In this article, we will review Coinmama and learn more about the exchange. We hope that by the end of reading the Coinmama’s review, you will be able to decide whether you will want to use Coinmama exchange.
What Is Coinmama?
Coinmama is a global online cryptocurrency ‘exchange’ platform that only allows you to purchase a few of the leading crypto coins using a credit or debit card.
- Bitcoin (BTC)
- Ether (ETH)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Cardano (ADA)
- Ethereum Classic (ETC)
- Qtum (QTUM)
- Ripple (XRP)
The exchange is in inverted commas for a reason. However, Coinmama is not exactly an exchange as it only serves as a sort of ‘fiat gateway’ to buy selected coins with fiat money (only USD and Euros) and you cannot trade cryptocurrencies on the site.
Coinmama was established in 2013 by the Israeli tech firm, New Bit Ventures’ subsidiary NBV International s.r.o. which is registered and based in Bratislava, Slovakia. It is a popular site in the crypto community for acquiring crypto coins and is particularly useful for first-time buyers of crypto coins. Coinmama is available in up to 226 countries around the world.
How To Use Coinmama
Coinmama has 3 levels of verification:
- First Level: $15,000
- Second Level: $50,000 and above
- Third Level: Up to $1 million.
There are applicable transaction limits of; $100 per transaction, $5,000 daily limit and $20,000 monthly limit and transfer to 3rd party wallets is not allowed. Also, there is no online wallet on Coinmama, therefore, users must set up there online/offline wallets elsewhere to which purchased coins will be transferred to.
Users can purchase selected cryptocurrencies on Coinmama website by following the steps below:
- Register for a coinmama account – You are required to provide your personal details like name, email address, location and valid proof of ID issued by a government. Thus, the wait time for verification can take anywhere from a few hours to a few weeks.
- Log your transaction details – i.e., Select what cryptocurrency you wish to buy and how much you want to purchase.
- Choose your preferred payment method – Specify the credit or debit card you will use to pay for the transaction. Coinmama accepts Visa credit/debit cards and Mastercard credit/debit cards as well as bank transfers via SEPA.
- Complete the payment form – Provide your card details and follow the prompts.
- Execute the payment – The final step involves submitting your payment and then confirming your cryptocurrency wallet address.
Coinmama provides high-level security by deploying Trust Guard and Comodo (both cybersecurity platforms use 256-Bit SSL encryption on pages that contain sensitive information). Unlike other exchanges, there is no 2-factor authentication on coinmama, you are therefore advised to extra secure your password to prevent theft.
Advantage of Coinmama
Funding Account and Payment Methods with Coinmama
- Easy Payment with Fiat Currency – Coinmama offers users the opportunity to buy cryptocurrency in exchange for fiat money. Whatever country you may be in, coinmama provides the avenue to purchase cryptocurrencies in the exchange with the local currency.
- Widespread availability – Coinmama is operating in over 220 countries of the world including half of the United States. Users can pay on the platform with local credit/debit cards from any of the locations.
- Easy Payment Methods – Coinmama permits users to buy cryptocurrencies and accepts payments in various modes. The platform accepts payments through credit and debit cards. It accepts both Visa and MasterCard worldwide as well as bank transfer (SEPA) in the Eurozone. This makes it easy for users to buy cryptocurrencies of their choice from any part of the world.
- Instant Transfer of Funds – Virtually, all crypto exchanges store your purchased coins in 3rd party wallets and you will have to transfer funds from that wallet to your personal wallet for a fee. However, Coinmama allows you to instantly transfer your coins into your personal wallet at no cost once you enter the details of your cards.
- High limits for card-based purchases – Users can buy up to $5,000 daily and $20,000 monthly worth of cryptocurrencies. This is among the highest figures in the industry for card payment.
Coinmama’s Review: Interface, Security and Customer Support
- Easy User-Interface – Coinmama website has a user-friendly interface which is easy even for beginners to purchase and transfer cryptocurrencies.
- High-Level Security – Coinmama is registered with The Financial Crimes Enforcement Network (FinCEN) in the
- This guarantees minimized the danger of hacking and ensure that in the event of such, the investigation process will be guided by US laws.
- Reliable 24-7 Help and Support – Coinmama provides readily available help and support for the users in case of any problem. The response time of the support team is impressive and the Support is available from 9:00 to 18:00 GMT+3.
Disadvantage Of Coinmama
- Supports Few Cards – Coinmama accepts only Visa and MasterCard and does not accept PayPal, American Express etc.
- No Support for Trading – On Coinmama, users can only buy but cannot sell cryptocurrencies. This is a major contrast to the other exchanges which allow the users to trade and sell cryptocurrencies.
- High Transaction Fees – Coinmama charges transaction fee of 5.5% on every purchase. There is also a 5% fee when users pay with credit/debit cards effectively giving a maximum possible fee of 10.5%.
- Supports Limited Cryptocoins – With Coinmama, you can only buy a limited number of cryptocurrencies listed at the top of this article.
- Website Only Platform – Coinmama operates only as a website. This is a drawback for users on the go who prefer using mobile apps.
Coinmama Review: Final thoughts
On a final note, we hope that you have enjoyed our Coinmama review and all your concerns were answered in this article.