Coinmama Exchange Review – Pros, Cons, and Comparisons
Cryptocurrency exchanges are the main point of access for millions of people investing in cryptocurrency. However, the high number of crypto exchanges available at this time can make it hard to choose one.
When you combine this variety with the choosing of a crypto wallet, payment methods, cryptocurrencies, etc, frustration is unavoidable. This is especially true for new traders who might be looking to complete their first investment.
Here at Turbowallet, we have written several reviews on cryptocurrency exchanges. In all of them, we recommend you look at the following elements when considering an exchange:
- Fee Structure
- Purchase/Withdrawal Methods
- Supported Currencies (Fiat and Crypto)
In this review, we will be looking at Coinmama. One of the most user-friendly exchanges you will find. Its simplicity and great customer service make it one of the best exchanges for any new crypto investors. If you have been asking yourself “Is Coinmama safe?”, “Is it the right exchange for me?”, or any other question regarding the previous elements… This review will help you answer them.
What Is Coinmama?
Coinmama is a cryptocurrency exchange that has been around since 2013. It was founded with the objective of facilitating access to cryptocurrency on a global scale. Since then, the exchange has been characterized for being one of the easiest crypto exchanges to use.
While it started as a platform to allow users to buy Bitcoin, Coinmama has expanded its portfolio to support other cryptocurrencies. With over 2.9 million users in more than 190 countries and territories, Coinmama is a favorite among many traders.
The platform is also famous for being one of the first platforms to allow users to buy crypto using credit/debit cards. In addition to credit/debit cards, Coinmama also supports Apple Pay and Google Pay. If you want to use your bank account, Fedwire, SEPA instant, SWIFT (Global), and SWIFT Fast Payment (UK) are supported.
One important thing to consider before using Coinmama is that it is not a traditional crypto exchange. The platform won’t allow you to create orders to trade cryptocurrency. The services provided by Coinmama are intended to allow users to buy and sell cryptocurrency… that’s it. For this reason, the exchange lacks a wallet and other features you would normally associate with exchanges.
If you are looking for exchanges that offer more features and services, we have got you covered. We’d recommend checking out our reviews on Binance or Coinbase. We also have several guides on other exchanges and how to buy crypto using specific payment methods in our crypto section.
Despite these “limitations”, Coinmama remains an excellent crypto exchange for crypto investors looking for simplicity. In this Coinmama review, we will answer all your questions about the service. Is Coinmama safe? What services does it offer? What is the fee structure? Keep reading to find out!
Is Coinmama Safe?
Unlike other cryptocurrency exchanges, Coinmama doesn’t even hold its user’s cryptocurrencies. As you don’t have a wallet on the exchange, hackers can’t steal your crypto if the platform was to get compromised. In a similar manner, your financial information is never stored in Coinmama’s server.
Coinmama requires users to verify their identity upon registration as it is a regulated company. This means the platform needs to comply with good security practices and is liable for security breaches.
However, while Coinmama doesn’t store financial information or user crypto, it has been the target of a hacking attack. Back in February of 2019, a hacker gained access to the email addresses and hashed passwords of more than 400k users. As the passwords were hashed, it is unlikely the hacker gained access to user accounts. However, the exchange promptly informed users, reported the incident, and reset the passwords for affected users.
While this incident might sound alarming, it was not a major incident.
The use of cryptography for the storing of passwords and the way the exchange operates mitigated the risk for affected users. However, the incident is a reminder that users should not reuse passwords between services, as such breaches are not uncommon… This goes both for crypto and non-crypto services.
The answer to the question “Is Coinmama safe?” will depend mostly on your own security practices. However, for all intent and purposes, we considerCoinmama to be a secure crypto exchange to use.
What Features Does Coinmama Offer?
Coinmama is a cryptocurrency exchange based on simplicity. This is the result of its founder’s vision of a platform that facilitates access to crypto. That approach has made the exchange widely popular among new traders… Or those who are just looking for a quick way to buy crypto using debit/credit cards.
The exchange offers two types of services: Buy and sell crypto. That’s it. When using any of these features, you will be required to have created an account first. You will also be required to verify your identity, with the level of verification deciding your spending limit.
The initial verification level requires you to provide your personal information, a photo of an ID, and a selfie to confirm your identity. This will provide you with a limit of $15,000 per month using a debit/credit card.
