Updated · Aug 03, 2022
Best for: Newbie investors
What Is Coinmama?
Coinmama is a cryptocurrency exchange platform that sells digital assets from its inventory and buys bitcoin.
To get started on Coinmama, you need to register with an email address and undergo its Know-Your-Customer (KYC) process. Its team will verify your credentials to ensure you are who you claim to be. Upon passing, you can start buying and selling crypto.
Since its launch in 2013, Coinmama has attracted more than 3.1 million users in over 190 jurisdictions.
Like other crypto services, this centralized platform generates revenue through commissions. But Coinmama’s business is fundamentally different from its main alternatives like Coinbase on many levels. And like many others, it too has had its share of controversies.
So, is Coinmama safe? Is it legit? Worth using?
Let me explain what it does at length and share my thoughts. Then, you can decide for yourself.
Coinmama Leverage, Trading, and Investments
Coinmama is more of a marketplace than a trading platform. It doesn’t facilitate crypto exchanges between third parties. If you buy crypto assets or sell bitcoin on Coinmama, you are trading with Coinmama itself.
You can’t use leverage on Coinmama to increase your crypto exposure, nor can you trade derivatives.
To make bank by trading perpetual contracts and futures in an extremely high risk, high reward manner, consider Bybit instead.
Coinmama has no minimum buy order amount. As such, you can invest as little as you want to get your feet wet with crypto.
The ten virtual coins listed on Coinmama are as follows:
- Bitcoin (BTC)
- Ethereum (ETH)
- Cardano (ADA)
- Ripple (XRP)
- Dogecoin (DOGE)
- Chainlink (LINK)
- Uniswap (UNI)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Tezos (XTZ)
Since Coinmama is the counterparty that fulfills orders, trading volume and liquidity are non-factors. This leads to faster, more predictable transaction settlements.
Coinmama Deposits and Withdrawals
While not a cryptocurrency wallet, Coinmama does offer flexibility.
It has no means to store funds whatsoever and doesn’t keep any fiat balance or crypto credit. Therefore, nothing ever gets deposited, and every transaction results in a withdrawal.
Since zero investor assets stay on Coinmama, you can keep your crypto investments in a place of your choosing.
Understandably, Coinmama’s team doesn’t recommend custodial or hot wallets. This is because they’re considered highly hackable and don’t provide control over your private keys.
Having said that, Coinmama accepts any wallet. It trusts your judgment and won’t stop you from parking your crypto assets in risky locations.
Ultimately, you can enjoy the freedom and flexibility to move your crypto investments wherever you want.
To make a purchase, you can choose from the following payment methods:
- Bank card (credit, debit, virtual, prepaid, or gift)
- Bank transfer
- SWIFT Global
- Faster Payments
- SEPA Instant
- Open Banking
- Google Pay
- Apple Pay
Your chosen method dictates the fiat currency, delivery time, etc. Receiving your crypto in less than an hour is the best-case scenario.
Moreover, you can cash out your BTC and receive your funds via Fedwire or SEPA. Coinmama sets the minimum sell order at $100.
- Specify how much BTC you want to convert.
- Create an order and provide your personal and bank account details.
- Transfer the exact amount to Coinmama’s cryptocurrency wallet address in one transaction.
Unfortunately, sell orders apply to BTC only.
When using this crypto exchange, you need to consider several associated costs. Some are more ambiguous than others, so let me unpack them.
The first one is Coinmama’s commission fee, ranging from 2.93% to 3.90% as per its website. While the customer support representative I spoke with, contradicted these percentages. This individual said that their take is 2.86% – 3.81%.
Mind you, the actual commission depends on your loyalty level.
New users fall under the Crypto Curious category and pay the highest fee.
To qualify for Crypto Enthusiast status, you must spend at least $5,000 within 90 days. This second tier entitles a 12.5% discount on commissions.
To reach the Crypto Believer level, you must meet the minimum purchase amount of $18,000 within 90 days. Spending $50,000 over the life of your account will also get you into this tier. With Crypto Believer status, you’ll be able to knock 25% off the default Coinmama commission fee.
