Coinmama Exchange Review

Coinmama Exchange Review
9 Total Score
  • Cryptocurrencies can be bought with credit/debit cards
  • Responsive customer service
  • Wide reach of 217 countries and 24 states
  • No verification required up to purchases of $/€150
  • Exchange rates locked in while awaiting verification
  • High buying limits.

Coinmama Cryptocurrency Review

Trust Score: 9/10

Founded in 2013, Coinmama is a cryptocurrency exchange that is based out of Israel but registered in Slovakia. Owned and operated by New Bit Ventures Limited, Coinmama allows people from 217 countries across the globe to make purchases of both Bitcoin and Ethereum. These transactions can be completed using either credit and debit cards or via Western Union.

Unfortunately, customers can only purchase the two main cryptocurrencies on Coinmama and cannot trade or sell them or any other cryptocurrency.

Where it does stand out, is that of its more secure transactions than what customers will find at most other exchanges. This is due to all purchases coming directly from Coinmama’s own holdings of Bitcoin and Ethereum.

Not only is Coinmama known for how secure their transactions are but also for the speed and simplicity that they offer when making these transactions. They are allowed purchases to be made by credit or debits cards which is something that a number of exchanges do not allow.

Continue reading to find out more about Coinmama and why it is one of the most efficient and speedy ways to get your hands on Bitcoin and Ethereum.

  • Founded in 2013
  • Fast transactions
  • Accepts customers from 217 countries
  • Credit and debit cards accepted

 

Mobile Apps

Coinmama has still yet to create a mobile app for their platform and instead requires customers to navigate directly to their website if they want to make a purchase of Bitcoin or Ether. Furthermore, there has been no API released as of yet either that would allow users to develop custom applications that could work alongside the platform.

Whether either will be developed in the near-future is unknown but we do feel that an app especially, will go down well with mobile users that want to be able to purchase Bitcoin and Ethereum on the go.

 

Coins Offered

As previously mentioned, Coinmama does not allow the trading or selling of any cryptocurrencies and instead, only allows users to purchase Bitcoin or Ethereum.

 

Registering at Coinmama

Where Coinmamam will certainly appeal is that alongside being available internationally, users are not required to verify their identity for purchases up to $/€150 of Bitcoin or Ethereum. This is a feature that will no doubt appeal to users that value their anonymity in an industry that is still largely unregulated.

Purchasing larger amounts of cryptocurrency will require verification, however, with government-issued identification being the type of ID required. Anything such as a passport or drivers license will be suitable while users will also have to fill out a form that can verify their address and credit card details.

Generally, most verifications at Coinmama take no more than a few hours as long as they are submitted during regular office hours. Any submissions outside of these hours will obviously take a little longer to process. Despite this slower process, the excellent customer service team at Coinmama work very hard to try and get things done as quickly as possible.

In order to allow users to get straight to their purchases, the initial verification process will usually be no more than a few minutes. This so that users are not going to be hampered in their ability to take advantage of any particular price movements.

While any purchase will not be completed totally, the prices and the current exchange rates will be locked in as they were at the time of the purchase. They will be locked in at these amounts until the verification process has been completed and the user has received their order. Any fluctuations that might have occurred in the market since the order was placed will have no effect on the price once the process is complete.

  • No verification required for purchases under $/€150.
  • Exchange rates locked in until verification completed.
  • Registrations verified within hours (during business hours)

 

Making a Purchase of Bitcoin or Ethereum

Where Coinmama is sure to appeal to traders is that there is no need for users to register their card details if using a credit or debit card to make the purchase. The card details are entered once on the checkout form on the website alongside their wallet address. These details are then forgotten as Coinmama does not store any of this information.

Even if users have verified their accounts as they wish to purchase more than $/€150 of Bitcoin or Ethereum, the only information that has to match is that of the address of the customer that was registered with the site has to be the same as the address for credit/debit card.

Once the order has been submitted, the user will first have to wait for the credit card processor to process the transaction. The time required will vary but generally, it takes no more than 15-20 minutes. Once this payment has been cleared, the ordered cryptocurrency is then transferred to the user’s wallet of choice.

Coinmama does not have its own own wallet as of yet, which is a little disappointing considering that most of their competitors do. This means that all users will have to find and create another wallet for the storage of their cryptocurrencies that have been purchased from Coinmama.

Coinmama requires players to complete a validation process with regards to their wallet by sending out a confirmation link via email. This is to ensure that the wallet is valid and is owned by the user that is making the purchase.

What this does mean, however, is that it is not possible for users to purchase cryptocurrencies from Coinmama on the behalf of friends or family. They would instead have to use their own wallet and then find a way to transfer it to the other person’s wallet.

