Coinmama is one of the leading and secure cryptocurrency exchange where one can purchase and sell Bitcoin and Altcoins using either credit card, debit card or bank transfer instantly without compromising security. The exchange is registered in Slovakia and was founded back in 2013. Coinmama is owned by Bit Ventures Ltd which is based in Israel. The exchange operates in 190 countries globally, and it is also available in 24 states in the U.S.
The Slovakia-based exchange allows its users to purchase cryptocurrencies using their debit and credit cards. However, the exchange does not provide a platform for users to trade cryptocurrencies or a platform for the users to sell their digital currencies. Unlike most exchanges, Coinmama sells cryptocurrencies from its own crypto holdings. This gives it an edge over the others on security matters.
Moreover, Coinmama exchange has set up an e-commerce platform, where users can purchase eight major digital currencies. Users buy crypto at a set price in just the same way one can purchase a book from Amazon. Nevertheless, does Coinmama have the best interests at heart for its users? We have conducted an in depth Coinmama Exchange review in this article. All the details required to shop for your favourite coin as Coinmama makes it easy and fast to purchase digital currencies
How to Register at Coinmama
Currently, Coinmama is available as a website. The firm has not yet released a mobile application. However, perhaps the exchange will soon release its own application to capture the smartphone market.
Coinmama will require its users to be verified due to the new KYC requirements in place, to make any purchases. To make purchases, users will require to provide their government issued identity card (i.e passport, national ID card or driver’s licence) for KYC and AML requirements. Additionally, a user will also be required to submit a form that has the following details:clients full name, accurate date of birth, the gender, accurate address and the credit or debit card details. To obtain full Verification, Coinmama recommends the documents to be:
- Valid documents with the expiry date clearly noticeable.
- Good quality images with 300dpi or higher.
- Files should not exceed 8 mbs.
- Entirely clear and visible.
Moving forward, Coinmama verifies the documents uploaded within a few hours during business hours. However, verification seems to take longer during evening hours and during weekends. Users who require faster approval will be given the first priority by the customer service team.
Initial verification at Coinmama exchange usually take up to 10 minutes. Users are allowed to purchase cryptocurrencies after initial verification. Moreover, after delivery of orders occurs within minutes of the order being placed. This actually makes Coinmama one of the best places to buy Bitcoin fast and safely.
This is an indication that Coinmama does not allow anonymous users. However, all the submitted documents are kept safe and secure. Coinmama does not share its users information with any third parties. The minimum requirements for verification are a government-issued ID, email, and debit/credit card details for payments.
How to purchase Bitcoin and altcoins at Coinmama Instantly
Indeed, it is not necessary for users to register their credit or debit card information with Coinmama to purchase cryptocurrencies instantly from the platform. Users can proceed to create orders by initially choosing how much they wish to buy. Afterwards, users enter their crypto address and their card details on the checkout part.The good news is that Coinmama exchange does not store its users card details.
Once the payment is complete, the credit card processor processes the transaction and crypto is then transferrable to the users preferred wallet which only takes a few seconds. After verifying the payment and the customer’s wallet address, digital currency is immediately transferred to the customer.
Additionally, the minimum purchase amount on Coinmama is $50 or its equivalent in Euro currently. However, that mainly depends on the price of Bitcoin. One can use the same method to purchase other altcoins.
Unfortunately, Coinamama, unlike other competitors in the market, does not have an online wallet where users can store their digital currencies. The exchange requires its users to create the appropriate wallet for their coins and the exchange transfers the crypto to the users given wallet once purchased.
Basically, before initiating a transaction, Coinmama usually sends a link to the user’s email to verify whether the wallet address given is correct. This procedure ensures that customers don’t purchase cryptocurrencies for or on behalf of other people.
Coinmama is more of a cryptocurrencies store to an exchange. Unfortunately, Coinmama charges quite high fees than its competitors in the same market. A transaction fee of 5.5% is charged for every transaction fee paid to Coinmama. Additionally, a user is liable to an additional 5% fee for every credit or debit card transaction; which automatically adds after a method of payment is chosen by the user.
In addition, customers may also be liable to a Cash Advance fee by their respective financial services provider or the issuer of the card. However, this depends on whether the bank views the transaction as a cash transaction.
Coinmama does not provide its users with the majority of options in terms of which cryptocurrencies to purchase. Currently, the broker only supports eight digital currencies namely;
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Cardano (ADA)
- Litecoin (LTC)
- Qtum (QTUM)
- Ripple (XRP)
Payment Methods Supported
Coinmama is quite limited with their payment options available. The cryptocurrency trading platform basically only accepts credit/debit cards. There is a time when Coinmama used to accept Western Union deposits but removed the option once debit and credit card options were available. It would be nice for them to add some e-payment options though. Moreover, the trading platform allows bank transfers too.
Limits and Liquidity
Coinmama is the best option as it offers its users impressive buying limits. A fully verified customer enjoys up to $5,000 daily purchase limit and a monthly limit of upto $20,000. Daily limits lasts for up to 24 hours instead of the day to day limitations. Although Coinmama accepts a variety of currencies for payment, quotes are either in USD or EURO.
We are yet to hear of any form of Coinmama security breaches despite the platform being a relatively small platform within the cryptocurrency ecosystem. Coinmama is steadily building a market share for itself.
However, averaging about 600,000 visitors per month, Coinmama is a dwarf when comparing it with giant exchanges such as Coinbase and Poloniex who receive 34 million and 44 million visitors respectively.
In particular, Coinmama exchange is registered with United State’s FinCEN as a money services business. The fact that the platform does not hold digital currencies on behalf of its users, makes it less vulnerable to attacks compared to other players in the same business. However, the exchange holds its customers’ credit card details but claims through its website that it does not store credit/debit card information of its users in its servers.
Coinmama provides a very extensive list of FAQs on its website to help clarify its customer’s doubts. Customer service is available through emails too. The platform does not appear to have any key issues with the response timeframe as it typically responds to queries within \24 hours on business days. However, during weekends and public holidays it might take a bit longer to receive a response
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On its website, it is highlighted that business hours begin from Sunday to Thursday, from 11 pm to 7 am Pacific Time.
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Coinmama review – Conclusion
Coinmama does offer its customers a lot of advantages but everything with an advantage has to have disadvantages as well. Coinmama users enjoy advantages such as:
- Global accessibility: The platform is available in over 190 countries worldwide.
- Coinmama users can buy and altcoins instantly Bitcoin instantly.
- Users can buy Bitcoin using credit or debit cards.
- Users enjoy high daily buying limits.
- Has a simplified website that is friendly to beginners.
Some of the disadvantages that Coinmama users face include;
- Coinmama is only limited to buy orders.Other players allow users to trade their coins rendering Coinmama’s usability quite basic.
- Coinmama does not provide its users with an online wallet.
- The exchange has the option of only eight cryptocurrencies.
- Transaction fees are higher than its competitors.
In this coinmama review conclusion, one major advantage of using the exchange is the fact that it forces users to create wallets to store their digital currencies. The platform strongly advocates against leaving your digital currencies in exchange platforms where they are susceptible to attacks by hackers. In the long run, Coinmama has a good reputation among its users as secure, honest and a trustworthy cryptocurrency broker. The platform may not have the latest features in other exchanges and may be quite expensive but it executes its business very efficiently and securely. There has been no reported cases of attacks on Coinmama platform; guarantees security and protection.