While it is not one of the most well-known cryptocurrency exchanges in the world currently, Coinmama has actually been around for a very long time. The company was founded in Slovakia way back in 2013 and is now owned by the Israeli blockchain firm New Bit Ventures. With that being said let us jump straight into our Coinmama review and take a look at what it has to offer.
Coinmama is a centralized exchange that offers it’s services to over 180 countries and regions worldwide, including the U.S, where it is available in 24 states. The Coinmama site states that while its rates are displayed in only U.S. dollar (USD) or Euro (EUR), it accepts payments in all official fiat currencies
Some of the countries and territories where its activities are restricted include Israel, Iran, Cuba, Lebanon, North Korea, Nigeria, Syria, and the Palestinian Territories.
Table of Contents
Main Benefits
The main benefit Coinmama offers over other sites is a very simple and easy way to buy cryptocurrency using a credit or debit card. Users can purchase Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), Cardano (ADA), QTUM and Ethereum Classic (ETC) on the site using a bank card from any of its supported countries.
Once you’ve purchased your chosen crypto it takes a maximum of ten minutes to clear, after which you can instantly transfer it to your own personal cryptocurrency wallet. Unlike many other exchanges, there is no need to exchange the fiat currency into crypto using an exchange hosted wallet, which often attracts additional fees.
Interface
Coinmama is specifically designed to be attractive to new users within the cryptocurrency space and as such help grow adoption. One of the biggest limiting factors to cryptocurrency adoption is the complicated processes involved with purchases, which puts off many users.
The Coinmama website has an incredibly simple design with easy to follow steps which guide users through account creation and verification. In addition, it has large one-click buttons on the front page offering set amounts of Bitcoin at certain prices, often including discounts. This helps users to know exactly what they’re spending without the need to do complex conversions.
Customer Support
Inline with its simple interface, Coinmama also offers excellent customer support. It has an extensive knowledge base explaining all its processes in a clear and concise fashion, as well as several guides and FAQs with additional information.
The company is very customer focused and while it may not offer the widest range of services it is very proficient in what it specializes in. New users will find it to be one of the simplest and most appealing options for purchasing their first coins.
Verification
As with the majority of crypto exchanges these days, Coinmama requires identity verification.
Initial verification is simple and allows a user to purchase up to $10,000 in assets. All it requires is the usual account registration along with your personal details and a clear portrait photograph of you holding up your passport or ID.
For customers who wish to buy larger sums of up to $50,000, additional proof of residence, such as a utility bill, is required.
There is also a third level of verification involving a questionnaire regarding a customers income and holdings which, if approved, will allow purchases up to $1,000,000 in assets.
Limitations
In our review of Coinmama we found that it doesn’t currently offer the ability to withdraw cryptocurrency into your bank account, although it does have a system whereby European customers can withdraw Bitcoin using SEPA.
While the site has excellent support for all major VISA and Mastercard credit and debit cards, it does not accept payments via wire transfer or Paypal.
There are also certain limitations on how many assets you can purchase daily and monthly.
Fees
As with most exchanges that allow credit card purchases, Coinmama has an exceptionally high fee structure.
Coinmama charges 5 percent on all credit/debit card withdrawals and deposits, and an additional 5.9 percent trading fees if you convert between currencies.
Coinmama doesn’t currently charge any fees on SEPA bank transfers, although it is likely your bank will charge you something.
In addition to the 5 percent credit card fee, it is important to note that your bank might add an additional cash advance fee to your card. This is because some banks may see the purchase as a cash withdrawal rather than card purchase.
Conclusion
Pros
So, to sum up our Coinmama review it is an excellent service for new users who wish to get into crypto with the minimum amount of fuss and hassle. It is also an attractive option for less technically-minded people who are less accustomed to the ins-and-outs of the cryptocurrency world.
Beyond new users, Coinmama could also be a good choice for seasoned cryptocurrency traders who (for whatever reason), need to quickly and easily buy some crypto using a credit card. This may be due to them losing access to their main provider or needing a faster turn over time on purchases.
Cons
However, considering the fees involved, there are certainly far cheaper options for purchasing cryptocurrency. Additionally, the exchange doesn’t offer a native wallet feature or the ability to trade between cryptocurrencies.
The exchange would likely not be an option for those heavily involved in trading cryptos due to the lack of coins on offer and the limited daily spending limits.
