Coinmama is a financial service that makes it fast, safe and fun to buy digital currency, anywhere in the world. They believe that the future of money is one where we, the people, are in control of our own economy.
Times are changing and more people are now investing in crypto. However, choosing the best crypto exchange can be overwhelming and confusing because there are numerous options to choose from.
If you have been thinking of venturing into the same, you have probably heard of Coinmama a few times. Well, that's a good start because it means many people are using it, but you probably want to know what you are getting into by joining the platform and whether it will be worth your while or not.
Not to worry, in this review, we are going to provide all the information you need to make the right decision. Read on for more.
A Quick Overview of Coinmama
Coinmama is a crypto brokerage company that was launched in 2013 in Tel Aviv, Israel. To date, it has branched out to Dublin and boasts over 2.6 million users spread across 188 countries. By joining the company, you get to purchase a whopping 10 cryptocurrencies including Ethereum and Bitcoin. What's more, you can sell them for fiat currency like euros and dollars.
The company prioritizes customer service and experience so you can expect fast transactions. It is also the ideal platform for novice investors because it is user-friendly. Seasoned investors may, however, prefer to save transaction fees by using other advanced trading platforms out there.
How It Works
Coinmama is a simple exchange platform that allows you to purchase an array of cryptocurrencies and sell them. To begin doing this, you will need to sign up for an account and once it is verified, you get to log in and choose the coins you want to buy.
Once you log into your account, you will realize that Coinmama displays easy options and even goes ahead to list the exchange rates in your local currency. Anyway, you will choose the amount you want to buy then enter your wallet address and your payment method to complete the transaction.
One of the things we loved most about Coinmama is that it accepts payment in any official sanction currency. However, you want to keep in mind that your bank is likely to charge an exchange fee if you decide to pay with something else. Purchases will usually reflect within an hour in your wallet.
To sell Bitcoin…
You have to be residing in a SEPA European country. If you do, selling is quite simple because all you will be required to do is log into your account, click on the sell option and enter how much you want to sell. After that, you will transfer coins from your wallet with an address to Coinmama's wallet. The payment should reflect in your account within several business days.
Another thing is that Coinmama does not allow trades between sellers and buyers so you won't be exchanging one cryptocurrency for another. Instead, you will buy crypto with your local currency and receive payment in euros.
Ways of Investing with Coinmama
Here are the ways you can invest with the platform.
You can buy a selection of cryptocurrencies using a debit card, credit card, or bank account at Coinmama. That said; the fees can be quite high. Generally, sell transactions range from 0.91% to 1.87% while buy transactions range from 2.38% to 3.83%.
If you want to lock the price of crypto until the platform receives your payment, Coinmama will charge an extra fee ranging from 0-5%. Currently, the crypto platform supports eos, tezos, ethereum, bitcoin, and the like.
Remember that it is not possible to store digital assets in a Coinmama wallet because it does not offer such services. Rather, it allows you to choose an external wallet provider where they can send your coins.
2. Loyalty Program
With Coinmama's Loyalty Program, you get to enjoy reduced fees when you sell or buy over a rolling 3-month period. This program is categorized into three levels including:
- Crypto Curious - This is the first level and it is applicable to all new members.
- Crypto Enthusiast - After passing through the first level you will be promoted to this one where you get to save 12.5% of the last crypto transaction charge. However, this will only happen as long as you retain a minimum aggregate purchase amount of $5,000 over the rolling 3-month period.
- Crypto Believer - At this level, you get to save 25% on the final crypto price. Nevertheless, this will only happen if you have been buying digital assets via Coinmama for at least a month. Moreover, you only get to earn the charge reduction if you accumulate a purchase amount of $18,000 over the 3 months or a $50, 000-lifetime purchase amount.
3. Crypto Resources and Tools
In case you require more guidance as far as fiat-to-crypto exchanges or vice versa, Coinmama does offer the tools to make the process easier for investors. These include:
- Bitcoin calculator – This tool converts fiat currencies to Bitcoin in real-time. However, it does not comprise the platform's fees.
- Ethereum calculator – With this calculator, you can check the conversion rates between ethereum and fiat currencies. That said, the conversions do not include the platform's charges.
Is Coinmama Safe?
The simple answer to that question would be yes but let us explain. You see, Coinmama begins by authenticating your identity. This guarantees that another person will not open a fraudulent account in your name.
The company also operates under a regulatory body and puts security measures in place to keep your information confidential. so no one can fraudulently open an account in your name. It operates under a regulated company and uses a lot of security measures to keep your financial information safe.
All transactions will be processed by New Bit Ventures and Coinmama will use a 3D Secure authentication for credit card transactions. Besides, it will not store any of your card details in its system.
