Imaging of potential fields yields a fast 3D representation of the source distribution of potential fields. Imaging methods are all based on multiscale methods allowing the source parameters of potential fields to be estimated from a simultaneous analysis of the field at various scales or, in other words, at many altitudes. Accuracy in performing upward continuation and differentiation of the field has therefore a key role for this class of methods. We here describe an accurate method for performing upward continuation and vertical differentiation in the space-domain. We perform a direct discretization of the integral equations for upward continuation and Hilbert transform; from these equations we then define matrix operators performing the transformation, which are symmetric (upward continuation) or anti-symmetric (differentiation), respectively. Thanks to these properties, just the first row of the matrices needs to be computed, so to decrease dramatically the computation cost. Our approach allows a simple procedure, with the advantage of not involving large data extension or tapering, as due instead in case of Fourier domain computation. It also allows level-to-drape upward continuation and a stable differentiation at high frequencies; finally, upward continuation and differentiation kernels may be merged into a single kernel. The accuracy of our approach is shown to be important for multi-scale algorithms, such as the continuous wavelet transform or the DEXP (depth from extreme point method), because border errors, which tend to propagate largely at the largest scales, are radically reduced. The application of our algorithm to synthetic and real-case gravity and magnetic data sets confirms the accuracy of our space domain strategy over FFT algorithms and standard convolution procedures.