Coinmama Exchange Assessment

Coinmama is an Israel-based cryptocurrency exchange broker that offers users a platform to buy and sell cryptoactives through various payment options.

The exchange has over 2 million users, has a fast verification process and is available in 190 countries worldwide. The company also operates in the United States, but services are limited to states in which it has received regulatory approval to offer cryptoactive services.

Although Coinmama does not offer commercial options like margin trading, users find its high security and ease of use very attractive, especially when shopping Bitcoin with a credit card. This Coinmama review contains everything you should know about the company.

How to register with Coinmama

Access the platform and click on Register. The screen below appears. Enter your email, password, names and choose your country of residence.

Coinmama Exchange

Register with Coinmama Exchange

Then click on “Create account” and use the email that was sent to you to confirm your email. Afterwards, verify your account by presenting your proof of identity (passport, ID) and your ID photograph.

make a deposit

Coinmama supports the direct purchase of cryptographic coins and the first step is to build your wallet. Then go to your Coinmama account and click on the 'buy' link to be taken to the next page where you can buy your preferred cryptographic currency. You also have the option to link your bank account to Coinmama to further simplify the process.

Coinmama Exchange

 

Purchase Your Cryptocurrencies

Choose the cryptographic currency you want to buy and the currency you want to pay. Set the value of moeda digital and the payment method and click on “Buy Now”.

Then enter your wallet address and confirm it is correct. Fill in your payment details and click buy. After confirming the transaction, Coinmama will send the coins to your account instantly.

Comparing In Coinmama

Coinmama is among the few cryptoactive exchanges that offer exclusive buying and selling for Cryptocurrencies. It is also one of the few to obtain licenses to operate in the United States, however it charges comparatively high fees.

Coinmama Exchange

History of Coinmama

Coinmama was founded in 2013 and is registered in Slovakia. The exchange is currently based in Israel and is owned by NBV International, a subsidiary of New Bit Ventures Ltd. It was one of the first Cryptocurrency exchages to add support for buying Bitcoin using a credit card. In 2019, Coinmama added support for the popular Tezos and Eos coins, opening the platform to more users around the world.

Also in 2019, Coinmama revealed that it would now also facilitate the sale of Bitcoin (BTC) coins. This feature allows Coinmama customers in more than 30 European countries, where SEPA (Single Euro Payments Area) is supported, to sell their Bitcoin investments and receive cash in euros directly into their bank account.

Coinmama: Regulation and Security

Coinmama is a registered company headquartered in Israel. The brokerage is also regulated in the United States, approved as a cash trading service by the US regulator, Financial Crimes Enforcement Network (FinCEN).

The importance of this regulatory oversight is that FinCEN is under the US Treasury Department and has the mandate to review Coinmama's financial transactions to work on things like money laundering, terrorist financing and fraud.

If Coinmama is flagged for these and other crimes, users will likely know. The company also has well-known team members, which helps build even more confidence for a business that has been in operation since 2013.

Coinmama has demonstrated over the years that it is committed to ensuring that users continue to benefit from high levels of security. Applicable security measures and privacy standards ensure that customer details are protected.

Is Coinmama Safe?

Coinmama has been in operation as a Cryptocurrency exchange for several years and has proven to be a secure platform for purchasing cryptoactives. After creating your account, Coinmama will ask you to verify your account to prove your identity. The KYC/AML process includes uploading your passport, ID or driver's license.

In addition, Coinmama requires that before you can purchase any digital currency on the platform, you must have a wallet address that can receive those assets.

Coinmama uses full encryption technology to protect your personal data and uploaded documents. Details relating to your credit card are never maintained on Coinmama's website or its exchange servers as long as the website is HTTPS certified. For this reason, among other security measures, Coinmama is safe for those who want to buy cryptoactives quickly.

Reputation of Coinmama

Coinmama has one of the best reputations in the cryptographic currency exchange market. The Israel-based company was never hacked and although it suffered a data breach in 2019, none of its users' credit card information was compromised.

Once again, the company has become one of the most popular platforms for purchasing Bitcoin and other cryptographic currencies with Visa or MasterCard.

No wonder Coinmama has more than 2,2 million users on its platform and currently operates in nearly 200 countries, including the United States, which are highly regulated, where its services are available in more than 24 states.

Is Coinmama A Good Exchange For Me?

Coinmama is a reputable cryptographic currency broker that facilitates the purchase of Bitcoin and other cryptographic currencies. If you want quick access to cryptographic currency and upload it to your own hardware wallet or another exchange wallet for trading, Coinmama is for you. You don't need to be a technology expert as the project is simple and effective.

