Coinmama Review 2019: Pros, Cons, Fees, Features, and Safety

Coinmama Review 2019: Pros, Cons, Fees, Features, and Safety
5 (100%) 11 votes

Coinmama is a cryptocurrency exchange launched in Israel in 2013 that makes buying and selling crypto easy. Whether you consider bitcoin the new gold and a store of value or a speculative asset, more and more people want to put some bitcoin in their investment portfolio. Or they may want to keep some bitcoin in their wallet to spend. These bitcoin buyers can go to a large exchange and try and buy coins at a fair price from professional traders – a money-losing venture for most novice traders – or buy bitcoin at a set price in the same way they buy a book on Amazon. Coinmama has created an e-commerce store for buying eight major cryptocurrencies.

But when it comes to price, does Coinmama truly have your best interest at heart? We have conducted an in-depth review of fees, features, and pros and cons to assess whether crypto buyers are getting a good deal on Coinmama. We have concluded for those who want to buy and sell – not trade – crypto, Coinmama makes it fast and simple to shop for digital money.

Is Coinmama recommended?

We would not recommend Coinmama as a reliable crypto exchange platform. It is unregulated and as a crypto exchange, Coinmama has a slightly higher price than regular exchange platforms but it has a number of advantages that we cannot overlook. To begin with, as soon as a user submits an order, the exchange locks the price. What this means is that figures do not change from the originally intended amount with market fluctuations.

We recommend Skilling instead because after weighing the advantages against the disadvantages, we consider the exchange to be a better and more reliable option than Coinmama.

Visit Skilling Now

What is Coinmama?

 

Coinmama is a global cryptocurrency exchange. Currently, over 1.5 million customers use the service in over 200 countries. Buyers transact directly with Coinmama. In contrast, a cryptocurrency exchange like Karkaen or Binance acts as an intermediary between buyers and sellers. Which is cheaper? How does Coinmama compare to cryptocurrency exchanges? Coinmama charges a 5.9 percent trading fee, which is included in the price. If you use a credit or debit card another 5 percent is added. At 10.9 percent, the overall fee is higher than that of many exchanges. Alternatively, you can fund your account by SEPA transfer and knock 5 percent off the fees.

How does the Coinmama exchange work?

Coinmama is the place to sell or  buy cryptocurrency if you are seeking a fast and efficient transaction at a firm price. Coinmama, itself, is your trading partner – in the same way your bank is your seller when you purchase a money order.  The buying process is like buying a book on Amazon but instead of sending the book to your home address, you send your new digital money to your digital wallet address. Coinmama provides the choice to purchase a bitcoin (or one of the other 7 cryptos) package in denominations of USD 100, 250, 1,000 or 3,000, or another amount within your buying limit. You need to pass the basic verification level before you can buy bitcoin. Buying limits are not determined by your verification level. The minimum order fee is USD 60.

 What cryptocurrencies does Coinmama support?

A year ago, you could buy ethereum and bitcoin on Coinmama. The following eight coins are now available to buy or sell:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Cardano (ADA)
  • Qtum (QTUM)
  • Ethereum Classic (ETC)

🏳️Supported countries

Coinmama is a Slovakia-based cryptocurrency exchange offering bitcoin buying in 200 countries and dozens of states.

Coinmama is not available in the following US territories:

Coinmama is not available in the following US states:

  • Connecticut
  • District of Columbia
  • Hawaii
  • Idaho
  • Iowa
  • New Mexico
  • New York
  • Oregon
  • Utah
  • Vermont
  • Florida

Coinmama is not available in the following US territories:

  • American Samoa
  • Guam
  • Northern Mariana Islands
  • Puerto Rico
  • United States Minor Outlying Islands
  • Virgin Islands

Coinmama is not available in the following countries and territories

  • Cuba
  • Crimea
  • Iran
  • Israel
  • Lebanon
  • Nigeria
  • North Korea
  • Palestinian Territories
  • Somalia
  • South Sudan
  • Sudan
  • Syria
  • Zimbabwe

Fees & limits

Coinmama charges a 5.9 percent fee, which is included in the transaction price.

Deposits by bank transfer are free. A 5 percent processing fee is added to credit/debit card payments.

