Cryptocurrency gets more popular by the day, and many traders wish they had gotten in on the ground floor. Nowadays, it can be difficult for new users to get into the crypto game and just as hard for crypto traders to find new ways to buy and sell.
The demand for crypto has given rise to coin exchanges like Coinmama, which are geared to make buying crypto
easier than ever!
This Coinmama review will provide you with the information you need to decide if the platform is right for you.
Coinmama Review: Overview
Coinmama is a cryptocurrency exchange that was first established in 2013 to serve the growing demand for cryptocurrency. Today the service has over 2.5 million users in some 188 countries around the world. It runs under the watchful eye of parent company New Bit Ventures.
Due to state regulations in the United States, there are a small number of states that are unable to use Coinmama.
Its simple interface allows individuals to buy Bitcoin and other popular coins through payment methods such as credit cards, debit cards, and bank transfers. Users are limited to a European (such as SEPA) bank transfer in order to use the platform.
Coinmama Review: What Is Coinmama?
Coinmama is a platform that stands out among similar services by selling cryptocurrencies directly to users from their own inventory, not from some third-party seller.
Coinmama does not provide anything in the way of a digital wallet, meaning each user is responsible (and therefore in control of) their own stash of crypto.
The platform is set up for lightning-fast transfers, often taking users as little as 10 to 20 minutes to receive their crypto through the use of a credit card. These perks do come with some higher fees than other brokers.
Coinmama Review: Where Is Coinmama Located?
Coinmama has its headquarters located in Tel Aviv, Israel, and has offices in other parts of the world.
Coinmama Review: Is Coinmama Safe and Legit?
Coinmama has been in business for over eight years and has a solid track record for buying Bitcoin, Bitcoin Cash, and other popular coins on the market.
Their website uses a secure encryption service to keep personal information safe, and no credit card information is stored anywhere in their database.
In addition, Coinmama doesn’t offer a crypto wallet and therefore doesn’t store any of your money or cryptocurrency. Upon signing up for the service, you’re required to provide your own secure crypto wallet where your coins will be stored.
Coinmama Review: What’s Included with Coinmama?
Coinmama is set up specifically for those who want to buy and sell cryptocurrency but has some other impressive services, including:
- Crypto Options
- Crypto Exchange
- Happiness Heroes
- Coinmama Loyalty Program
Coinmama Review: Crypto Options
Coinmama allows customers to purchase nine different cryptocurrencies on their platform. The current list of cryptocurrencies for buying and selling is as follows:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Ethereum Classic (ETC)
- Tezos (XTZ)
- Dogecoin (DOGE)
To buy cryptocurrency, Coinmama’s available payment options include credit or debit cards issued by Visa or Mastercard. Coinmama also allows transfers from a bank account as a payment method along with Apple Pay. Purchase prices are limited to EUR, USD, GBP, AUD, CAD, or JPY.
Should you choose to sell Bitcoin, the crypto can only be sold for regular currency (USD, EUR, GBP, AUD, CAD, and JPY) on the cryptocurrency exchange. There is no way to trade Bitcoin for other types of cryptocurrency.
Coinmama Review: Crypto Exchange
Coinmama promotes itself to buyers and sellers as providing a straightforward approach to buying cryptocurrency.
Toted not as a trading platform, but as a cryptocurrency exchange, customers simply select how many of which cryptocurrencies (Bitcoin, Ethereum, etc.) they want to buy. The service then takes care of the rest.
Coinmama sells fractional shares of Bitcoin and is made available to customers for as low as $50 worth of Bitcoin, based on the current trading rate.
It is not possible to trade crypto for crypto on Coinmama, so users will need to sell Bitcoin for paper money (deposited into a bank account) before buying other types of coins.
Bitcoin is currently the only digital currency that users can sell to Coinmama. The site plans to expand this to other cryptocurrencies in the future.
Furthermore, there’s no user-to-user trading on the platform. Customers are only able to buy/sell directly from the company itself.
A user’s account is given daily and monthly spending limits on buying and selling cryptocurrencies depending on the verification level an account has reached.
Coinmama Review: Delivery
Coinmama is a non-custodial broker and does not hold any user coins. It’s up to the user to find a secure wallet to store their coins after purchases.