I'm Just Getting Started

If you're a beginner, Coinmama has one of the easiest-to-use interfaces ever created for an exchange service. There are no fancy graphics or complex images to confuse you. Once your account is created and verified, you can easily navigate the site to purchase the digital currency of your choice.

I Am A Cryptocurrency Specialist

If you are an experienced Cryptocurrency user, Coinmama's main appeal will be the immediate delivery of the purchased coins to your account. You can also sell Bitcoin and receive money via SEPA transfer (or Single Euro Payments Area) sand you are living in the European Union.

Exchange Wallets: Features, Supported Cryptoactives and Security

Coinmama does not have a wallet service, which means it is a non-custodial broker and does not have digital currency on behalf of users.

However, this is part of the reason the bag has a good reputation, the company stores its wallets in cold storage and secure where users can shop.

Before registering an account with Coinmama, it is advisable to create a personal wallet that will be used to store the assets you have acquired. This is a necessary first step as, as already mentioned, Coinmama does not offer a wallet service and does not store Cryptocurrencies on behalf of its clients.

Clients need to have their own wallet set up and only use their accounts to buy or sell directly to the exchange.

Supported Wallet Formats

Coinmama supports a wide variety of wallets, including the original Legacy wallet or (P2PKH), SegWit Nested (or P2SH addresses) starting with a “3”, wallets Ethereum, XRP wallets and Bitcoin Cash wallets, among others.

Supported Cryptocurrencies

After signing up for an account with Coinmama, you can buy or sell the following Coinmama supported Cryptocurrencies. As noted earlier, the exchange supports instant purchases using credit/debit cards and bank transfers.

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

Coinmama takes the security of its users' funds seriously and will not send coins to their wallet until the wallet address is validated via a confirmation email sent to the user.

If you use a credit or debit card, the confirmation link will be sent once your payment is approved. If you use bank transfers, the link is provided along with the order details and users can confirm the transaction and address details at any time.

Importantly, Coinmama never lost customer funds in a security breach, although the platform suffered a breach in 2019 involving an attempt by hackers to steal credit card information.

But, as noted, Coinmama does not store its customers' credit card information and the hackers were only able to obtain email addresses. The data breach was a serious reminder that malicious actors will continue their criminal efforts, and to have Coinmama already resist stealing funds is very encouraging. It is critical that you not only protect your account password, but also avoid using the same email address you use when dealing with non-Coinmama business.

Always enable two-factor authentication for your account and store private keys in your offline wallet – preferably in hardware wallets.

How to Transfer Your Digital Currency Funds to/from Coinmama

Coinmama does not offer a wallet service, so you will not keep any of your funds in return. You can only buy digital currency and send it directly to the wallet address provided. You can sell Bitcoin and have the money sent to your bank account SEPA.

Once you've decided which digital currency you want to buy, add your payment option, credit/debit card or bank transfer details. Once payment is made, Coinmama will send the purchased coins.

To Sell Bitcoins on Coinmama

Log into your account (must be verified) and start selling by clicking on the “Sell” button and choosing the amount of BTC you wish to exchange. After that, enter your bank account details (including the international bank account number – IBAN) and provide the necessary information to proceed with the negotiation.

Coinmama will provide you with a wallet address to which you need to send Bitcoin. Copy the address and paste it into the recipient's address space. Alternatively, you can complete the sale simply by scanning the QR code displayed on the checkout screen if you are using a wallet from a third-party app.

Once the coins are sent to Coinmama, the exchange will transfer the money to your bank account using SEPA.

Note that this feature is only available for Bitcoin and in EU countries that support SEPA transfers.

Coinmama Fees and Costs

Coinmama's fees are as follows:

  • Credit and debit card transactions – 5%.
  • Bank transfers – 0%.

Payment Methods and Limits

Coinmama allows its customers to buy Crypto via credit card, debit card and bank transfer. PayPal is not supported at the time of writing.

Available Payment Methods:

  • Credit card
  • VISA
  • MasterCard
  • Bank transfer
  • SWIFT
  • SEPA (EU banks)
  • Faster payments (UK banks)

Transaction Limitations

Coinmama implements transaction limits on a cyclical basis and they vary depending on regulations, user's preferred payment method and level of verification.

Applicable limits are reset based on your 24-hour or 30-day spend and count both buy and sell transactions.

