Coinmama review – At the time of writing this, there are more than 200 cryptocurrency exchanges across the globe that support active trading. That’s a vast number, which means that there is stiff competition between these exchanges.
However, even though the exchanges are many, markets still experience low trade volumes, poor services to traders, and in some cases, latency.
And for some exchanges, the trading process is a struggle which does not make the crypto trade a pleasant experience.
It is because of such challenges that services like Coinmama have been created. Coinmama has brought change to the crypto industry, as you will realize from our review. Read on.
What is Coinmama?
Coinmama is a crypto brokerage service provider that makes it possible for cryptocurrency investors to buy digital currencies.
Unlike other platforms where you buy cryptocurrencies from other people, Coinmama sells you the coins themselves. By so doing, the process of buying cryptocurrencies is made fast and straightforward, as you won’t have to look for buyers.
However, it is important to point out that the convenience brought by brokerage companies like Coinmama comes at a cost, and this makes it a bit expensive to use their services compared to buying directly from other traders.
It is important to point out that Coinmama has been in operation since 2013, and the company has experienced massive growth over time. The company operates from Israel, though it is registered in Slovakia.
Owing to its fast and safe access to cryptocurrencies, Coinmama has established its authority as one of the leading brokerages in the crypto space.
Who Can Use Coinmama?
Anytime you want to use a cryptocurrency platform, it is always essential for you to find out who and where the exchange can be used.
This is important because some different laws and regulations limit who can use an exchange, based on location and sometimes the preference of the company.
Anyone that lives in Europe, except for those in Crimea, can make use of the Coinmama exchange. Coinmama is also available for residents in the USA, but not in all the states.
Some states where Coinmama services are not available to include:
- New Mexico
Is Coinmama safe?
Looking at Coinmama’s security record, we can say that the exchange is safe for client funds. However, there is an exciting part; No cryptocurrency has even been stolen from the Coinmama, but there is a time early 2019 where hackers were able to steal personal information of about 500,000 customers. Nonetheless, no credit card information was stolen from the platform; only email addresses and passwords for the accounts.
One of the things that makes Coinmama a secure platform is that it delivers the cryptocurrency you’ve bought, directly to your wallet. To ensure maximum security for your crypto or funds, you should get a hardware wallet for storage purposes.
To shed more light on how secure Coinmama is, we’ve discussed some of the factors that affect its security below.
Coinmama is one of the few registered cryptocurrency trading platforms. The company is registered under FinCEN as a financial service provider. Therefore, Coinmama operates under a set of regulations set by the body.
Being a regulated company is a clear indicator that Coinmama is safe. Why? Part of the requirement for being registered under FinCEN is that the company should have a stable security framework to ensure that client funds are well protected.
Mode of Operation
Coinmama has a secure mode of operation as it does not hold any assets for its customers. This reduces the chances of it being attacked by hackers.
Even though Coinmama does not hold any funds for its customers, the company stores customer data, which includes credit and debit card information. However, the company does not store this information on its servers to protect it from getting stolen.
Getting started on Coinmama
Here’s a step-by-step guide on how you can get started on Coinmama.
Coinmama has a very straightforward registration process. To get you started, you will only have to provide an email address and other identification documents. Once the registration is complete, you can now login using the email ID and the password you will have set.
Remember to set up two-factor authentication for added security for your account. Once you’ve opened the account, it is essential to have it verified. You can do this by proceeding to the ‘my account page’ and click on “verify my account” button on the screen.
It is important to point out that there are three verification levels, and you have the right to choose the level you are comfortable with. They include:
- Level 1 – for this level, you will only be required to provide a selfie of you holding your national ID with a note written Coinmama on it. You also have to indicate the date on the note.
- Level 2 – for this level, you will be required to provide the level 1 requirements in addition to a utility bill. Accepted utility bills include the electric bill, water bills, or bank statements.
- Level 3 – for this level, you will have to fill out a form and contact the customer support team for assistance in verifying your account at this level.
How to buy cryptocurrency on Coinmama
As we already pointed out, Coinmama directly sells cryptocurrency to its users. For bitcoins, the minimum amount you can buy is equivalent to 6 USD, a maximum of 5,000 USD daily, and 20,000 USD monthly.
On Coinmama’s homepage, click on buy, then select the currency you want to buy. Let’s use BTC as an example. Once you’ve chosen BTC, you can then proceed to choose your preferred currency.
