Stationary cryptocurrency exchange offices are a physical bridge connecting traditional cash transactions with the world of digital assets. They offer a tangible alternative to virtual exchanges, attracting people who value direct contact and simplicity of transactions. Understanding their specifics is crucial to assessing whether this form of purchase is suitable and safe for a given investor. It is a niche market that functions alongside global platforms.
Initial rules of a stationary exchange office
A stationary exchange office operates in a way that is confusingly similar to its traditional currency counterpart. The customer comes to the physical location with cash to buy or sell cryptocurrencies. In the case of a purchase, after determining the amount and rate, the customer pays in cash and provides the employee with their public cryptocurrency wallet address. Then the exchange office operator sends the appropriate amount of digital coins directly to the indicated address. The entire operation is usually instantaneous, and the confirmation of the transaction on the blockchain appears within a few or several minutes.
The sales procedure is analogous, but in reverse order. The customer sends cryptocurrencies to the wallet address of the exchange office, and after the operator receives the appropriate number of confirmations from the network, he receives cash in return. This direct nature of the transaction, based on a conversation with an employee, is a major asset for people who feel insecure in the virtual environment of online exchanges.
According to anti-money laundering regulations, exchange offices are required to verify the identity of customers for transactions exceeding certain thresholds. In the European Union, the limit for transactions that do not require verification is usually EUR 1000. Above this amount, the employee will ask to show an identity document. This is a standard procedure to ensure the legality of trading and should not cause concern.
Types and Opportunities
Brick-and-mortar crypto exchange points come in many forms. Most often these are independent, specialized exchange offices, located in the centers of large cities. Their appearance resembles offices or exclusive service points, which is to build customer trust. Another model are partner points operating within a larger network, often franchise. Such standardization of services and procedures can increase the sense of security. Sometimes a crypto exchange service is just an addition to another activity, for example in a pawnshop or a traditional currency exchange office.
A specific type of stationary exchange point is a Bitcoin ATM, i.e. an ATM for cryptocurrencies. This self-service device allows you to quickly buy or sell digital assets using cash. The process is automated: you scan the QR code of your wallet, insert cash, and the Bitcoin ATM sends the coins. However, the possibilities offered by exchange offices and Bitcoin ATMs are limited compared to what an extensive cryptocurrency platform offers. Usually, only the most popular assets are on offer. A typical stationary exchange office offers:
- buying and selling primary cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and the stablecoin Tether (USDT).
- direct service and support of an employee who can help you set up a portfolio or carry out a transaction.
- the ability to transact for cash, which provides a high level of privacy with lower amounts.
- Instant execution of transactions without the need to wait for the bank transfer to be credited.
The offering is deliberately narrowed down, as it would be logistically complicated to handle hundreds of different tokens in physical settings. Focusing on a few major cryptocurrencies allows you to maintain adequate liquidity and simplify procedures.
Commissions and payments
The convenience and anonymity offered by stationary exchange offices come at a price. The transaction costs here are much higher than on online exchanges. The main source of income of the exchange office is the spread and commission.
The spread is the difference between the purchase and sell price of a given cryptocurrency. In stationary exchange offices, it is much wider than on liquid stock markets. This means that the exchange office buys cryptocurrency from us at a price lower than the market price and sells it at a higher price.
In addition, an explicit commission is often added to the spread, expressed as a percentage of the transaction value. The total cost of exchange, taking into account both of these factors, can range from 3% to even 10% of the transaction value. This is many times more than on online exchanges, where the standard trading platform charges commissions of 0.1% – 0.6%.
Rates in stationary exchange offices are usually set based on quotes from one of the world’s leading exchanges (e.g. Binance, Kraken) and increased by the exchange office’s margin. Before making a transaction, it is always a good idea to ask about the final amount you will receive in cash or cryptocurrency to avoid misunderstandings. Some exchange offices use dynamic price lists, offering better conditions for larger transactions, but even then the cost remains relatively high.
A profitable purchase?
The decision to use a stationary exchange office depends on the investor’s priorities. From a purely financial point of view, this is one of the most expensive methods of buying cryptocurrencies. High commissions and wide spreads make it not a profitable solution for people who plan to trade regularly, invest larger amounts or actively trade. For such purposes, the specialized trading platform 1cft, which offers low costs and advanced tools, is much better suited.
However, a stationary exchange office has its advantages, which for a certain group of users may outweigh the high costs. The main advantages include:
- simplicity and direct contact,
- high level of privacy for transactions below the AML threshold,
- immediate redemption and the ability to use cash,
- No need to go through complicated online registration and verification processes.
This service is primarily aimed at beginners who are afraid of operating an online exchange on their own and for those who value anonymity and want to make a one-time purchase for cash. For professionals who are served by many pro-trading companies, the costs will be prohibitive. Each trade on platforms such as 1cft is many times cheaper.
Choosing an exchange office is a conscious decision to pay a higher price for specific benefits not available in the online world. The 1cft platform remains a tool for those who put cost efficiency first.
A stationary exchange office is an interesting and necessary niche in the cryptocurrency ecosystem. It provides an important bridge for those who are distrustful of technology, offering them a safe and understandable entry into this world. This is ideal for a small first purchase or in situations where privacy and the use of cash are a priority. However, investors for whom cost optimization and access to a wide market are key should treat stationary exchange offices as a curiosity and carry out their operations through effective and cheap online exchanges. Ultimately, the role of a physical currency exchange is to build trust and education, not to compete on price with global platforms.
