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Coinmama Review | All You Need To Know In 2022
Coinmama is a leading cryptocurrency broker that facilitates the buying and selling of cryptocurrencies. Millions of people around the world use Coinmama for buying cryptocurrency using fiat currencies or other digital assets.
The Slovakia-based exchange boasts fast transaction speeds that position it among the best crypto exchanges in the market. Coinmama lists ten digital assets which are available for purchasing and selling.
Coinmama has come a long way since its humble beginnings in 2013. Since then, Coinmama has been providing a fun, swift and secure buying experience for it’s global customers looking to venture into the world of Bitcoin and cryptocurrencies.
Coinmama Review – Overview
Coinmama enables users to buy and sell cryptocurrencies instantly. This is possible because users transact with Coinmama directly, and they do not have to wait for orders from third parties. Coinmama has been in operation for seven years but remains resilient against cyber fraud. Account holders can buy cryptocurrency on Coinmama using a Visa virtual card.
How Does Coinmama Work?
Coinmama is a cryptocurrency broker founded in 2013 by Laurence Newman, Ilan Schuster and Nimrod Gruber. NBV International s.r.o., whose parent company is New Bit Ventures Ltd, owns Coinmama. All companies are registered in Slovakia under the Money Service Businesses license.
The exchange is customer-centric and with a keen focus on growth, innovation, and simplicity. Its goal is to deliver digital currency services in a safe, fast, and fun way to customers all around the world.
It’s current CEO is Sagi Bakshi, who was previously part of the founding team at mobile tech unicorn IronSource where he served as General Manager. It is headquartered in Israel with offices in Dublin, Ireland.
Although all accounts require verification of personal details before activation, a Level 1 account, for example, only requires a government-issued ID that is valid.
To access a Level 2 account, you need to provide a secondary ID. This is to remove any doubt that might not have been eliminated after submitting the first ID. In addition to the two IDs, Coinmama mandates you to provide proof of location to verify your account and accepts a copy of a recent and valid utility bill or valid copies of your tax certificate.
The process of registering for a Level 3 account is a little more stringent in terms of implementing the know-your-customer (KYC) guidelines. Opening this account follows a different approach where customers first fill a short form with their personal details. You may be required to notarize the documents you provide. In this case, the documents must have a stamp and attestation by a public notary.
Key Services & Additional Features
Coinmama boasts more than 2 million customers drawn from 188 countries across all continents.
At its core, Coinmama is a cryptocurrency marketplace for buying the most popular digital assets. As mentioned earlier, Coinmama has cryptocurrency in its inventory, meaning buyers will get the number of coins they need directly from the platform. Coinmama is not your typical cryptocurrency exchange where users can buy and sell cryptocurrency pairs.
Unlike other exchanges, Coinmama offers higher buying limits at any one time. The buying limit, however, varies depending on the payment method, as well as the account level. For instance, the limit for buying and selling transactions (altogether) in a day is $15,000. Other account types can buy up to $30,000 in one transaction when using a bank transfer.
Another unique aspect for Coinmama is that it issues verified users with a virtual Visa card with which they can spend their Bitcoin. The virtual Visa card service is possible through a partnership between Coinmama and Spendl. Spendl is a virtual Visa card provider, which can be used anywhere that accepts Apple Pay and Visa.
Coinmama facilitates loading of Bitcoin onto the Spendl Visa card. To access the service, you must be a verified member of Coinmama, as well as a verified member of Spendl. Through your Coinmama account, you purchase the number of Bitcoins you need, and Coinmama loads the coins into your Spendl Visa card.
The Coinmama Affiliate Program is another unique aspect of the platform. Even if you are a registered account holder with Coinmama, you will need to register for the affiliate program anew. In the application, you must specify whether you are a company or an individual. Other relevant details needed for registration include a preferred payment option, a valid and verifiable phone number, full names, and a valid email address.
For every transaction gained through referral, the affiliate earns a 15% commission. Coinmama does not limit the number of referrals you can make, and all earnings by the affiliates are settled in bitcoins once every month.
What Cryptocurrencies are listed on Coinmama?
For selling cryptocurrency, Coinmama only accepts Bitcoin. For a customer who wants to purchase Bitcoin and other altcoins, Coinmama offers a range of options. The list of available coins is as follows:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Cardano (ADA)
- Litecoin (LTC)
- Qtum (QTUM)
- Tezos (XTZ)
- Eos (EOS)
Supported Countries, Currencies and Payment Methods
Coinmama serves 2.3 million customers in 190 countries and territories. Potential customers in certain countries and territories are prohibited from accessing Coinmama’s services. The countries and territories include:
- Some states and territories of the United States
- … and more.
Find the complete list of restricted countries, states, and territories here.
The fiat currencies that Coinmama supports include:
The payment methods that Coinmama accepts are:
- Bank transfer
- Credit card
- Debit card
- Faster Payments
How to Buy Cryptocurrency on Coinmama
To buy cryptocurrency on Coinmama, you need a verified account as well as a crypto wallet. The wallet is especially important because you need somewhere to store your purchased digital assets. Follow these simple steps to buy cryptocurrency on Coinmama:
1Log into your Coinmama account and select the desired crypto.
2Specify the crypto amount you want to buy. Alternatively, you can select the preferred amount from one of Coinmama’s cryptocurrency packages and click ‘Buy Now’.
3Provide the address for your wallet.
4Specify your preferred payment method.
5Confirm your wallet address to receive the coins.
Coinmama Fees and Limits
Coinmama fees come in two sets, that is fees for buy orders and fees for sell orders. Even then, the fees incurred on the orders are dependant on the payment method used.
