The Coinmama cryptocurrency exchange is a simple, easy-to-use marketplace where you can invest in Bitcoin or purchase a small selection of digital currencies. Although it was the first crypto exchange to allow credit card purchases, it caters to beginners with a simple and user-friendly platform. If you are considering Coinmama, read our full review to find out if it is the right fit for you.
Full Coinmama review
Those who would benefit from this cryptocurrency exchange are beginners who want to easily purchase crypto using USD, GBP, EUR, or other fiat currencies.
Pros
- Spending limits are high
- Card-based purchases
- The verification process is fast
- It is suitable for beginners
Cons
- There is no wallet
- Fees are high
- Currency selection is limited
Top Benefits
Spending limits are high
Coinmama’s transaction limits are higher than those of many alternative exchanges, and your limit increases according to your purchases. Below are the limits based on your verification level:
Level 1: Every user starts here once they have validated their identification. For orders over 50, the monthly buy/sell cap is $15,000.
Level 2: If you buy $2,400 in cryptos through the exchange, you qualify. There is a monthly buy/sell cap of $50,000 if you place over 50 orders a month.
Level 3: If your monthly transaction amount reaches $50,000, you are eligible to apply. The buy/sell restriction is $100,000 for orders exceeding 50 per month.
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78% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading forex or CFDs on margin involves a high degree of risk and may not be suitable for all investors. There is a possibility that you may suffer a loss equal to or greater than your entire investment.
CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 68% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
More: Contact Coinmama if you need VIP verification and custom transaction limits.
Card-based purchases
Coinmama was the first cryptocurrency exchange to accept credit, debit, and Apple Pay cards. Depending on your location, you have the option to purchase currency with a Visa or Mastercard debit or credit card, Apple Pay, SEPA bank transfer (in Europe), SWIFT bank transfer (in the United Kingdom), or wire transfer (outside of Europe and the U.K.).
You cannot buy and sell cryptocurrencies with the platform, only fiat currency.
The verification process is fast
To use Coinmama, you need to verify your identity, just like on any other cryptocurrency exchange.
To become Level 1 verified, you simply need to take a picture of both sides of a government-issued ID and a piece of paper with the words “Coinmama” and the current date printed on it.
According to users, verification takes anywhere between 10 minutes and several hours, with the majority reporting that it takes between 15 and 30 minutes.
It is suitable for beginners
No matter how difficult it was to use previous platforms, Coinmama makes it a snap to get started and make purchases. You do not need any prior experience or knowledge of various currencies to trade cryptocurrencies.
When you set up your account and validate it, you can place orders on the platform, and it will make payments within a few days. Using Apple Pay or a credit or debit card makes this process as simple as any other online purchase.
Areas Coinmama could improve on
There is no wallet
Coinmama doesn’t provide cryptocurrency wallet services. Therefore, it cannot keep your coins (like a bank account). In order to convert bitcoin into cash, you will need your own personal wallet, which you can obtain for free or at a low cost from third parties.
Coinmama allows you to buy or sell coins using your wallet address, a “public key” composed of a string of integers similar to a bank account number.
The downside of not having your wallet linked to the exchange is that you must enter your wallet address with extra caution. Coinmama cannot reclaim your assets if you transfer them to the wrong address because bitcoin transactions on the blockchain are irreversible.
Fees are high
If you pay with a debit or credit card, Coinmama will take a lot out of each transaction.
Based on the XBX (or market) rate plus 2%, Coinmama determines its base transaction fees. Buying and selling commissions are both charged at up to 3.9 percent. As your loyalty level increases, your commission fees will decrease.
A 5% fee is charged for credit and debit card transactions at Coinmama, on top of the fees that are applicable to all transactions. For SWIFT transfers of less than $1,000, a flat fee of £20 is imposed.
If you transfer more than $1,000 USD using SEPA or SWIFT, no extra fee will apply.
Currency selection is limited
In Coinmama, you can purchase 10 coins at a time. However, you can only sell Bitcoin in Europe. There is an option to pay with Bitcoin, Ethereum, and Litecoin, but not Monero or Dogecoin.
Alternatives to consider
If you’re searching for an easy to use a crypto exchange that features a built-in wallet, BlockFi is another U.S.-based option worth considering. With this interest-bearing account, you can earn a lot of money from your investments.
For people who would like to try out Bitcoin: The Square Cash App enables you to buy, sell, and trade Bitcoin, and is best known for its functionality with person-to-person payments.
How Coinmama works
The Coinmama exchange allows you to buy and sell a variety of cryptocurrencies.
You only need to log in and choose the currency you wish to purchase after creating and validating your account. You can also see exchange rates in your local currency. After selecting the amount you’d like to purchase, you’ll enter your payment method and wallet address.
There are exchange rates for USD, EUR, GBP, CAD, AUD, and JPY. In order to pay on Coinmama, you must use fiat currency, but you may incur an exchange fee if you pay with something else. Your payment can be made through a credit card, a debit card, Apple Pay, or a bank transfer. (American Express, Discover, PayPal, and others)
Selling Bitcoin requires that you live in a country that uses SEPA. As long as you meet the requirements, you can sell by logging into your account in Google, selecting “sell,” and entering the amount you want to sell. Coinmama allows you to send coins via wallet addresses or QR codes. You should receive your payment within a few business days.
Coinmama only facilitates trades between buyers and sellers; it does not broker transactions. In addition, it does not allow cryptocurrency conversions.
Your local currency is always used to buy cryptocurrency, and you will receive Euros if you sell Bitcoin.
Unlike most other investing platforms, Coinmama does not include a wallet, nor does it support stock trading.
Fees overview
Each bitcoin exchange sets the transaction rates. Coinmama’s exchange rate is based on the TradeBlock XBX index. This index aggregates all known exchange rates to create an overall market rate.
In addition to the service fee, you will also have to pay commissions, credit card fees, and bank transfer fees.
The platform offers tiered loyalty levels based on how much customers spend on the platform, which results in lower commission fees for Coinmama users:
Cryptocurious: Standard cost.
Crypto enthusiast: Make a 90-day purchase of $5,000 USD. Enjoy a 12.5% discount.
Crypto Believer: Buy $18,000 over 90 days, or invest $50,000 USD over a lifetime. Enjoy a 25% discount.
Cryptocurrency selection
Coinmama sells ten different cryptocurrencies, including popular ones like Bitcoin, Ethereum, and Litecoin, as well as lesser-known ones like Qtum, Cardana, and Tezos. The following are among the items on the list:
Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Qtum (QTUM), Ripple (XRP), Ethereum Classic (ETC) and lots more.
How safe is your cryptocurrency at Coinmama?
The first thing Coinmama does is verify your identity to make sure no one else can open an account in your name fraudulently. To protect the information you provide, it uses a variety of security measures.
Company headquarters are in Dublin, Ireland. New Bit Ventures Ltd operates the platform. Cmama Ltd is registered with FinCEN as a regulated entity.
New Bit Ventures processes transactions. Coinmama uses 3D Secure authentication (like Verified by Visa or SecureCode) when it processes credit cards and does not store your credit card details.
Coinmama doesn’t store any of your bitcoin purchases, so don’t worry about anyone gaining access to your assets via the platform.
You should sign up for Coinmama if:
You’re new to cryptocurrency trading
You live in the U.K. or Europe (other places have limited features)
When it comes to convenience and simplicity, you don’t mind paying a high fee
You’d like to buy crypto using a credit or debit card
