challenge was to get dollars for a holiday trip.
Summary
Both cryptocurrency exchanges and stationary cryptocurrency exchange offices have their pros and cons. The choice between them depends on the individual preferences of the investor, such as anonymity, transaction speed, accessibility, fees, or security. Before making a decision on which platform to choose for cryptocurrency trading, it’s worth thoroughly analyzing the differences between exchanges and stationary offices and considering which option best meets our expectations and needs. Here’s a brief comparison:
Cryptocurrency exchanges:
- 24/7 availability
- rigorous KYC/AML procedures
- diverse fees
- fast, automated transactions
- potential risk of losing savings due to a hacker attack or exchange collapse
Stationary cryptocurrency exchange offices:
- limited working hours
- greater anonymity
- transparent, fixed fees
- transaction processing time dependent on staff
Regardless of your choice, don’t forget the principles of safe investing, such as portfolio diversification, proper security of funds, and only using proven and reputable service providers. It’s always worth keeping up to date with the latest news from the world of cryptocurrencies and regularly monitoring the condition of investments. For this reason, we encourage you to follow our blog.