With that said, the rates Coinmama’s crypto calculators display don’t include the commission. The platform first gleans its coin market prices from TradeBlock XBX Index (now CoinDesk Bitcoin Price Index) and then adds 2%.
In short, Coinmama doesn’t set its prices. Instead, it first considers the average rates among major cryptocurrency exchanges and, based on this, calculates its commission.
Bank Transfer Fees
If making payments through bank transfers, you generally don’t have to pay any additional costs. The exception to this rule is SWIFT, which charges around $27 on orders below $1,000. Note that this is payable only in British Pounds (GBP).
Coinmama supports USD, EUR, GBP, CAD, and AUD only. So, your bank may charge you an exchange rate fee if your funds are in a different fiat currency.
Bank Card–Related Fees
If you use a bank card, your financial institution will slap a 5% express fee on your statement. Also known as a momentum or processing charge, it also applies when using Google Pay or Apple Pay. Coinmama will include this fee in the order summary if you pay with Skrill, but only at 2.5%.
A bank card’s express fee is unavoidable, but you’ll get a few perks in return.
Aside from receiving your coin more quickly, you’ll be able to lock in your rate too. This means the buying price of the cryptocurrency remains the same during a specific period.
If your payment goes through within 30 minutes after hitting Buy, Coinmama will honor your chosen rate no matter what.
If Visa or Mastercard labels your payment as a cash transaction, your card issuer could potentially bill you a cash advance fee. Although this can be as high as 5%, it is usually disputable and refunded.
In addition, you have to be mindful of any international transaction fees. Coinmama can’t guarantee the limit of this but advises that it’s typically around 3%. Financial institutions charge this on overseas payments or when a foreign entity processes the transaction.
The crypto amount Coinmama displays when making a purchase includes the network costs it pays the miners or validators.
These expenses vary by cryptocurrency and constantly change due to network activity. What’s certain is that the crypto amount that enters your wallet is less than the one reflected on Coinmama. That’s because the network takes its slice before transferring your coin.
Ease of Use and Interface
This platform is a good gateway into crypto ownership. Considering how fast the Coinmama registration and verification time is, you can get started in no time.
There is one issue to bring to light. Coinmama’s system doesn’t accept all special characters for password creation, and it doesn’t say which ones it allows either.
It didn’t take me forever to generate an acceptable password. But it's preferable not to waste time making multiple incorrect attempts due to not knowing which symbols not to include.
You can view its site in English and Spanish - good news for crypto buyers and bitcoin sellers from Latin America.
The interface of the Coinmama web app is simpler than most. You can purchase any amount you want, with no minimum purchase amount. Using its packages, you can buy $150, $500, or $1,000 worth of crypto immediately.
As mentioned, Coinmama inconveniently does not store funds.
Granted, crypto educators preach the dangers of custodial wallets. But having the option to deposit digital assets and withdraw them to external wallets would’ve made currency conversions truly instantaneous.
With that said, it's difficult to get too frustrated about the company’s advocacy of self-custody. Sure, the process of confirming your cryptocurrency wallet address can be tedious and stressful. But on the upside, it’s how you learn to adequately safeguard your crypto assets.
Coinmama Mobile App
Does Coinmama have an app for mobile devices?
For the longest time, this software was browser-based only. But in August 2021, its developers launched a mobile app on Google Play. To date, it has 10,000+ downloads.
So far, Coinmama’s Android app doesn’t do anything extraordinary. It’s merely a clunky version of the original cloud app.
Since its rollout, it has yet to be updated, resulting in no known bugs being fixed. No wonder why 83 Coinmama reviews have it rated at a measly two stars on average.
There’s still no word whether iOS and iPadOS apps are in development.
Coinmama is no stranger to cyber attacks. For this reason, it employs the following measures to protect identities and prevent unauthorized access to accounts:
Strong Password Policy
When it comes to passwords, Coinmama demands at least eight characters. You must use a combination of letters in upper and lowercase, numbers, and symbols. One unique character is sufficient.
If you think that your login details are compromised, you can easily reset your password at any point.
As mentioned earlier, the Coinmama team conducts identity verification to prevent con artists from creating accounts.
You need to fill out the registration form and provide the requested personal information to pass the basic level.
