What is Coinmama?
Coinmama has a considerable following around the globe because it is one of the few brokers now that still allows users to purchase cryptocurrencies with debit and credit cards.
It is in fact not a crypto exchange and is one of the oldest Bitcoin brokers currently in business.
Where it differs from other exchanges is, it doesn’t offer a platform for users to trade cryptocurrencies, or to sell them. Instead, all purchases that are made are transferred to the holdings of the company.
This Coinmama review looks at what isn’t an exchange, it is a Brokerage firm. Is this enough for most people, or do they need to look somewhere else?
It does make buying crypto a lot easier and faster than many other places, and although they might be short on features, this could be enough for new users who want to try their hand.
Where is Coinmama Located?
Although being established in 2013 in Slovakia, the company is now based in Israel. It supports well over 200 countries around the globe and supports 24 states in the USA.
How Coinmama Works?
Coinmama fees compared to many other exchanges are on the high side and run at 5.5% per transaction which is paid to Coinmama. These fees will be included in the cryptocurrency rates listed on their website.
On top of this, there is an additional 5% fee for each transaction made via a debit or credit card and will be added when a user chooses their means of payment. Depending on a user’s bank or card issuer, there could be another fee on top of this.
Transfer limits don’t really exist on Coinmama, because they don’t store anything. The limit you can transfer is basically what you purchase at any given time.
As soon as your card payment has been verified, your cryptocurrency is sent directly to your wallet.
It should be noted that the purchase limits stand at whatever level of authentication you are at. But there is a 3-tier verification level which dictates what you are allowed to purchase.
- Level 1 requires valid government ID and allows $15,000 to be purchased.
- Level 2 allows users to purchase $50,000 and requires 2 ID’s as well as the utility bill or a self of a user holding their ID.
- Level 3 allows users to purchase up to $1 million in USD. This requires the most account verification.
Accepted Payment Methods
Coinmama only accepts two methods of payment, these are debit cards and credit cards. With these restrictions though, they do allow some higher purchasing limits than a lot of other brokers. Users can purchase up to $5,000 worth of Bitcoin per day and up to $30,000 per month.
Unlike other companies, mainly exchanges. Coinmama doesn’t offer any mobile apps, and all access is through their website, nor have they issued an API so users can create custom apps.
About Coinmama verification, Coinmama is falling in line with all of the KYC regulations and is asking for account verification before any purchases can be made.
For the purchasing of more coins, all users will need to pass their verification process. This requires government ID’s for KYC and for AML, passports, national ID’s or driver’s license are required.
As well as this, there is needed personal information such as full name, date of birth, gender, address, and credit or debit card number.
For account verification, both sides of all documents must be submitted. Unlike many exchanges which slow down when they are busy, Coinmama verification time is completed within a couple of hours.
Earlier, it offered the facility of buying only Bitcoin and Ethereum but now has extended support for Litecoin, Cardano, Ethereum Classic, Bitcoin Cash, QTUM, and Ripple (XRP).
Because of the way Coinmama works, it almost guarantees users will set up a secure hardware wallet, and this is down to the fact, they don’t sore funds for any customer.
What it lacks in security features compared to larger brokers and exchanges, it enforces users to take care of their crypto and has gained an outstanding reputation for being an honest, trustworthy and safe broker to use.
Due to the way operates, many people ask Is Coinmama legit? From the way Coinmama conducts their customer service, they are entirely legitimate.
They do have some complaints like many other exchanges also do, but there are no significant issues, and their response times are nearly always within 24 hours.
On top of email support, they also provide an extensive FAQ’s section which can help alleviate many simple issues.
Is Coinmama Safe?
Compared to large exchanges, Coinmama remains quite small on the whole scale of things. But, as of yet, they have not faced any security breaches.
Is Coinmama safe? They appear to be so, and they seem to be doing enough to fend off any attack. However, this might change when they have grown.
Coinmama is registered with FINCEN in the United States as a money service. Also, as it doesn’t hold any cryptocurrencies on a user’s behalf, it appears to so far not to worth hackers trying to break into their system.
This being said, they do hold users card details, which Coinmama says isn’t stored on their exchange server.
Coinmama is very different in the way it operates, and it does make the purchasing of cryptocurrency very easy for a good many people around the world, however, they are only a purchase option for users, so if they are looking to trade, they need to sign up to another exchange which adds another step in their process.
Many might find them limited by only offering a few coins as a way to buy option, but for users who can’t purchase by other means, Coinmama might be the best cryptocurrency exchange to help them get onto the cryptocurrency trading ladder.