Coinmama Review: Can You Trust this Crypto Exchange?

Investing
Updated: 23rd Feb 2021
Written by Drew Cheneler
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Is Coinmama a fringe crypto exchange, or is it a genuinely reputable solution on which investors can securely buy and sell cryptocurrencies?

This article will take a detailed look at how Coinmama works and why so many within the community use it.

Before you continue reading, we must point out that Coinmama is more of a crypto broker than an actual exchange.

You cannot trade and compete with other investors; it is only possible to directly buy and sell crypto assets from Coinmama.

With that said, here is our in-depth Coinmama Review.

Coinmama Overview

Features:Detail:
Account Minimum: Minimum Deposit is $60
Fees: Charges a 3.9% commission fee for most payment methods. Debit/credit card purchases have a 5% fee.
Account Types: Crypto Curious, Crypto Enthusiast, and Crypto Believer
Customer Support: Email-only
Mobile App: No mobile application
Availability: 188 countries and 35 U.S. states
Tradeable Securities: Supports seven cryptocurrencies
Digital Wallet: No

Pros:

  • An incredibly secure platform that has never been hacked
  • Extremely high spending limits, even for credit card purchases
  • Supports almost all countries and U.S. states
  • Features a beginner-friendly user interface
  • Very responsive technical support team

Cons:

  • Only supports 7 cryptocurrencies
  • High fees for credit and debit card purchases

What is Coinmama?

Coinmama is a cryptocurrency exchange headquartered in Slovakia, with owners based in Israel. It is operated by Cmama LTD, a U.S. Money Services Business company regulated by the FinCEN and FINTRAC.

Founded in 2013, Coinmama serves more than 2.4 million customers all around the world.

We note that Coinmama is not a traditional cryptocurrency exchange since it only provides fiat-to-crypto and crypto-to-fiat transactions.

Unlike platforms like Coinbase, there is no possibility to trade digital assets with other investors. Suffice to say, Coinmama is mostly viewed as a fiat/crypto gateway.

How Does Coinmama Work?

Coinmama works like an exchange broker that helps you sell or buy cryptocurrencies directly with fiat currencies.

You can view it as an online Bitcoin ATM that facilitates transactions for a wide range of assets from the crypto market.

Buying and selling is more straightforward than on any other platform. All that needs to be done is input the amount of BTC you want to buy and select a relevant payment method.

In the case of selling, one can use a SEPA transfer (if in the EU) or do an international wire transfer.

When buying crypto on Coinmama, you buy directly from Coinmama’s wallet. There is no interaction with other users.

Coinmama Standout Features:

  • Payment Options: If you need access to dozens of payment methods, then you’ll have it. Coinmama supports VISA, Mastercard, SEPA, Apple Pay, and even traditional bank wire transfers!
  • Instant Delivery: The exchange instantly executes your order as soon as one is placed. There is no need to deposit crypto beforehand or to wait for an extended period of time.
  • Simple Verification: Verifying an account takes between 5 to 20 minutes after providing relevant identity documents and a personal picture.
  • Supported Coins: Coinmama supports a total of 7.
  • Security: Hackers have never attacked Coinmama and stolen cryptocurrencies. However, there was a data breach in 2019 that leaked emails and passwords.

What Coins Can You Buy at Coinmama?

Unfortunately, Coinmama’s cryptocurrency offering is not that large. At the time of writing, the exchange only supports the following assets:

In the past, the company used to support Ripple, EOS, and QTUM. However, this is no longer the case.

Coinmama Fees: How Much Does It Cost?

The fees at Coinmama are a bit tricky and vary solely by the payment method.

When buying, customers pay no fees on bank transfers. Credit and debit card transfer charge a so-called 5% express fee. For all other methods, Coinmama charges a 3.9% fee.

When selling, Coinmama adds a fee ranging from 0.1% to 0.9%.

Buying is extremely fast. When placing an order, the exchange automatically calculates how much crypto or fiat you can earn.

