Coinmama Review 2021: Five Things To Know Before Registering
It is no secret that 2021 has been a solid year for cryptocurrencies and many crypto-assets so far. Following Elon Musk’s tweets and Tesla’s investments in Bitcoin, more investors have turned to invest in BTC. PayPal is also contributing to the overall growth of Bitcoin and Blockchain. However, it is essential to choose a suitable crypto exchange before investing in any crypto-asset, let alone something as volatile as Bitcoin. And Coinmama is a name that you may have heard of, which is why you need to read this Coinmama review.
- Operating Since 2013
- Currencies Supported 9
- Fees Varied. Read fees section.
- Deposit methods Bank transfer, credit card, cryptocurrency
- Fiat currencies Yes
- Verification methods KYC
- Margin trading No
- Futures trading No
However, it is essential to choose a suitable crypto exchange before investing in any crypto-asset, let alone something as volatile as Bitcoin. And Coinmama is a name that you may have heard of.
This growing crypto exchange has captured the attention of beginner and professional crypto investors and enthusiasts in the past years. However, if you have read about the controversies and attacks involving crypto exchanges, you may have some doubts, after all. In this article, we will help you solve those doubts through an in-depth Coinmama review in 2021.
We will start with the history and development of Coinmama.
History & growth
Coinmama, the popular crypto exchange, had its inception in 2013. The company ventured into the crypto space when Bitcoin started becoming a buzzword. It also became one of the first companies to allow users to purchase Bitcoin or altcoins like Ethereum (ETH), Litecoin (LTC), or Ripple (XRP) — using a Mastercard or VISA credit/debit card.
The company is operated by Cmama Ltd., a company located in Dublin, Ireland, and New Bit Ventures Ltd., an Israeli company. However, Coinmama has taken a few extra steps to ensure privacy and security for transactions. The primary company behind Coinmama, New Bit Ventures Ltd., has a registration with the Financial Crimes Enforcement Network of the United States Department of Treasury.
It means the US Department of Treasury can ensure that people do not use Coinmama for financial crimes, such as money laundering or terrorist financing.
In short, Coinmama has turned into one of the most trusted crypto exchanges available worldwide.
Is Coinmama safe?
The primary way to buy and sell crypto on Coinmama is with a credit card, debit card, or bank transfer. Other than a fun name, they have high spending limits and plenty of payment options including Apple pay.
To put your Apple pay in action buying crypto, sign up for a Coinmama account on their website!Visit Coinmama
There are two safety aspects to consider while talking about a crypto exchange: digital security and legal viability. Coinmama performs so well in both cases.
Digital security, your money’s safety
In terms of digital security, Coinmama is the closest to perfect.
The whole website uses military-grade data encryption technology. It also does not store your credit card information on the website. Therefore, even in the event of a hacking attack, the attackers cannot steal many things.
The Coinmama hack on February 15, 2019, is a testimony to this claim. The hackers got access to the email IDs and passwords of some older Coinmama accounts, but that is it. The company asked customers to change their passwords, and everything was back to normal.
It is also important to note that Coinmama does not store any digital currency on its servers. Instead, as soon as a user makes the purchase, Coinmama will send the cryptocurrencies to a user-provided wallet. In short, all your crypto exchange transactions are safe at Coinmama.
Legality and protection
As we said earlier, Coinmama is managed by two companies: Cmama Ltd. and New Bit Ventures Ltd. These are registered in Ireland and Israel, respectively. However, Coinmama has been registered under FinCEN of the United States of America.
This registration prevents Coinmama from many issues such as international money laundering, terrorist financing, and other crimes. As a resident of the United States, you can count on these institutions when you want to trade via Coinmama.
Altogether, we believe Coinmama is exceptionally safe as a cryptocurrency exchange. Now that we know this, shall we check the other aspects of this Coinmama review?
Coinmama review: 5 things you should know
You should have a clear idea about the service and transaction fees before you trade crypto on an exchange. Fortunately, Coinmama is 100% transparent about the fees it charges. Of course, you have to pay different prices for trading and withdrawal. We will look at both.
Coinmama uses the TradeBlock XBX Index to calculate both trading fees and withdrawal fees.
It is important to note that Coinmama includes the commission fee in the prices you see on the website. This commission fee may vary anywhere between 3.9%. However, depending on the payment method, you may have to pay an additional fee as well.
If you are using credit/debit/virtual/prepaid cards, Coinmama charges an additional 5.00% express fee.
