Coinmama is a major player in the crypto exchange industry that aims to make buying cryptocurrencies simple. Based in Israel and belonging to Slovakian company NBV International, Coinmama operates in over 180 countries so just about anyone can use the platform. This Coinmama review will shed light on how to use the platform, their verification requirements, fees, limits and other important information that will help you find out if Coinmama is right for you.
Coinmama, the Company
Coinmama is one of the largest exchanges around, thanks largely to the fact they accept all fiat currencies and operate in 41 US states and over 180 countries worldwide. Although verification is required, this is largely due to the fact that Coinmama is registered and needs this information from customers to operate in many jurisdictions. In the US they are registered with FinCEN as a Money Services Business and comply with the Bank Secrecy Act. And for those users in the EU, they are GDPR (General Data Protection Regulation) compliant.
Setup and Verification
As we mentioned above, Coinmama is registered and regulated which means that they have to comply with KYC (Know Your Customer) regulations. As such, verification is required before you can begin trading on the platform. The process is not overly difficult but requires government-issued photo ID and a selfie with the ID and a piece of paper with ‘Coinmama’ and the date written on it.
All in all, the process is very similar to that of other exchanges and quite self-explanatory. It takes about an hour for the verification to be processed and then your account will be ready to make purchases.
To begin purchasing any of Coinmama’s supported cryptocurrencies you will have to select how much, what type, how you want to pay and the wallet address you want the funds sent to. Coinmama allows users to purchase cryptocurrencies with any fiat currency without the need to transfer money into an account to be held by Coinmama.
It should be noted however that all prices are quoted in Euros or USD. It is possible that your bank may charge an extra conversion fee when purchasing with other currencies but we will talk about it later in this review.
In August 2018, Coinmama introduced the ability for European users to purchase funds via SEPA bank transfer alongside their usual credit/debit card option. They also don’t hold any crypto for you which means that you have total control over the security of your crypto assets. Just make sure that you confirm your chosen wallet address via the email sent to you otherwise the transaction won’t be processed.
Depending on how much information you choose to share with Coinmama, the higher will be the lifetime limit. This is independent from the daily and monthly limits of USD/EUR 5000 and USD/EUR 20000 respectively. If you have completed the ID verification that we mentioned earlier in this Coinmama review then you have reached level 1. Coinmama has three levels of verification, and the second involves supplying a secondary ID and a utility bill. The third level involves filling out a form that you can get by contacting [email protected].
Coinmama gives users the ability to purchase the following popular cryptocurrencies:
- Bitcoin Cash
As Coinmama doesn’t hold any fiat funds for you, there are no deposit or withdrawal fees like those on other exchanges. The platform uses the XBX index to calculate their exchange rate and then, as a fee, adds 5.9%. Tradeblock XBX provides an average price of bitcoin based on a number of rates offered by various platforms. The 5.9% is included in the quoted price so there are no hidden fees. Coinmama doesn’t charge fees on SEPA transfers which makes it a pretty appealing payment option when compared to the 5.00% fee charged on credit cards.
If you are not sure whether your bank or credit card provider will charge fees on Coinmama-related transactions, then it is best to contact your bank for more information. Some customers have reported unexpected fees from their banks or card providers (such as a conversion fee or transaction fee) but these are not charged by Coinmama and they don’t have any control over them.
Privacy and Security
As we mentioned under the Purchase section of this Coinmama review, neither fiat nor crypto-funds are held by Coinmama. This means that a lot of the risks associated with using a cryptocurrency exchange are removed. That being said, as verification is required and personal information must be entered and held by the platform, it is not a very private platform. Fortunately, they are GDPR compliant which gives users some power over their data and its uses. The credit card also information isn’t stored by Coinmama on their website or servers and all personal information is encrypted.
Coinmama’s support replies pretty quickly and effectively to queries over their ticket service. They aim to reply to tickets within two hours which I experienced first-hand and found to be a reasonable time frame. Alternatively, you can contact them via email [email protected]. But unfortunately, no phone support services are available. So be aware that any numbers you find online are almost certainly fake. If you feel like trying to solve the problem by yourself, first then you can visit Coinmama’s FAQ page. It’s pretty handy, providing you with answers to most problems you may encounter.
Coinmama Review Summary
All in all Coinmama makes buying cryptocurrencies very easy but unfortunately, it’s the fact that you can only buy cryptocurrencies on the platform that’s a shame. It would be nice if a ‘sell’ feature would be added at some point. When buying via SEPA bank transfer, the fees are reasonable but via credit card, they are quite high which is something that has led to some complaints from users. That being said, Coinmama doesn’t attempt to hide fees and it is pretty transparent. Also, with it being regulated, it is ideal for those looking for someplace legitimate and safe to buy crypto from anywhere in the world.
We hope to have cleared up most of your questions about the platform in this Coinmama review. If you wish to signup and get started with Coinmama right away then you can do so here.
Also, If you would like to check out our other reviews you can do so here.
Disclaimer: BitcoinNews does not provide any warranties towards the accuracy of the statements in the above Coinmama review. Any content on this site should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to perform your own research of the platform. Trading and investing in cryptocurrencies involves considerable risk of loss and is not suitable for every investor.
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Image Courtesy: Coinmama