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Coinmama Review - 5 Things to You Need To Know

By Emily
Published in Reviews
September 07, 2021
9 min read
Coinmama Review - 5 Things to You Need To Know

Website:
Link
Country:
US, AU, UK
Transaction Fees:
2.86%-3.9%
Currencies Available:
11
Pros
  • Easy to use
  • Low fees
!
Cons
  • Limited amount of coins available

Coinmama Review & Comparison Guide

Are you looking to diversify your portfolio and start your journey in cryptocurrency? Whether you are trading crypto for the first time or looking for another exchange, Coinmama is a reputable platform that offers you the opportunity to invest. Although this exchange is geared toward novices, it is a viable platform with an easy transaction process for everybody.

Our Coinmama review will outline everything you need to know about the Coinmama cryptocurrency exchange. We explain its advantages, disadvantages, and how to buy coins. After reading this article, you will be able to make a sound decision on whether you want to use the platform or not.

What is Coinmama?

Coinmama is a beginner cryptocurrency exchange that provides brokerage services only. The company was founded in 2013 to make buying Bitcoin, Ethereum, and other digital currencies much easier. Since its inception, Coinmama has served over 2.8 million users within 190 countries.

The platform does not offer detailed charts or any advanced features. Coinmama does have a simple and straightforward buying process for coins. However, its fees are some of the highest on the cryptocurrency exchange market.

Coinmama serves as a basic cryptocurrency e-commerce store. Beyond the buying and selling of digital currencies, it will not offer much more past that. A couple of its most valuable benefits are its speed and global availability. On the other hand, its most significant limitations are its minimal features, privacy problems, and the nonexistence of a wallet.

Coins You Can Buy

Coinmama offers ten cryptocurrencies for purchase. They include:

  • Bitcoin
  • Ethereum
  • Litecoin
  • Bitcoin Cash
  • Ripple
  • Qtum
  • Ethereum Classic
  • Cardano
  • Tezos
  • EOS

One downside is that platform users can only sell bitcoin if they want to convert immediately to fiat currency. This limitation may be a dealbreaker for people who want to convert to cash with the other nine coins quickly.

Transaction Fees and Trading Costs

Another critical aspect of Coinmama to consider is the transaction fees and trading costs. If you want to trade cryptocurrencies, the platform will charge 2%, in addition to the market rate. This market rate is determined and assessed by Tradeblock’s XBX Index.

Coinmama also charges commission fees up to 3.9% on all cryptocurrency purchases. If you want to sell your Bitcoin, the platform assesses a charge of up to 0.9%.

Coinmama loyalty program users do receive reduced fees for cryptocurrency purchases. Those who rack up $5,000 in crypto purchases over 90 days receive a 12.5% discount on purchases. The users who buy $18,000 over the same period receive 25% off the sales fee. This same discount applies to people who spend above $50,000 on the platform throughout their investment life.

Advantages of Coinmama

Before you make your decision on Coinmama, it is essential to understand its advantages and features. Our Coinmama review will cover some of the critical things to know.

Trading Platform

Coinmama’s trading platform is one of its more positive qualities. The transaction flow is simple and easy to use. You can buy and sell directly through Coinmama’s minimalist design. Users of the platform can choose how much crypto they would like to buy. They can use Bitcoins or U.S. dollars to make the purchase.

The Coinmama site also offers fractional Bitcoin shares so that you can invest as low as $100. If or when you decide to sell your Bitcoin, you will need to adhere to a $200 minimum.

Security

Coinmama does not hold your payment information or funds, which minimizes your risk of losing your investment. Your critical financial information will not get compromised either, according to the site. However, it is vital to mention that over 450,000 passwords and email addresses were hacked in a 2009 data breach.

Excellent Platform for Beginners

Coinmama is the perfect place for a crypto investor to buy their very first coin. Since 2013, Coinmama has refined its buying system. The platform also does a quality job of being transparent and explaining the overall process. You also receive the coins right away, which is an exciting feeling for a new investor.

Solid Customer Support

Coinmama has a comprehensive help center with a reliable email support channel. If you submit an inquiry, you can expect a response within 24 hours. Compared to other cryptocurrency exchanges, this is an excellent response time.

Insightful Help Guides

Coinmama is designed to successfully onboard beginner investors into the Cryptocurrency world. The platform’s commitment to education shows in its simple and straightforward guides. For any question that you might have, the platform has an article or snippet to address it.

