Coinmama Review 2022
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Though Coinmama is not an Australia-based crypto exchange, it is still one of the best crypto exchanges that you can use in Australia to buy, sell, and trade digital assets.
The exchange boasts robust safety, security, as well as superior customer support as you learn to navigate the crypto space.
Aside from these, Coinmama also sports a lot of trading features that will let you easily trade. Read on, and find out what Coinmama can really bring to the table!
Table of Contents
Coinmama Exchange Info
- Website: coinmama.com
- Country: Slovakia
- Mobile app: Available
- Deposit Methods: Debit or credit card
- Trading Fees: Around 6%
- Fiat Currencies: US Dollars
- Cryptocurrencies: Supports major cryptocurrencies
- Discount of up to 25% on fees via the Coinmama loyalty program
- Various payment methods available
- Available in 180+ countries
- Quick account verification
- Accepts almost every fiat currency
- High spending limits depending on verification level
- Buy 8 popular crypto and tokens instantly
- Coinmama charges are based on the market rate of TradeBlock’s XBX Index plus 2%
- 24/7 customer support via live chat and email
Pros of Coinmama
- Fast verification
- Offers access to 10 cryptocurrencies
- No fees for crypto deposits or withdrawals
- Range of payment options
- Strong focus on security
- Longevity in the cryptocurrency space
- Platform simplicity
Cons of Coinmama
- It doesn’t allow crypto-to-crypto transactions
- Higher fees than some other providers
Cryptocurrencies are currently having a massive influence over the world of economy, and it doesn’t seem like they’ll be slowing down anytime soon. We witnessed the monumental success and growth of Bitcoin and Ethereum in the past couple of years, and they’re still going strong. Their unique properties, like the store of value systems and no double-spending mechanisms, have made them a desired addition to the trading portfolios of countless investors.
If you’re a new user looking for a way into the cryptocurrency investments scene and are looking for a legitimate cryptocurrency broker to conduct your business, then a cryptocurrency exchange like Coinmama is one of the best choices for you.
To start things off, we’ll say that Coinmama is an Israeli-based cryptocurrency exchange that offers most of the major cryptocurrencies as well as industry-standard safety features, various payment and deposit methods, reliable customer support, and more.
In today’s review, we’ll delve a bit deeper into Coinmama and learn all about its quirks and features and determine whether it truly is the right cryptocurrency trading platform for new and potential investors.
Keep reading our review to find out more about Coinmama. We’ll include an overview and then discuss its ease of use, trading fees, supported currencies, customer support, and more.
About the Trading Platform
Coinmama (coinmama.com) is an Israeli-based cryptocurrency exchange/broker founded in 2013. It’s one of the older cryptocurrency trading platforms released only four years after the appearance of Bitcoin. Unlike other crypto exchanges where deals are mediated between buyers and sellers, Coinmama is an actual cryptocurrency broker that sells crypto directly to a buyer.
Coinmama hosts more than 2 million satisfied customers located in more than 180 countries worldwide, 43 of which are in the United States. The platform is registered as a company called Cmama.LTD in Dublin, Ireland and regulated by FinCEN as a legitimate Money Service Business. The company Cmama.LTD is the daughter company of New Bit Venture.LTD, which is headquartered in Israel and owns the Coinmama brand and trading platform.
This trading platform allows users to purchase and sell tokens from different cryptocurrencies through a plethora of payment methods, including Google Pay, Apple Pay, Skrill, Mastercard, or Visa credit card and debit card transfers, bank transfers, and wire transfers like SEPA and SWIFT. For selling crypto, Coinmama allows users to sell coins even if they purchased them from different trading platforms and coin payments go directly to the seller’s bank account. The best thing is that this platform doesn’t store any customer funds or any payment information, so users have total control of their fiat and crypto assets.
Before you can start trading on Coinmama, you’ll have to create a Coinmama account. For the initial process, you’ll have to fill out several fields with an email address, phone number, full name and surname, date of birth, and residential address. This verification process should not take more than 30 minutes, but for a fully KYC verified account, you’ll have to provide a digital copy of your ID documents like ID card, driver’s license, utility bill, or bank account statement and submit a selfie with additional credentials.
Ease of Use
Once the account verification has been settled, users can start purchasing or selling cryptocurrencies. After logging in, users should select their chosen coin for purchasing. The platform’s trading view displays all of the trading options, while the exchange rates are conveniently converted in the user’s native currency. To purchase crypto, all users have to do is select their chosen crypto, choose the payment options, provide the wallet address to which they want their coins delivered, and complete the transaction.
