Coinmama Review: About Its Safety with Pros & Cons
In this Coinmama review, all details regarding the exchange will be discussed to help traders decide whether to use this exchange to sell or buy cryptocurrencies of their choice.
Coinmama Review Summary
Coinmama is one such emerging crypto exchange that has been serving millions of clients from 188 countries worldwide. They are mainly known for quick credit card transactions. At Coinmama, you can easily buy Bitcoin and seven other cryptocurrencies.
|Payment Method||Credit Card / Debit Card or Bank Transfer|
|Supported Fiat Currency||All|
|Supported Cryptocurrencies||Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Cardano, Litecoin, Tezos, Ripple, Dogecoin|
|Spread||XBX + 2% (standard deviation)|
|Commission Fee||Up to 3.90% on buy transactions |
Up to 0.9% on sell transactions
|Deposit Methods||Credit card, Debit card, Bank transfer (SEPA), SWIFT, Wire transfer|
|Deposit Fee||5% on credit card|
|Account Transaction Limit|| |
|Daily Credit Card Buy Limits|| |
|Daily Bank Transfer Buy Limits|| |
|Customer Service Provider Options||Email and support tickets|
|Mobile App Availability||Yes|
Coinmama is an established brokerage firm in cryptocurrency that offers cryptocurrency trading services for Bitcoin and other leading cryptocurrencies. It is a more fair and straightforward exchange for crypto beginners to buy their first Bitcoin.
Coinmama is a straightforward, legit, easy-to-use platform to buy and sell crypto. It’s an excellent choice for beginner traders and ever-so-experienced ones too. Despite its great reputation and excellent customer support, its high fees may surprise many.
The security Coinmama provides may seem expensive, but the platform offers the best security compared to other crypto exchanges. The cryptocurrency exchange platform charges 2.3% more than the current market rate, and levies commission up to 3.9% on crypto purchases and 0.9% on sales. Payments made by credit card, debit card, Apple Pay, or Google Pay have a 4.99% fee issued.
What Is Coinmama?
Coinmama is an exchange that was founded in 2013 in Israel. Later on, Coinmama registered in Dublin, Ireland, under the name New Bit Ventures Ltd. This exchange allows clients to buy and sell cryptocurrency using multiple payment options or exchanges like Apple Pay, Google Pay, credit card, bank transfers, or wire transfers like SWIFT and SEPA.
Buying financial products such as Bitcoin or other leading cryptocurrencies becomes easier if you have a registered Coinmama account. Coinmama is the perfect platform for first-time Bitcoin buyers with its experience in the cryptocurrency space. However, seasoned buyers can switch to other platforms anytime they wish.
Coinmama provides brokerage services to buy digital assets and other leading cryptocurrencies. Unlike other crypto exchanges that allow users to purchase crypto coins from other people, at Coinmama, users can buy them directly from the exchange itself, as Coinmama sells Bitcoin now to clients.
Coinmama allows clients to buy and sell Bitcoin even if they were purchased from a different exchange other than the Coinmama exchange. This saves a lot of time for the clients as they don’t have to look for buyers to sell Bitcoin. The Coinmama exchange is also making serious efforts to reduce brokerage fees as much as possible.
Advantages of Coinmama Exchange
1) Instant Buying of Bitcoin
Coinmama accepts multiple payment modes, making the buying crypto process easier and faster. Paying through bank transfers, credit cards, wire transfers, Apple Pay, or Google Pay helps clients to receive their coins within minutes.
2) Instant Selling of Bitcoin
Coinmama also allows users to sell BTC even if they were purchased on a different crypto exchange.
3) High Spending Limits
Traders can buy Bitcoin whenever they want, worth up to 30,000 USD. The minimum amount of Bitcoins purchased on Coinmama is 60 USD or equivalent in EUR/AUD/CAD GBP/JPY. However, the buying limits depend on the account level of the clients, with daily buying limits set at 5,000 USD and the monthly buying limit set at 15,000 USD.
There are 3 Coinmama verification levels procedures that the users need to go through to make any purchase. The sending limits increase with each level of identity verification.
- In the Level 1 verification process, traders need to produce one valid government ID, like a voter card, or a driver’s license, a selfie of the trader holding that ID card, and a note with “Coinmama” and the specific date written on it.
- In the Level 2 verification process, the traders must upload a secondary ID and a valid utility bill.
- In the Level 3 verification process, traders must fill out the form at the Coinmama exchange’s website.
During the purchase process, Coinmama sends cryptocurrency to the provided wallet address. The safety of the cryptocurrency is ultimately the users’ responsibility, as orders go to the user’s wallet. It’s a secure option to use Coinmama to buy crypto.
4) Safety Features
Coinmama provides a safe and is the best cryptocurrency exchange in Germany community to buy and sell Bitcoin. Coinmama never stores the payment information of any client, like their bank account details or wallet addresses, which helps protect the user’s funds or bank account details. Clients can use third-party broker wallet addresses to control their Bitcoin holdings fully.
5) User-Friendly Platform
Unlike most other cryptocurrency exchanges that require a learned professional to help traders make financial decisions to use the trading platform, Coinmama is self-explanatory. One can easily understand the working procedures of the exchange by logging into the Coinmama webpage. One can find every detail there, and the registration process is straightforward.
