There are a lot of cryptocurrency exchanges on the market today, and one of the more recognizable options available is Coinmama. This crypto broker was established in 2013 in Israel. Coinmama aims to make buying and selling all cryptocurrencies simple and easy. As Bitcoin begins its upward trend once again, more and more people are turning to cryptocurrencies. This is where Coinmama wants to help.
Novice buyers can visit a large exchange and try to purchase Bitcoin and other altcoins at a fair price from the pros, or they can get it at a set price at Coinmama. The platform supports purchasing eight of the biggest cryptocurrencies available. Let’s dig into this exchange and learn all about the ins and outs of the exchange in our Coinmama review.
- 📈 Trade: BTC, ETH, XRP, LTC, BCH, ADA, QTUM, ETC
- 💰 Deposit Methods: Credit/ Debit Card, Bank Transfer, Cash
- ✅ Regulated
- 🎧 Support: Email Form & Facebook
If you’re unfamiliar with Coinmama, it is a global digital currency broker. The exchange boasts over 1.5 million users and supports over 200 different nations. Those buying cryptocurrencies interact directly with the exchange. Comparatively, other exchanges behave as intermediaries between those who want to buy and those who are selling.
Coinmama offers its users a secure, safe, and fast method to buy digital coins. These include BTC, BCH, ETC, ETH, LTC, ADA, QTUM, and XRP. Recently, the exchange added the option for its users to sell Bitcoin for those that reside within the Single Euro Payments Area (SEPA).
One thing to note about Coinmama is that it does not have a built-in wallet for its cryptocurrencies. Therefore, if you want to buy any of the supported coins, you need to already have an offsite wallet. While some view this as a drawback, others see it as a way to encourage those in the industry to get a secured wallet before buying cryptocurrencies.
How Does Coinmama Work?
If you’re looking for a quick and efficient way to buy cryptocurrency, Coinmama is the place for you. Coinmama is your partner for trading, just like your bank is the seller when you want to get a money order. Think of the buying process when you purchase a book on Amazon. However, instead of sending the book to your home, it’s going to a digital wallet.
You can buy your digital currency of choice in USD increments of 100, 250, 1,000, or 3,000. You also have the option to use an amount you enter, so long as it meets the Coinbase minimum. Coinmama does require its users to pass identity verification before buying crypto, something we’ll talk about in a bit.
Coinmama focuses on providing a platform convenient for buying popular cryptocurrencies. Here are some of the features users will experience when using Coinmama:
- High Spending Limits – Buy the coins you want without holding back
- Buy Your Favorite Coins – Coinmama offers Bitcoin, Ethereum, Ripple, and other popular cryptocurrencies
- Buy With a Credit Card – Use any Visa or Mastercard credit or debit card
- Quick Verification – Identity documentation reviewed within the hour
- Instant Delivery – Complete your purchase and get your coins. No deposit necessary.
Why Use Coinmama Exchange?
Perhaps the biggest reasons to use the Coinmama exchange is that it’s really easy to use. First-time crypto buyers can use their credit cards to purchase their favorite coin. Once a user is set up, which is also a straightforward process, that’s all there is to it. It’s really that simple.
Additionally, Coinmama supports many countries and currencies. Many exchanges are only accessible in certain places, or will only take larger currencies like GBP, EUR, USD, and JPY. Coinmama wants to give anyone the opportunity to purchase cryptocurrencies, so it attempts to provide access to as many users as possible.
Lastly, Coinmama wants to make its site secure. Even though users must go through identity verification before they can purchase their coins, the platform is safe for all users.
Registering for the Coinmama platform is simple and straightforward. To begin, head over to the Coinmama site. Begin the registration process by clicking on the “Sign Up” button in the top right corner of the page.
You’ll be directed to a form which asks for your email address, password, first and last name, and country of residence. Fill in this information, then click “Create Account.” You’ll get an email from Coinmama asking you to validate your email address. Do so, then log in to your account.
We highly recommend you set up your two-factor authentication (2FA) and SMS authentication for additional security. Coinmama doesn’t require you to do so, but we strongly encourage that you enable this for an extra layer of safety for your account.
When you’ve completed your 2FA setup, Coinmama will want you to submit documentation to verify your identity. Something to remember is that the more you provide the exchange, the higher your limits.
Click on the “Very My Account” link on your account page to begin the process. Coinmama will ask that you upload a valid form of government identification. What you submit will dictate your access level and purchasing limitations.
Here are some things to keep in mind as you go through the verification process:
- Make sure the expiration date is clearly visible in the image
- All photographs should show all four corners of the document (you’re not trying to hide anything)
- Upload images with high-resolution quality
- Images cannot be more than 8MB each
Verification time is dependent on your level. For level 1, you can expect to get approval fairly quickly. It usually only takes 10 or 15 minutes. Levels 2 and 3, on the other hand, could take up to six hours before you receive verification. The good news is that once you receive your level 1 approval, you can begin using Coinmama immediately.