If you are using bank transfer methods like SEPA or SWIFT, you do not incur additional fees.
Withdrawal fees are applicable when you want to sell crypto-assets through Coinmama. The exchange will accept digital currencies from your side and transfer the money to your bank accounts. The withdrawal fees are, however, based on the Coinmama Loyalty Level.
Coinmama Loyalty Level is a signal of how intense your cryptocurrency transactions are.
For instance, if you have purchased assets worth less than $5,000 within 90 days, you belong to Crypto Curious. If you have spent over $5,000, you become Crypto Enthusiast, and if you break the $18,000 within 90 days, you become Crypto Believer. As you move higher up the ladder, Coinmama reduces the withdrawal fees.
- If you are Curious, you get charged 1.9%.
- If you are Enthusiast, you have to pay 1.4%.
- If you are Believer, you can just pay 0.9%.
Coinmama will calculate these figures and show you the final amount on the sell order page. It means you will receive the exact amount you see on that page. However, if currency exchanges are involved, the final amount may vary.
Now, we will check the volume of cryptocurrency assets you can buy and sell via Coinmama.
Coinmama allocates different trading volume limits based on the level of verification you have completed. In addition to the minimum buy limit of 0.1BTC for Bitcoin, you will have the following volume constraints.
- Verification Level 1 has an account limit of $15,000 and comes with a daily limit of $5,000 for a credit card or $12,000 for bank transfer. The monthly limit is the same as the account limit.
- Verification Level 2 has an account limit of $50,000 and allows you to trade up to $5,000 for a credit card and $30,000 for bank transfer per day. In this case, the monthly limit is $30,000.
- Verification Level 3 does not have an account limit, but you still have a daily limit of $7,000 when you use a credit card and $30,000 while using a bank transfer. The monthly limit in this tier is $40,000 for a card and $10,000 for a bank transfer.
As you can see, Coinmama offers some of the best trading volumes if you can do the proper ID verification. On the bright side, verifying your ID on Coinmama does not take more than a few minutes. However, in some cases, you may have to wait for up to a few hours. By the way, if you need Level 3 verification, you can finish that in just 6 hours. You just have to submit all valid government documents such as a driver’s license, as per the KYC policy of Coinmama.
3. Supported currencies
This is an aspect where Coinmama may disappoint you. According to the official website, Coinmama allows you to purchase only the following cryptocurrencies. However, the website adds it is adding more assets.
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Cardano (ADA)
- Litecoin (LTC)
- Tezos (XTZ)
As you can see, the exchange allows you to buy only 9 cryptocurrencies — a number so low. And this will be a problem if you want a diversified crypto portfolio.
4. Supported countries
It is impractical to list all the countries supported by Coinmama because the number is very high. Instead, we will look at the areas where you cannot use Coinmama. They are:
Cuba, Crimea, Iran, Israel, Lebanon, North Korea, Palestinian Territories, South Sudan, Syria, Somalia, American Samoa, Guam, Northern Mariana Islands, Puerto Rico, United States Minor Outlying Islands, and the Virgin Islands.
If you are not from these areas, you can use it to buy and sell cryptocurrency with ease. However, if you are from places like Mexico, Japan, Hungary, India, Zimbabwe, etc., it may use a third-party service to provide you crypto trading services.
Is Coinmama available in the US?
Yes, it is available in the United States. However, the exchange does not work in some US states. For instance, you cannot use it properly if you are from Hawaii or New York. Besides, as we said earlier, US territories like American Samoa and the Virgin Islands can also not use Coinmama.
In US states like Alabama, Arkansas, Connecticut, Delaware, Georgia, Florida, Iowa, Louisiana, Nevada, New Mexico, Oregon, Rhode Island, South Dakota, Washington, and Vermont, it uses a third party to provide the service. You may have to go through an advanced verification process to enjoy all the features.
As you can see, it supports a good number of areas when compared to exchanges in the market.
5. Deposit methods
Here are a few things you should know about depositing money to buy crypto from Coinmama.
It has set a minimum deposit amount of $50. Considering that you must buy at least 0.1BTC, $50 is a good figure, indeed. On a similar note, we saw that the crypto exchange is more suitable for those who are into high-volume trading.
Does Coinmama accept cards?
Yes, it accepts cards as a payment method. You can use all the popular types of credit, debit, virtual, and prepaid cards to buy Bitcoin and other crypto-assets. However, you may have to pay a convenience fee of 5% while using cards for payment. You can also use Apple Pay and bank transfer to make the deposit and finish the crypto transaction.