Traders must sign on to the Coinmama website and register with basic details like full name, address, phone number, and a valid email ID. Then, they are required to lock their login credentials with a strong password. Ensure you remember the password every time you log in to the broker website, write it on a piece of paper if necessary, keep it safe, and never share it with anyone.
Then, there will be three stages of Coinmama to verify your account (Levels 1, 2, and 3) wherein each level, the trader needs to produce specific ID proofs to confirm their details. After that, the user needs to click on the “Buy” tab and choose the preferred crypto that he wants to buy.
The next step is to decide the amount the trader wants to spend purchasing his select coins. Once he clicks the “Buy Now” tab and submits the payment details, the purchased coins will be credited to the trader’s own wallet.
6) Supports Multiple Crypto, Fiat Currencies, and Payment Methods
This is the most sought-after benefit that people look for. At Coinmama, people can choose any crypto pair from the long list of cryptocurrencies that the exchange supports. Tradable digital currencies include:
- Bitcoin Cash
- Ethereum Classic
Apart from the advantage of multiple currencies, Coinmama users also enjoy the privilege of multiple payment methods. Coinmama accepts any secure payment method, such as credit and debit cards issued by Visa or Mastercard.
The company has also started accepting payments by SEPA and SWIFT bank transfer with 0% processing fees. It has also recently collaborated with Apple Pay & Google Pay, and now Coinmama supports multiple payment options via those gateways. Prices are denominated in EUR, AUD, USD, GBP, CAD, or JPY.
7) Worldwide Support
Coinmama offers brokerage services worldwide in over 188 countries except for some sanctioned countries and several US states.
8) Coinmama Loyalty
Although the fees that Coinmama has is higher than other platforms, the platform has a loyalty program called Coinmama Loyalty. With an automatic entry into this money-saving scheme, users are treated to the chance of lowering their fees to 25%. Users must sign up for a Coinmama account, verify a purchase, and begin trading cryptocurrency.
The loyalty program has a three-tier system, and each tier has its discount on fees. Coinmama users are promoted to the next level by maintaining a minimum purchase amount across 90 days. The three levels are as follows:
- Crypto Curious: Gaining entry into this loyalty scheme are the new Coinmama users, titled the Crypto Curious. While there is no minimum requirement for spending, users are automatically entered into this level. However, there is no discount provided on fees.
- Crypto Enthusiast: The second level has users enter the Crypto Enthusiast foray and leverage 12.5% in reduced fees with the addition of quicker Coinmama support. To get promoted to this level, an aggregate of 5000 USD needs to be amassed over 90 days. While checking out, earn a crypto bonus on savings.
- Crypto Believer: Getting promoted to level 3 sees Coinmama traders enjoy the benefit of 25% saved on Coinmama fees. Traders are granted dedicated customer support while earning a crypto bonus while checking out. To be a Crypto Believer, traders must trade over 30 days at a minimum and have spent about 18,000 USD over 90 days or opt for a purchase worth over 50,000 USD.
9) Customer Service
Coinmama focuses on delivering better customer support services and customer experience to clients so that transactions are quick. The new bit ventures platform has a complete customer service center with a dedicated support channel that can be reached through emails. The Coinmama support team tries its best to answer clients’ queries within a maximum of 24 hours.
Disadvantages of Coinmama Exchange
Our review finds that the significant disadvantage of Coinmama is its high fees. Due to higher fees, traders prefer to leave Coinmama and join other cryptocurrency exchanges to get the benefits of lower exchange fees.
The price on the Coinmama webpage includes the company’s brokerage fee of 5.9%. The base price is calculated based on TradeBlock’s XBX index. A 5% extra credit card processing is added to the stated price, which means Coinmama’s price stands at 5.9% above the market rate.
1) Credit Card Fees
Though the ability to use debit and credit cards for purchasing cryptos on the Coinmama exchange is a boon for traders, they are costly. If any of these cards are used, one needs to pay an extra charge of 5% above the market rate that the Coinmama exchange charges.
This extra cost needs to be paid irrespective of the cryptocurrency exchange used for purchasing cryptos; additional charges always accrue every time traders use fiat currency (debit card or credit card).
2) Higher Coinmama Fees
On top of the credit or debit card fees charged on the Coinmama exchange, there is an average transaction fee of 5.5% to 5.9% for every transaction made on the Coinmama platform. However, the exact and minimum fee depends on the number of cryptos a trader intends to buy.
These escalating transaction fees can be expensive for regular buyers who intend to buy a more significant number of cryptocurrencies; typically, Coinmama is not for regular buyers but for beginners. On the contrary, it is also very accurate that whichever exchange you buy your cryptos from, if you are using real money, there will be high trading fees, and Coinmama is no exception.
As far as negative reviews go, Coinmama’s trading fees are relatively high fees for a cryptocurrency exchange; it is to be noted that there are no withdrawal fees on the Coinmama exchange.
3) Limited Number of Coins to Choose From
At Coinmama, traders have a limited option of cryptocurrencies to choose from. It allows traders to buy only nine cryptocurrencies simultaneously, including two leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH).