Available on a Global Scale

Coinmama is unique in that it provides cryptocurrency trading in over 180 countries. The people that live in these 180 countries can even make debit card purchases. Although there are a few states that Coinmama does not support, it is a good sign that the platform has such a large global footprint.

Disadvantages of Coinmama

It is even more essential to understand the risk and downfalls of Coinmama. We highlighted the positives, but we detail the critical disadvantages to consider. If you see a dealbreaker below, you can refer to some of the alternatives described later in the article.

Not All States Offer It

Although you can use Coinmama in most states, it is not available in Hawaii or New York. 15 states will redirect the user to a third-party platform when creating an account. These states include Washington, Vermont, South Dakota, Rhode Island, Oregon, New Mexico, Nevada, Louisiana, Iowa, Florida, Georgia, Delaware, Connecticut, Arkansas, and Alabama.

No Mobile Application or Crypto Wallet

With Coinmama, you will need to obtain a crypto wallet from a different vendor before you purchase anything on the site. Most novice cryptocurrency investors will want an all-in-one platform, which Coinmama does not provide. Coinmama does have a formal partnership with ZenGo, a trusted cryptocurrency wallet.

Buying Limits

Coinmama sets the minimum amount of Bitcoin you can purchase at 60 USD and the equivalent in other currencies. The overall buying limit depends on your account level. However, the buying limit is $5,000 daily and up to $15,000 monthly for level 1. Here is a quick breakdown of the buying limits:

  • Level 1: requires a valid ID, a selfie picture of you holding the ID, and a written note that says “Coinmama.”
  • Level 2: you must provide a secondary form of ID, in addition to the ID listed above. You also need to supply a monthly utility bill.
  • Level 3: you must do everything above and then fill out a short form

Higher Fees

The prices listed on Coinmama’s website already factor in the 5.9% service fee, which is based on the TradeBlock XBX Index. However, Coinmama adds a 5% processing fee if you use a credit card. At 10.9% higher than the market rate, this is a larger figure than other cryptocurrency exchanges.

After a while, investors will soon realize they do not receive advanced features in return for the high fees they pay. Many other exchanges offer advanced analysis and value-added features for lower fees. As you hone your crypto knowledge, you may have to look elsewhere for a full set of benefits.

Coinmama vs. Other Exchange Alternatives

What if Coinmama is not for you? With the rise of cryptocurrency, there are many exchanges for you to explore. Below is a concise comparison of Coinmama’s services compared to some of the top services offered across the world.

Coinmama vs. Coinbase

Coinbase charges users a 3.99% fee for credit card transactions. This fee is slightly lower than Coinmama’s 5.9% credit card fee. However, Coinbase only provides support for a minimal number of countries across the world. Its support team is also less than ideal. Coinmama supports a much larger scope of countries.

Coinmama or Bitstamp?

When it comes to brokerage services, Bitstamp is toe-to-toe with Coinmama. There is a less than 1% difference between the two platforms, and both services have a solid industry reputation. Bitstamp is one of the most established, oldest, and respected platforms. Bitstamp also supports a wide range of worldwide countries, much like Coinmama.

Coinmama or Changelly?

Changelly used to be one of the costliest services for buying Bitcoin with a credit card. Over time they refined their service to offer a more competitive rate against the alternatives. The platform now charges a 5% fee, in addition to the payment processing fee of 5%. This figure is slightly less expensive than Coinmama’s 10.9% total fee. Changelly’s exchange rate is also cheaper, which can provide more overall savings.

Coinmama or Binance?

Binance recently teamed up with Simplex to enable credit card purchases for crypto. The exchange rates between Coinmama and Binance are also similar. However, many consumers claim Binance’s KYC process is much more refined.

Coinmama Setup and Verification Process

The setup process with Coinmama is also simple to follow. You start by clicking the “Sign Up” button at the top right corner of the corporate header on the homepage. If you already own an existing account, you can get to your profile by navigating to the “Log In” button and inputting your details.

The only information that Coinmama asks for is your first name, last name, email address, password, and country of residence. Coinmama will then send you an email requiring you to confirm your new account. All you need to do is follow the link and fulfill the last step in the registration process.

The Coinmama verification process is also easy and straightforward. You only need to deliver a couple of personal details and some form of ID. The platform also requires new users to take a “selfie” photo holding their ID. The purpose of this is to ensure you represent yourself truthfully.

