Coinmama – Review Introduction
Interested in making a cryptocurrency investment? Have no idea where to start? You’re not alone. The first step is finding a trusted brokerage that lets you purchase crypto with a credit or debit card and even a bank transfer.
Coinmama came about in 2013 and started as a purchase-only platform. They offer many purchase options, among them Visa or MasterCard debit/credit cards as well as Apple Pay. This is especially welcoming to beginners; however, the benefits don’t stop there.
In this Coinmama review, you’ll learn the ins and outs of this company. You’ll see in what areas they excel and which areas could use improvement. We’ll answer all your questions like, ‘How secure is Coinmama?’ and ‘How to use Coinmama?’. By the end, you’ll have a full understanding of what this exchange brokerage offers — from fees to support.
Coinmama Quick Summary
Coinmama is an online platform for buying and selling cryptocurrency for fiat currency. They allow users to exchange fiat currency like dollars or euros for cryptocurrency. They currently offer 10 different digital currencies to over 190 countries. Supported currencies include:
- Bitcoin Cash
- Ethereum Classic
To purchase Coinmama’s offerings, customers may use a credit or debit card as well as Apple Pay — this makes it popular among beginning traders.
Moreover, Coinmama for desktop is backed by a helpful support team and plenty of trading guides. The interface is uncluttered and simple to follow.
This might sound good, but is it for you? Make sure you review Coinmama in its entirety before deciding on it. Keep reading to learn more.
Who is Coinmama For?
Coinmama is for those wanting quick, easy access to buy Bitcoin or other cryptocurrencies. Plus, you don’t need to be tech-savvy to navigate the desktop app.
This brokerage is great for first-time buyers, thanks to its credit/debit card purchase compatibility. If you don’t currently own cryptocurrency, using your card is the easiest way — and the user-friendly interface makes it easier.
For experienced crypto traders, the business’s appeal is in their instant crypto delivery. You’ll immediately see purchased coins in your Coinmama brokerage account. Coinmama verification is fast — you could see approval in as little as 10 minutes for a Level 1 account.
If you’re an EU resident, you can sell BTC and receive cash through SEPA transfer.
Coinmama Company Information
This company was established in 2013. It’s headquartered in Israel, registered in Slovakia, and the 52 employees operate from both locations. The company quickly grew and is now available in 190 countries (and counting).
The company garnered plenty of respect due to its secure, quick access to cryptocurrencies like Ethereum and Bitcoin. You can purchase digital currencies like BTC, ETH, BCH, LTC, ETC, QTUM, ADA, and XRP — all via credit, debit, or bank transfer.
The company prides itself on a customer-centric attitude and its heightened security. The Financial Crimes Enforcement Network (FinCEN) – a United States regulator – has approved the exchange as a money business service.
There numerous advantages for both beginner and advanced crypto traders. In this section of our Coinmama review, you’ll discover all the major selling points of this platform.
- This brokerage accepts fiat money to purchase crypto. Most brokerages will ask for a cryptocurrency deposit, and if you’re just starting, you obviously won’t have that.
- You can purchase your digital assets with your credit or debit card, Apple Pay, and wire transfer.
- A major Coinmama pro is its instant transaction. Your coins are immediately sent to your wallet once your payment clears.
- This platform has a user-friendly interface. It doesn’t bombard you with complicated-looking charts or statistics, which can overwhelm new buyers.
- The straightforward buying process is especially favored among users. Simply open and verify your account (the Coinmama verification time is as little as 10 minutes). After you enter your card info and select your purchase amount, you’re good to go. No previous trading knowledge is required.
- A helpful support team backs you. For immediate help, you can contact support agents through live chat. Outside their working hours, you’re welcome to send an email, contact them on Facebook, or create a support ticket.
- Perhaps the best benefit is its high-security levels. Government institutions do not regulate most exchanges, but this company is registered with FinCEN. This organization is under the U.S. Department of Treasury and investigates fraud, tax evasion, and money laundering.
Our Coinmama exchange review has full transparency in mind, which is why we say this platform is not perfect and not for everyone. There are a few disadvantages to keep in mind before opting for a Coinmama brokerage account.
- There is an extra 5% fee for credit/debit card purchases on top of the platform’s rate. Keep in mind: credit/debit purchases will always rack up additional fees for any brokerage.
- The company charges an average 5.5% fee for every transaction. The fee fluctuates depending on how many coins you buy and is on top of the additional card fee.
