Coinmama General Overview
Coinmama was co-founded in 2013 by Laurence Newman, Nimrod Gruber, and Ilan Schuster. It is currently registered in Dublin, Ireland under the company Cmama Ltd., while the headquarters are in Israel, where it was first founded. It is owned by New Bit Ventures Ltd and both are regulated by FinCEN. Since its founding in 2013, their user base has grown to over 2.2million users and their services are available in over 190 countries. It is one of the largest brokerages in the world when it comes to the amount of countries they support. They offer a relatively limited variety of currencies, however. While there are definitely a few cons, such as the relatively high fees compared to other platforms, our experience with Coinmama was a pleasant one for the most part.
What is Coinmama
Coinmama is a brokerage that allows you to buy various cryptocurrencies with your credit or debit card, SEPA or SWIFT transfer, and through Apple Pay. In the case of Bitcoin, it allows selling as well. Coinmama focuses on swift delivery, easy-to-use interface, and great customer support. It is a great option for beginners. It is regulated by FinCEN (Financial Crimes Enforcement Network) and as such it is one of the safer options out there.
The cryptocurrencies that coinmama offers are: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Cardano (ADA), Litecoin (LTC), QTUM, EOS, Ripple (XRP), and Tezos (XTZ).
Why Choose Coinmama?
Advantages of Coinmama come in many forms, from its user-friendly interface, to the wide variety of payment options. One of the biggest advantages it has over many other similar platforms is that it is regulated by the FinCEN (Financial Crimes Enforcement Network) which is a US governmental department. Coinmama is perfect for beginners as well. One of its biggest draws is that it is so simple that anyone can easily register, verify, and purchase Bitcoin and other cryptocurrencies in a matter of minutes. Coinmama doesn’t save credit/debit card information on their system, making potential threats from hacking attacks obsolete. Coinmama offers a blog on their website which includes tutorials, news, and other interesting articles that can help any newcomers to the world of cryptocurrency.
Coinmama doesn’t offer any kind of advanced tools for trading, and as such you’re better off going to other platforms if that is what you’re looking for. One of the bigger disadvantages according to many users is the fact that their support team is incredibly inefficient, vague, and unhelpful. One other grievance reported by customers are their astronomically high fees, compared to other similar brokerages and exchanges.
Coinmama Pros and Cons
While Coinmama is generally a well-reputed brokerage in the world, and for good reason, it definitely suffers from a few cons just as any other platform. Here are the things we liked and disliked about it.
Availability – One of the biggest draws of Coinmama is that it is available in over 190 countries worldwide. This number is likely to expand as Coinmama extends its reach.
High purchase limits – In their own words: you can buy all the coins you want without holding back. It should be noted that the higher your limit, the higher are also the ID requirements you must meet.
Regulation/Safety – Coinmama is registered with FinCEN (Financial Crimes Enforcement Network), and as such it is considered as a reliable and safe platform that is regulated by a governmental department. It should be noted that they experienced a breach in 2019, however.
Many different contact options – Coinmama offers multiple ways of contacting them if you come across an issue that you can’t solve by yourself. You can contact them through Email, by opening a ticket, live chat, or even by contacting them through Facebook.
Supports a wide variety of payment options – Coinmama accepts debit or credit cards issued by Visa and Mastercard. They also accept payments through bank transfers with 0% fees. Coinmama is the first company to partner with Apple Pay as well, which is another payment option.
Quick Delivery – Coinmama delivers your coins within minutes of purchase.
Easy to use – Coinmama is one of the easier and more user-friendly brokerages we’ve come across. Their interface is very easy to use and it is pleasing to the eyes. One of its more prominent features is the ease of registration as well. You can get to buying cryptocurrencies in just 30 minutes after registering.
Register as a business – Coinmama’s new feature is the option to register as a business and make purchases of over $500k at a time.
High fees – Coinmama offers one of the best brokerage services out there. They are quick and easy to use, and buying a cryptocurrency takes only thirty minutes from registration – However, this comes at the costly prices of high fees. Users have reported fees up to 20% depending on various conditions. This is quite a steep price, despite the high-quality services Coinmama offers.
Limited variety – Compared to its rivals, Coinmama offers a relatively small variety of cryptocurrencies for sale. Despite the fact that the currencies that they do offer are the most-popular ones, we couldn’t help but feel very limited.
No selling of other currencies – You can sell Bitcoin on Coinmama, but nothing else. This severely restricts your options when selling to just one Cryptocurrency.
No mobile app – Having a mobile app would ensure that users could buy the various currencies that Coinmama offers whenever and wherever they are. This is very important in the highly volatile world of cryptocurrencies, but alas they do not have a mobile app available.
