Coinmama Review 2023
Making Crypto Simple
Coinmama is a global cryptocurrency exchange trusted by over 3 million customers from around 200 countries worldwide. The creators of this crypto project believe in an economy without intermediaries, hidden costs, or small print.
Since 2013, the team behind this crypto project has worked tirelessly to produce the simplest and most effective financial services on the market. Straightforward access to Bitcoin (BTC) and other altcoins for every individual on the planet backed by customer-centric services is the ultimate objective of the Coinmama team.
Following their assertions, we’re here to determine how far the Coinmama team has pursued their ambition, what services they provide to their clients, whether trading on this platform is affordable and secure, and more. Continue reading!
About the Coinmama Exchange
The team of IT specialists and blockchain enthusiasts founded the Coinmama crypto project in 2013 in Israel. The main principles of this cryptocurrency initiative, or the Coinmama DNA (as the team behind this brokerage refers to it), are continual efforts towards growth, innovation, integrity, result-oriented teamwork, and fun.
The team’s resulting product, the Coinmama exchange, represents these qualities as a client-oriented trading platform that provides simple and straightforward trading tools for novices and expert traders.
In addition, the UI designs of this Ireland-based exchange are engaging and entertaining, and the language used throughout the site is easily understandable and unburdened from blockchain-specific words and idiomatic expressions that only a few traders comprehend without the help of Google.
As a veteran exchange in the industry, established with the ultimate goal to make Bitcoin (and consequently altcoin) purchasing easier for everyone, Coinmama seems to have stuck with the tried and true coins throughout all these years.
Hence, its users can buy only 10 cryptocurrencies: include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Eos (EOS), Ripple (XRP), Tezos (XTZ), Dogecoin (DOGE), Cardano (ADA), Quantum (QTUM), and Ethereum Classic (ETC).
Coinmama Fees and Limits
Coinmama uses an average rate based on TradeBlock’s XBX Index and a spread of 2% to make sure their prices stay the same when the market prices fluctuate. This calculation is specified as “rate” on the exchange.
In addition to the rate, Coinmama imposes an extra fee based on your loyalty level when you make a crypto purchase or sell your coins through this platform:
The transaction limits on Coinmama vary depending on the legislation in your country, your desired mode of payment, and the verification level of your account. The smallest quantity of Bitcoins you can purchase equals 50 USD, or the amount equivalent expressed in CAD, EUR, JPY, GBP, or AUD fiat currency.
The maximum purchasing limits are determined by the verification level assigned to your account. In this regard, the spending limits rise in direct proportion to the level of user verification.
Withdrawals and Deposits
As Coinmama does not have an in-built crypto wallet, none of your funds will be held on the platform.
Consequently, you won’t need to deposit funds to your Coinmama account or make a withdrawal, as the exchange will instantly direct your transactions to your third-party wallet.
Coinmama supports buying and selling digital currencies with many payment options. They presently accept bank account transfers, Fedwire, SEPA wire transfer and SEPA Instant payment, SWIFT (Global), FasterPayments, Fedwire, Mastercard or Visa-issued credit/debit card, Apple Pay, Google Pay, Skrill, etc.
But, as the Coinmama executives are committed to providing more payment options for their clients, make sure you visit the information page regularly for the new additions. Also, it would be good to check the page before you make a crypto purchase to determine the minimum amount per order and the fees imposed by the payment providers.
To save you time, we’ll just note that SEPA, SWIFT, and Fedwire transactions are free payment methods, whereas credit card payments are the most expensive payment method on Coinmama.
Coinmama’s core functionality is to effortlessly buy and sell cryptos with a debit/credit card or bank transfer. It does not provide a broad range of additional services. The exchanges’ simplistic appearance and minimal service offering are just what every trader needs when buying cryptos – a clean interface and straightforward crypto buying widgets.
Is Coinmama Safe to Use?
Coinmama is a FinCEN registered platform for providing financial services. The primary objective of this crypto exchange is to keep traders and their assets safe. Because of this, Coinmama uses a two-factor authentication protocol (2FA) and AML/KYC protocols to authenticate every one of its users to safeguard the accounts and prevent fraud.