This is a disadvantage of Coinmama compared to other exchanges like Coinbase – One of the top Bitcoin exchanges offering more than 100 cryptos to its users. Coinmama is the least dominant option for traders if they want to lead as the best crypto exchange.
Steps to Buy Crypto Currency on Coinmama Exchange
With Coinmama, purchasing several popular cryptocurrencies is a manageable task. The whole process gets completed within a few minutes. Here are the few steps we found while doing this review that make the crypto buying process easier on such a platform.
1) Choose Your Coin
This is the first step, where traders must log into their Coinmama cryptocurrency account and purchase the cryptocurrencies and coins they prefer and the digital currency they want to pay with. Very few cryptocurrency exchanges allow traders to trade with fiat currency. Coinmama will enable traders to make payments using credit or debit cards (fiat money) for purchasing Bitcoin directly from the exchange’s website.
2) Select Amount
After you have finished selecting your coins, you can choose any of the cryptocurrency packages from the exchange’s website. Or else you can manually enter the specific purchase amount that you would like to spend to purchase Bitcoin. Click on the “buy now” option.
3) Enter your Wallet Address
Set up top crypto wallets and enter your wallet address from the preferred third-party provider (broker). This is necessary to send or receive Bitcoin stored in the crypto wallet.
4) Choose the Payment Mode
After you enter your personal wallet address, you will be directed to a page where you will be asked to select the multiple payment options you prefer. There is a drop-down menu with various options like credit cards, debit cards, and wire transfers. For this, you need to provide basic information about your bank account.
5) Receive Cryptos Into Your Wallet
Next, Coinmama sends a wallet confirmation link to your registered email address. Click on the link and confirm your digital wallet address, after which you will be sent your purchased BTC to that crypto wallet address. You will be able to track the status of the purchase under the “My Account” tab on the exchange’s website.
Who Should Opt for Coinmama Exchange?
The Coinmama platform is best suited for first-time cryptocurrency buyers. If you have read this entire review on the Coinmama exchange, you now know what the platform is all about. It is a cryptocurrency brokerage service company providing money services business to clients that is secure in all aspects. It allows buyers to directly make crypto purchases from the exchange itself rather than buying crypto from other traders trading on the platform.
As per our review, the Coinmama platform is best suited for new buyers. First-time buyers who don’t own any cryptos can easily buy crypto using their debit/credit cards or even wire transfers on the exchange.
Even if the traders at any point in time decide to buy less popular crypto coins, they can easily trade them with other leading crypto assets like Bitcoin or Ethereum, which makes Coinmama a fitting platform to start. Traders can quickly transfer their cryptos to buy Bitcoin or Ethereum anytime with other available cryptos on exchanges listing the cryptos the traders want and then trade them with their cryptos. Trading your preferred cryptos on Coinmama is as simple as that.
There are multiple exchanges like the Coinmama crypto exchange. Even if you don’t find your preferred cryptos on Coinmama, visit other similar exchanges that offer more payment options to purchase crypto.
Conclusion: Is Coinmama Right For You?
The short answer is Yes! Coinmama is a perfect platform for users who want to purchase Bitcoin easily, but the transaction fees are too high (5.5% – 5.9%). Still, traders can avail of Coinmama Loyalty and leverage discounts upon continuous trading. This review scores down due to its relatively high fees, lack of a crypto wallet, and mobile app. Coinmama gets full stars for ease, quick transaction, and customer support.
Coinmama support provides tremendous assistance in case of any issues and is highly recommended for beginners. Even though Coinmama does have a comparatively higher fee structure, it compensates with excellent customer service that adds value to the money.
Looking at the FAQ page, we found the following FAQs:
Is Coinmama Safe?
Yes, as per our review, This Exchange appears to be legit and safe. It is a reputable brokerage service-providing company that serves clients settled in almost all countries with a few exceptions.
How long does it take Coinmama to verify?
As per our review of Coinmama, it takes a minimum of 30 minutes to a maximum of 1 hour to complete the process. Once Coinmama successfully completes identity verification, Coinmama immediately credits the crypto coins to the trader’s crypto wallet. This immensely helps the traders in times of fluctuations that may lead to spending on buying Bitcoin that the trader had expected.
What are Coinmama fees?
The fees combined of XBX + 2% (standard deviation) & commission fee between 0.9%-3.90% (up to 0.9% on sell transactions & 3.90% on buy transactions), which depends on loyalty level also. Total fees stand approximately at 5.9%, which goes down the more you buy. Also, when it comes to OTC exchanges, these prices are not far from competitive, and other OTCs are even more expensive when using credit cards but have hidden additional fees.
However, traders can also use bank transfers like SEPA, SWIFT, Sofort, Fedwire, FasterPayments, etc., instead of a credit card; with this, they can save 5% in total fees.
What states does Coinmama work in?
So far, by reading Coinmama reviews, we know that this exchange is an active broker across 188 countries and the following 43 US states:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Does Coinmama provide a wallet?
No, there is no specific Coinmama wallet as they don’t provide such a service; traders must provide their preferred digital wallet address.