Verification Process – Coinmama requires a verification with a legitimate ID, and a few other pieces of personal information. What’s worse is that if you want higher purchase limits, you must provide additional information, removing anonymity from the equation. Their KYC process is one of the more complicated ones if you want higher limits.
How Coinmama Compares to Other Exchanges?
When it comes to other exchanges, we’ve found the most similarities between Coinmama and Binance. Both have similar exchange fees, and both have similar KYC process requirements.
Compared to Coinbase, Coinmama offers a far larger variety of countries to pick from. On the flip-side, Coinbase has lower fees when purchasing using credit or debit cards. Both are known for horrible support.
Changelly used to be one of the most expensive brokerages for buying Bitcoin, but it seems that Coinmama has taken the crown for itself lately. While the difference isn’t too large, in the world of cryptocurrencies every percent counts.
Other than Binance, Coinmama shares a lot of similarities with Bitstamp. They are almost identical, in fact, and the biggest difference comes from the fact that Bitstamp is an older and more respected and known brokerage. The other difference between the two is that Coinmama targets beginners, while Bitstamp is oriented more towards the advanced users.
As previously mentioned, Coinmama has a simple and easy-to-use interface that allows beginners to quickly get to buying. No more, no less.
They said it best themselves – “The easiest way to buy & sell cryptocurrency”. Nothing flashy to distract you from that lovely BUY button, and everything you need in order to buy and sell cryptocurrencies is available on the front page. Registration takes you to a separate page which is likewise easy to use.
This is what their KYC process verification page looks like. Clean, to the point, and with simple enough instructions.
Overall a very pleasing and easy-to-look-at UX.
Being regulated and approved by the FinCEN (Financial Crimes Enforcement Network) brings with it a lot of advantages. Not many platforms can say that they have received approval from a US governmental division. Especially one whose task is to collect and analyze information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes. This means that Coinmama is safe to use, at least for now, and that they are not partaking in any kind of illegal activities.
A breach was reported in 2019, which affected half a million users. This did not prove to be an issue as Coinmama doesn’t store credit or debit card info on their website, and the hackers got away with “only” email addresses and passwords for Coinmama accounts.
One worrisome thing about Coinmama is the amount of negative reviews online. There are many users reporting how registration rarely works as intended, and that Coinmama flat out refuses their provided IDs and verification attempts while giving vague reasons as to why, if they even reply in the first place. Some users have gone as far as to claim that they have been scammed out of their money. Despite all of these negative comments, we’ve never encountered any of these problems while testing the website.
Coinmama Supported countries
Services are available in most countries in the world, and in many US states as well. Coinmama offers services in the following US states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming.
Can you use a credit/debit card on Coinmama?
Yes, you can buy cryptocurrencies on Coinmama with any credit/debit card if it’s a Visa or Mastercard.
What are the fees?
Because no central bank controls cryptocurrencies it is important to understand that every provider chooses their own rates. As per their FAQ, Coinmama’s market rate is based on XBX + 2%. There is also a commission fee of up to 3.90% on purchase transactions and 0.9% on sell transactions. They add a 5% momentum fee for credit and debit card transactions. SWIFT bank transfers have a minimum fee of 20GBP on orders below 1000USD and no additional fees on orders above 1000USD. Similarly, SEPA bank transfers don’t require any additional fees.
Which digital currencies are available for purchase on Coinmama?
Coinmama sells Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Cardano (ADA), Litecoin (LTC), QTUM, EOS, Ripple (XRP), and Tezos (XTZ). They are, however, constantly working on adding more cryptocurrencies to their repertoire.
What methods of payment does Coinmama offer
At Coinmama you can currently buy bitcoin and other cryptocurrencies with a credit card, debit card or by bank wire transfer.
Does Coinmama save your credit/debit card info and details on their system?
According to them, Coinmama does not save credit or debit card details on their system.
Which fiat currencies does Coinmama accept?
They accept all currencies, but they only display rates in the most popular ones: USD, GBP, EUR, CAD, AUD, and JPY. Do note that if you pay by other currencies, your bank might charge an exchange fee.
Why must I provide personal details?
One of the things we mentioned in this review is that Coinmama requires some form of ID verification and how it removes anonymity when buying various cryptocurrency on Coinmama. According to them, verification (otherwise known as KYC process) is needed in order to uphold the highest security and privacy standards, as well as to help them keep your account safe, fight fraud, and more.
Coinmama is a well-reputed company backed by FinCEN (Financial Crimes Enforcement Network) regulations and approval. It offers one of the biggest varieties when it comes to the countries they support. Although the types of currencies they sell could be more plentiful, it still is one of the quickest ways to get to your first Bitcoin or other cryptocurrency. While there are some negative reviews about it online and even though the fees are pretty high, our experience with Coinmama was overall great.