Selecting a cryptocurrency exchange can be a daunting task given the plethora of options available. Coinmama stands out as a popular and well-regarded choice, already serving millions of users.
I’m here to provide a concise coinmama review.
This review will cover everything you need to know to start with Coinmama, including a step-by-step guide on creating an account, complemented by useful screenshots. By the end of this review, you’ll be equipped to purchase cryptocurrencies on Coinmama independently. Ready to begin? Let’s jump right in!
Overview
| Headquarters | © Wellfield Technologies. Inc. 2024 666 Burrard St Ste 2500 Vancouver, British Columbia V6C 2X8, Canada |
| Year Established | 2013 |
| Regulation / Ceritifcation | Regulated money service business registered with FinCEN & FINTTRAC |
| Spot Cryptocurrencies Listed | 16 coins listed so far, including Bitcoin (BTC), Ethereum (ETH), Doge (DOGE) |
| Native Token | None |
| Transaction Fees | .99% – 3.99% other fees may apply |
| Beginner-Friendly | Yes |
| Security | 2FA and funds are kept in a cold wallet not held on the platform |
| KYC/AML Verification | Yes (Mandatory) |
| FIAT currency support | USD, EUR as well as, AED, AUD, AZN, BDT, BRL, CAD, CHF, CLP, COP, CRC, CZK, DKK, DOP, DZD, EGP, GEL, HKD, HUF, IDR, ILS, INR, JPY, KES, KRW, KWD, MAD, MXN, MYR, NGN, NOK, PEN, PHP, PLN, RON, SAR, SEK, SGD, THB, TND, TRY, UAH, USD, VND, XAF, ZAR. |
| Payment Methods | Credit/Debit Card, Bank Transfer, Skrill/Neteller, Giropay, PIX, Astropay, Khipu, Webpay, SPEI, PSE |
| Payment Fees | Varies, depends on the card issuer and mode of payment. (covered with an example below) |
| Minimum Order | 4 USD for Credit Card, 5 USD for Bank Transfer and 20 USD for Skrill/Neteller |
What is Coinmama?
Coinmama serves as a “Fiat Gateway,” allowing customers to convert their traditional money into digital currencies. This exchange supports a wide array of national currencies, setting it apart from other platforms that may have more restrictive fiat options. While other exchanges also provide fiat gateway services, Coinmama distinguishes itself by focusing solely on the buying and selling, and swapping of crypto (Crypto staking feature will be launched soon along with trading) without the added complexity of trading.
NOTE: Coinmama will soon offer seamless access to thousands of new financial assets, such as stocks, bonds, CFDs, and ETFs on its platform.
Unfortunately, Coinmama does not offer an iOS mobile application they do have an Android App.
Despite offering fewer features than some competitors, Coinmama’s straightforward approach can be particularly appealing to those new to cryptocurrency, offering an uncomplicated entry point to the market.
Coinmama boasts a global presence, operating in 190+ countries and also available in 48 US states, with a user base exceeding 3.5 million. However, it does have restrictions in certain areas.
Restricted States:
- New York (US State)
- Hawaii (US State)
- Louisiana (US State)
Restricted Countries:
- Abkhazia
- Afghanistan
- Belarus
- Central African Republic
- Crimea
- Cuba
- Democratic Republic of the Congo
- Ethiopia
- Iran
- Iraq
- Lebanon
- Libya
- Mali
- Myanmar
- Nicaragua
- North Korea
- Northern Cyprus
- Palestine
- Russia
- Sahrawi Arab Democratic Republic
- Somalia
- South Ossetia
- South Sudan
- Sudan
- Syria
- Venezuela
- Luhansk and Donetsk (regions in Ukraine)
- Yemen
- Zimbabwe
How Does Coinmama Work?
To get started, you need to create an account and undergo a verification process. As a regulated Money Services Business (MSB), Coinmama requires you to provide certain personal details for Know Your Customer (KYC) purposes. This includes your email address, full name, and residential address, among other information. It’s recommended to create a strong password for your account before submitting your application.
Once you’ve entered your email you’ll receive an OTP on the provided email address.
Coinmama KYC Verification Process
After you have logged in, you’ll be requested to provide documents for KYC process.
1. Select the country and ID type
2. Capture an image of your identification document and upload it when prompted. If you prefer, you can also opt to carry out the verification process using your smartphone for added convenience.
