Coinmama Review: Is this Cryptocurrency Exchange Legit?

When I first started my cryptocurrency journey, I realized that one of the first steps I should take is to find an excellent exchange platform. In my mind, I thought that the exchange I would choose should have versatile options, growing features, low fees, and active support. This led me to spend hours finding the perfect one.

The first thing that came to my mind when I think of a good cryptocurrency exchange is the ability to have smooth transactions in buying and selling digital assets. While using the platform, I saw that Coinmama offers precisely that. Coinmama follows a completely minimalistic approach that is aimed at helping new investors. In this article, we will have a closer look at this exchange platform.

Pros

  • Instant buy option. Coinmama does not have any order book features. The price of cryptocurrency that you see on the screen is what you will be charged. So, once you buy the cryptocurrency on this platform, it will be deposited in your wallet as soon as the transaction is verified on the blockchain.
  • Low verification time. Surprisingly, Coinmama offers one of the best account verification features. When I tried to verify my account, it took just a few minutes to upgrade to Level 1.

This is not the case with most other cryptocurrency exchanges, where the wait time can vary between 24 to 48 hours.

  • Easy to use platform. The platform follows a minimalistic design. Thus, making it extremely easy for everyone to understand and start using the platform.

Cons

  • High fees. The fee that you would have to pay for buying cryptocurrency on this platform is simply too high. Having to cough up over $100 in fees for every $1,000 worth of crypto that you buy is simply too high in the long run.
  • Purchase Limits. Account limits in buying exist depending on your level. Thus, it is hard to make large purchases, especially for new accounts.

The Takeaway

Even if Coinmama has high transaction fees, its service is still worth the pay.

It offers a convenient way for new users to enjoy the perks of cryptocurrency trading, buying, and selling.

Not only that, but account set-up is also very fast, so there is no need to wait for a ridiculous amount of time just to get started. Overall, the platform fits beginner traders very well.

What Is Coinmama?

Coinmama was one of the early crypto brokerage company that was launched in 2013. It was an instant hit amongst the investors because of the simplistic approach that the exchange follows. Buying Bitcoin or any other altcoin on this platform is as simple as ordering a product on Amazon. The only difference is that you would need to provide your Bitcoin wallet address instead.

Coinmama does not provide a wallet facility of their own. You will need to use external software wallets such as Exodus, Electrum, etc., or hardware wallets such as the Ledger Nano S, Trezor, etc.

What I do love about Coinmama is that you can also sell your cryptocurrencies directly on this broker. For selling Bitcoin on this platform, you will need to send your funds to the wallet address mentioned on the order page.

As soon as the funds are deposited on that particular address, fiat money would be transferred to your bank account. The funds might take time to reflect in your bank account, depending on the location of your bank.

Let us now have a closer look at the pros and cons that Coinmama offers its users.

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Coinmama Services

On most of the exchanges, you need to trade cryptocurrencies with others to obtain these assets. This means that you need to find someone willing to offer you the price you want for the crypto asset.

Coinmama offers brokerage services to its users. This means that there is no concept of an order book on this platform. This platform constantly monitors the global price of Bitcoin and other cryptocurrencies.

Based on this price, the value of Bitcoin and other altcoins is set. This value is higher than the price of Bitcoin. This is because it also includes additional fees charged by Coinmama and extra buffer price to account for cryptocurrencies’ volatility.

The main advantage of using the services of Coinmama is that you can choose to have the crypto assets deposited in the wallet of your choice. All you need to do is provide the wallet address where you want this deposited. This means that you will have complete control over the funds that you own.

You can make use of popular payment methods such as credit/debit cards, SEPA (Single Euro Payments Area), and SWIFT (Society for Worldwide Interbank Financial Telecommunication) transfer to buy cryptocurrency on Coinmama. These same methods can also be used to cash out your crypto assets for fiat currency.

Since this platform is accessible globally, you will be able to get your hands on these crypto-assets easily.