So, how long does the verification process take? Accounts normally get verified within 2-4 hours. The new user will receive an email from Coinmama to communicate confirmation. After the email comes through, the user is officially onboarded. At this time, you can purchase up to $15,000 in cryptocurrency coins without having to provide additional information.

Coinmama Guide: How to Buy Coins

One of Coinmama’s redeeming qualities is its ease of use when purchasing cryptocurrencies. You get started by registering for an account, getting verified to trade cryptocurrency, and building your digital wallet.

Step 1: Select Your Crypto of Choice

Before you buy the popular coins, you must ensure that you are properly logged in. Once you gain access to your account, you can choose one of the ten cryptocurrencies you would like to buy. The platform will then prompt you to decide which currency you would like to purchase with. It is important to note that if you want to sell your crypto into USD, you can only do so through Bitcoin.

Step 2: Choose Your Amount

After you select a Coinmama cryptocurrency package, you can input a certain amount. Once you decide on the amount you would like to buy, you can press “buy now.” The platform has specific limits on the amount you can purchase, depending on if it’s a credit card, cash, or a certain verification level.

There is a standard daily limit of 5,000 USD or EUR, whether you are paying with cash or with a credit card. If a user only pays with a credit card, he or she has a limit of 20,000 USD or EUR per month.

Step 3: Input the Wallet Address

Next, you will need to input a third-party wallet address from a wallet provider of your choosing. If you do not have one, Coinmama has a simple explanation on how to get this set up.

Step 4: Choose One of the Payment Options

The next step is to decide what your payment method will be. Coinmama allows you to purchase with a debit card, credit card, or direct bank account. The platform has a list of straightforward instructions to enter the information.

Step 5: Confirm the Wallet Address to Get Your Coins

The last step is to confirm the wallet information via email. Coinmama will send over a link for confirmation, which will go to your email. If the wallet address is accurate, you simply click the link and receive your coins.

Once the payment receives approval and the wallet address is verified, the coins go directly into the wallet. Coinmama is transparent and allows you to track your order status under the “My Account” option.

Who Should Use Coinmama?

Coinmama is an ideal solution for beginner Bitcoin sellers and cryptocurrency traders. Its simple interface and easy transaction workflow will attract people who are not as seasoned in the cryptocurrency trading realm. However, it may not be a good platform for those who do not like higher transaction fees.

Final Wrap Up

You might wonder: is Coinmama safe to use? To answer this question simply, yes. Coinmama is a trusted company with a solid support team. It is also the perfect cryptocurrency marketplace for beginner investors. The buying limits are low, and the platform is limited to ten coins.

The biggest downside is the high transaction and commission fees, especially for a credit card. Besides the United States geographical restrictions, you also do not receive a full range of benefits for the higher fees.

However, the Coinmama service is reliable. For someone who is trying to learn the ropes of the crypto game, Coinmama delivers a simple and straightforward platform to invest in. There are also many resources to learn about the cryptos pace and become educated on the various coins.

We hope our Coinmama review has helped you. The cryptocurrency world is becoming more and more popular. If you have not started investing in cryptocurrency yet, Coinmama offers you a friendly introduction to take part in this opportunity.

Coinmama FAQs

Still unsure about some of the ins and outs of Coinmama? Below we consolidate some of the most frequently asked questions about the platform.

Does Coinmama Accept Credit Cards?

Coinmama will only accept Mastercard and Visa. Cards from Discover, PayPal, and American Express are not accepted by the platform.

How Long Will It Take Me to Get Verified on Coinmama?

Depending on the timeline, it could take anywhere from 30 minutes to a couple of hours. Coinmama will send you a verification link to your email for you to click.

Am I Required to Provide My ID to Start Using Coinmama?

Yes, you will need to provide some sort of ID to get verified. These personal IDs could be a passport or driver’s license.

How Do I Buy Cryptocurrency on Coinmama?

The buying process on Coinmama is simple and includes the following steps:

  • Step 1: Create an account on the site
  • Step 2: provide the required documents to verify your identity
  • Step 3: Click “buy” and decide which coin you would like to purchase
  • Step 4: Decide the amount of cryptocurrency that you would like to buy, and then select the “buy now” button
  • Step 5: provide the required payment information, whether it is cash, debit card, or credit card
  • Step 6: receive your coins right away

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Emily

Emily

Senior Researcher

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