CoinMama 2021 Opinions and Reviews - What you need to know before signing up

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Contents

⌛ Reading time: 8 minutes
4 / 5 - (32 votes)

Coinmama is a leading cryptocurrency brokerage firm that allows you to buy different types of cryptocurrencies with your credit card, via bank transfer (SWIFT, SEPA, Fedwire, FasterPayments and Sofort) and also via Apple Pay. In this review, I will analyze the company, its services and also compare it with other competing brokers.

Summary of the review by Coinmama

Coinmama's brokerage service allows you to easily buy Bitcoin and other cryptocurrencies with your credit card, SWIFT or SEPA transfer was established by CoinMama and was the first company to partner with Apple Pay to buy Bitcoin. The company focuses on customer experience and customer service to ensure transactions are fast (user verification takes approximately 30 minutes).

For starters, this is a great option to buy your first Bitcoins. More advanced users can use other trading platforms to save on transaction fees.

For a detailed review of Coinmama keep reading this post. Here is what I will cover:

 

 

Who is Coinmama?
Services offered by Coinmama
Currencies and payment methods
Mugs
Purchase limits
Countries supported
Coinmama customer support and user reviews
Coinamama vs other exchanges
FAQ
Conclusion - would I use this exchange?


1. Who is it Coinmama?

Coinmama was founded in 2013 in Israel and has since grown to serve over 2 million customers in more than 188 countries with over 30 employees. Today, the company is registered in Slovakia while it was still owned and headquartered in Israel.

2. Services offered by Coinmama

Coinmama provides a brokerage service to buy Bitcoin and other cryptocurrencies. This means that the company sells crypto directly to you, as opposed to a trading platform where you buy crypto from other people.

The advantages of a brokerage service mainly consist of a quick and easy process as there is no need to look for a buyer. On the other hand, brokerage services are usually more expensive. In the case of Coinmama, the company has made continuous efforts to reduce its taxes as much as possible. At the end of this post, you can see how Coinmama compares to other exchanges.

3. Currencies and Payment Methods

Coinmama currently supports the purchase of the following cryptocurrencies:

Bitcoin (BTC)
Ethereum (ETH)
Ripple (XRP)
Litecoin (SLD)
Bitcoin Cash (BCH)
Cardano (ADA)
Qtum (QTUM)
Classic Ethereum (ETC)
EOS (EOS)
Tezos (XTZ)

Coinmama accepts credit or debit cards issued by Visa or Mastercard. The company now also accepts bank transfer payments (SEPA and SWIFT) with a 0% processing fee (SWIFT, SEPA, Fedwire, FasterPayments and Sofort) and Apple Pay. Prices are quoted in EUR, USD, GBP, AUD, CAD or JPY.

 

4. Taxes

The prices you see on Coinmama's website already include the company's 5,9% brokerage service fee. The base price is calculated from the TradeBlock XBX index.

In addition to the listed price, you will need to add a 5% credit card processing fee. This means that the price on Coinmama will be 10,9% above the market rate.


5. Purchase Limits

The minimum amount of Bitcoin you can buy is 60 USD or the equivalent in EUR / GBP / AUD / CAD / JPY. Purchase limits depend on your account level. The daily purchase limit is set at $ 5.000 and the monthly limit at $ 15.000 for level 1.

To make any type of purchase, you need to complete a form of identity verification. There are 3 levels of verification, and at each level, the account spending limits increase.

Level 1 - Requires 1 valid government-issued ID, a selfie of yourself with that ID, and a ticket that says “Coinmama” and today's date.

Level 2 - A secondary form of identification must be presented. In addition to two of the aforementioned ID documents, you will also need to upload a utility bill.

Level 3 - Requires completion of a short form.

6. Supported Countries

Coinmama offers its services all over the world, with the exception of sanctioned countries and several states of the USA.

Supported Countries:

Afghanistan, Aland Islands, Albania, Algeria, Andorra, Angola, Anguilla, Antigua and Barbuda, Argentina, Armenia, Aruba, Australia, Austria, Azerbaijan, Bahamas, Bahrain, Barbados, Belarus, Belgium, Belize, Benin, Bermuda, Bhutan, Bonaire , St. Eustatius and Saba, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, Cayman Islands, Central African Republic, Chad, Chile, Colombia, Comoros, Congo, Congo, Cook Islands, Costa Rica, Ivory Coast, Croatia, Curaçao, Cyprus, Czech Republic, Denmark, Djibouti, Dominica, Dominican Republic, Egypt, El Salvador, Equatorial Guinea Eritrea, Estonia, Ethiopia, Falkland Islands (Malvinas), Faroe Islands, Fiji, Finland, France, French Guiana, French Polynesia, Gabon, Gambia, Georgia, Germany, Ghana, Gibraltar, Greece, Greenland, Grenada, Guadeloupe, Guatemala, Guernsey, Guinea, Guinea-Bissau, Guyana, Haiti, Santa Headquarters (Vatican City), Honduras Hong Kong, Hungary, Iceland , India, Indonesia, Iraq, Ireland, Isle of Man, Israel, Italy, Jamaica, Japan, Jersey, Jordan, Kazakhstan, Kenya, Kiribati, Republic of Korea, Kuwait, Lao People's Democratic Republic, Latvia, Lesotho, Liberia, Jamahiriya Libyan Arab, Liechtenstein, Lithuania, Luxembourg, Macao, Macedonia, Malawi, Malaysia, Maldives, Mali, Malta, Marshall Islands, Martinique, Mauritania, Mauritius, Mexico, Micronesia, Federated States of, Moldova, Republic of Monaco, Mongolia, Montenegro, Montserrat, Morocco, Mozambique, Myanmar, Namibia, Nauru, Nepal, Netherlands Antilles, New Caledonia, New Zealand, Nicaragua, Niger, Niue, Norfolk Island, Norway, Oman, Pakistan, Palau, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Pitcairn, Poland, Portugal, Qatar, Reunion, Romania, Russian Federation, Rwanda, Saint Barthélémy, Saint Helena, Saint Kitts and Nevis, Saint Lucia, Saint Martin, Saint Pierre and Miquelon, Saint Vincent and the Grenadines, Samoa, San Marino , São Tomé and Principe, ArabiaSaudi, Senegal, Serbia, Seychelles, Sierra Leone, Singapore, Sint Maarten, Slovakia, Slovenia, Solomon Islands, South Africa, Spain, Sri Lanka, Suriname, Svalbard and Jan Mayen, Swaziland, Sweden, Switzerland, Taiwan, Province of China, Tajikistan, Tanzania, United Republic of, Thailand, Togo, Tokelau, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Turks and Caicos Islands, Tuvalu, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States *, Uruguay, Uzbekistan, Vanatu Islands, Venezuela, Vietnam, Virgin Islands, British Virgin Islands, Wallis and Futuna, Western Sahara, Yemen, Zambia.