In addition, you have to upload an image of any personal government-issued ID. You also must send a selfie while holding your ID and a note with “Coinmama” and the current date handwritten on it.
This KYC procedure may be a bit inconvenient, but it’s a necessary sacrifice to combat fraud and keep regulators happy.
If you find this process somewhat cumbersome, you’d be glad to know that Coinmama boasts a fast verification time. Usually, you only need to wait 10 minutes at best and a couple of hours at worst.
You can create orders only after confirming your email address and receiving your identity verification. By default, your combined buy and sell transaction amount limit is $15,000.
To increase the cap to $50,000 or $1 million, you must complete more rounds of Coinmama verification. To pass, you need to satisfy Coinmama’s minimum spend and additional KYC requirements.
Activating 2FA makes life more difficult for fraudsters to take over your account. This feature triggers Coinmama to request additional information before completing any buy or sell order.
To set up 2FA, you have to use a mobile authentication app. This program generates six-digit codes used for green-lighting transactions.
If someone accesses your account remotely, this person won’t be able to do anything without the code.
Signup with a Masked Email Address
While not a security feature per se, Coinmama allows you to mask your email address upon registration. As such, you don’t have to provide your actual email address, providing a layer of anonymity in case of future hacking.
During testing, this platform accepted the masked email address I generated using Blur.
Is your data with Coinmama safe?
Nevertheless, based on its European registration - the Coinmama team strives to protect its users' personally identifiable information transferred within or outside the union.
Likewise, it doesn’t retain data more than what’s necessary. And it respects the rights of its users to access, correct, update, and delete their personal information.
Is Coinmama Legit?
A resounding yes!
Its owner is New Bit Ventures Ltd., whose headquarters are in Ramat Gan, Israel. The older Coinmama reviews from 99Bitcoins, and FX Empire still say that its operator, Cmama Ltd., is based in Slovakia. But the truth is that this New Bit Ventures Ltd. subsidiary sits in Dublin, Ireland.
In 2019, Coinmama made headlines after suffering a major data breach. The incident was reportedly part of a broader attack that targeted sites using the open-source PostgreSQL database software.
The hackers stole email addresses and hashed passwords, later posting them on the dark web - impacting about 450,000 users.
Fortunately, Coinmama doesn’t have custody of crypto investors’ funds nor keeps its users’ payment details.
Although Coinmama is relatively safe to use, many governments have banned it. Presently, the platform is unavailable in 17 jurisdictions, including some U.S territories. Interestingly, users in Israel can’t use this crypto service directly or indirectly.
So, is Coinmama available in the USA?
Yes, it’s available in 48 US states. Though, the company relies on partners to serve 15 of them.
But is Coinmama available in New York?
No, it isn’t. The Empire State is one of the only two US states this crypto broker can’t operate in at the moment. The other is Hawaii.
Technically, Brazil, Japan, Mexico, Nigeria, and Zimbabwe are Coinmama–supported countries. But if residing in any of these five jurisdictions, a third-party platform is necessary to complete your transactions.
Coinmama Customer Support
Coinmama provides no live support.
You can reach its help desk through email. And if you have any questions or concerns, you can submit a support ticket or send a direct message.
I had some back-and-forth correspondences with Coinmama’s Happiness Heroes. And I was reasonably satisfied with their responsiveness.
The only issue I had was that they’re a bit cagey. I couldn’t get a straight answer when I asked how Coinmama handles network fees. For some reason, they tiptoed around the topic instead of telling me outright that I must pay them.
My above-average crypto knowledge allowed me to read between the lines. While first-time crypto buyers may be naive to shoulder the payments to the miners or validators.
Furthermore, Coinmama has a California mobile number you can call to leave a message. Domestic or international call charges may apply.
Coinmama has a social media presence too.
In crypto, it’s a given that companies have a LinkedIn account. But this brand is primarily active on Twitter.
There’s also a Coinmama channel on YouTube, but I’m skeptical about its legitimacy.
It only has 23 subscribers, and its videos hardly get any views. And judging by its uploads, it's been active for just two months. Due to glaring video title misspellings and dedicated content for other products, I presume that this Coinmama channel isn’t legit.
On Facebook, there are two pages named Coinmama with the brand’s official logo. The first one seems more credible, but it hasn’t posted anything in 2022 yet.