Coinmama Dashboard

If you have visited exchanges like Binance or Bitstamp, then you will be delighted with the simplicity of the Coinmama interface. No fluctuating prices or flashing indicators. The price is firm, and in three clicks you can complete your purchase. The eight currency pairs are listed at the top left of the screen (1). Four pricing packages are available for each currency (2). If you want to buy at another price, slide the toggle to how much you want to spend (3). You now also have the choice to sell crypto from the Sell menu.

How to Buy Cryptocurrency on Coinmama: Step-by-Step Tutorial

Coinmama operates like an online shop for buying cryptocurrency. Similar to buying a money order, the price is fixed based on the current exchange rate charged by Coinmama. On a cryptocurrency market, in contrast, you can accept the market price, which continually fluctuates, or enter a limit order to be filled when the price reaches your predetermined limit price. On Coinmama, you are walking into a virtual cryptocurrency market and accepting the price tag 🏷 on the currency.

A minimum purchase amount of USD/EUR 60 in Bitcoins is required. Up to USD/EUR 5,000 can be bought daily and USD/EUR 20,000 monthly.

Trade cryptocurrency on Coinmama

Step 1: Register your account

From the Sign Up form, fill in your name, email, password, and country of residence. Confirm the registration by following the link in the email you will be sent. Login into Coinmama.

Step 2: Verify your identity

After you verify your account, you are ready to trade. There are three verification levels, which do not affect the daily/monthly trading limits.

Level 1 – National ID and a selfie holding the ID and a note with “Coinmama” and the date written on it.

Level 2 – Level 1 plus a utility bill (electric, cable, gas, water bills, property tax, bank statements or credit card statements)

Level 3 – This somewhat cryptic requirement involves filling in a “short form.” Contact support@coinmama.com for details.

Step 3: Buy cryptocurrency

Select the currency you want to buy. In this example, bitcoin. You have the option of selecting units of $100, $250, $1,000 or $3,000. Or you can choose to invest another amount within your allowed limit. The buyer is purchasing 0.338 bitcoin at a price of USD 2500.48. Either move the slider to the amount you want to buy or enter it manually. Click on Buy.

Step 4: Withdraw Your Bitcoin

Enter the bitcoin wallet address where you want your new bitcoins delivered. Note that if you do not have a bitcoin wallet, Coinmama suggests you open a free wallet at Binance. Click on Go to Payment.

Step 5: Pay for Your Bitcoin

On most cryptocurrency exchanges, the trader is required to deposit money before trading. Remember on Coinmama, you are not actually trading but buying at the market price. Like an Amazon checkout, you pay after you have selected your currency. Choose to pay by credit/debit card or SEPA bank transfer. For a SEPA bank transfer, note the bank account details, log into your online bank and process the payment. Your coins will be transferred once the bank transfer has been received (typically within 24 hours). Alternatively, you may go to your bank and order a bank transfer.

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Is Coinmama safe?

This is one of the most common questions that users ask before entrusting their coins to the platform. There are a number of reasons why we would say that Coinmama is safe. Take a look at some of them:

  • Regulation

Coinmama is registered under FinCEN in the US as a money service business. It thus operates under the stringent regulations set out by the authority. As a regulated service, one of the key requirements is a stable security framework for protection of user funds. With this in place, the platform offers significant safety for account holders.

  • Mode of Operation

As a crypto platform, Coinmama does not hold digital assets on behalf of its users. Thus, it is less susceptible to hacking than other exchanges in terms of user funds.

  • Data Storage

In spite of the fact that Coinmama does not store user funds, it holds records of its users credit/debit card information. However, in efforts to keep such data safe, the site explains that it does not store the information on the exchange servers.

  • Reputation

Coinmama is among the oldest platforms in the crypto ecosystem, having been in existence since 2013. In that time, it has been selling Bitcoin via credit/debit cards and has created a reputable name in the market.

Notably though, the site suffered a massive breach on February 15, 2019 during which about 450,000 email addresses and passwords were believed to have been compromised. But the team immediately responded by alerting users to the breach. They reset all affected passwords and requested users to change them.

Is the Coinmama wallet safe?