In which US states is Coinmama available?

Coinmama is available in the following states:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming

 

7. Customer support and user reviews

Coinmama has a help center and also a dedicated email support channel. Support requests are usually answered within 24 hours.

I also took a look at the various customer reviews posted online. Having watched over 20 exchanges now, I know that when people leave comments online, it's almost always negative comments because they're upset about something. That's why I usually read the comments and see what people are complaining about.

Most of the negative comments about Coinmama complained about one thing: the identity verification process. Users claim that Coinmama asks for a ton of information and, in some cases, rejects applications without giving an adequate explanation.

From my personal experience, I can say that verification with Coinmama was relatively easy, and yes, it requires a lot of information. However, it's just a Know Your Customer (KYC) and Anti-Money Laundering (AML) that the most legitimate exchanges need to abide by.

On the bright side, Coinmama receives a barrage of “Great” reviews on TrustPilot. Most of the positive reviews love the site's customer support. In the past, Coinmama has responded to negative reviews in the comments section of this page. It saddens me to see that they recently stopped doing it. We hope they work on it soon ...

8. Coinmama vs other exchanges

Here is a brief comparison between Coinmama's brokerage service and other popular services.

Important - The rates shown in this table are for credit card purchases only. These rates only include the brokerage fee. Most credit transactions will also have a clearing fee of between 3% and 5%.

Coinmama vs. Coinbase

Coinbase charges a 3,99% fee for credit card purchases, which is lower than Coinmama's 5,9% fee. Unlike Coinmama, Coinbase supports a limited number of countries around the world and is known for having horrible support.

Coinmama vs. Changelly

Changelly was known to be one of the most expensive services one could use to buy Bitcoin with a credit card. However, they seem to have been tweaking their service lately to offer a more competitive offer. Changelly takes 5% in addition to the existing fee to pay the 5% payment processor. This is 0,9% less than Coinmama's total tax (10,9%). It appears that the exchange rate used by Changelly is cheaper than Coinmama, so overall you can save up to 3% by using their service.

Coinmama vs. Bitstamp

Bitstamp's brokerage service is almost identical to Coinmama's, with a difference of around 0,5% between services. They both have good reputations. Bitstamp is one of the oldest and most respected exchanges, so it's a solid alternative to Coinmama. Like Coinmama, the exchange supports a large variety of countries around the world.

Coinmama vs. Binance

Binance recently partnered with Simplex to enable the purchase of cryptocurrencies with a credit card. Binance's exchange rate is almost similar to Coinmama's. Some might argue that Binance has an easier kyc process, but I've actually experienced the opposite.

9. Frequently Asked Questions


How long does it take to be verified on Coinmama?

Coinmama states that verifications take anywhere from 30 minutes to an hour.

Does Coinmama accept credit cards?

Coinmama only accepts Visa and Mastercard. Please note that American Express, Discover and PayPal are not accepted.

Does Coinmama require identification?

Yes they do it. To verify your account, you need to submit a form of identification. This can range from driver's license to passport. For a complete guide on which document is required in each country, read this article.

How can I buy Bitcoin on Coinmama?

The process of buying cryptocurrencies on Coinmama is as follows:

Register on the site
Submit identity verification documents
Click on "Buy" and choose the cryptocurrency you want to buy
Decide how much you want to buy and click on “buy now
Submit your payment information
Get your cryptocurrencies instantly

As soon as your payment is successful, Coinmama sends you your crypto. This is crucial because sometimes a day or two can mean big fluctuations in the price and you end up buying cryptocurrencies for a different amount than originally intended. It is also worth mentioning that Coinmama “locks” the Bitcoin price for you as soon as you submit your order.

10. Conclusion - Coinmama is it legitimate and safe?

The short answer is yes. Coinmama is a reputable company and their customer support is pretty good. Their only drawback, in my opinion, is the high taxes. Unfortunately, this cannot be avoided when using a credit card, but considering the fast service, it is sometimes worth the cost.

If you have the option to use a bank transfer (SEPA, SWIFT, Fedwire, FasterPayments, Sofort, etc.) rather than a credit card, it will be even better because you will save 5% in total commissions.

Overall, the service is solid. If you've had your own experience with Coinmama, share it in the comments section below.

Advantages and disadvantages

 

Pro

Great user interface
Fast delivery of cryptocurrencies
Good customer support

disadvantages

Relatively high fees (~ 5,9%) + 5% for credit card payments

 

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