Both the buy and sell crypto work in the same way. The process will be as follows once you create an account:
How To Use Coinmama.
- Login into your account.
- Click on “Sell” or “Buy” in the main menu.
- If buying, choose your preferred cryptocurrency. If you sell, you will be limited to BTC.
- Create an order by providing the necessary information.
- If buying, you will need to provide your wallet address and choose the payment method.
- If Selling, you will need to provide your bank account information and personal details.
- Complete the transaction.
- If buying, you will need to pay using one of the supported payment methods.
- If selling, you will be provided with a wallet address you will need to send the BTC to.
- Wait for the transaction to complete. Your crypto or fiat will be transferred to your crypto wallet or bank account within an hour.
As you can see, Coinmama is pretty straightforward and simple when it comes to the services it offers, as well as how they are used. This makes it a great fit for most people interested in investing and holding crypto.
How Good Is Coinmama Customer Support?
Coinmama is well known for its great customer support. It is one of the few cryptocurrency exchanges to have a “Great” score on Trustpilot. If you have read some of our other reviews, you know how weird this is.
We admit guiding yourself by online reviews on such platforms is not necessarily the best way to go. However, when it comes to crypto exchanges, most platforms tend to have really low scores. The fact that so many users took the time to provide a crypto exchange with good reviews is just a reflection of the exchange’s focus on quality.
While other exchanges certainly have to deal with more complex situations, Coinmama’s customer service is as good as it gets. While the exchange only offers email support, their reply time is superb, usually taking less than 24 hours to reply.
The platform also has a great help center full of useful articles. With the simplicity of the site and how it operates, chances are you won’t need to contact them.
Does Coinmama Charge Fees?
Coinmama is a centralized for-profit exchange and as such, it charges fees to provide its services. While the exchange doesn’t make use of flat fees, its fee structure is extremely straightforward.
When buying or selling crypto with Coinmama, you will pay a fee depending on your “Loyalty level”. The levels are “Crypto Curious”, “Crypto Enthusiast”, and “Crypto Believer”. To get to the second level, you need to maintain a minimum cumulative purchase of 5,000 USD during the past 90 days. To get to the third level, the minimum cumulative purchase has to be 18,000 USD.
Now, let’s take a look at the fees Coinmama charges for buying crypto:
If you are selling BTC, the fees will be:
It is important to consider that you also might be charged additional fees by your credit card provider. In some instances when buying, an additional fee might be charged if your chosen method requires a locked rate. This last fee will be shown during checkout but can be as high as 5%.
A surprising fact about Coinmama is that at this time, it doesn’t charge fees for using Fedwire, SEPA instant, SWIFT (Global), or SWIFT Fast Payment (UK) as a payment method. However, you should keep in mind that the minimum order amount for these methods ranges from $30 to $500. We recommend you check the minimum order amounts and delivery times here.
What Currencies Are Supported By Coinmama?
Let’s talk about Fiat currencies first. Coinmama technically supports all fiat currencies… However, if you are using an unlisted fiat currency, you might be charged an exchange fee by your bank. Even if you are not charged this fee, exchange rates when using banks tend to be unfavorable.
That being said, Coinmama supports several fiat currencies without you having to worry about exchange rates or fees. These currencies are:
- United States Dollar (USD)
- Euro (EUR)
- Pound Sterling (GBP)
- Canadian Dollar (CAD)
- Australian Dollar (AUD)
- Japanese Yen (JPY)
As we mentioned before, the only cryptocurrency supported when selling is Bitcoin. However, if you are buying crypto, the list of supported currencies is more varied. These are the cryptocurrencies you can buy at this time:
- Bitcoin Cash
Coinmama is one of the best cryptocurrency exchanges for anyone focusing on simplicity. Whether you are starting your journey in crypto or just looking for flexible ways to buy crypto, Coinmama might be a good option for you.
However, if you are looking for features like a crypto wallet, mobile app, staking, or more, you might want to look elsewhere. When comparing Coinmama with exchanges like Binance, Coinbase, Bitstamp, or HitBTC you will find Coinmama lacks features and currency support.
However, Coinmama’s great support, user interface, simplicity, and fast delivery, certainly justify the exchange’s reputation. These elements set it apart and truly make it one of our favorite services out there.
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