Coinmama does not have a wallet. Coinmama recommends users open a Blockchain or Binance wallet. You are free to choose any other wallet that holds the coins you want to store. If you want to buy Ripple, for example, ensure a wallet address can receive Ripple.

If you have doubts as to what the best service for storing your cryptos is, you can compare the best cryptocurrency wallets here.

Does Coinmama have an app?

Coinmama does not have an app.

Is Coinmama customer service reliable?

If you need to contact Coinmama, here is where to start.

Help Center – FAQs are provided on all aspects of how to buy and sell cryptocurrency on Coinmama.

Email support – Contact Coinmama by email through Submit a Request.

Coinmama Pros and Cons

Pros:

  • Quick and easy way to buy and sell  cryptocurrencies
  • Verification process completed in 1-to-6 hours
  • Does not require centralized storage of your crypto
  • User-friendly e-commerce interface for crypto shopping

Cons:

  • Only eight cryptos available.
  • No cryptocurrency trading

Coinmama VS Skilling

As we’ve said earlier, Coinmama certainly has a lot of advantages that cannot be overlooked. However, the advantages offered by Skilling outweigh Coinmama’s upsides. Skilling has in fact been gaining a great reputation for the services it provides, starting from a user-friendly interface to reduced fees and improved trading features. The exchange also offers a great asset variety with 55 currency pairs, 11 indices, 104 stocks, 30 cryptocurrency pairs and more. On top of this, the minimum deposit required to allow you to access the trading platform in of $10 only.

These are just a few of the advantages offered by the exchange. To find out more about it, we recommend reading through our Skilling review. You will also find a step-by-step guide on how to get started with your trading experience on the platform.

Visit Skilling Now

  • Platform
  • Rating
  • Properties
  • Trade Now
1
 
The Best Choice
  • 100€/$/£ minimum deposit
  • Slick crypto app
  • CySEC regulated

Conclusion

Overall, Coinmama is not a good choice of platform in our opinion. Skilling instead offers solid and reliable services. It has created a great reputation in the market over the years and managed to remain a popular platform.

Additionally, the site allows users from almost every country to access its services and is perfectly tailored for beginners. Its immediate response to the recent breach serves to enhance its reputation as a trustworthy cryptocurrency platform. You can start with only $10 and the platform is fully regulated.

FAQs

Should I choose a regulated cryptocurrency exchange

A trader is exposed to higher risks when trading on an unregulated exchange. If you lose money on an unregulated exchange due to fraud, it will be more difficult to seek remedy through a legal or insurance claim. On a regulated exchange, the investor has more protection against loss. If the exchange you have deposited money with goes bankrupt, for example, the US FDIC or UK FCA provide deposit insurance.

Does Coinmama have an affiliate program?

Yes. The Coinmama Affiliate program will pay you 15 percent on all our chases made by your referrals. Bitcoin payouts are paid monthly.

What is a centralized exchange?

A centralized exchange accepts and holds users’ deposits. Most exchanges also conduct ID verification to comply with know your customer (KYC) and anti-money laundering (AML) rules. As a repository of client money and personal identification information, centralized exchanges have a higher risk of becoming a victim of cyber hacking and theft.

What is a decentralized exchange (DEX)?

A decentralized exchange does not use an intermediary to hold customer funds and accounts. Peers trade directly amongst each other (peer-to-peer) and funds are transferred between their cryptocurrency wallets. Trader money and ID are at lower risk of being hacked. A downside of DEXs is the current lack of liquidity.

Do I need a digital wallet to trade with Coinmama?

Yes. Coinmama does not provide an online wallet. You will require a wallet address to receive the coins you buy on Coinmama. The exchange recommends the Blockahin or Binance wallets.

What’s the difference between a hot and cold wallet?

Hot wallets store your crypto assets online and face a higher risk of cyber hacking. Cold storage involves storing your crypto assets offline on a USB drive or paper wallet, for example. Coinmama’s cold storage wallet places crypto assets in a safety deposit box in a bank vault. The following risk measures should be taken to protect your hot and cold crypto assets:

☑️ Generate and store your private keys offline

☑️ Use two-factor authentication to access your wallet

☑️ Use biometric identification

Can I sell cryptocurrencies on Coinmama?

Yes, Coinmama recently added cryptocurrency selling services.

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