Coinmama’s reps occasionally respond to positive and negative testimonials on Google Play and Trustpilot.
In terms of self-help options, Coinmama has a decent knowledge base. It has a dedicated FAQ page and a library of bite-size articles about different topics. Though, some pieces of information are inconsistent.
Let’s look at how Coinmama compares to other popular cryptocurrency exchanges: Coinbase, Binance, and Kraken.
Coinmama vs. Coinbase
Both are crypto brokers that let you buy and sell digital assets using a browser or a mobile app. The main difference is that Coinbase also acts as a funds custodian and delivers merchant support.
To neutralize the risk of storing cryptocurrencies, Coinbase provides insurance. And it keeps 98% of the crypto investors’ funds in cold storage.
If you don’t want to entrust your crypto investments to Coinbase, you can download the non-custodial Coinbase Wallet. The former is directly integratable with the latter, so you can seamlessly move your funds between the two.
Are there cryptocurrencies you can purchase on Coinbase that you can’t buy on Coinmama?
Yes. A ton, actually.
Coinbase has 145 tradable assets, a staggering 1,350% more than what Coinmama lists. Take note XRP enthusiasts, it’s only available on the latter platform.
Coinbase’s US registration explains why it dropped XRP and why it can’t serve any location it wants. So, don’t be surprised that the Coinmama–supported countries and territories list is longer by about 90 jurisdictions.
Neither is an absolute winner when it comes to Coinmama fees vs. Coinbase ones.
Coinmama’s clock in at a steep 2.93% - 3.9%, while the latter charges a manageable .5%. But on top of that, it charges users an extra fixed fee of up to $2.99.
Daily transaction limits differ between the two, with Coinmama allowing for up to $50,000, while its rival only authorizes a maximum of $25,000.
Concerning account security, both services support 2FA. But only Coinbase allows fingerprint login.
The help desk is reachable via email or phone if you encounter any problems. However, Coinbase has come across as less responsive than Coinmama.
When checking the accepted payment methods of Coinbase vs. Coinmama, the latter has the edge since it allows digital wallets. But if you live in the US, you can buy crypto on Coinbase via ACH.
Coinmama vs. Binance
These two brands are worlds apart.
Using Binance, you can acquire 100+ cryptocurrencies using various trading pairs involving US-pegged stablecoins. Other than spot trading, it lets you trade derivatives with leverage too.
With Binance’s P2P marketplace, you can buy and sell crypto assets with others using dozens of fiat currencies.
If you’re a developer that wants to raise funds, you can use Binance as a launchpad for your crypto project.
While with Coinmama, you can buy ten different assets and sell bitcoin for fiat money. And that’s it.
Binance and Coinmama are legit exchanges. But the latter’s crypto calculators have got nothing on the former’s insightful price charts.
Unlike Coinmama, Binance has its own token (Binance Coin or BNB), wallet, and Visa-powered payment cards. This Malta-based crypto exchange permits other cryptocurrencies and non-crypto payment methods to initiate transactions. But using its very own products comes with benefits.
For example, you can bring your transaction fees down from 0.1% to 0.075% if you use BNB. Not even Coinmama’s lowest commission expense of 2.93% can match that rate.
However, Binance conducts bill withdrawals, which vary by asset. For instance, 0.0005% of any BTC you want to move out of the platform goes to Binance’s coffers.
In terms of spending caps, the daily Coinmama limits of $15,000 to $50,000 far exceed Binance’s $987 – $9,076.
Coinmama has expansive coverage with over 190 countries and territories. Ditto for Binance with 180 plus.
Naturally, Binance has superior security. Coinmama’s only advanced account protection is 2FA, while the former includes address whitelisting and anti-phishing codes, among others.
When it comes to customer support, Binance offers most essentials, including live chat. But its help desk may make you wait for days for an email reply. Meanwhile, Coinmama responds within hours.
Coinmama vs. Kraken
Kraken shares some similarities with Coinmama.
Although it stores funds, Kraken has no cryptocurrency wallet either. Both exchanges help high-net individuals build and manage six or even seven-figure crypto portfolios.