Here are the limits you’ll experience for each level on the Coinmama platform:
Level 1 – Provide a valid government ID, a picture of yourself holding your government ID, and a note that has the word “Coinmama” along with the date on it. You can use a driver’s license (submit both sides), a non-US passport (double pages), and a national identification card (both sides). Level 1 includes a limit of up to $15,000 USD.
Level 2 – You’ll need to provide everything you submitted for Level 1, plus a utility bill. Coinmama will accept the following bills: Electric, gas, water, cable, bank statements, credit card statements, and your property taxes. The platform does not accept your internet bill. You’ll get a limit of up to $50,000 USD with Level 2 verification.
Level 3 – To obtain Level 3 you’ll need to fill out a form available on the Coinmama site and then reach out to the support team. Access to Level 3 gives you a limit of up to $100,000 USD.
It’s important to know that the site you’re using to buy cryptocurrencies is secure. Here are some of the security features you’ll get when using Coinmama:
- Doesn’t hold user crypto
- Management is transparent
- Site is registered with FinCEN
- Good customer support team
- Supports Know Your Customer and Anti-Money Laundering
We touched on this briefly, however, here are the eight cryptocurrencies you can currently purchase on the Coinmama platform:
- BTC – Bitcoin
- ETH -Ethereum
- XRP – Ripple
- LTC – Litecoin
- BCH – Bitcoin Cash
- ADA – Cardano
- QTUM – Qtum
- ETC – Ethereum Classic
Coinmama Deposit Methods
If you want to buy cryptocurrency on Coinmama, you’ll have to use either a credit or debit card. The exchange accepts both Visa and Mastercard, which processes payments through Simplex. Unfortunately, you cannot connect your bank to the Coinmama platform at this time.
Remember that since your Coinmama purchases are sent directly to your wallet, there is no need for a withdrawal method. As soon as you buy your cryptocurrency, it’s deposited into the wallet of your choice.
When it comes to fees, Coinmama is one of the more expensive brokers in the industry. The security and convenience of purchasing cryptocurrencies are what you’re paying for. No matter where you’re from, you’ll pay the exact same charges.
When you buy crypto from Coinmama, you’re paying: A 5.5% fee charged by Coinmama, which is built into the price of the currency, and a 5% fee charged by Simplex.
Remember, Coinmama doesn’t store user cryptocurrency, so as soon the purchase is validated, your digital currency is sent to your wallet address. That means you don’t have to mess with withdrawal fees, which is nice when it comes to buying crypto.
If you’ve used high profile exchanges like Bitstamp or Binance, then you’ll enjoy how simple and straightforward Coinmama’s platform is. The first thing you’ll notice is that there are no fluctuating prices. Coinmama sets its price for every coin, giving you the choice to buy or not.
With just three mouse clicks you’ll have your Bitcoin. You can see the pairs listed at the top of the screen. Coinmama suggests four pricing packages for each currency it supports. If you prefer to choose your own price, move the toggle to the amount you want to spend.
You can also sell Bitcoin through Coinmama. Click on the “Sell” link in the top right menu bar. Enter the amount of Bitcoin you want to sell, then click the blue “Sell” button. Of course, this option will only work if your bank is part of SEPA.
Is Coinmama Safe?
Coinmama does not keep your credit card information on its local server, and the site requires that you provide identity validation prior to purchasing cryptocurrencies using its platform. All users have to provide their name, address, and a valid form of identification.
The site does not require you to use 2FA, however, we strongly encourage you to do so. If you don’t, then your password is at a higher risk of being compromised. Coinmama is centralized, which means the site has a single point of failure. As a result, it is more vulnerable than decentralized exchanges.
One last point when it comes to safety is that Coinmama does not have wallets on its site. While this might be aggravating due to the fact that you’ll have to set up your offsite wallet, it’s actually a benefit. Coinmama won’t hold your coins. They are sent to you as soon as you buy them. So you don’t have to mess with withdrawal fees or minimums. You know as soon as you click that “Buy” button, the digital currency you purchased is yours.
Pros and Cons
All exchanges have their advantages and disadvantages. Here are some high-level points to consider as you decide whether or not Coinmama is the right exchange for you:
Since it’s a brokerage site, Coinmama tends to have higher fees than other exchanges. The thing to remember is that the price you place for a trade on a traditional exchange may not be the price at which it closes. When you submit your order using Coinmama, the price is locked into place until the transaction is complete.
If you’re planning to hold onto your crypto long term or use it to make payments, then Coinmama makes sense as a place to buy and sell cryptocurrencies. It quick, convenient, and easy to use.
Coinmama takes the complexity out of buying Bitcoin and other altcoins. It aims to be more efficient and faster than a traditional exchange. For comparison, full verification with Coinmama might take a few hours With other exchanges, you may way a few days.
We like Coinmama for buying crypto when you want a quick, painless, hassle-free experience. The site is intuitive and it supports several major cryptocurrencies. It does cost more to use Coinmama, but the platform has a strong reputation as an honest, trustworthy, and safe broker in the crypto community. We hope you found this Coinmama review useful.[ratings]