Because the exchange primarily provides crypto purchasing services and does not have a digital wallet, no funds or credit card details are kept on this platform. While we were about to exhale a sigh of relief at this security fact, Coinmama’s security breach popped up in our research.
The Coinmama Hacking Incident
In 2019, the Coinmama executives informed their clients of a security breach that had affected over 450,000 users. Namely, the hackers managed to steal the emails and hashed passwords of traders registered on or before August 5th, 2017. As Coinmama does not store any funds on its platform, no user assets were affected during the hacking incident.
As a safety measure undertaken after the security breach, Coinmama advised its users to change their emails and passwords used for registration on this or other platforms.
Need urgent advice or assistance with your trade? The Coinmama’s Happiness Heroes from the support team are at your beck and call to address your issue within 24 hours. For this, you’ll need to file a ticket through the Coinmama Contact page.
Meanwhile, you can browse the information-rich Help Center while the Happiness Heroes work out the solution to your problem.
Coinmama Pros and Cons
Here’s what is best and worst about Coinmama at a glance:
- A highly user-friendly platform for both beginners and experienced traders;
- Fast and straightforward trading operations;
- Instant order processing;
- Wide selection of payment services;
- High purchasing limits;
- You can buy only ten cryptocurrencies through this exchange;
- You can sell only BTC for fiat currency;
- Coinmama charges somewhat high fees;
- The exchange had a security incident in 2017, leaking around 450.000 user email and hashed passwords;
- Doesn’t support PayPal as a payment method;
- No iOS mobile app, only Android version is available;
- Available at most US states, apart from New York and Hawaii;
- Doesn’t provide a crypto wallet, so you’ll need to use a third-party wallet solution.
The Bottom Line
Despite offering only a handful of the most popular and liquid cryptocurrencies, Coinmama is a well-rounded crypto project that focuses on the traders and their ultimate trading experience. By offering streamlined services, a very user-friendly platform, and a transparent transaction fee model, it’s easy to see why this cryptocurrency exchange has won the trust and attention of millions of users worldwide.
We expect the lengthy verification and disclosure of personal data procedures to be an object of complaint about some traders. However, the KYC and AML protocols are some of the best security practices to help exchanges protect their users and assets. So, go ahead – fill in the form and have fun while safely purchasing your cryptos on Coinmama.
In case you want a broader range of cryptocurrencies and trading alternatives, you might also check our reviews of the best cryptocurrency exchanges for Canadians.
Frequently Asked Questions
Buying BTC or ETH has never been easier with Coinmama’s services.
First, you’ll need to register a verified trading account with the exchange and establish a digital wallet to get started.
Next, select the cryptocurrency you want to buy (BTC or ETH) and the cryptocurrency you wish to use for payment and input the amount of crypto or choose one of Coinmama’s preset quantities.
Following this, you’ll need to enter your wallet address from your favourite third-party wallet provider, select your preferred payment method, and confirm your payments. The system will instantaneously send the coins to your wallet.
Coinmama, as a licenced financial institution, requires more information about you before it allows you to make a transaction. You’ll need to upload several documents on the platform, such as a government-issued ID, driver’s license or passport, and a recent selfie holding a piece of paper with ‘Coinmama’ written on it and the date you’re registering for an account.
Since Coinmama complies with the KYC/AML protocols, the next stage in your registration will need you to fill out a registration form with the following personal information:
- verified email address,
- a strong password,
- your country of residence,
- date of birth,
- address of residency,
- a valid phone number, and
- a utility bill.
Yes. With the Coinmama Loyalty program, the more you buy or sell cryptos through this platform, the more you save on your fees. Once you’re promoted to a new loyalty level (Crypto Enthusiast or Crypto Believer), you can maintain your status by meeting a cumulative minimum purchase amount over a rolling 90-day period.
According to this program, Crypto Enthusiasts get a 12.5% rebate on the platform’s commissions for trading more than 5,000 USD over 90 days, while the Crypto Believers become eligible for a 25% discount on their fees for selling more than 18,000 USD (over 90 days) or 50,000 USD (over lifetime).