So, you are all set to trade Bitcoin! You are ready to invest and sell your cryptocurrency. Naturally, it means you are looking for the perfect cryptocurrency exchange for you.
The challenge comes with the realization that there are hundreds of crypto exchanges available – how do you know which one works for you and which one doesn’t?
Welcome to The Bitcoin Mag’s latest offering – a comprehensive review of Coinmama. Coinmama is a reputable crypto exchange based out of Ireland. In 2013, Laurence Newman, Iian Schuster, and Nimrod Gruber launched the exchange sometime in 2013.
While the platform has only a handful of cryptos available, these are all established, such as Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH), and Stablecoins (USDT and USDC).
Moreover, it is ideal for anyone who is new to the crypto space since it is very easy to use and has a basic format. Plus, it also allows users to make purchases with credit cards. At the same time, you will also find other payment alternatives on the platform, including payment apps and bank account transfers.
Sadly, fees on the platform are expensive. On the other hand, it offers easy navigation and is well-suited for cryptocurrency enthusiasts who tend to get overwhelmed with different cryptos and tools available on any big crypto exchange.
Sounds just about right, doesn’t it? If you are not convinced, we have a whole blog waiting for you to make the right decision! Stay tuned!
A Detailed Coinmama Review – For Crypto Dummies!
Coimama is ideally suited for people who are new to the crypto space and are seeking a convenient space to make minor crypto purchases.
| Pros | Cons |
| A simple, beginner-friendly interface. | The platform doesn’t have any mobile app. |
| The platform has industry experience. | Coinmama charges a fee of $4.99 for Apple Pay, Google Pay, and Credit/Debit card transactions. |
| The platform offers high purchasing limits and multiple payment alternatives. | No transparency about transaction fees on the website. |
| The process for identity verification is fast. It typically takes 24 hours or even less. | The platform doesn’t have any crypto wallet. |
| The platform delivers cryptos to your account instantly, typically within minutes. | There is a limited range of features and a small selection of cryptocurrencies on the platform. |
| The customer reviews are exceptional, with a solid 4.4 rating on Trustpilot. |
How Coinmama Works?
Coinmama is a simple exchange where you can purchase multiple cryptos as well as sell Bitcoin. The accepted methods of payment include ACH transfers, Google Pay, Apple Pay, and debit/credit cards.
In order to use this exchange, you will have to register for a personal account and then go through an identity verification process. You will see that there are several levels that you can proceed through with your level determining your buying and selling limits.
So, here are the different levels and each of their limits:
- Level 1: 15,000 Dollars.
- Level 2: 50,000 Dollars.
- Level 3: 1,000,000 Dollars.
- Level 4: More than 1,000,000 Dollars.
Those are basically account limits that last a lifetime. So, if you are able to reach the limit for any level, you can apply for the next one. After the very first level, each of the subsequent levels comes with a spending prerequisite before the application process.
Moreover, Coinmama does not store any crypto for you. During any purchase, you will have to enter your crypto wallet address – this is where you will receive your orders.
Development And Growth:
So, in March 2022, Wellfield Technologies, a DeFi protocol, acquired the Coinmama exchange as a subsidiary for 40 million dollars.
As a result, users of the exchange can continue to purchase Ethereum and other popular cryptocurrencies. Also, it is interesting to anticipate whether the exchange will broaden its offerings as a leading crypto exchange in the near future.
In this context, Coinmama’s co-CEO and co-founder, Nimrod Gruber, said, “We have seen a significant acceleration in demand for a broad selection of DeFi services. Wellfield has developed a unique suite of products and services under its Seamless brand that address some of today’s most critical DeFi infrastructure gaps, and that will give us the technology we need to make DeFi adoption possible.” (Source: Coinbureau)
Restricted Countries:
While Coinmama provides its services across the globe, there are three states in the United States and some sanctioned countries where you won’t be able to access the exchange. Additionally, there are certain countries where you have to go through third-party channels of communication instead of going directly through Coinmama.
So, here are the US states and the countries where this exchange is not supported:
- Abkhazia,
- Afghanistan,
- Belarus,
- Crimea,
- Cuba,
- Iran,
- Iraq,
- Myanmar,
- North Korea,
- Northern Cyprus,
- Palestine,
- Russia,
- Sahrawi Arab Democratic Republic,
- Somalia,
- South Ossetia,
- South Sudan,
- Sudan,
- Syria,
- Luhansk,
- Donetsk,
- Yemen, and
- US States – New York, Hawaii, and Louisiana.
Fees Overview:
Coinmama charges a commission, a spread, and an extra transaction fee for specific payment alternatives. Moreover, this spread depends on TradeBlock XBX, a service that averages the different rates of providers to monitor market rates. So, the market rate of Coinmama is XBX plus 2.3%.
Here’s an overview of the fees for investors (U.S.-based) on Coinmama.
| Fee Type | Amount |
| Spread | XBX rate + 2.3% |
| Commission Fee On Purchases | Up to 3.9% |
| Commission Fee On Sales | Up to 0.9%z |
| Debit/Credit Card Transaction | 4.99% |
| Apple Pay Transaction | 4.99% |
| Google Pay Transaction | 4.99% |
| ACH | 0% |
| Fedwire | 0% |
| SWIFT | 0% |
Also, the exchange provides discounts on some commissions via their loyalty program. Moreover, there are three different levels in the program.