One of Coinmama’s highlights is the ability to get your coins almost instantly upon purchase. When a user lays down the money to buy Bitcoin or another crypto, the coins appear in their crypto wallet address once the payment method is processed.
Customers can buy crypto with a credit card, debit card, Apple Pay, or bank transfer.
Coinmama Review: Happiness Heroes
Coinmama believes in their customer support team, who they’ve affectionately dubbed “Happiness Heroes”. This customer support group is available 24/7, and the platform highly recommends that users reach out through the online form, which will start an email chain.
Even though contact is through email, the customer support group reply very quickly, often within a matter of minutes.
The team is well-equipped to help and can field a number of support questions. These include information and troubleshooting on how to buy and sell, account management, help with the verification process, and how to link up a wallet.
The site does also have a California mobile number listed that takes messages only. There is a chatbot that prowls Coinmama’s website, but it appears to be of limited use.
Coinmama Loyalty Program
As an added bonus to users, Coinmama has a loyalty program that can reduce the fees required to buy and sell.
The Coinmama platform has three different levels of savings. Each tier above the basic level requires reaching and maintaining a minimum purchase amount over a rolling 90-day window.
Upon signing up, customers are automatically enrolled in the program.
1. Crypto Curious
All new users fall into this category. There is no fee reduction at this level, but users are a part of the Coinmama team and can access support with questions on how to buy, sell, and more.
Customers are automatically enrolled in the Crypto Curious level at account setup.
2. Crypto Enthusiast
At the Crypto Enthusiast stage, users will see a 12.5% sales fee reduction and get placed in the priority queue for the customer support team.
In order to reach this rank, cryptocurrency buyers must have a cumulative 90-day purchase of 5000 USD or more.
Keep in mind, too, that it’s possible to drop back down to the Crypto Curious level if a user fails to maintain the purchase requirement.
3. Crypto Believer
Customers who reach the Crypto Believer stage will see 25% off the transaction fee on any purchase they make.
Similar to the Crypto Enthusiast, a Believer must maintain a purchase amount of 18,000 USD or more over a rolling 90-day period. Users can also reach this level once they’ve reached a lifetime purchase amount of $50,000 USD or more.
This level can only be accessed once a user has been purchasing on the site for 30 days.
Coinmama Review: How Long Does Coinmama Verification Take?
Coinmama boasts that their verification process takes somewhere between 30 minutes and an hour on average to get a user up and trading. Of course, this is subject to how busy their verification support team is when you open an account.
Coinmama has three levels of verification, with each successive tier increasing the buying limit on the account. No matter the tier, there are limits on daily and monthly purchases through credit card and bank transfer. These limits increase as you go up through the tiers.
To verify your account, you’ll need to have a valid government-issued ID, a note with the word “Coinmama” on it, and the ability to take a selfie. It’s worth noting that US passports are not an applicable form of ID since Coinmama is not available in every state. For US users, a driver’s license will suffice.
After you’ve taken a selfie with your ID and note, the website will walk you through the steps of confirming your email, creating your profile, and uploading the photo.
Level 1 users will have a maximum buying limit of 15,000 USD with a credit/debit card.
To increase your spending limit on the exchange, you’ll need another form of valid ID and a utility bill. Individuals will also need to spend at least 2,400 USD (or equivalent) in credit or debit card transactions.
Anyone reaching level 2 verification will increase the limit on purchases up to 50,000 USD.
Once you’ve neared your level 2 limit of 50,000 USD on the exchange, you’ll be eligible to apply for level 3. Users at this stage are required to fill out a form and send it in to Coinmama for verification. Approved buyers will see their spending limit raised all the way to 1,000,000 USD.
Coinmama Review: Does Coinmama Accept Credit Cards?
Coinmama accepts any Visa or Mastercard credit card as a payment method for cryptocurrency purchases.
In addition to credit cards, users can also use a debit card, bank transfer, and Apple Pay to buy Bitcoin and other cryptocurrencies on the exchange.
This does mean that customers are not able to use popular services like PayPal.
Coinmama Review: Does Coinmama Have an App?
At the time of writing, Coinmama does not have a mobile app. The service is limited to a web browser, but the website is simple enough to run with minimal effort on a mobile device.