The next step is to choose from the available units or whether to input your own amount. The BTC units currently available are $100 that’s equivalent to 0.0128319 BTC, $500 that’s equivalent to 0.0641434, and $1000 that’s equivalent to 0.12822868 BTC.
Note: the BTC values may fluctuate depending on the current Bitcoin value in the market.
Once you’ve selected the Bitcoin amount you want to buy, you will then have to provide a wallet address where your coins will be sent to. If you do not have a wallet, you can open one on Binance.
The last step is to pay for your bitcoin. You can choose to pay using your credit or debit card, or a direct bank transfer. If you decide to use the bank transfer method, your coins will be deposited into your wallet once the bank clears the payment. This should happen within 24 hours.
Features of Coinmama
If you are planning on being a regular Coinmama user, then you will benefit a lot from their loyalty program. It is important to note that enrollment is automatic once you register on their platform.
The loyalty program ensures that you get a small payback on your spending and crypto bonuses. At the time of writing this, Coinmama has three loyalty levels:
This is for those that have just signed up on the platform. There are no discounts on this level.
This is for frequent customers that have a cumulative purchase amount of 5,000 USD over 90 days. Once you are promoted to this level, you will receive a 12.5% discount on the Coinmama fees, and also faster customer support response.
Traders on this level receive a 25% discount on the Coinmama fees, together with VIP customer support. To qualify for this level, you have to purchase crypto worth $18,000 over 90 days, or more than $50,000 cumulative total for the period one has been on the platform.
The fees are relatively higher compared to other exchanges, but Coinmama strives to reduce them through its loyalty program. For credit/debit purchases, there is a 5% fee imposed on the transactions. Currently, only Visa and Mastercard are being supported. Payments made via SEPA bank transfers are not charged.
One of the best features of Coinmama is the simple and easy-to-use dashboard. The dashboard has fluctuating price charts and indicators, which can be scary to amateur crypto traders.
The Coinmama dashboard shows fixed prices, and you can easily complete your purchase in only three clicks.
You will find all the currency pairs accepted on Coinmama, on the top left of the screen. You also have the option to sell your cryptocurrencies, which has also been made easy.
Another cool feature on Coinmama is the affiliate program, which allows you to promote the exchange and get paid in Bitcoins. It is easy to earn since Coinmama has a broad market, serving more than 190 countries.
Once you’ve registered on the program, you will receive an affiliate link that you can share with friends, family, and social media platforms.
For every user that uses your link, you will receive a 15% commission on all their purchases on Coinmama.
You are not limited on how many customers you can refer, or how much you can earn from this program. You should expect to receive your payments every month.
It is important to note that there are some buying limits on Coinmama. For Bitcoin, the minimum amount you can buy is $50. It is important to note that the limits are affected by your account level. Level 1 users have a daily limit of $5,000 and a monthly limit of $15,000. The limits increase as you advance the levels.
Converting your fiat currency to BTC can sometimes become a challenge due to the constant fluctuation of its price in the market. Coinmama provides a bitcoin calculator that will do the work for you.
The calculator provides you with the accurate value of BTC every minute, which will help you to buy at any price point that you like.
It is important to note that the bitcoin calculator can also be used to convert Satoshi to USD.
Pros & Cons
Coinmama has invested in providing its customers with the best customer support. Although the support is differentiated based on the levels, you can rest assured that at whatever level you are, you will receive the help you need.
You can access the customer support via email, and for general inquiries, Coinmama has a list of FAQs that may have a solution to your question. The response time seems to be okay, as per the various customer reviews we looked at from Trustpilot.
On working days, you can expect to get a response within 24 hours. However, this time may be longer during holidays or weekends.
Overall, Coinmama is a good cryptocurrency exchange platform. It has low credit card fees and zero-fee SEPA bank transfer fee, which helps traders to save some money. Several other benefits come with using Coinmama.
The fact that it makes it easy for amateur traders to buy and sell crypto has made it a favorite for many traders.
The only drawback we were able to notice is that it has relatively high prices compared to other exchanges like Coinbase.
Our review will not be complete if we fail to mention that Coinmama does not provide you with a wallet, i.e., it does not have a wallet for customers. Though this may also seem like a drawback, it has its benefit; it allows customers to learn how to use self-hosted wallets. Additionally, since it does not store any crypto, it also averts possible crypto thefts.
If you want to improve your crypto trading experience, Coinmama is an excellent option to start you off.