Now that we know the service that Coinmama offers its users let us look at the various account levels and the limitations imposed on each one of these.

Account Levels and Restrictions

If you want to experiment with Coinmama, you can do so with only your email address and phone number. This is all you need to create an account and get started with Coinmama.

These are the bare minimum details that one can provide on this platform. Consequently, the privileges offered to users who provide these bare minimum details are also very low.

With the Level 0 account, you can buy cryptocurrencies for just $60 per day.

To increase your account’s buying capacity, you will need to complete some sort of identity verification on the Coinmama platform. To upgrade your account to Level 1, you will need to provide documents such as the photo of your identity card and also a selfie of you holding your identity card, and a white paper with today’s date and Coinmama written on it.

With a Level 1 account, your daily limit to buy cryptocurrency is set to $5,000, and the monthly limit is increased to $15,000. For most of the new investors on Coinmama, this limit is more than sufficient.

However, Coinmama also provides you with the option to upgrade your account further. By providing a valid utility bill, you can achieve account Level 2. With the new level, your Coinmama account’s spending limit would be increased to $50,000 per month.

There also exists a Level 3 account on this platform. This comes with a transaction limit of a whopping $1 million per month. To reach this level, you would need to write a note explaining the reason for the upgrade.

If you want to remove all kinds of buying limits on your account, you can upgrade your account to level 4. This can be done by explaining to the team why you want the limits to be removed.

Accepted Currencies

On Coinmama, you will be able to buy some of the most popular cryptocurrencies out there. The cryptocurrencies supported on this platform include Bitcoin, Bitcoin Cash, Ethereum, Ripple, Cardano, Litecoin, EOS, Qtum, Tezos, and Ethereum Classic.

This platform supports the most popular modes of payment. This goes in line with their aim to create one of the most user-friendly exchanges out there. Since this platform is available worldwide, all currencies are accepted. However, you might have to pay a small conversion fee.

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The payment methods available when you buy Bitcoin, or any other cryptocurrency on Coinmama include VISA and MasterCard credit/debit cards and bank transfers through SWIFT and SEPA. The best part about the bank transfer method is that Coinmama does not levy any additional fee on top of this.

Fees

This is where Coinmama disappoints most of us. The price of cryptocurrencies is based on Tradeblock’s XBX index. The Tradeblock’s XBX Index is a website that helps Coinmama by providing a live feed of the price of the cryptocurrency. A standard brokerage fee of 5.9% is levied on every single order that you place on Coinmama. This is already a substantial fee that we would not like to pay for an exchange.

On top of this, if you use a credit card to purchase your cryptocurrency, then an additional fee of 5% is added to the credit card. So, a total of 10.9% fee is levied on all your cryptocurrency purchases using such a method. This high fee is simply unreasonable and one of the main reasons most experienced traders stay away from this platform.

If you want to buy a small amount of cryptocurrency instantly, then Coinmama offers a great solution.

New Features

Coinmama has undergone a few changes in recent times, and we can see that it has become more user-friendly. Previously, Bitcoin was available in exchange for the only USD. This means that your local currencies, such as EUR, CAD, etc., would be converted to USD before the order was placed on Coinmama.

This is no longer the case. Coinmama now supports six different fiat currencies, including USD, EUR, GBP, CAD, AUD, and JPY. So, you will be able to get the exact value of crypto in that particular fiat currency.

Coinamama has also started a loyalty program to provide gifts to its existing users. Thus, leading to a better experience on the platform.

Customer Support

As Coinmama is a platform that prides itself on customer satisfaction, it does offer one of the best customer care services out there. To begin with, the detailed FAQ section is very well organized. Thus, making it extremely easy for you to spot any question based on a particular category.

The website is also home to their chatbot Emma, who would certainly help you get the answers you are looking for.

If you wish to contact customer care, you can provide the details of your query on the website’s contact us page. Within a few hours, the customer care representative of Coinmama would be assisting you to get the issue resolved.