Coinmama Review: Coinmama Cancellation Policy Review
Although not mentioned anywhere on their site, Coinmama’s support team can cancel your service. Being a cryptocurrency exchange service only, Coinmama does not hold any of your cryptocurrencies and requires you to have a separate wallet address.
Coinmama also doesn’t keep your credit card information on file, but they state they are required to keep your account information.
Coinmama Review: How Much Does Coinmama Cost?
There are no fees for setting up an account with Coinmama, but there are fees for trading currency on the site.
When it comes to buying or selling cryptocurrencies, there are minimums to consider.
100 USD (or equivalent) is the minimum purchase amount for orders to buy cryptocurrency.
200 USD value is the minimum amount to be able to sell Bitcoin to Coinmama.
Coinmama Review: What Are Coinmama Fees?
Coinmama charges some high fees that can run even higher depending on your payment method.
Users who want to purchase cryptocurrency on the exchange pay market value plus 2% for their purchases. There’s a commission fee of up to 3.9% on top of that. That’s a total fee of 5.9% for the use of Coinmama’s services.
Anyone who pays with a debit or credit card will also see a 5% processing fee not included in the above numbers. The best way to avoid this fee is by using a bank transfer, which has no added fees.
When it comes to selling Bitcoin, sellers are charged 2% of the market value for the cryptocurrency. There’s also a sell fee of up to 1.9% based directly on your loyalty level.
It’s also worth checking with your bank about fees they may charge for cryptocurrency purchases via credit card or bank transfer. Banks may deem crypto trading a cash transaction and charge for such services accordingly.
Coinmama Review: How Long Does Coinmama Take to Process?
Coin transfer to and from Coinmama is dependent on the payment method. Purchases through debit or credit card are processed within ten minutes of purchase.
It then takes the coins about another ten minutes to be confirmed on the Blockchain.
A bank transfer will take, on average, somewhere between 1 and 3 business days to process. Once Coinmama receives your order, coins will show up in your account in around 20 minutes.
Coinmama Review: Pros and Cons
Coinmama stands out with a lot of key features. Let’s take a look at the pros and cons of the platform.
- Very secure system
- Several available payment methods
- Site is very intuitive and easy to use
- Fast transfer of crypto
- Quick verification process
- High daily purchase limits
- Strong customer service
- Available in most countries around the world
- High fees compared to some similar cryptocurrency exchanges
- No mobile app
- Unable to use PayPal, American Express, or Discover for purchases
- Platform offers no digital wallet
Coinmama Review: Is Coinmama Right for Me?
Coinmama offers a very intuitive user interface that makes it easy to get started on the exchange. Beginners in the crypto space will be able to step right in and start purchasing after a short verification process.
The site is secure, and users who want to remove some of the limits on trading are able to do so simply by purchasing more cryptocurrency.
Coinmama fees are quite high in comparison to some other sites and could be a potential roadblock for some users. However, these fees include the quality of service and streamlined transfer process of the site.
Coinmama Reviews by Customers
Coinmama has a 3.8 rating out of 5 on TrustPilot with over 300 reviews. While not all reviews are positive, the Coinmama team responds to each one. Here are a few reviews of the service:
I was hesitant when reaching out to customer service because I just assumed with Bitcoin, it would all be computer automated or no reply. I was pleasantly surprised! I got an answer within hours and regardless of how small or large my transaction was, I was treated with great respect and they were personal and professional in all of their communication. Even if the fees may be higher (if at all) than that of the competitors, you’re guaranteed high quality service, security & protection and very fast processes.
-Lesley, on TrustPilot
Ivan B. followed me through my new user experience, which compared to a couple of other recent ones, made it terrific! I appreciate the quick and courteous follow-ups and even a screen shot or two to get me going. Very much appreciated!
-John, on TrustPilot
Final Review: Is Coinmama Worth It?
Coinmama offers plenty of benefits whether you’re a new crypto trader or someone who’s been in the business for some time. With several payment options, super fast coin delivery, and high purchase limits, Coinmama seems to suit almost everyone.
Since Coinmama offers complete control over your purchases, this may be the perfect platform to start building your crypto supply or to add to what you have.