Introduction to Coinmama
Founded in 2013, Coinmama makes it easy to use one of several different purchase options in order to buy Bitcoin and other cryptocurrencies. They save users the hassle of having to deal with logging in and out of other exchanges and making trades, support a number of payment methods, and carry a decent selection of coins.
For the convenience, Coinmama does charge a fee that far surpasses anything that would be charged at a normal cryptocurrency exchange. Depending on the payment processor you use, fees range anywhere from bearable to quite steep, but if you value being able to get coins without having to place a trade on an exchange, you might find them to be quite reasonable.
Why use Coinmama?
With Coinmama, coin purchases can be made quickly and safely, all without having to log on to a traditional exchange. You also don’t need to know how to trade in order to use Coinmama, as you are simply paying their lowest available rate for your payment method of choice.
Everything bought and sold on Coinmama comes out of their own personal holdings and they do not facilitate transfers between independent buyers and sellers. This means that you don’t need to worry about other parties correctly fulfilling their end of a deal and instead rely on Coinmama, which has proven itself to be a trustworthy operation over the years.
Before Getting Started
Note that Coinmama does not service customers in the United States or countries embargoed by the United States. In other countries, some services offered by Coinmama may not be available and will either not be shown or else displayed as disabled. It is ultimately up to the user to know whether or not their nation’s laws permit them to use a cryptocurrency transfer service like Coinmama.
How to get verified on Coinmama
After finishing Coinmama’s lightning-quick account creation process, you’ll need to click the words “Verify my Account” on the left side of the screen as your account must be verified before you will be able to make a trade. To do this, you’ll need to upload a copy of your ID document (driver’s license, state ID or passport), along with a picture of yourself holding your ID. After submitting your documents, the verification process is usually completed within an hour.
How to make a deposit on Coinmama
Coinmama works differently from other exchanges in that you do not hold any coins or cash on the website itself. Coinmama does not hold your funds for you as there are no deposits to be made; instead, your payment method is charged upon coin purchase, and coins are sent to the address you provided within 10 minutes of order placement.
Payment methods accepted by Coinmama include:
- Debit / credit card
- Bank / wire transfer
- Faster Payments
Fiat currencies supported by Coinmama include USD, EUR, GBP, CAD, AUD, and JPY.
How to trade on Coinmama
To make a purchase, simply click the “Buy” button in the center top menu bar. On the purchase screen you will enter the fiat or coin amount you wish to purchase, then enter an address to which you want the coins deposited, and then a payment method. Purchases can be made all the way up to $30,000 at one time and the transaction sending coins to your address is initiated immediately after your purchasing funds have been confirmed.
Coinmama trading fees
Coinmama’s fees vary based on your method of purchase. For all purchases, 2% is added to the market rate of the coin to be purchased. There is also a commission fee of up to 3.9% on purchases and 0.9% on sales. There is an additional 5% fee for credit card-based transactions. There is no additional fee for SEPA transfers and a $20 fee for SWIFT transfers below $1000.
Overview of supported coins
The following coins can be bought for fiat currency on Coinmama:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Cardano (ADA)
- Litecoin (LTC)
- Qtum (QTUM)
- Ripple (XRP)
- Tezos (XTZ)
At the moment, the only cryptocurrency that can be sold on Coinmama is Bitcoin (BTC), but the company has plans to allow other coins to be sold in the near future.
Coinmama employs standard (but effective) security measures and does not save customer credit card information on their site. They also don’t store any customer funds on the site which means they are less likely to suffer a hacking attempt than your average exchange. The owners of Coinmama are registered as Money Service Businesses with FinCEN which means they must uphold certain operational standards in order to maintain a valid registration.
Coinmama also employs a highly efficient customer service team which they refer to as “Happiness Heroes” and who will help you resolve any issues may have (including those related to security). It is quite easy to get in contact with them; additionally correspondence can be sent using Coinmama’s contact form.
Benefits of Coinmama
- Easy-to-use, novice-friendly and safe way to purchase cryptocurrency without having to place orders.
- Verification process is fast (usually 1 hour or less).
- Good selection of payment processor and deposit options.
- Orders are confirmed and processed within minutes.
Limitations of Coinmama
- Does not service customers in the US and a few other countries.
- Fees can be quite high.
- Limited selection of cryptocurrency purchase options.
- Only BTC can be sold.
Wrapping it up
In all, Coinmama is great for those who would rather not have to deal with traditional cryptocurrency exchanges and don’t mind paying a little extra get their hands on some coins. They are regarded as an entirely safe, responsible operation that won’t accept your money if they can’t process an order and never require customers to hold funds directly on the site.
While their coin selection leaves a bit to be desired, there aren’t many sites that make it easier to purchase crypto with lesser-known payment processing options. We recommend Coinmama especially to those who aren’t comfortable with their ability to place order and make trades but still wish to purchase coins at reasonably fair prices.