Formed in 2013, Coinmama is a leading cryptocurrency exchange and a popular choice for beginners and seasoned investors.
Owned by New Bit Ventures which is headquartered in Isreal, this exchange is registered in Slovakia. Currently, it operates in over two hundred countries and is available in twenty-four U.S. states.
This exchange provides buyers with a platform to purchase both Ethereum or bitcoin using Western Union, debit cards, or credit cards. However, it doesn’t provide a platform for trading or selling cryptocurrency. Instead, all cryptocurrency purchases are transferred from Coinmama’s own holdings which makes transactions more secure compared to competitors.
Overview
Coinmama isn’t as well-known as some of the major players in the cryptocurrency world, but they do offer some top of the line features that the seasoned investor will love.
This exchange stands out as one of the easiest and fastest exchanges to use to buy Ethereum or bitcoin with a debit card or credit card, which is not something all exchanges offer.
Currently, Coinmama doesn’t offer any type of mobile app. Additionally, it hasn’t released an API, which would allow members to create a custom mobile app that would be platform compatible. Aside from the fact that it’s available in over two hundred countries, it also provides members with the ability to buy up to one hundred and fifty euros of cryptocurrency without providing identification.
Sign Up Process
In order to purchase more coin, users must verify their identity using a government-issued ID or driver’s license, in addition to filling out a form that includes their address, gender, date of birth, full name, and their debit or credit card number. These identification documents can be processed in just a couple of hours during regular business hours, but you can expect a longer processing time on the weekend or in the evening.
The initial verification process will take less than ten minutes. After which, a member will be able to immediately purchase coins, with delivery arriving in just minutes after an order has been placed.
Once an order has been placed the exchange rate is automatically locked in. So, you’ll get the exact amount you ordered, despite any fluctuations in the market.
Purchasing Coin
When purchasing coin using a debit card or credit card, simply enter the amount you want to buy, your wallet address, and then fill out card details on the checkout page. The exchange doesn’t store debit card or credit card information on their server. After you’ve filled out all your payment information, the transaction is then processed by the credit card processor before it’s transferred to your wallet.
Currently, the minimum purchase amount is sixty USD, although this can also be based on bitcoin price.
Coinmama doesn’t provide an online wallet for members, unlike many of its competitors. Because of this, once coins are purchased you must have a digital wallet that the exchange can send the currency to. In order to confirm your digital wallet’s address, you’ll receive an email from Coinmama, which contains a confirmation link.
This type of confirmation process prevents buyers from purchasing cryptocurrency for others.
Fees
Unfortunately, Coinmama’s transaction fees are pretty high, coming in at just over five and a half percent. This fee is included in the Ethereum or bitcoin rate which is shown on the site. You can also expect an additional five percent fee on each debit card or credit card transaction. This fee will be added after you choose the payment method. Additionally, you might also be charged a cash advance fee by your card issuer or bank depending on whether they view this type of transaction as a cash transaction.
Buying Limits
This exchange offers higher than average buying limits, especially when it comes to credit card transactions. A verified member is able to purchase up to five thousand coins a day, with a max limit of twenty thousand a month. The daily buy limit lasts for a twenty-four hour period from the moment you’ve hit the limit.
The amount of coin you can purchase will depend on your verification level. The more documentation you provide, the more coin you can buy.
- Level one: With this level, you can purchase up to ten thousand USD. This level requires government-issued identification.
- Level two: This level will allow you to buy up to fifty thousand USD worth of coin. For this level, you’ll need to provide a couple of valid IDs, in addition to a selfie of yourself holding your identification, or a utility bill.
- Level three: The highest level on Coinmama, this level will allow you to buy one million USD in coin. However, in order to maintain this level, you’ll be required to provide two types of identification in addition to filling out a form.
Site Security and Customer Service
Coinmama is a relatively small exchange, yet they have never experienced any type of security breach, which is pretty impressive.
In terms of customer service, support is available via email. Most members have reported a customer service response within twenty-four hours, however, the wait can be even longer on the weekends.
Pros
- Members can purchase bitcoin or Ethereum
- The exchange accepts three payment options
- Higher buying limits are available with additional ID verification
- Excellent site security
- Operates in over two hundred countries
Cons
- High transaction fees
- Additional fees with credit card use
- Slow customer support response
- Buy orders only
If you’re looking for an exchange with lower transaction fees, we recommend checking out Binance review. This exchange is said to be one of the top exchanges around.
Conclusion and Rating
While Coinmama doesn’t offer the same number of advantages that some of the bigger exchanges do, it does operate in over two hundred countries, accepts three payment options, and has higher than average buy limits.
Since the site doesn’t offer an onsite wallet, members are forced to set up their own secure digital wallet, which is a much more secure option than storing your coin on an exchange. This exchange has a strong reputation in the cryptocurrency world as an honest, safe, and trustworthy place to buy leading coin. We gave this exchange a rating of four and a half out of five stars.