- There are limited crypto coins to choose from. The Coinmama stock consists of 10 coins. Bitcoin (BTC) and Ethereum (ETH) are there, but some more obscure ones are not. Since Coinmama is a brokerage exchange, this makes sense, as you’re purchasing directly from them with fiat money.
- Selling is limited to Bitcoin. You can only sell if your bank supports SEPA transfers (good news for Coinmama UK users, though).
- Though a Coinmama pro is its security level, there is a slight disadvantage in that as well. The platform protects itself from attack by not providing you with a crypto wallet. It’s your responsibility to secure a private wallet.
As we’ve mentioned in our Coinmama review, its platform is tailored to beginners. Buyers won’t have to weave through complicated jargon or unreadable charts to purchase crypto.
The service offers a help center and support page ripe with tutorials. You’ll find a glossary of crypto lingo, information on wallets, a walk-through on placing an order, and much more.
The simple verification process ups the usability.
Coinmama Trade Experience
Users may buy and sell cryptocurrencies with their Coinmama brokerage account. You’re given several limits (daily, monthly, and lifetime) depending on your verification level.
At the time of writing, Bitcoin is the only digital asset you can sell, though they are working to change this. The platform doesn’t offer advanced trading options like futures and margin trading. Experienced buyers may find this limiting.
Coinmama Crypto Trading
This service is a crypto exchange, but it doesn’t include trading options. Users can’t trade crypto for crypto, nor can you trade with other users on the platform. Users interested in having both trading and buying/selling options may find this a disadvantage.
Coinmama App for Mobile
At the time of writing, Coinmama is for desktop only. There is not a mobile app available, so we won’t be including a Coinmama app review here.
Coinmama Deposits and Withdrawals
When selecting a broker, you must consider the deposit and withdrawal options. In this Coinmama review, we’ll discuss your options for both.
If you’re wondering how to buy bitcoin on Coinmama, or any of their other crypto offerings, you can use the following:
- Debit/credit cards: Any MasterCard or Visa-backed payment is supported by the company’s payment processor. Payments with this method incur a 5% processing fee.
- Cash: You can purchase cryptocurrency with cash via wire transfer. There is no deposit fee for a wire transfer.
As far as withdrawals go, the platform sends your purchase immediately to your connected e-wallet. There are no fees for withdrawing digital assets.
If your bank account supports SEPA, Coinmama sell transactions are accompanied by a small fee depending on your Loyalty Level.
If you find a broker platform entirely free, you’re most likely staring at a scam. No service is free. In this section of the Coinmama review, we’ll break down the associated fees.
Transaction fees average at 5.5%, while credit/debit card crypto purchases have an additional 5% fee.
If you wish to liquidate your Bitcoin, fees range between .9% and 1.9%. The exact rate is determined by your account loyalty level.
Seasoned crypto traders have found the fees high due to the platform’s lack of advanced trading options. For beginners, who are still learning the trade, the fees are quite reasonable.
Signing up for an account is a painless process and only requires a little identification. New users will start with a Level 1 account.
For a new account, you’ll need the following:
- Government-issued photo-ID (passport or driver’s license)
- A piece of paper with Coinmama and the date written on it
- A camera phone
You can create your account on their sign-up page. After confirming your e-mail, you’ll need to confirm a few personal details and upload the requested documents. Your phone camera can simply take pictures of said documents.
Depending on your country of residence, you can be approved within fifteen minutes. Most accounts are confirmed within a couple of hours. Once you receive a confirmation e-mail, you can purchase up to $15,000 in crypto without providing any additional information.
Upon reaching spending limits, the service invites you to account upgrades to Level 2 or Level 3. You’ll find additional perks and spending limits at these levels.
Coinmama Educational Resources
This Coinmama exchange review could not leave out the platform’s abundance of crypto-education tools.
The desktop website hosts various articles, tutorials, and glossaries to prime new buyers with the necessary trading knowledge. Highlights include:
- Earning free Bitcoin
- Cryptocurrency term glossary
- Introduction of Blockchain
- Explanation on e-wallets
All information is relayed in easy-to-understand terms. This is a major plus, considering crypto and anything related can often seem unnecessarily complicated.
Coinmama Customer Service
As mentioned, the customer support aspect is a huge Coinmama pro.
Users can access customer service via e-mail or Facebook Messenger at any time. There’s also a live chat feature, but it’s limited to the company’s working hours: Sunday – Thursday, 9:00-18:00 GMT+3. Service agents will typically respond during work hours, as well.