Minimum purchase limit for Bitcoin: 0.1BTC

Account Limits

Verification Level 1:

  • Account Limit: $15.000

Daily limit: $5.000 credit card, $12.000 bank transfer

Monthly limit: $15.000

Verification Level 2:

  • Account Limit: $50.000
  • Daily limit: $5.000 card/$30.000 bank transfer
  • Monthly limit: $30.000

Verification Level 3:

  • Account limit: no limit
  • Daily limit: $7.500 by credit card/$30.000 by bank transfer
  • Monthly limit: $40.000/$100.000 bank transfer card

Coinmama: Performance, Features and Functionality

Coinmama offers an easy-to-use platform designed to help customers buy Bitcoin and send it directly to their wallet address. The exchange is one of the most popular for direct purchases of selected Cryptocurrencies.

It has a clean interface, without all the complicated graphics that can disorient and discourage new users. It has such strong appeal that it has continued to make the exchange attractive to both new and experienced users since its inception.

No mobile app: Coinmama is available online and currently does not have mobile or API support.

Although you cannot trade with Coinmama, you can sell your bitcoins for exchange. There are also some features available to users. These include:

Coinmama Loyalty Program

Another feature of Coinmama is the loyalty program that allows users to earn discounted fees for continued use of the bag. This way, frequent users will likely save a lot on fees (which can be high depending on payment method and location).

Bonuses Are Divided Into Three Categories:

  • Crypto Curious: the entry level for all new users
  • Cryptocurrency Enthusiast: You reach this level after spending $5.000 in 90 days (both buying and selling). Customers at this level get discounts of 12,5%.
  • Crypto loyalist: Spend $18.000 in 90 days or $50.000 for life to save 25% on fees.

Countries Supported by the Platform

Coinmama is available worldwide, with its services accessible in over 190 countries in Europe, Latin America, the Middle East and Africa. The exchange is also regulated in some United States, where Coinmama has received money transmission licenses.

Services are, however, restricted to sanctioned countries and jurisdictions, including North Korea, Cuba, Iran, as well as Syria, Lebanon, Sudan. Although the exchange is based in Israel, Coinmama does not offer its services to residents of the country.

Customer Service

Coinmama has a large support team, with users who can access them via email. There is also a live chat that users can opt for, although Coinmama does not yet offer a 24/7 service. For further support, users are encouraged to visit the company's FAQ page, which provides up-to-date information about the company, its products, and users can purchase multiple Cryptocurrencies.

Trading Platform

Coinmama is a Cryptocurrency exchange, but does not offer trading options. You cannot exchange digital currency for another currency, such as exchanging your Bitcoin currency directly for Ethereum. Likewise, you cannot trade with other clients on the exchange, which can be a disadvantage for a user who wants to have call/put and trade options.

Educational Resources on the Platform

Coinmama has a help center and a support page that offers free Cryptocurrency and blockchain tutorials. There's also a very up-to-date FAQ and support news page that provides most of the information a customer needs to know about crypt currency, purchasing, and using the platform.

Trading Options

Coinmama allows users to buy and sell Cryptocurrencies on its platform, with each account having a daily, monthly and lifetime limit that depends on the verification level that their account has reached. Bitcoin is the only digital currency you can sell to Coinmama at the moment, although the platform is planning to expand the offering. Coinmama does not offer trading options such as margin trading and futures.

Account Types

Coinmama does not offer different types of accounts. Instead, the exchange uses its verification process to give users access to higher spending limits. There are three levels of account verification at Coinmama:

1 Level

You will need to have a valid government-issued identity card, eg passport, national ID or driver's license.

2 Level

Verification to this level requires a secondary form of identification. Basically a utility bill, water bill, bank statement or credit card statement.

3 Level

Here you will complete a form provided which you can obtain by contacting the Coinmama support team.

Conclusion

Coinmama is one of the oldest Cryptocurrencies in the world and has earned a name as a secure platform to buy and sell Cryptocurrencies quickly. It accepts Visa and Mastercard and supports all fiat currencies. Its fast delivery of acquired digital assets and its high spending limits increase its appeal.

Furthermore, a simple and secure 'interface' means that anyone who wants to buy Bitcoin (BTC) can register and proceed without any difficulty. However, the fees charged by credit/debit cards are one of the highest in the industry and this may be enough to discourage some users.

However, these fees can be reduced tremendously through the loyalty program and extra earnings can be made by joining the very successful affiliate program that the platform has.

The reputation and security of the Coinmama exchange continues to grow and set standards of practice for all competitors. If you are interested in joining Coinmama for your cryptoactive purchases, set up an offline wallet – preferably one of the leading hardware wallets – before purchasing coins.

 

Coinmama Exchange

Bank Transfers - 0%

Coinmama is one of the oldest digital currency exchanges in the world and has earned a name as a secure platform to buy and sell digital currencies quickly.

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