Coinmama came under our radar due to the fact that the platform is one of the popular exchanges in the cryptocurrency industry. In this article, we investigate the Coinmama’s registration process, verification requirements, service availability, as well as deposit and withdrawal methods. We also analyze the fee structure as to provide you with an accurate guide on how profitable trade within the exchange.
At the end of the review, we provide pros and cons that you can use to benchmark against similar platforms. Throughout the analysis, we use benchmark analysis with examples being Coinbase, BitPanda, and CEX.io.
Coinmama is a cryptocurrency exchange that offers bitcoin and Ethereum for its clients with the help of credit cards. The company is based in Bratislava, Slovakia and has been kicking since 2013. Some sources state that headquarters are located in Israel, while the official license states Slovakia as the main base of operations. The company is owned by an organization called NBV International s.r.o.
The accepted fiat currencies are USD and EUR, while others are converted to the core currencies. If compared to Coinbase, the Coinmama’s support section offers the very little amount of service for customers. You have short FAQ section and ticket system with no live chat available, as you can see below.
Being one of the oldest players in the market, Coinmama is held high in the eyes of the industry, offering simple yet stable services.
Registration at Coinmama is a simple piece of work, as you have to provide several details about yourself. Apart from your email and password, you have to provide your first & last name and country you live in. The entire process takes less than 5 minutes to complete and ends with email verification. You can check out the registration page below.
Verification, on the other hand, is a different thing. Before you will be allowed to buy bitcoins, you have to complete identity check. Much like Coinbase and CEX.io, you have to provide scanned ID and proof of address before you can proceed.
You do have the ability to check services out without verification process if you purchase $150 worth of BTC. Above that number and you are required to provide proofs of your personal information. We consider this a cool feature, as Coinbase and BitPanda would demand documents before you can test them out.
Services offered by Coinmama are available globally, with most countries in the world included. The US is highly regulated, even in the cryptocurrency market, is present as well at this platform. However, it is worthy to mention that not all States are covered. Ones that can (24 of them) are:
- Arizona, California, Colorado, Florida, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Missouri, Montana, Nevada, New Jersey, New Mexico, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Wisconsin
At Coinmama, you can only use Western Union and credit cards to buy cryptocurrencies. The transaction itself takes less than 10 minutes to be completed. The purchase page is geared towards beginners as a platform offers very simple tools for the trade. There is no margin trading at Coinmama, as the buying page below shows.
It is not possible to sell coins at Coinmama while the only withdrawals that are available are crypto-related. The fee for credit card purchase stands at 5% above the exchange rate you see on the screen. The withdrawals come with usual network fee as well.
When compared to other platforms, Coinmama’s costs are slightly higher than Coinbase’s 3.99% for credit card payments. Many other companies, CEX.io being an example, offer bank transfers as well, apart from the credit cards.
Apart from the credit card costs, there are no other fees connected with the exchange services. The company operates through sales only and thus the fees, in combination with the exchange rate, our main sources of revenue.
Coinmama employs 5.5% exchange rate on the bitcoin’s and Ethereum’s price levels form the industry averages. Thus, the difference between the Coinmama and Bitfinex, for example, can reach over $1.000 per one BTC.
To be honest, there are no any security functions and features at all at Coinmama. And that is not an issue as you do not hold any sort of balance on the platform. Transfers are instantaneous since no storage is allowed. This made the exchange quite popular from the very beginning, as you get BTCs and ETHs sent to your wallet as you pay for them.
Companies like Coinbase, Bitfinex, and CEX.io all have to provide several safety tools like 2FA and IP whitelists since they offer wallet services. Coinmama does not and it maintains the image of being a legitimate business.
To our knowledge, there have not been any major security issues or hacking incidents at Coinmama. Neither is it expected, as there is nothing to steal in the first place.
Pros and Cons Coinmama
- one of the oldest cryptocurrency platforms
- almost instant access to coins
- ability to purchase coins without an identity check up to $150
- trade supply deep
- services available worldwide, even in the US
- allows “cash deposits” through the Western Union
- geared exclusively towards starters with no margin trading is available
- only credit cards are available for purchase
- does not support the sale of coins, only purchase
- some US states not available
- limited support functions
- high credit card fees and high rate of exchange value
- above $150 purchase, you are required to verify your identity
Coinmama Review Summary
The Coinmama exchange is quite an expensive place to buy bitcoins from, especially when accounting exchange rate. The interface is geared towards starters while experts would find very little to do at this platform.
On the other hand, the company provides security and instant access to the coins at the cost of your privacy. Thus, we would recommend this cryptocurrency business for beginners who just started learning about the bitcoin. Keep the volumes low when buying from Coinmama, as there are other places that offer the cryptos cheaper.