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Coinmama Review: Crypto Exchange Break Down
Coinmama is a cryptocurrency exchange headquartered in Israel that focuses heavily on providing excellent customer support and ease of use to its users. The brokerage was founded in 2013 and currently operates in 188 different countries. It’s perhaps not quite as well known as big-name exchanges like Coinbase and Binance but it’s still one of the largest crypto exchanges in the world. Our Coinmama review will help you decide if it is right for your needs.
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- Excellent customer support
- Very fast transactions
- Major coins are available for purchase, including Bitcoin, Ethereum & Litecoin
- Great security
Meet Our Reviewing Team
Pros
Supports purchasing Bitcoin, Ethereum and other crypto assets with credit cards
Very fast transactions
Excellent customer service
Extremely quick transactions
Cons
Fees are rather high
Lower buying rates compared to rivals
Somewhat limited selection of cryptocurrencies
Coinmama's Sign Up Process
Step 1: Complete the Sign-Up Form
A quick sign-up form must be completed in order to create a Coinmama account. This required information for this form is as follows:
- Email address
- First and last name
- Country
Step 2: Provide Personal Information
After completing the initial sign-up form, users are required to fill out a second form with their personal information.
Step 3: Upload Personal Identification Documents
It should be noted that users cannot purchase cryptocurrencies with credit or debit cards without going through additional levels of account verification.
The first level of verification involves a valid government-issued ID and a selfie taken by the user holding the ID. For further levels of verification, a secondary form of ID will be required, along with a utility bill.
What Crypto Can You Buy at Coinmama?
The number of cryptocurrencies available for purchase on Coinmama is somewhat limited than some of the other big exchanges. You definitely won’t be finding the 102nd most popular coin on the exchange. On the bright side you can buy Bitcoin, Ethereum, Litecoin and most of the other well-known crypto assets. Here’s a look at all cryptocurrencies available on Coinmama:
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Ripple (XRP)
- Litecoin (LTC)
- Qtum (QTUM)
- Cardano (ADA)
- Ethereum Classic (ETC)
Supported Applications
Coinmama can be used both on smartphones and traditional computing devices via all major operating systems. There is no standalone, non-custodial wallet available via Coinmama. Users need to have their own personal cryptocurrency wallet address because there is no way to store coins on the Coinmama platform.
Is Coinmama Safe?
Yes. Coinmama has actually been targeted by hackers once before but no funds were successfully retrieved, which says something about the security measures the site employs. The site is registered with FINCEN (Financial Crimes Enforcement Network) in the US, which is a rarity in the cryptocurrency space.
Perhaps the biggest feature in favor of Coinmama’s security is that it doesn’t actually hold its customers funds. The site doesn’t allow cryptocurrency trading (like a traditional exchange). Instead it lets customers buy digital currency and then sends it directly to their own personal wallets.
Coinmama also has an excellent customer support program if customers have concerns. The best way to contact them is through live chat Sunday-Thursday. The site also offers support through email and an extremely helpful FAQ.
Fees
There are two separate Coinmama fees to take note of. The first fee is 5.9% and is included in the price listed on the Coinmama website for each crypto asset. This price is based on the TradeBlock XBX Index.
The second Coinmama fee to worry about when purchasing cryptocurrencies is the credit card processing fee. This fee applies for both credit card and debit card-based transactions.
There is no transaction fee associated with SEPA bank transfers, but there is a 20 GBP fee on SWIFT bank transfers associated with orders of less than $1,000. Your bank may also charge you a separate fee for generating a bank transfer.
Coinmama Frequently Asked Questions
Yes, you can buy cryptocurrencies on Coinmama with US dollars; however, it should be noted that Coinmama does not offer its services in every US state. The following United States residents are restricted from using Coinmama:
- Connecticut
- District of Columbia
- Florida
- Hawaii
- Idaho
- Iowa
- New Mexico
- New York
- Oregon
- Utah
- Vermont
As noted earlier in our Coinmama review, a hack was attempted on Coinmama but no user funds were lost. Using Coinmama to purchase crypto assets should be relatively safe because funds are not actually stored by Coinmama. During the buying process, the user enters an address where their purchased coins will be sent.
No, you can only buy and sell cryptocurrency on Coinmama, you cannot trade it using their platform.
Purchasing Bitcoin, Ethereum, and other crypto assets on Coinmama via a credit card requires account verification. To get verified, a user must provide their personal information, including a photo of a government-issued ID such as a passport or driver’s license.
The level one verification process should only take about an hour, but it can take longer in situations where there is an issue with your verification attempt.
Coinmama is taking a large amount of risk by accepting credit and debit cards as payment methods in exchange for crypto assets. While credit card payments are easily reversible, cryptocurrency transactions cannot be canceled. To prevent potential loss from large amounts of users buying cryptocurrency on Coinmama and then reversing the transaction, the crypto brokerage must collect a large amount of information about their users, in addition to charging higher fees. Read the Sign-Up Process section of our Coinmama review for the types of ID they accept.
Coinmama is a cryptocurrency broker. This platform is not intended to be used for frequent buy and sell orders by advanced traders.
There is no such thing as a deposit on Coinmama. Instead, cryptocurrencies are bought and sold directly in a brokerage format. Despite the high fees, credit cards are a popular option for buying cryptocurrencies on Coinmama due to the speed at which the entire transaction can be finalized.
Yes, Coinmama has three levels of verification with a variety of perks for different levels.
The verification requirements for selling Bitcoin on Coinmama are not as strict because there is much less risk association with this sort of transaction for the exchange. Since the user is selling a hard asset and receiving fiat, Coinmama knows that there is no way for the user to reverse the transaction and potentially defraud the brokerage.
