Why is it better to use an exchange with a payment application rather than other physical methods of purchasing cryptocurrencies, such as ATMs?
The crypto ecosystem offers different ways to access digital assets. Among them, the option of trading through an exchange with an integrated payment app stands out, compared to other physical methods (ATMs) that allow you to buy or sell cryptocurrencies at certain access points. Although both options serve the same purpose, facilitating the acquisition or settlement of crypto assets, there are clear differences in terms of costs, security, usability, and verification requirements.
Advantages of an exchange with a payment app
1.- Lower and more transparent fees
Exchanges tend to operate with much more competitive fee structures. Furthermore, transparency is key: users know in advance how much they will pay for their transaction, with no hidden costs.
2.- Real usability in everyday life
An app linked to a card allows cryptocurrencies to be used directly as a means of payment in millions of shops worldwide. This brings cryptocurrencies closer to the real economy, preventing them from being limited to speculative trading.
3.- Accessibility without geographical limitations
No matter where you are, as long as you have an internet connection, you can buy, sell, send and receive crypto from your mobile phone. You don’t need to travel or depend on the location of a physical point.
4.- Security and regulatory confidence
Reputable exchanges are subject to supervision by official bodies and comply with anti-money laundering and consumer protection regulations. This offers greater traceability of transactions and safeguards against fraud.
5.- More features in the same environment
In addition to buying and selling, an exchange allows you to diversify across multiple cryptocurrencies, exchange assets, make payments, receive financing, and even integrate business management services.
Disadvantages of physical methods of acquiring cryptocurrencies
1.- High commissions and low competitiveness
The costs per transaction are significantly higher, in some cases doubling or tripling those of an online exchange.
2.- Limitations due to location and travel
You can only access them if you are physically close to the service point. This limits their usefulness for frequent transactions.
3.- Liquidity restrictions
They do not always have sufficient amounts of crypto or cash for large transactions, which may require purchases or sales to be split.
4.- Lower regulatory security
Although they comply with certain legal requirements, their level of verification and traceability is lower, making them more susceptible to fraudulent use or raising doubts about user protection.
Verification requirements (KYC/AML)
EXCHANGE WITH PAYMENT APP:
- Digital registration with personal data.
- Identity verification using official documentation (ID card, passport, foreigner identification number, etc.).
- In some cases, proof of address (recent bills or invoices).
- This process, although stricter, guarantees security, transparency and regulatory compliance.
PHYSICAL PURCHASE/SALE METHODS:
- These usually require minimal verification, such as a telephone number to receive a code.
- Depending on the amount, some outlets ask for official identification, but the limits are usually more flexible.
- This lower requirement may be convenient for quick transactions, but it involves more risks in terms of traceability and security.
Conclusion
While physical methods of purchasing cryptocurrencies may seem like a simple option for those seeking speed or a degree of anonymity, their high fees, geographical limitations and lower security make them an impractical alternative for everyday use.
In contrast, an exchange with a payment app offers a comprehensive experience: competitive fees, regulatory security, accessibility from anywhere and the ability to pay directly with cryptocurrencies in the real economy
It is true that many users prefer to avoid verification processes to preserve their privacy. However, identity verification is a fundamental step that all companies should strictly implement, as it is the most effective way to prevent fraud, money laundering and, above all, identity theft. Ultimately, this balance between privacy and security is what will consolidate trust in the crypto ecosystem and make it more robust and sustainable over time.
Disclaimer: The information set forth herein should not be taken as financial advice or investment recommendation. All investments and trading involve risk and it is the responsibility of each individual to do his or her due diligence before making a decision.