  • Credit/debit cards do not need to be registered.
  • Quick and easy to purchase.
  • No wallet provided by Coinmama.

 

Accepted Payment Methods

Making purchases on Coinmama is done easily and efficiently with all major credit and debit cards being accepted. Western Union is the only other accepted form of payment on Coinmama but generally, users prefer to take advantage of being able to use a card – something that is not always possible with their competitors.

Users will be purchasing Bitcoin or Ethereum using either the US Dollar or the Euro and the ordered amount of cryptocurrency will be sent to the user’s third-party wallet.

  • Credit/debit cards.
  • Western Union

 

Transaction Fees

We found the fees at Coinmama to be quite high in comparison to many of their competitors and we suggest that you factor in 10% in fees whenever making transactions on the site. This is broken down into a 5.50% fee that Coinmama charges you for every transaction and a further fee of 5% added to any transaction that used a credit or debit card.

Furthermore, a users credit card company may ask for a cash advance fee. This will depend from bank to bank with some possibly viewing the transaction as cash.

  • 50% transaction fee
  • 5% fee when using credit/debit cards

 

Purchasing Limits

Compared to their main competitors, Coinmama does have some impressively high buying limits. Users that use credit or debit cards for their transactions, in particular, will benefit from being able to purchase larger amounts of the two cryptocurrencies on offer.

$5,000 is the daily limit while the monthly limit is $20,000 for all verified users that have submitted the bare minimum of identification.

The total amount of cryptocurrency that a user can purchase over time will be capped depending on the level of verification they have obtained from Coinmama. There are three levels in total with more information on each f the being found below:

  • Level 1: – This is the entry-level verification level and this is granted once a user has provided a government-issued ID. This level will allow users to purchase a total of $10,000 in cryptocurrency from Coinmama.
  • Level 2: – Users that have provided two different government-issued IDs and also a utility bill that confirms the user’s This level will enable the user to buy a maximum of $50,000 worth of cryptocurrency from Coinmama.
  • Level 3: – The top level of verification at Coinmama will allow users to purchase as much as $1million in cryptocurrency. Earning this level will require getting in touch with Coinmama and filling out a form on top of the verification process for level 2.

 

Countries and States Supported at Coinmama

Coinmama is proud of the fact that they are able to offer their services to a wider audience than most of their competitors. In fact, it is only sanctioned countries that Coinmama cannot accept leaving around 217 countries that they can provide their services.

Coinmama is also able to accept transactions from 24 states in America. The full list of these states can be found on the website.

  • 217 accepted countries worldwide
  • 24 US states can purchase from Coinmama

 

Customer Support

We had a pleasant experience with the customer support at Coinmama and found them to be responsive and very helpful. Getting in touch with their customer services is done via email and generally, you can expect a reply within 24hrs.

Their business hours are stated on their website as between 11 pm and 7 am pacific time between Sunday and Thursday. This we assume, is to be more in line with Western time zones. They also admit to being slower at responding when outside of these days and hours.

A handy F.A.Q section on their website that seems to answer a solid number of questions that users might have can also be found.

  • Support generally replies with 24 hours.
  • Informative F.A.Q section.

 

Safety

Coinmama has always been a relatively small exchange – especially when compared to some of the bigger names out there. They generally get about 600,000 visitors each day which is tiny in comparison to that of the likes of Coinbase that regularly receives around 30+ million.

We have not been able to find any news or evidence of any security breaches at Coinmama and we actually feel that an attack on them is unlikely. This is likely down to Coinmama not providing their own cryptocurrency wallets and therefore storing any cryptocurrencies on the behalf of their customers.

  • No cryptocurrencies stored on the user’s
  • No known breaches of security.

 

Conclusion

Coinmama certainly has some excellent advantages and selling points compared to its competitors but it does have a few disadvantages as well. Being available across the globe and the ability to be able to purchase either Bitcoin or Ether with a credit or debit card will certainly appeal to many users.

However, not being able to trade or sell those currencies and the fact that only BTC and ETH can be bought, is definitely a limitation for Coinmama.

Despite a few negatives though, Coinmama has a good reputation and is widely known to be a trustworthy, safe and honest place for buyers to get their hands on the two largest cryptocurrencies.

It certainly isn’t the cheapest and does not have some of the many features that other exchanges do but it is certainly good and efficient with the features that it does provide for its customers.




9 Total Score
Top Crypto Currency Site

PROS
  • Cryptocurrencies can be bought with credit/debit cards
  • Responsive customer service
  • Wide reach of 217 countries and 24 states
  • No verification required up to purchases of $/€150
  • Exchange rates locked in while awaiting verification
  • High buying limits.
CONS
  • Only BTC and ETH available for sale.
  • No selling or trading can be performed.
  • No App or API
  • Quite high fees
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