Lastly, Coinmama is not the holder of your crypto purchases so no one can access your assets through it.
Who is it For?
At this point, you already know that Coinmama is designed to be ideal for beginner investors. It is therefore a basic crypto exchange. If you are new to crypto, the easiest way to purchase is using a credit or debit card and as you already know, Coinmama makes that quite easy.
In case you want to purchase less popular coins, it is likely that you will still need to trade them with cryptos like Ethereum or Bitcoin. Again, Coinmama facilitates that. All you would have to do is transfer your Ethereum or Bitcoin over to another exchange that has the crypto you want. It is as simple as that.
Coinmama is, therefore, suitable for:
- Beginner crypto investors
- UK and Europe residents
- Investors who don't mind high fees as long as they get simplicity convenience
- Investors who prefer to buy crypto through debit or credit card
Seasoned investors will tell you that one of the most frustrating things about purchasing crypto is that most exchange services do not allow the use of fiat currency. Rather, they usually require you to deposit using another crypto currency to make deposits.
Now, with Coinmama, you can use your credit or debit card to purchase crypto directly from the website. This can easily be compared to doing your weekly grocery shopping only that you will be buying digital assets.
All banks offer credit cards and debit cards backed by MasterCard or Visa so it should not be hard to purchase from Coinmama as long as you have a bank account.
Anytime you purchase with Coinmama and enter your card details, the platform sends your coins instantly to your wallet. This is a more secure option compared to third-party wallets that are susceptible to hacking.
Most crypto currency brokerages can be intimidating especially for new investors. This is because they usually come with numerous statistics, charts, and graphs, which can make things, appear complex. One of the things that make Coinmama stand out is that it makes the purchasing process extremely simple.
All you will be required to do is sign up for an account and get it verified. Then, you will enter the details of your card and start purchasing coins.
Simply put, you do not require any prior knowledge to purchase crypto from Coinmama.
Problems are bound to occur when you begin trading in crypto and when that happens, you want to have knowledgeable and trusted individuals to help you navigate through your issues. Coinmama has a dedicated support team that will be willing to answer any questions and offer help whenever they are called upon.
To increase your chances of getting prompt help, Coinmama recommends reaching the support team through live chat which is available during business hours.
Nonetheless, if you want to contact them after hours, you can raise a support ticket, send an email, or reach them via social media.
If you have used other crypto exchanges, you will realize that most are not government-regulated which is quite unfortunate. The thing about Coinmama is that it is registered in the US with FINCEN. This is a body that investigates things like tax evasion, money laundering, and fraud.
That means that it is a reliable platform and any fraudulent activities will be addressed promptly and accordingly.
As we have previously mentioned, Coinmama will not provide you with a personal wallet for your coins. That means that you have to go the extra mile to set up a wallet with a third-party provider. This may be free or cost you a little fee,
When you sell or purchase coins through Coinmama, you will be required to share your wallet address, which is a public key that comprises a sequence of numbers just as with a bank account number. Now, the problem with not having your wallet in sync with the exchange is that you will suffer immensely if you ever enter your wallet address wrongly.
This is because the transactions on blockchain, the system that crypto stands on are irreversible. Therefore, if you send your coins to the wrong address, Coinmama will not be able to retrieve them.
It is mandatory to surrender a significant chunk of your purchase to Coinmama particularly if you opt to use its credit or debit card payment option. The platform's standard transaction fee is based on the market rate plus an extra 2%.
You will also be charged a commission payment of up to 3.9% for purchasing and up to 0.9% for selling. Based on your purchasing activity, tiered loyalty levels get reduced commission fees.
Aside from those charges that apply to all transactions, you will be required to pay an extra 5% fee for debit and credit card transactions as well as a minimum fee of £20 on orders not more than USD 1,000 for SWIFT transfers.
However, for SWIFT and SEPA higher than USD 1,000, you will not have to pay any extra fees.
You can only buy 10 cryptocurrencies via Coinmama. Selling is only supported in Europe for Bitcoin. The platform offers major currencies that you can buy but does not include popular options like Dogecoin or Monero.
One thing we cannot deny is that no crypto exchange service is perfect. However, Coinmama does perform exceptionally well compared to other similar services. Granted, some of those services might have cheaper transaction fees, but we bet they will not allow you to use your credit or debit card.
Therefore, if you were looking to buy Ethereum, Bitcoin, or any other cryptocurrency as an initial investment, Coinmama would be the perfect place to start.
We love that the company also goes the extra mile to guarantee the security of your holdings while in their custody as well as the instant payments and committed support team that will help solve any issues you may be experiencing.
Blake is a self-made online day trader with a knack for adventure. On his free time, he loves reading and learning new methods in the trading as well as improving his jiu-jitsu skills. He currently resides in New York City.