The parallels between the two end here. The consistent advantage of Coinmama vs. Coinbase and Binance doesn’t apply to Kraken’s daily transaction limits.
Coinmama’s maximum spending cap of $50,000 is just a fraction of Kraken’s $10 million crypto withdrawal ceiling.
Functionality-wise, Kraken supports spot and margin trading and has a dark pool made up of massive buy and sell orders.
Additionally, Kraken supports more cryptocurrencies (50+ vs. 10) and fiat currencies (8 vs. 5) than Coinmama.
Kraken also implements many extraordinary security measures, while Coinmama only uses 2FA.
Kraken’s support reps beat the folks at Coinmama any day. The former possesses expertise and professionals on another level, with responsive live chat service 24/7.
Coinmama’s least expensive commission of 2.93% is daylight robbery compared to Kraken’s lowest spot trading rate of 0%. But you need to be a maker with a 30-day trading volume of over $10 million to pay nothing on trades.
And is Kraken, like Coinmama, available in the USA?
Yes, in the sense that it serves 48 states too. But no, because of its restrictions in the states of New York and Washington.
In global reach, Coinmama has the clear upper hand. Its service covers 190 plus countries and territories, about 20 more than Kraken’s footprint.
Here’s where Coinmama shines a little more.
Kraken seems to have a diverse portfolio of payment methods since it accepts cash. But it’s actually averse to credit card and debit card deposits as well as third-party payment processors.
On the contrary, Coinmama approves of bank cards, wire transfers, and digital wallets.
Coinmama Review - Verdict
Coinmama is the perfect crypto exchange if you don’t want to think about trading volume, liquidity, and any other counterparty.
The convenience it provides comes at a price. But you’d appreciate its above-average daily spending limits and zero minimum buy order amount when stacking sats after a dip.
The downside is that Coinmama only supports a few cryptos. At the moment, it’s impossible to get exposure to emerging large-cap crypto assets like SOL, DOT, and AVAX. Its refusal to take payments via Discover, American Express, and PayPal can also be annoying.
Nevertheless, its KYC procedure is fast, and its email support is super responsive.
Although it includes the miner or gas fee in the amount, remember that Coinmama doesn’t specify it in the order summary. Be mindful of this to help set your expectations when using this no-frills platform.
Is Coinmama safe and legit?
Coinmama is a legitimate platform.
The Israel company New Bit Ventures Ltd. owns it, and its Ireland-registered subsidiary Cmama Ltd. operates it.
Although Coinmama has been a data breach victim in the past, it doesn’t store crypto investors’ funds. It transfers purchased crypto assets to your external cryptocurrency wallet. So ultimately, you’re in charge of the safety of your coins.
To help prevent unauthorized account access, it implements a strong password policy and supports 2FA. Plus, you can easily reset your Coinmama password if suspected of being compromised.
It lets you use a masked email address upon registration to protect your privacy. It also asks for reasonable KYC requirements to keep identity thieves from setting up accounts.
How long does Coinmama take to process?
Your coin should land in your cryptocurrency wallet within one hour if you use any of the following payment methods:
- Google Pay
- Apple Pay
- Open Banking
- SEPA Instant
If you go with Faster Payments or SEPA, you can expect your coin to arrive within 24 hours. But if you do a bank transfer via Fedwire, it usually takes two business days. The average delivery time is even longer with SWIFT transactions, typically completed within 3 to five business days.
Which is better Coinbase or Coinmama?
Coinbase is perfect if wanting to choose from dozens of digital assets. It can store your funds at no extra charge and convert your cryptos back into fiat more easily. While it doesn't support digital wallets like Google Pay, Coinbase’s transaction fees are merely 0.5%.
Coinmama only sells ten cryptocurrencies, but it enables you to purchase them at higher limits. This platform is available in over 190 jurisdictions, nearly double Coinbase’s reach.
Read this eye-opening Coinmama review to learn more about how it compares to other leading cryptocurrency exchanges.
Romj is a veteran copywriter who used to be a Jack of all trades. Now, he's trying to be a master of one: technology. He jumps down the rabbit hole to size the latest innovations up. As a content contributor for TechJury, he hopes to help you keep up in our fast-paced world with his discoveries.
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