Coinmama is a cryptocurrency brokerage service that helps people around the world buy and sell cryptocurrencies easily. Coinmama is a bit different from regular cryptocurrency exchanges in some ways as it provides brokerage services, as opposed to facilitating third-party trades as many other exchanges do.
Coinmama is an easy-to-use, beginner-friendly platform for purchasing cryptocurrencies. One of the advantages of Coinmama is that it’s widely available in regions some other popular cryptocurrency exchanges like Coinbase are not. Unlike regular crypto exchanges like Binance or Coinbase, you can purchase straight from the platform itself so that is an additional benefit if you want to make fast purchases.
There are hundreds of crypto exchanges in the market, each with its own set of advantages and disadvantages. In this guide, we will explore what makes Coinmama a good platform for buying and selling cryptocurrencies and whether it is worth opening a Coinmama account.
Coinmama Background
Established in 2013, Coinmama has been around for a while and it’s considered a veteran cryptocurrency exchange platform. Coinmama is a brokerage service owned by New Bit Ventures based in Israel, though the exchange is registered in Ireland.
The exchange platform operates in more than 180 countries around the world and more than 40 states in the US alone. Coinmama’s brokerage services are available to several countries from Africa, South America, and Asia as well as Europe and North America. Coinmama has more than 2 million customers around the globe and it is a popular international crypto exchange platform.
Coinmama Services
Coinmama is a crypto brokerage service or crypto broker for short. That means that, unlike traditional cryptocurrency exchanges where you trade with other people, on Coinmama, you sell and purchase cryptocurrency directly from the platform itself. In other words, Coinmama is not an intermediary as much as it is a trading partner.
One of the benefits of using a brokerage service like Coinmama instead of a centralized exchange is that executing transactions is simpler and faster. On an exchange, you place an order on the platform’s order book and wait for it to be fulfilled, whereas, with Coinmama, there is no need to wait for a potential trader to take you up on your offer. This is particularly useful if you are selling altcoins that usually have less liquidity than Bitcoin.
Coinmama is different from other crypto exchange services in a few other ways too. For example, Coinmama doesn’t offer a digital wallet where you can store your cryptocurrency to make fast trades. When you purchase cryptocurrency from Coinmama, you provide a wallet address for the company to send your coins to. If you don’t already have a cryptocurrency wallet, you should start by checking out some free crypto wallet options and setting up a secure wallet.
Since Coinmama is a brokerage service, the company pays you from its private inventory when you buy or sell cryptocurrencies. That means there are pre-given limits to how much you can buy and sell on the platform, as well as a limited number of available cryptocurrencies. That said, most popular cryptocurrencies are available on the platform and there are ways of increasing how much you can buy and sell on the platform.
Buy Bitcoin and Other Cryptocurrencies With Credit Card and Other Payment Methods
One of the advantages Coinmama has over other crypto exchanges is that it allows you to buy cryptocurrency with your credit card. While many other platforms support debit card purchases, support for credit card purchases is a rare feature. You can easily buy Bitcoin and other supported cryptocurrencies with a Visa or Mastercard credit card on the platform, without having to transfer funds from your bank account to Coinmama.
You can also use bank transfer and debit cards to purchase crypto on Coinmama. There are no additional fees for SWIFT and SEPA bank transfers and Coinmama accepts payments by Apple Pay as well.
You can purchase and sell cryptocurrencies with several local fiat currencies. Coinmama rates are shown in USD, AUD, GBP, CAD, EUR, and JPY but the platform accepts all currencies. If you have a bank account with one of the supported fiat currencies, you can directly buy from the platform without paying additional fees to your bank. For other currencies, your bank may charge you fees.
Once you open an account and verify your identity, you can use the payment method that suits you best to buy BTC and other cryptocurrencies from Coinmama.
Cryptocurrencies Available on Coinmama
One of the biggest drawbacks of using Coinmama is the limited number of available cryptocurrencies on the platform. Unlike other big exchanges like Coinbase or Binance that list many virtual currencies and trading pairs, Coinmama allows you to buy and sell only 10 digital currencies. These include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Cardano (ADA), Ripple (XRP), Tezos (XTZ), Chainlink (LINK), Dogecoin (DOGE), Uniswap (UNI). QTUM and Ethereum Classic (ETC) are no longer offered on the platform.
Due to the limited number of listed digital currencies, Coinmama may not be suited to more adventurous investors who want to explore less known altcoins. However, if you’re looking to put together a cryptocurrency investment profile with some of the most popular cryptocurrencies, Coinmama’s cryptocurrency selection could be satisfactory.
Purchasing Cryptocurrency on Coinmama
Purchasing cryptocurrency from Coinmama is fairly easy. Once you sign up for a Coinmama account and provide the necessary documents for identity verification, you can start making purchases. Again, it’s important to have a wallet address for the cryptocurrency you wish to buy because Coinmama doesn’t provide a wallet on its own. You need to enter the wallet address for the cryptocurrency you wish to buy to make purchases.
Once you have a wallet address, you simply click buy on the Coinmama website and select the digital currency you want. You need to enter the amount you want to purchase and submit the wallet address you want your coins to be sent to. Once you make a payment through one of the payment methods the platform provides, Coinmama initiates the transaction.
Coinmama locks the price of the cryptocurrency you buy at the time of your purchase. That means you are guaranteed to receive the amount of cryptocurrency agreed upon at the time of your transaction even if the prices increase (or decrease) by the time your cryptocurrency reaches your address.