3. Allow the app to access your camera and pass the ‘Presence Check’
4. Submit your personal information and you’re done!
Available Cryptocurrencies on Coinmama
Below is the list of available cryptocurrencies on Coinmama as of 9th-Jan-2024
- BNB Binance Coin (BEP2)
- XRP Ripple
- ADA Cardano
- DOGE Dogecoin
- MATIC Polygon
- SOL Solana
- DOT Polkadot
- BUSD Binance USD
- LTC Litecoin
- SHIB Shiba Inu
- TRX Tron
- DAI Dai
- WBTC Wrapped Bitcoin
- LINK Chainlink
- UNI Uniswap
- XLM Stellar
- BCH Bitcoin Cash
- AAVE Aave
- XTZ Tezos
- AXS Axie Infinity
- SAND The Sandbox
- CHZ Chiliz
- CRV Curve DAO Token
- MKR Maker
- ENJ Enjin Coin
- BAT Basic Attention Token
- HOT Holo
- COMP Compound
- YFI Yearn Finance
- SXP Swipe
- SUSHI SushiSwap
- KNC Kyber Network Crystal
- NMR Numeraire
- PERP Perpetual Protocol
Is Coinmama Safe?
Coinmama is considered a safe platform for cryptocurrency transactions. It is registered with the Financial Crimes Enforcement Network (FINCEN) in the U.S., which indicates its reliability and commitment to preventing fraudulent activities. Coinmama does not store user funds on its platform, which reduces the risk of loss due to hacking. Instead, users must have a crypto wallet to initiate a transfer of funds.
However, it’s important to note that Coinmama experienced a security breach in 2019. Since then, the company has taken measures to enhance its security, including the implementation of two-factor authentication (2FA) and encryption.
Despite these safety measures, users are advised to exercise caution and follow best practices for account security, such as creating strong passwords and regularly reviewing their accounts for suspicious activities.
In conclusion, while no platform can guarantee absolute security, Coinmama has implemented robust measures to protect its users and their transactions, making it a safe choice for those interested in buying and selling cryptocurrencies.
Coinmama Academy
Coinmama Academy is a comprehensive resource for cryptocurrency and blockchain-related information, designed to guide beginners on their journey into the world of digital currencies. It offers a range of guides, tutorials, and articles that provide a simple introduction to essential topics in the crypto space.
One of the key benefits of Coinmama Academy is its educational content. It covers introductory topics in crypto, such as “What is Bitcoin?” and more complex subjects like “What is a Bitcoin Loan?“. This makes it an excellent resource for beginners who are new to cryptocurrency and want to learn the basics before diving into buying and selling.
Coinmama Transaction Fees
When you buy cryptocurrency on Coinmama.com, you’ll have to pay some fees. These include a Service fee and a Network fee for every order you place. The Service fee is what Coinmama charges for its services, and the Network fee is what the blockchain network charges to process the transaction. If you use certain payment methods, like a credit or debit card, you’ll also have to pay a Payment processing fee. For more information related to Fees & Charges, you can read this article here.
When you’re about to buy something on Coinmama.com, you can see the fees you’ll have to pay right at the start. For example, if you’re using a bank transfer to pay 1000 EUR and you’re in the Crypto Believer Loyalty Tier, you’ll see the fees before you confirm your order. (as shown below)
Payment Processing Fee
The Payment processing fee is a combined charge by the credit card issuer, automated clearing house network, interchange, electronic check provider, or other banking institution to process a payment. In simpler terms, this is the fee charged by your bank or card provider to handle the transaction.
Skrill/Neteller
Skrill and Neteller are payment methods that have their own fee structures. The fees depend on the currency and the amount spent. The larger the amount, the smaller the fee to process your payment. This means that if you spend more money, you’ll pay a smaller percentage of that money as a fee.
Other Payment Methods
Other payment providers like Giropay, PIX, Webpay, PSE, Astropay, SPEI, etc each have a different payment processing fee they take. This means that the fee you pay will depend on the payment method you choose. It’s important to check the commission details before you place a transaction to make sure you’re aware of any fees.
Account limits and payment methods
| Payment method | Min amount per transaction | Max amount per transaction | Other max limits |
|---|---|---|---|
| Credit/Debit card | 4 USD* | 20 000 USD | Unlimited |
| Skrill/Neteller | 20 USD | 200 000 USD | 200 000 USD daily |
| Bank Transfer | 5 USD | 10 000 USD | 1 000 000 USD monthly |
Conclusion
As I mentioned earlier in the article, Coinmama platform fees are higher than some other exchanges but since it is a beginner-friendly platform that offers a multitude of payment methods to choose from to people who are new to the world of cryptocurrencies, it’s a great option to start your journey but if you’re concerned about fees then I would suggest that you should consider KuCoin, Phemex and Bybit or Binance (If you’re a Non-US resident and for US residents Coinbase and Kraken are a good option.)
