Coinmama review: Is it a legit cryptocurrency trading site?
Cryptocurrency is the future of full-fledged trading. In today’s era, when practically everything is going digital and online, having a virtual exchange of currencies sounds promising. Not to forget, the highly efficient and difficult to crack cryptography for security.
As of January 2021, there are more than 4000 cryptocurrencies in the world. Bitcoin is the talk of the century. The ten other cryptocurrencies that are soaring with success are Ethereum (ETH), Litecoin (LTC), Cardano (ADA), Polkadot (DOT), Bitcoin Cash (BCH), Stellar (XLM), Chainlink, Binance Coin (BNB), Tether (USDT), and Monero (XMR).
To buy/sell/exchange any cryptocurrency, you need a trading platform. In this article, we do an in-depth analysis of the platform Coinmama.
What is Coinmama? – Exchange introduction
Unlike any other brokerage platform, Coinmama is one of the leading cryptocurrency exchange platforms. It allows you to buy or sell different kinds of cryptocurrencies, Bitcoin being the most popular one, using various payment methods.
Coinmama charges a certain amount as their brokerage fee for your transactions. We will talk about their fees in the later segments. It is one of the first firms to partner with Apple Pay to buy/sell Bitcoin.
The company was set up in Israel in 2013. Since then, it has grown its reach to about 188 countries and more than two million happy customers. Coinmama is headquartered in Israel by New Bit Ventures while holding its registration in Slovakia.
Services offered by Coinmama
As mentioned above, Coinmama offers a brokerage service for cryptocurrencies. It sells you the currency directly, unlike other trading platforms where you need to buy the coins from different people.
In a nutshell, below is the list of the basic services:
- Purchase of digital currency
- Sale of digital currency
- Transaction in exchange for Fiat Money
- No guarantee of payment methods
- No wallet service provision
The process is hassle-free and fast. You do not require to search for a buyer or seller on your own. However, Coinmama’s brokerage fees are slightly more than others, considering it provides you direct service. The firm is working on bringing its fees down.
Type of account
Coinmama offers a single kind of trading account. The getting started process is simple and straightforward. You need to enter a few necessary personal information and valid government identity proofs at different verification levels. Once the verification is done, you can get started.
You can deposit the funds via different sources (credit/ debit cards, bank transfers). You get charged with the transaction fee and Coinmama’s trading fees.
Coinmama provides no wallet after you signup on the website. It would be best if you had your digital wallet that you will have to link to the platform. The platform has a minimum trade size of 60 USD. It changes when the value of a cryptocurrency changes with time.
Coinmama has a web-based platform for clients. It lacks downloadable software or a specific mobile app. However, you can access the website through your mobile phone.
Accessing the platform is very easy. The verification process is not complicated. You need to submit few documents, and then you are ready to trade. Since Coinmama directly sells or buys currencies, it does not consider itself as a conventional trading platform. It is due to zero involvement of any third party or middlemen.
The trading options might be minimal, but the platform is very easy to explore and handle. Once you are done with all the verification levels, you need to enter the quantity of the currency you wish to purchase. The options on the website are not overwhelming.
All the sections and tabs are well labeled. The entire trading/ transaction process is structured and very well laid out. The signing up process is very easy, and the Coinmama support is there to help you in the case of any roadblocks. Overall, the platform is very responsive.
Coinmama accepts Mastercard or Visa credit and debit cards. It also accepts payments via SWIFT and SEPA bank transfers. It charges zero processing fees via Sofort, Fedwire, FasterPayments, SWIFT, and SEPA. Apart from these, it accepts payment through Apple Pay too.
The prices are of the denominations USD, EUR, AUD, GBP, JPY, or CAD.
With every service comes a price. Coinmama calculates its fees based on the TradeBlock XBX Index. It is an average/ market rate, keeping in consideration all the known providers.
The fees will depend on the payment method and the “loyalty level for buying a currency.” The prices shown on the website are based on XBX+2% standard deviation. It includes Coinmama’s commission fee of up to 3.9%.
If you wish to transact through debit/credit/virtual/prepaid cards, an extra fee is added to your order amount. For instant delivery and transactions with a locked crypto rate, the website charges an additional express fee of 5%.
There is no additional fee in the case of bank transfers.
Selling rates are XBX+2% std. deviation + sell fee of 0.1-0.9%. the fee and the rate are dependent on your loyalty level (there are three levels. Please check the link for more information).
- Crypto Curious – 2.9%
- Crypto Enthusiasts – 2.5%
- Crypto Believers – 2.1%
The fee is reduced from the amount that you receive for your coin. Hence the price shown on the selling order is the price that you get.