It usually takes around an hour for your cryptocurrency purchase to show up in your wallet, though the waiting time can increase depending on the blockchain network traffic. If there are too many transactions in the queue, it might take your cryptocurrency a bit longer to arrive in your wallet.
Minimum and Maximum Purchase Limits
There are minimum and maximum purchase limits on Coinmama. The minimum buy limit for Bitcoin is 60 USD and the minimum sell limit is 200 USD.
However, buying limits vary depending on your verification level. You have to be at least level 1 to make any purchases. With a level 1 account, the daily buying limit is 5000 USD worth of cryptocurrencies. The monthly buy limit for a level 1 account is 15,000 USD.
Buying limits are more flexible for customers with a level 2 or level 3 account. That being said, if you want to buy more or less than the amounts offered, you can use a free-fill form to make your purchase.
Coinmama Fees
Coinmama provides simple and fast cryptocurrency transactions to customers but, of course, that service comes with a price. Coinmama has higher fees compared to some other trading platforms though the difference is not very high compared to exchanges like Coinbase or Binance.
Coinmama charges a standard 2% transaction fee for cryptocurrency transactions. There is also a brokerage or commission fee for purchasing cryptocurrencies, though the amount varies depending on the cryptocurrency you buy. Credit card purchases cost around 3.9% in commission fees. Bank transfers are commission-free. Selling Bitcoin costs 0.9% of your total BTC transaction.
Credit card and debit card purchases include a 5% processing fee which can be quite expensive depending on the amount you are buying. However, credit card purchases are usually expensive or unavailable on most other trading platforms so the commission fee might be worth it.
The fee structure gets better as you use Coinmama. Customers who purchase more than 5000 USD worth of cryptocurrency in a three-month period can get a 12% discount on fees. If your purchases total more than 18,000 USD, you get a 25% discount. That means Coinmama can be a good choice for you if you’re planning to buy digital currencies regularly, at least for over a few months.
While fees are an important metric when it comes to picking a crypto trading platform, the cheapest services are not necessarily the best. There are a lot of cryptocurrency exchanges that can’t be trusted with your funds so don’t pick an exchange solely based on the prices.
Coinmama is generally considered a reputable exchange, and since you don’t keep cryptocurrency on the platform there is very little risk of losing your funds. It is a simple and fast way of buying and selling digital assets you can use comfortably without worrying that you are being scammed.
Coinmama Security
Cryptocurrency exchanges have a lot of trouble with hackers and targeted attacks because everyone knows they keep at least some portion of funds on the platform. That is not really an issue for Coinmama, because the funds are not stored on their servers.
When you use an exchange service wallet, your funds are their responsibility and there is a continuous risk as long as you leave your crypto assets in the exchange wallet. Since Coinmama is not a crypto wallet provider, your funds are not their responsibility. With Coinmama, you make a purchase, and you are done.
Even if Coinmama is hacked, your crypto purchases would be safe. The most they could get out of the company is your contact information or perhaps payment method details and wallet address. Of course, that would be unfortunate, but it’s a risk we all take when we use online payment services and it’s not as bad as losing your entire crypto investment.
Coinmama Verification
Identity verification has become a standard procedure for cryptocurrency exchanges, or at least for those that make an effort at complying with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
Coinmama requires you to verify your identity when you sign up for the service. This enables you to have a level 1 account.
The identity verification process is fairly easy. You have to provide personal details including your name, birth date, phone number, and country of residence. You also have to provide a photo of a government-issued ID like a passport or a driver’s license.
Coinmama requires you to pose for a selfie with the ID to ensure you are using your own documents and the ID is not stolen. The verification process can be completed in a few minutes if you follow the steps as Coinmama requires.
For a level 2 verification, you have to submit another official ID and a photo of a utility bill in your name. Level 3 requires filling a form and providing other details. If you would like to know more about level 3 account verification, you can get into contact with Coinmama customer service for more information.
As your verification level increases, so does your spending limit. You can purchase up to 50,000 USD with a level 2 account.
Coinmama Customer Support
Coinmama has a help center on-site and provides dedicated customer support via email. Support requests are answered quickly, generally within 24 hours. If you have an urgent question, checking to see if it is already answered in the FAQ section is a good idea.
What Do Coinmama Reviews Say About the Platform?
Coinmama has generally good reviews across the internet and has a “Great” rating on TrustPilot. According to online reviews, Coinmama is a good place to buy and sell BTC with fiat currency. The platform offers many payment methods, including credit/debit cards. The customer service is generally responsive. While the lack of altcoins and the high fees can be frustrating for more advanced cryptocurrency users, overall, it’s a beginner-friendly platform with a good reputation.
How Long Does Coinmama Take to Verify
Once you make a cryptocurrency purchase on Coinmama, you can use a blockchain explorer to check the state of your transaction. Coinmama fulfills cryptocurrency orders within an hour but your crypto assets may not arrive in your wallet as quickly. It can take around an hour or more for your assets to reach your wallet, depending on the blockchain network traffic.
A Few Words Before You Go…
Coinmama is a brokerage service for cryptocurrencies that serves more than 180 countries in the world. Local fiat currencies are accepted on the platform though prices are listed in Australian Dollar, US Dollar, Canadian Dollar, Euro, and Japanese Yen. Coinmama offers faster payments compared to other cryptocurrency exchange platforms and the opportunity to purchase Bitcoin and 9 other cryptocurrencies with a credit card. Coinmama transactions are usually processed within hours and you can buy and sell Bitcoin and other cryptocurrencies easily.