While the first level is a default step, the next two levels come with spending requirements. Apart from commission discounts, you will also get relatively faster support in this program.
| Loyalty Level | Commission Discount | Spending Requirement |
| Crypto Curious | N/A | N/A |
| Crypto Enthusiast | 12.5% | $5,000/90-Day Period |
| Crypto Believer | 25% | $18,000/90-day period OR $50,000 Over Account Lifetime |
Selection Of Cryptos:
Coimama allows users to purchase a little more than a dozen cryptocurrencies. However, the selection of available cryptos on this exchange is quite low compared to other popular exchanges like Binance, eToro, or Kraken.
Of course, this exchange includes market leaders like Ethereum and Bitcoin, and a few other big names, as well as mid-sized coins. If you want to invest in a range of cryptos, then you have to look somewhere else.
There are multiple popular cryptocurrencies that you won’t find on this exchange, such as:
What Needs Improvement?
While Coinmama has its own share of advantages and disadvantages, we came across four major issues while reviewing this exchange platform. So, here are the major improvement areas of Coinmama – scroll down to find out more.
1. High Fees:
The largest disadvantage of Coinmama is how costly it is. Moreover, the platform charges 2.3% over the market rate. Also, it has commissions of up to 0.9% on sales and 3.9% on purchases. Additionally, there is a fee of 4.9% for payments made through Google Pay, Apple Pay, debit card, or credit card.
These fees have exceeded what typical quality exchanges end up charging. In case you are planning on investing in crypto, the fees here are just too high to be a good alternative.
2. No Wallet:
Coinmama does not offer any kind of crypto storage. So, when you end up playing any purchasing order, you will have to give a wallet address for receiving crypto. Since crypto transactions are typically irreversible, it is vital to give accurate addresses for your orders.
Obviously, this is not necessarily a massive drawback. In fact, common advice in such a case has a lot to do with storing crypto safely in your own wallet instead of an exchange. Additionally, it is one of the biggest inconveniences associated with using this exchange.
In contrast, you will find other exchanges that are associated with using this exchange. After all, other exchanges provide the option for crypto storage, enabling users to jump in and make any purchase. Moreover, with this platform, you will have to initially set up a basic wallet.
3. Limited Features:
Primarily, the only things that you can do on this exchange are purchase specific kinds of cryptos and sell at least one of them. As compared to other exchanges, this one is very light on features.
For instance, it does not offer any crypto-to-crypto trades. But you cannot swap one crypto for another. Also, it does not offer any way of earning interest on your cryptos.
Contrastingly, you will find multiple exchanges that provide either crypto staking or crypto lending programs – two of the most popular methods of growing your holdings.
4. Mediocre Educational Content:
If you consider the beginner-friendly design of Coinmama, it would be nice to see the exchange improve its informational content. Moreover, the blog section of the exchange includes multiple articles. However, the brand team of the exchange has not updated a majority of the sections on crypto education for years.
Is Coinmama Right For You?
So, Coinmama is right for you if:
- You are searching for an easy, quick space to purchase cryptocurrency and have no problem paying the high transaction fees.
- You possess Bitcoin that you do want to sell.
- And, you want to buy cryptocurrency with a debit or credit card.
Alternatives Of Coinmama:
Of course, we were going to talk about the alternatives for Coinmama. But we have only highlighted two alternatives:
1. If You Want Low Fees:
In that case, Binance is a good alternative to ensure that you keep your cryptocurrency expenses to a bare minimum.
Moreover, its trading fees are relatively low and keep getting lower depending on your trading volume of the month or if you choose to pay transaction fees in its BNB crypto.
2. If You Want A Secure Crypto Storage Option:
In that case, Coinbase offers excellent security and holds more than 98% of its client’s crypto offline simply in cold storage.
In addition, anyone who wants more protection can opt for the value service of the exchange. Now this is actually available with the clients and that too without any charge.
Coinmama Versus Changelly:
Changelly was one of the least affordable services that you could choose for purchasing Bitcoin with your credit card. But, lately, the platform has optimized its whole service to provide relatively more competitive rates.
Moreover, the exchange fees for any credit card purchase rely on the payment processors you select to complete your orders. So, you can play around with multiple payment processors and swap various cryptos. In fact, some might have relatively cheaper fees.
Coinmama Versus Binance:
Binance enables purchasing crypto with credit cards – both through third-party providers like Simplex and themselves. In fact, Binance’s exchange rate is very similar to that of Coinmama’s. Moreover, you will come across opinions that Binance has an easy KYC process, but sadly, we did not experience that.
Coinmama Versus Coinbase:
Coinbase charges fees for purchases made using credit cards. These fees are variable and don’t disclose the exact amount before time. In fact, unlike Coinmama, Coinbase actually supports only a handful of countries across the globe. Moreover, their customer is terrible, as rated by users.
Is Coimama Safe?
So, is Coinmama safe as a crypto exchange?
It is very different from the majority of exchanges since it does not store cryptocurrencies for its users. Instead, it sends the crypto to the user’s wallet address by obtaining the same during the buying process.
Since most orders end up going to a user’s personal wallet, it is the user’s responsibility to keep the crypto safe. To buy cryptocurrency, Coinmama is a safe option.
It begins with a comprehensive identity verification procedure that protects users against fraud and scams. Moreover, the platform also offers 2FA (two-factor authentication) to prevent any unauthorized account access. At the same time, the exchange does not store debit or credit card information in its official system.