Coinmama fees: Example
Let’s say you want to purchase Bitcoin worth $1000 via a credit card, and you belong to the Enthusiast loyalty level.
|Credit card express fee||5%||50|
Hence a $1000 Bitcoin will cost you about $1105. It looks expensive for small ticket sizes, but the fee does not look big for a bigger purchase.
You need to buy Bitcoins worth at least 60 USD or the equivalent in EUR/CAD/AUD/JPY/GBP. There are three levels of verification. The buying limit depends on the account level. For level one, the daily buying limit is 5000 USD, and the monthly limit is 15000 USD.
The three verification levels are:
Level 1: You will require valid government identity proof. You would also need to click a selfie holding the government ID with a note below writing the word “COINMAMA” and the current date on it.
Level 2: You are requested to submit a secondary identity proof apart from the one given during level 1. Additionally, you will need to submit a utility bill.
Level 3: This level requires you to fill a short form for information records. For more information, you can contact firstname.lastname@example.org.
Insufficient funds/ over credit limit
When you place your order via a credit card, and right after the order placement, you receive a notification of “Insufficient Funds,” it could be because the card service provider is classifying your purchase as a “Cash Advance” transaction. For such transactions, the spending limit is low.
While transacting via debit card, it is possible that you do not have enough value in your checking account balance. In such a scenario, request overdraft protection from your bank.
In both the above situations, contact your bank with regards to your card limitations.
Coinmama customer support
There is a “Help” section on the menu bar to provide help with your queries. The Help section is vast and detailed. There are articles dedicated to various scenarios that can occur when a user tries to access the platform. The articles contain answers to those queries.
You can contact the members of the support team via email 24/7. You need to drop in your queries to email@example.com, and one of the executives will get in touch with you at the earliest. You can find the email link on the top of the Help page.
Coinmama addresses their customer support team as “Happiness Heroes.” The team is efficient and provides instant support. You can also reach out for support through Coinmama’s live chat support and their Facebook page.
Offers by Coinmama
From time to time, Coinmama offers various incentives and discounts for the purpose of platform promotion. You get a chance to earn up to 15% on purchases when you refer a potential customer.
Also, you get to save on your transaction fees when you enroll in their loyalty programs. The more you buy/sell, the more you save. An additional fee is applicable depending on your payment mode. There are three loyalty levels.
#1 Crypto Curious: Any new Coinmama user is automatically a Crypto Curious. The “Happiness Heroes” help you to get started with the platform.
#2 Crypto Enthusiast: You get to save 12.5% on the final price. You also get to enjoy faster customer support from the Happiness Heroes. The savings project as your crypto bonus at the time of check out. You maintain the Enthusiast loyalty level when for a rolling 90-day period, you have a cumulative purchase amount of $5000.
#3 Crypto Believer: You get to save 25% on the final price. You get the priority for your queries with customer support. The savings project is your crypto bonus at the time of check out.
To qualify for a Crypto Believer loyalty level, you need to be purchasing continuously for 30 days with Coinmama. Also, you need to either have a $ 50,000-lifetime purchase amount or maintain a cumulative purchase amount of $18000 for a 90-day rolling period.
Who should use Coinmama?
Coinmama is a decent platform for first-time cryptocurrency traders. The absence of dealing with a third party makes it even more convenient to access the transactions.
Since the website is pretty secure, you can use your debit/credit card for faster transactions without the fear of sensitive information leakage.
In case you wish to purchase a lesser-known coin, you would still need to trade it with a popular coin like Bitcoin or Ethereum. Coinmama is an excellent platform to initiate these transactions.
All you need to do is transfer your Ethereum or Bitcoin or any cryptocurrency of your choice to another exchange with your desired coin and then initiate the trade. The only condition is that Coinmama should have that particular coin that you are looking for. Currently, the website has ten cryptocurrencies under its belt.
List of US states operating Coinmama
US residents can operate the Coinmama platform while living abroad, provided that they can produce a residence proof of another country. As of now, the states where you can operate Coinmama are:
- New Hampshire
- New Jersey
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
Cryptocurrencies on Coinmama
From a pool of more than 4000 existing cryptocurrencies, the platform supports buying of ten cryptocurrencies. They are:
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Ripple (XRP)
- Ethereum Classic (ETC)
- Qtum (QTUM)
- Cardano (ADA)
- EOS (EOS)
- Tezos (XTZ)
Coinmama is in the process of accommodating more cryptocurrencies on its platform. We will keep you posted on the advancements.
How secure and safe is Coinmama?
There are more than 190 cryptocurrency exchange/ trading platforms that exist today. As high as the number sounds, there are still very poor exchange volumes. It is still a bit of a challenge to purchase or sell popular cryptocurrencies like Bitcoin, Ehtereum, Litecoin.