Coinmama Loyalty Program

Coinamama features a loyalty program with which regular users can spend less in fees and earn more crypto by actively buying. The level-system goes as follows:

  • Crypto Curious. New users who have never used Coinmama pay the standard fees.
  • Crypto Enthusiast. Users who have a cumulative purchase of more than $5000 over 90 days save 12.5% on the final price.
  • Crypto Believer. Users with a cumulative purchase of more than $18,000 over the same period save 25% on the final price.

How to Open a Coinmama Account

It is almost crazy how fast and simple it is to register an account on Coinmama. There are only four steps, which take no time.

As previously stated, you will only spend between 5 to 20 minutes on the whole process. If you are not sure how, follow the next steps:

  1. Visit the official Coinmama website.
  2. Create an account by placing personal information (name, surname, DoB, and gender.)
  3. Verify the account by adding identification information and uploading documents of your ID. You also have to provide a picture of yourself while holding the ID.
  4. Verify your account by checking your email and visiting the relevant link given by Coinmama

That’s it! After verifying the account, you can immediately start buying or selling cryptocurrencies.

Alternatives to Coinmama

Here is who we like more than Coinmama. The exchanges below are safe, secure, and the dominate exchanges in the crypto realm.

#1. Coinbase

Interested in literally trading cryptocurrencies with other people on a reputable exchange? Then head over to Coinbase!

Why Coinbase? Because it is the easiest exchange to use. Creating an account is similar to Coinmama, but you have the additional benefits of having access to advanced trading tools and features.

Learn More: Coinbase Review

#2. Gemini

Founded by the famous Winklevoss brothers, Gemini is a crypto trading platform based in the U.S. It is a rare exchange to receive regulatory approval from the NYSDF, New York’s most scrutinous regulatory agency.

If security is on your mind, Gemini is a great choice. Even for beginners! However, we note that the company targets institutional investors.

Learn More: Gemini Review

#3. eToro

Obviously enough, eToro should be your top choice if you prefer trading both stocks and cryptocurrencies. To help its crypto users, the company recently launched a special digital assets exchange called eToroX.

Although their fees are high, the platform is still used by many. With a beginner-friendly interface and great educational resources, eToro is a prime choice for those who are new.

Learn More: eToro Review

Coinmama Review FAQs

Can You Make Money with Coinmama?

It is technically possible to make money with Coinmama. For example, you can buy Bitcoin when it is low and sell when it is high.

Otherwise, there is no market where you can trade with leverage and actually make money as a trader.

Related: Is Bitcoin a Good Investment?

Is Coinmama Safe and Legit?

Since 2013, Coinmama has experienced no hack nor has it lost user funds in any other way.

However, we must again remind users that the company had a significant data breach in 2019. The breach leaked the usernames and passwords of 450,000 accounts.

Related: Is Cryptocurrency Safe?

Is Coinmama Good for Beginners?

Coinmama is the best crypto broker for beginners. Apart from telling the platform how much you want to buy or sell, there is literally nothing else to do.

You create an order just as when buying from any other marketplace.

The registration process is also easy, making it the perfect option for onboarding non-technically minded users who may not know what they are doing.

Related: How to Buy Bitcoin

Bottom Line: Coinmama Review

Coinmama is a cryptocurrency exchange that features swift and simple crypto trading. However, trading is, in this case, limited to crypto-to-fiat and fiat-to-crypto orders.

There is no actual exchange or market on which you can trade with other users, as is common with companies like Gemini and Coinbase.

The bottom line is that if you only want to sell or buy cryptocurrencies in only a few minutes, Coinmama is the best option on the market. Otherwise, recommend that you check out other platforms that feature spot trading, margin trading, and futures markets.

The fees may be initially high, but if you actively buy or sell, Coinmama will go as far as reward you with extra cryptocurrencies. We know of no crypto company that does anything of that sort!

If Coinmama is not an exchange fit for your tastes and needs, we recommend that you read our Kraken, Coinbase, and eToro reviews. Who knows, you might find something even better!

More Crypto Resources:

Drew Cheneler
Drew Cheneler
Drew is a recognized Credit, Small Business, and Personal Finance Expert. He has been quoted in CNBC, Fox Business News Section, The Huffington Post, Business.com, Moneyunder30, US Chamber of Commerce, and more. He is known for breaking down complex personal finance topics into action-oriented advice, so you can make the most of your hard-earned money.