The platform’s FAQ is another excellent service resource. Buyers are encouraged to visit, as it can answer plenty of questions you may have. It’s updated frequently and includes company and product information.
Coinmama Reviews and Reputation
When you dive into the 328 Trustpilot reviews, you find mixed results. 68% of the reviews rank the platform as “Excellent,” while 18% rank it as “Bad.”
The 1-star or “Bad” reviews seem to note outdated website information that indicated users could sell crypto via SWIFT bank. This is not the case, and it only offers sell services to those part of the SEPA system at the time of writing.
The 5-star or “Excellent” reviews applaud a responsive support team that can quickly fix issues or clear up crypto-related questions. Many reviews also mention the efficiency of the exchange.
Exchange platforms ask for sensitive information: your address, your card number, and your ID. Assured security is vital to protecting yourself and your assets. So, is Coinmama safe?
The company understands this better than most. The platform doesn’t hold your cryptocurrency funds and doesn’t store payment information. This diminished risk of losing your crypto or endangering personal information.
This Coinmama review is about transparency, though, so we’d like to mention its 2019 security breach that leaked 450,000 emails and hashed passwords.
Overall, Coinmama is great for those looking to start their crypto journey, especially considering everything is purchased with cash or card. If you’re considering this company, examine potential limitations. The exchange lacks advanced options. It’s not the best for seasoned buyers looking to expand their portfolio, but it’s excellent for new buyers.
The platform is easy to navigate, and it offers quick access to crypto with transactions occurring immediately. You will need your own e-wallet, as the app doesn’t hold your cryptocurrency. Thankfully, their support center can walk you through a few wallet options.
Like the sound of this Coinmama.com review? Open a Coinmama brokerage account today.
Is Coinmama safe or a scam?
The platform is a safe, legitimate company approved by the United States Financial Crimes Enforcement Network (FinCEN).
What can I trade on Coinmama?
Cryptocurrency is the only tradable securities offered. The 10 coins available to buy are Bitcoin, Ethereum, Qtum, Litecoin, Ripple, Bitcoin Cash, Ethererum Classic, Cardano, Tezos, and EOS.
Can you make money with Coinmama?
Users can sell Bitcoin for fiat currency only. There are no crypto-to-crypto trades. Additionally, only SEPA support banks allow for the liquidation of crypto from Coinmama.
How secure is Coinmama?
The company is highly secure as it does not store financial information or hold cryptocurrency. But as mentioned, a 2019 data breach leaks 450,000 user emails and passwords.
Is Coinmama regulated?
Yes, the exchange is regulated by a subset of the U.S. Department of Treasury — the FinCEN. If any fraudulent activity occurs, the FinCEN investigates accordingly.
How do I withdraw money from Coinmama?
You can only receive cash for Bitcoin if your bank is in the SEPA system. This is available in 37 European countries. The exchange used to provide this service to SWIFT banks and is working to again. It is also working to allow for the sale of cryptocurrencies outside Bitcoin.
Where is Coinmama based?
The company headquarters is in Tel-Aviv, Israel, but they are registered in Slovakia.
How does Coinmama work to make money?
By charging a fee on all transactions.
How can I deposit into a Coinmama account?
You can deposit via wire/bank transfer and credit or debit card.
What is the minimum lot size at Coinmama?
The minimum order amount to purchase cryptocurrency is equivalent to $150 USD in your fiat currency.
When does a margin-call take place at Coinmama?
Coinmama does not offer margin trading.
What is the maximum leverage offered by Coinmama?
For a Level 1 account, there’s a daily limit of $5,000 and a monthly limit of $15,000.
How do I open an account with Coinmama?
Opening an account is easy—sign-up on the company’s website.
You’ll have to verify personal information, a photo ID, and a picture of yourself holding a piece of paper with Coinmama and the date on it.
What trading platforms does Coinmama offer?
The service allows users to buy and sell crypto for fiat currency. They do not offer crypto-to-crypto trading.
Is Coinmama an ISA?
No, they do not hold currency of any kind. It facilitates the purchase and sale of crypto. Restrictions are dependent on your location.
Do I pay tax on Coinmama?
No. Bitcoin taxes will depend on your area’s tax laws and are dealt with through your government.
Is Coinmama legal in the USA?
Yes, but certain states require third-party transactions, and the exchange is restricted in New York and Hawaii entirely.
Can you use Coinmama in the UK?
How much is the Coinmama minimum deposit?
There is a $50 USD minimum deposit requirement.
What are the Coinmama market hours?
Its market is accessible 24/7.