Frequently Asked Questions About Coinmama

What virtual currencies can I purchase? Do you have an internal wallet?

In Coinmama, it is possible to buy and buy Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Qtum, Ripple, Ethereum Classic, Cardano, Tezos, and EOS. Keep in mind that we are always adding other coins to fit the needs of our clients. As for the wallet, Coinmama only offers crypto exchange, and it has no coin storage features.

Does Coinmama facilitate trades between buyers and sellers?

No, Coinmama does not offer peer-to-peer transactions. Every dealing that you make on the site is provided by the company. Thus, they are secure, fast, and free from scams.

How do I know if the coins are already sent to my wallet?

You can use the blockchain address to confirm this. Blockchain addresses are the pathways of cryptocurrencies on the internet, and they create validations whether any amount of coin is sent or received by a wallet. It is important to know that a certain number of confirmations is necessary for an address to receive or send funds.

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Verdict

Coinmama is a cryptocurrency broker with a straightforward web interface. Aimed at pleasing new investors, Coinmama has done exactly that for over half a decade. Buying cryptocurrency during times of very high volatility is extremely easy on Coinmama.

While this platform is impressive in every sense for a beginner, the fees that are levied on its users is simply too high. When buying vast amounts of cryptocurrencies on this platform, you would simply feel gutted to pay the high fee.

All the high fee is the price you would be paying for the easy-to-use platform Coinmama has created. So, go ahead with Coinmama only if you value user-friendliness over the higher price.

Coinmama Reviews

Coinmama Review – December 17, 2020

★★★★★

Coinmama is not only for professional buyers, but it is also suitable for beginners in the crypto space such as me. Transactions are very fast, and I do not have any problem buying the desired coins that I want to. Customer service is also very commendable, as they are willing to help if I have any questions about their service. Overall, I am a happy user!

Review from Stephen

Coinmama Review – November 28, 2020

★★★★★

I am a long time user of Coinmama, and it has never failed me in my transactions. As far as I know, it is the best place for people to purchase coins as it features swift transactions for users. I think I cannot live without this platform, as it always helps me in my daily activities. If more people knew about the power of Coinmama, I am sure that they would also try it.

Review from Matt

Coinmama Review – October 23, 2018

★★★★★

Coinmama has the best customer service out of all the crypto exchange sites that I have encountered! The staff is accommodating and did not stop until my problem was solved. He took time to handle the issue, even if it was a bit difficult, and he was a huge help on my part. He also checked whether the problem recurred after some time. Thank you so much!

Review from Salem

 Coinmama Review – October 23, 2020

★★★★★

Recently switched from Coinbase to Coinmama since the fees are drastically low in here. I also find the user interface enjoyable due to its minimalist nature, and I have ease in navigating from one window to another. I fell in love with Coinmama’s features, and I have been using it since I came to know of it.

Review from Kate

Coinmama Review –February 19, 2020

★★★★

All transactions with Coinmama are fast and commendable. Support is more than ready to cater to customer needs. The transfer process is almost instant, provided that blockchain traffic is not heavy. Overall, I enjoy making my coin purchases in Coinmama. However, the only negative thing that I can state is that other platforms have lower fees than them.

Review from Mike

 Coinmama Review – January 2, 2020

★★★

I do not know why, but someone from Coinmama threatened me if I do not give a 5-star review of their platform. It scared me, but I think it’s other people who are not affiliated with their company. However, Coinmama should ensure that this does not happen by apprehending the responsible ones.

Review from Jared

Coinmama Review – February 19, 2020

★★

I had a purchase in which my coins did not reflect in my account. I contacted customer service, but the response was not instant. I just want my funds back!

Edit: Customer service fixed the issue, and I got the coins that I purchased. They helped me find the root of the problem, and it turns out that it is from my banking method. Thank you so much for being patient with me.

Review from Armin

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