Coinmama is completely secure. The platform is operational on an HTTPS certificate. It implies that your information does not get saved by Coinmama. If you are hesitant about putting your card details, you can transfer money via Western Union after the completion of verification.
Also, Coinmama does not host a wallet service for the available cryptocurrencies. It lets users use a self-hosted wallet. It is Coinmama’s way of preventing a hack attempt or cyber-attack. It encourages the traders to be self-aware and educate themselves with authentic wallets.
Step-by-Step Guide of buying cryptocurrency on Coinmama
Once you are through with the signing up and verification processes on the platform, login to your Coinmama account.
Step 1: Select the cryptocurrency you wish to buy and the currency you will pay with.
Step 2: Select the amount for which you wish to purchase.
Step 3: Provide your wallet address.
Step 4: Select your payment method (credit/ debit card, bank transfer).
Step 5: Verify your wallet address. You will receive a wallet confirmation link in your mail inbox.
After the payment approval and wallet address confirmation, Coinmama delivers the purchased coins to your wallet immediately.
Pros and cons of operating Coinmama
Even though Coinmama is a great place to get started in the world of cryptocurrencies, the platform has both positive and negative aspects. Let us look into some of the obvious pros and cons of trading through Coinmama.
- You can purchase Bitcoins or any other cryptocurrencies in fractions.
- Due to its presence in about 188 countries, the website offers services in various languages.
- You trade your coins directly with Coinmama. There is no involvement of any third party or middle man.
- The transaction is quick and hassle-free.
- Live pricing is available in USD and EUR.
- The firm is yet to develop a mobile app.
- Coinmama charges a high transaction fee compared to other service providers.
- You cannot link your bank account for expediting new purchases.
- You cannot make deposits through Discover, American Express, or PayPal.
- You need to have a European bank account in order to sell your Bitcoin through Coinmama.
Trading analysis tools
TradingView is a dedicated platform for providing technical analyses to cryptocurrency traders. The website offers an advanced user interface with brilliant charting tools that is convenient for traders to exchange their trading ideas.
New investors utilize the platform to seek guidance from fellow traders. It is an excellent learning platform for anyone who is looking to invest in cryptocurrencies and be up to date with current market scenarios.
Crypto trading tools
Some of the notable trading tools are:
On all of the above tools, every five minutes, the data gets updated. Price calculation is the average of the highest volume exchanges. The market cap calculation is done by multiplying the total supply of the cryptocurrency with the price.
How fast do you get approval to trade from Coinmama?
Level 1 verification takes about 10-15 minutes. After the initial verification, the coins get delivered instantly. Level 2 and Level 3 verifications can take up to six hours.
Does Coinmama accept all credit cards?
Coinmama accepts only Visa and Mastercard credit and debit cards.
How are Bitcoins purchased on the Coinmama website?
You cannot proceed with trading and transactions unless you sign up on the website. Once you sign up, you need to submit the necessary government IDs and documents for verification purposes. The initial verification stage takes fifteen minutes or less.
After the verification, you can click the “Buy” button and choose the currency you wish to purchase. Currently, Coinmama trades ten different cryptocurrencies. Once you select your desired coin and the quantity you wish to buy, click on the “Buy Now” tab.
Provide the payment information. After the payment confirmation, Coinmama issues your selected cryptocurrency. An important point to note is that Coinmama locks your currency’s price the moment you submit your order. The market is volatile, and prices keep differing every instant.
Is Coinmama a Bitcoin wallet?
No, Coinmama is not a Bitcoin wallet. You need to link a third-party wallet address in order to complete your purchase process. Coinmama does not store any coins for you.
Final thoughts on the Coinmama review
We hope you found our Coinmama review insightful. Even though the transaction fee is on the pricier side, but the convenience is top-notch. It is one of the few platforms where you can safely transfer funds via credit/debit card. The result is instantaneous; hence we feel the fee is logical.
However, Coinmama is working on a strategy to reduce its fees further. Of course, you have the loyalty levels to reduce your fee amount.
Coinmama is an incredible platform to begin your cryptocurrency journey. The website is very user-friendly. All the tabs are visible and easy to follow. The website has a collection of articles to answer all possible queries. It even has articles that talk about how to do the trading and which coins to invest in. They keep updating their writeups to keep up with the current market trend.
Lack of a mobile app is a downside. But Coinmama is working on the application, and it shall be available soon.
Additionally, the customer support is amazing at their job and provides their services round the clock. Lastly, the wide reach of the platform all across the globe speaks volumes of its success story.