Do you want to know about cryptocurrency exchanges and their services? There are more than 190 cryptocurrency platforms and services in the crypto world right now. You read that right. More than 190!
However, despite that, most of us have no idea of how exchanges work. Moreover, we also find it difficult to buy popular cryptos like BTC & ETH, which is not a good thing.
And that is where services like Coinpedia come to the rescue, presenting you with the latest information with cryptocurrency exchange world. Here we present you detailed Coinmama review.
Coinmama is a cryptocurrency exchange that came into existence in 2013, ventured by New Bit Ventures Limited. It is registered in Slovakia but currently operates from Israel. It supports a large user base in 188 countries worldwide and is available in 24 US States.
One of the best thing about Coinmama is it’s fast, secure, and safe for buying cryptocurrencies like BTC, ETH, LTC, BCH, ETC, XRP, QTUM, ADA via credit cards.
Also, unlike other exchange/services, it doesn’t have an inbuilt crypto wallet. This means if you wish to purchase cryptocurrency from Coinmama, you should already have a wallet and this way it encouraging investors to have a secured wallet in the first place before buying the coins.
How to Purchase?
Basically, to purchase more amounts along with registration, users need to verify their identity using government-issued ID for KYC and AML purposes (national ID card or driver’s license) as well as a verification form including their personal information and credit or debit card number.
But to purchase Bitcoin using credit or debit cards, users need not register their credit or debit card in order to purchase cryptocurrency on the exchange. Instead, the procedure is, once users have registered, whether they have verified or not their identity.
They can create the order by choosing how much they want to buy, providing their wallet address and then filling out their card details on the checkout page. Coinmama does not store user’s credit or debit card details on their servers. After completion of payment, the transaction is processed by the credit card processor which will take just a few seconds before being transferable to the user’s wallet of choice.
After the confirmation of payment and wallet address, the cryptocurrency is sent immediately to the user. At present, the minimum purchase amount on Coinmama is 60 USD, although this is based on the price of Bitcoin.
Unlike other platform’s, Coinmama does not offer an online wallet for users to store their cryptocurrency on the exchange. Therefore, once purchased, users need to create an appropriate wallet to which the exchange can send their cryptocurrency once purchased.
In order to confirm wallet addresses, Coinmana sends the user an email link to allow them to confirm that their address is valid. Because of this validation procedure, users are unable to purchase cryptocurrency for, or on behalf of, others. Users who wish to transfer currency to another person’s wallet should check the procedure for doing so through their own wallet provider.
In comparison to its rivals, Coinmama’s transaction fees are moderately high, with a 5.50% fee per transaction. This fee along with Bitcoin or Ethereum rate is shown on Coinmama’s website. Moreover, Coinmama also charges an additional 5% fee on each credit and debit card transaction. This fee is added once users choose their method of payment. In addition, customers need to pay Cash in Advance fee by their bank or card issuer. It all depends on whether the financial institution views the transaction as a ‘cash’ transaction or not. Case studies carried out by analysts have suggested that users should add an additional 10% in fees when transacting through Coinmama.
Coinmama offers high buying limits, particularly for credit card transactions. Besides, verified users can purchase up to $5,000 per day, with a maximum limit of $30,000 per month. Daily limits last for 24 hours from the moment that the limit is reached, while monthly limits are the sum of the previous 30 days.
It currently displays pricing in USD and EUR with new currencies coming soon. However, it accepts orders in all currencies, it is worth noting that exchange fees may be applicable to users that are purchasing in fiat currencies other than USD or EUR.
The amount of cryptocurrency that a user may purchase depends on the level of verification they have reached with the platform. The more documentation a user provides, the more currency they will be able to purchase. However, it should be seen that daily and monthly limits are applicable regardless of what level users have reached in terms of their verification. The categorization of the limits and requirements are as follows:
- Level 1: In this level customers can purchase up to 15,000 USD through the service. This level only requires customers to provide valid government issued ID (as set out above);
- Level 2: In this level customers can purchase up to 50,000 USD worth of cryptocurrency. In order to access this level, users need to provide two valid government-issued IDs, as well as either a utility bill or a selfie of the user holding their ID.
- Level 3: This is the highest level of authorization on Coinmama and empowers users to purchase up to 1 million USD in cryptocurrency. Moreover, to obtain this level of authorization, users need to fill out a short form and return it to Coinmama.
Available Countries / States
As stated above, Coinmama supports a large userbase in many countries, probably the widest amongst cryptocurrency exchanges and significantly more than most of its rivals, including Coinbase and BitStamp. Coinmama is not operated in sanctioned countries. In order to purchase from Coinmama, users in supported countries need a VISA or MasterCard issued in such countries.
Furthermore, Coinmama is available in the following US states: Arizona, California, Colorado, Florida, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Missouri, Montana, Nevada, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.
Advantages and Disadvantages
- Easy and secured Payment Methods
- Instantaneous Transfer of Funds
- Better User-Interface
- High-Level Security
- Help and Support always available
- No Support for trading, platform limited to buy order only
- High Transaction Fees
- Only a few currencies available
- Lack of a mobile App.
Customer support is available via email, as well as a comprehensive list of FAQ’s. As with most cryptocurrency exchanges, online reviews about customer service response has been mixed. However, it doesn’t seem that there are any major issues with response times, with most queries consistently replied within 24 hours.
Overall, Coinmama is a good option to buy cryptocurrencies when many exchanges are down due to the surge in demand. Also, beginners with ease can buy cryptocurrencies via Coinmama because everyone prefers using cards while buying things these days. It is just convenient.
Despite the fact that the prices are usually higher than its rivals like Coinbase or CEX, Coinmama should be an option because of its ease of use and good support from the team.
Also, as mentioned earlier, Coinmama doesn’t provide you with an inbuilt wallet for cryptocurrencies. In fact, that is a good way to let users learn to create and use their own self-hosted wallet.
However, with Coinmama, you can only buy, not sell. Coinmama does not allow payment methods like PayPal, American Express or Discover. If they start doing so they will be the favorites to buy BTC/ETH quickly. Lastly, I would point out that even during the crypto rush in December 2017 when exchanges like Bittrex and Bitfinex closed their doors, Coinmama was still open for new registrations.
Official website: https://www.coinmama.com/