Buy orders incur a commission fee of 3.90% of the order amount. This commission is inclusive in the prices of cryptocurrencies you see on Coinmama’s website.
To calculate the price at which you can buy a digital currency, say Bitcoin, Coinmama takes the XBX Index value of the digital currency and adds 2% to cover the standard deviation. The XBX Index tracks the USD-equivalent spot rate for cryptocurrency.
If you are using a credit card, debit card, prepaid or virtual card, the transaction uses a locked cryptocurrency rate, and the delivery of the coins is instant, then Coinmama charges an additional 5% as momentum fee.
When buying crypto via a bank transfer, Coinmama limits the order amount (on the lower side) at $1,000. If you have to transact with amounts less than $1,000, you will incur a ‘below the minimum fee’ of £20 ($25.78). United Kingdom-based buyers who choose to use SWIFT Faster Payment or SEPA are not subject to ‘below the minimum fee’.
A user who sells cryptocurrency is also subject to rates based on the XBX index average plus 2% for standard deviation. Additionally, you will pay a selling fee ranging from 0.1% to 0.9%.
Interestingly, Coinmama users can earn discounts depending on their loyalty levels. Coinmama has a loyalty program that awards users. More active users (either buying or selling cryptocurrency) save more. Entry into Coinmama Loyalty Program is automatic when you sign up and make your first transaction.
There are three loyalty levels. Beginners belong to the Crypto Curious level. Then Crypto Enthusiast is the second level. You reach this level after building up your crypto portfolio to the required amount. Benefits that Crypto Enthusiasts enjoy include fast-tracked customer support and a 12.5% discount on Coinmama fees.
The third level is the Crypto Believer. Crypto Believers are users whose cumulative purchase amount on Coinmama is at least $5,000 achieved within a period of 90 days. Crypto Believers enjoy the best customer support Coinmama has to offer. Additionally, Believers receive a 25% discount on Coinmama fees.
As noted earlier, Coinmama accounts come in levels based on the verification status of your account. Coinmama imposes spending limits based on these levels. For instance, a Level 1 account has a daily transaction limit of $15,000 (buy/sell). Level 2 and 3 accounts have a transaction limit of $50,000 and $1 million respectively.
Is Coinmama Safe?
Coinmama is one of the oldest platforms for buying and selling cryptocurrencies. Over that period, Coinmama has established itself as a resilient cryptocurrency exchange platform. We did not find any reports linking Coinmama to successful hacks. The platform has never lost customer coins or fiat currency to bad actors.
Undoubtedly, Coinmama takes security seriously. Of the 2.3 million customers that Coinmama serve, each underwent a stringent verification process to ensure that no scammers are allowed to infiltrate the platform. Whether you are a Level 1 account holder or a Level 3 account holder, Coinmama makes sure that all the details you provide pass muster before granting access to the exchange.
Another aspect of Coinmama that makes it safe is that it does not store cryptocurrency in non-custodial wallets for customers. Instead, you need to have your own private wallet into which Coinmama will deposit coins when you place a buy order.
When transacting on Coinmama, all the payment details, i.e. bank or credit card details, are not stored. Because of this, Coinmama does not require its customers to implement two-factor authentication (2FA). However, Coinmama does encourage customers to enable 2FA on their wallets to prevent theft.
Is Coinmama Legit & Regulated?
As earlier noted, Coinmama is a property of NBV International s.r.o., whose parent company is New Bit Ventures Ltd. Both companies operate legally with licenses from Slovakia’s financial sector regulator. Because Slovakia participates in Europe’s Single Supervisory Mechanism (SSM), Coinmama is technically under the jurisdiction of notable regulators in Europe.
Across the Atlantic, Coinmama falls under the watchful eye of the United States Securities and Exchange Commission (SEC), as well as state-level regulators in the states that the platform operates. The fact that Coinmama is regulated in all the jurisdictions it operates clearly demonstrates its legitimacy.
Further, Coinmama has a supportive and responsive customer service. Coinmama website includes a dedicated help centre for assisting users with arising issues. Other avenues include an email address, a phone number for fast and real-time assistance, and various social media handles. Only legitimate entities go to such lengths to build and maintain trust with their customers.
Coinmama Vs. Other Exchanges
Coinmama is a popular destination for crypto investors and enthusiasts who want to buy digital assets and to receive the coins instantly. Other than Coinmama, other similar platforms exist that we recommend.
In the wake of a hugely popular cryptocurrency revolution, many projects were established to enable enthusiasts to own crypto easily. While most projects focused on a wide array of services, Coinmama prioritised fast and simple buying and selling of cryptocurrency. This explains the popularity of the platform.
Coinmama is not your typical cryptocurrency exchange because it aims to strike out intermediaries from crypto-related transactions. Unlike other trading platforms, Coinmama provides coins directly to you, rather than simply matching orders among third parties.
Buying and selling cryptocurrencies has made Coinmama a frequented platform because it does not expose users to the risks of margin trading and other such options.
Frequently Asked Questions
Essentially, Coinmama is a cryptocurrency exchange. It provides a platform for users to buy, sell, and exchange cryptocurrencies.
No. Coinmama transacts directly with users, and the coins involved come from the exchange’s inventory.
Yes. Coinmama operates in 190 countries. However, always be sure that the services are accessible in your local region before onboarding. For instance, Coinmama is available in the United States, but not in states like New York.
Yes. Coinmama’s parent company is New Bit Ventures Ltd, registered in Slovakia and headquartered in Israel. This company has all the necessary licenses for running a project like Coinmama.
Verification of accounts usually takes an average of 30 minutes. However, you could wait for longer if there is an issue with some of the details you provided.