The exchange rates are neatly displayed in 6 fiat currencies: USD, EUR, GBP, JPY, CAD, and AUD. A small disclaimer: Coinmama accepts fiat payments in any currency but might charge a fiat conversion or exchange fee if users pay with something alternative to these displayed currencies. Payments to buy Bitcoin can be executed via a plethora of ways including SEPA bank transfers, Faster Payments, SWIFT, credit cards, debit cards, and Apple payor bank transfers. Payments with American Express, PayPal, Discover, and wire transfers aren’t yet supported. Any purchase from Coinmama should be finalized within an hour.
To sell Bitcoin, users must be located in a European country that supports SEPA accounts. The process of selling is rather simple and all users have to do is log in, select the “sell” prompt, and enter the amount of Bitcoin they wish to sell. The coins from the user’s wallet will be transferred to Coinmama by entering Coinmama’s wallet address or by scanning a QR code. Unlike crypto purchases that finish within an hour, fiat payments should arrive on the user’s bank account in a couple of business days.
Coinmama doesn’t mediate between various buyers and sellers. Instead, all business is conducted between Coinmama and a user, for both purchases and sales. There isn’t any crypto-to-crypto trading and users will always get paid for selling Bitcoin in Euros.
Bitcoin and Other Supported Currencies
The Coinmama cryptocurrency trading platform supports most of the major cryptocurrencies on the market, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum Classic (ETC). Apart from the most sought-after cryptos, Coinmama supports some other interesting coins and tokens like Cardano (ADA), EOS.iO (EOS), Qtum (QTUM), Ripple (XRP), and Tezos (XTX).
Coinmama Fees and Limits
The market rate on Coinmama is built upon the average market listings on TradeBlock XBX, with an addition of 2%. Purchasing crypto on Coinmama has a commission fee of up to 3.9%, and for Bitcoin, the fee is 0.9%. These fees can be considered high, but the simplicity of dealing with Coinmama as a direct broker instead of trading with other users is the trade-off. If you use credit cards or debit cards for purchasing crypto, then you get charged an additional 5% fee, which is called the momentum fee. On the other hand, SEPA bank transfers don’t incur additional fees, but SWIFT bank transfers incur trading fees if the order amount is under $1000.
In terms of limits, some minimum purchase thresholds are present on the Coinmama platform. When a user wants to purchase Bitcoin, they would have to purchase at least $60 worth of crypto or the equivalent in any of the other currencies supported on the platform. The maximum purchasable amount will vary depending on the account level. The regular limit is capped at $5000 per day but Level-1 accounts can reach up to $15.000 per day.
The account levels depend on the information provided by the user. We’ve discussed earlier what types of credentials users would have to provide in order to navigate through the tiers of account verification.
Level – 1 requires users to send a copy of a government-issued document like an ID card, driver’s license, or passport. Additional methods may seem unconventional as users have to post a selfie holding the document as well as a note with Coinmama written on it along with the current date.
Level – 2 requires users to post an additional document that has some credentials about them like address and full name. These documents can include a utility bill or a bank statement.
Level – 3 requires both Level-1 and Level-1 verification documents and methods, as well as an online form that must be filled out by the user and later verified by Coinmama.
Coinmama Loyalty Program
The high fees on Coinmama seem like a major drawback to the exchange and users might be swayed to take their business to some other platform like Binance or Kraken that offer lower fees and more cryptocurrencies to trade. To combat this, Coinmama has implemented a Loyalty Program for fee savings. This feature was put to use in 2019 and has three levels for loyalty fees that have interesting names instead of just being named Level.
Crypto Curious: these users are beginners on Coinmama and have to pay the full fees that can amount up to 10.9%.
Crypto Enthusiasts: The Enthusiast level can be reached through a cumulative purchase that amounts to $5000 over a 90-day period. This level saves users a total of 12.5% of Coinmama fees, and Enthusiasts can enjoy faster customer support replies and assistance.
Crypto Believers: The Believer level can be reached through a cumulative purchase that amounts to $18.000 over a 90-day period. Spending more than $50.000 will also boost users directly to this level. Believers can save up to 25% on Coinmama fees and enjoy VIP customer support treatment for any issues.
Is Coinmama Safe to Use?
Coinmama applies strict KYC identity verification to prevent anyone from using a user’s credentials to create an account on the platform. The KYC verification operates through a regulated company that utilizes industry-standard security features to keep any financial and personal information private.
The Coinmama company has its headquarters in Dublin, Ireland, and recently, in Slovakia. The platform is under the leadership of Cmama.LTD, a subsidiary of New Bit Ventures LTD. The Cmama LTD company is registered under FinCEN.
Every transaction on the platform is processed by New Bit Ventures and the platform uses 3D Secure authentication similar to the Verified by Visa and SecureCode. No information about users and credit/debit card details is stored in the Coinmama database. Additionally, Coinmama doesn’t store any assets or funds on the platform, so the only one responsible for their safety is the respected owner.