You can deposit the amount in USD using Coinmama. Besides USD, Coinmama supports EUR, GBP, AUD, CAD, and JPY. While this is not the most extensive list, most people can use their bank/card payment methods to pay in these currencies. As we said, if your region supports it, you can use Apple Pay for faster payments as well.
We will look at the two other essential aspects now.
We already mentioned that Coinmama is among the beginner-friendly exchange platforms. The incredible support from the company is one of the reasons for this remark. Conveniently enough, you can use multiple methods to start a conversation with the support team.
You can get technical support through the Contact Form and Live Chat. The team is very responsive through both channels. We should also appreciate the excellent set of tutorials and guides available on its official support page.
The only limitation is that it does not allow you to seek support via telephone. This could have been an impressive addition. The Contact page also shows a mobile phone number based in California, but it is a call-back system.
How long does Coinmama take to verify?
Coinmama takes different amounts of time to verify the account. As we mentioned earlier, it offers three levels of verifications.
Most people are good with Level 1 verification, which takes just minutes. In most cases, you can finish this verification process along with the account registration process. In this mode of confirmation, you will have to upload only the basic information about your identity.
In the Level 2 and Level 3 tiers of verification, it requires more time. The processes may take up to 6 hours to finish. The duration also depends on the type of ID proof you have provided. In this case, you may have to provide multiple ID proofs and income signals to get this approved.
Altogether, it takes comparatively less time to verify the trading account. As soon as you have a verified account, you can use the amount to buy and sell Bitcoin.
- A USP of Coinmama is that it does not allow cryptocurrency trading between individuals. Instead, all the transactions use digital currency from the inventory. It means you are unlikely to come across issues while buying Bitcoin or something else. You are essentially buying and selling any crypto to Coinmama, who charges or pays money.
- Compared to other cryptocurrency exchanges such as Coinbase and Binance, Coinmama allows you to choose between an immense variety of payment methods. Depending on the region and the currency, you can use bank transfer, credit/debit card, local bank transfer, and worldwide transfer options.
- It takes a few precautions to improve the overall safety of the crypto trading process. First of all, the platform does not store coins by itself. You will have to provide the wallet address before you proceed with the transaction. Coinmama takes a few more steps to verify the wallet address as well.
- The overall design of the trading platform is very user-friendly. Instead of using charts and very complex numbers, it simply presents everything. Therefore, you can recommend this crypto exchange to even ultimate newbies.
- We should also appreciate the crypto trading platform for the high spending limits it offers. Even if you are in the Level 1 Verification, you can use it to buy and sell a considerable amount of cryptocurrency. As we mentioned, in Level 3, you do not even have an account limit, which is just amazing for those who trade big-time.
- Last but not least, it employs one of the best security systems among crypto exchanges. The company has not faced many attacks in the past. But, even when it did, the company did not lose any cryptocurrencies. We should also note that the FinCEN registration offers some extra confidence to use the platform.
- Compared to most of the cryptocurrency exchanges in the market, Coinmama charges a high fees. While the service is up to the mark and worth the price you pay, some beginners may have trouble with these fees. These exorbitant fees are visible when you use payment methods like a credit card.
- No matter how we justify it, the lack of cryptocurrency coins is a massive problem with this exchange. It does not allow you to buy even some popular crypto-assets like XRP and Monero, which is a problem. You cannot use the platform to purchase stablecoins like USDT, either. So, it takes a few steps back when posed against the diversified portfolio question.
We hope this review helped you understand the different aspects of this crypto exchange. Shall we jot down the main points?
We believe Coinmama is an excellent choice for those who need a user-friendly cryptocurrency exchange. Unlike many other exchanges, It takes a few extra steps to improve the privacy, transparency, and security of crypto transactions. Also, by not involving third-parties in the crypto sales, the company has battled attacks.
On the convenience side, It offers many payment methods without any trouble. You can use a credit card, bank transfer, and even Apple Pay. Once you have verified the account, the platform offers top-of-the-line trading volume limits as well.
The only problem is that you cannot expand your portfolio beyond a limit. This happens because the platform offers only a few cryptocurrency coins. The company should also work on additional support options as well, including telephone support.
If these drawbacks do not matter to you, Coinmama is one of the perfect cryptocurrency exchanges for you, period.