Despite the fact that the platform is suited for beginners and it’s very easy to use, if you’re trading on an exchange, it’s likely that you’ll encounter at least a minor issue at some point – that’s a given. But the good news is that Coinmama is happy to help you resolve it. The Coinmama company has a dedicated support staff that can be reached via email at [email protected]. The team usually responds to queries and offers assistance within a 24-hour time frame.
Alternatively, users can reach the support team via their live chat during working hours Sunday to Thursday from 9:00 to 18:00 GMT+3. Coinmama doesn’t have direct phone call customer support. Still, they offer an extensive FAQs page and a blog with many crypto-related articles that can provide education and insight for new users.
A Few Words Before You Go…
To sum things up, Coinmama is a great platform, especially for beginners. The platform boasts a very easy-to-use interface, doesn’t mediate trades between users, and opts for brokering both sales and purchases directly with a user. The platform is safe to use and is under full regulation from FinCEN. The whole process of buying and selling crypto is simplified, and even fresh-off-the-crypto-boat users can learn to use the simple interface and navigate between sales and purchases with ease.
Where Coinmama falls short is with their fees. Because they are a brokerage, they must generate their income with more significant fees. It’s not that they’re being unfair because a user can conduct a crypto transaction within an hour without having to meet with other users on the network and generate maker and taker fees. They also don’t store any assets on their database and all assets and funds go directly to the user.
Another area where Coinmama seems to drop the ball is mobile – they don’t have a mobile app, but maybe we will see them add this to their stack in the future. All in all, Coinmama is a great brokerage crypto platform. If the fees seem a bit steep, potential users should take a closer look at the loyalty program for fee savings and take things from there. Joining Coinmama is free, so we recommend that you try it out after reading our review.
frequently asked questions
Until recently, Coinmama didn’t provide any type of mobile app support on their platform. Currently, they only offer an Android mobile device app, but it’s nothing special and needs a whole lot of work and updates to be up to par with some competing exchanges. The app can be downloaded for free on the Play Store but leaves a lot to be desired.
Unfortunately not. Coinmama doesn’t offer any type of digital storage device, and any purchased coins will have to be transferred into the user’s personal crypto wallet. Beginners who don’t yet have a wallet can read more about them in Coinmama’s blog we mentioned earlier.
It’s a no for this one too. Non-deposit investment products like Coinmama are not ensured by the FDIC but the company is fully regulated under FinCEN.
The website allows users to make use of credit or debit cards to pay for purchases which is a relief to anyone who has tried to purchase cryptocurrency through wire transfer. There is no need to sign up your debit or credit card details on the site. It is possible to enter it in the checkout process. Coinmama does not keep the details of your credit card through their systems, which means you’ll have to repeat this procedure each time you make an order. Once the transaction is complete the cryptocurrency will be delivered to the user and is later accessible for transfer to their personal wallet. SEPA as well as SWIFT bank transfers are also available.
Coinmama is available to all countries, except for those under sanction for example, North Korea and Syria. The majority of purchases are either USD or EUR which are changed to local currency according to regional exchange rates. Anyone with an active Visa or MasterCard card from any country that is not sanctioned can purchase through Coinmama.
With regards to America, there are a few states that have been supported by Coinmama. United States, there are just a handful of US States that currently are supported by Coinmama. They include Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin and Wyoming.
|Exchange||Deposit Methods||Fiat Currencies||Cryptocurrencies||Trading Fees||Sign Up|
|PayID, Osko, Debit Card, Credit Card, Cryptocurrency, Bank Transfer||AUD / NZD||320 +||0.6%||Visit|
|PayID, POLi, Cryptocurrency, Cash, BPAY, Bank Transfer||AUD||370+||OTC: 0.1% Instant buy/sell: 1%||Visit|
|PayID, Osko, Debit Card, Credit Card, Cryptocurrency||USD, AUD, CNY, EUR, CAD, GBP, UAH, NGN, TRY, RUB||600+||0% – 0.1%||Visit|
|Crypto, electronic funds transfer (EFT), wire transfer, bank transfer, debit card/credit card||50+||160+||0.1% to 0.6%||Visit|
|Google Pay, Apple Pay, Debit Card, Credit Card, Cryptocurrency, Bank Transfer, Cash||AUD, GBP||50+||Taker: 0.04-0.1% Maker: 0.04-0.1%||Visit|
|PayID, Osko, POLi, Cryptocurrency, Bank Transfer||AUD||300+||0.1% – 0.5%||Visit|
|SWIFT, EFT, PayID, Osko, Cryptocurrency||USD, AUD, NZD||27||0.05% – 0.5%||Visit|
|Skrill, Online Banking, PayPal, Neteller, Debit Card, Bank Transfer||USD, AUD, EUR, NZD, GBP, HKD, CAD, CHF, NOK, SGD, and 5+ more||70+||Vary (overnight and weekend fees apply)||Visit|
|SWIFT, Google Pay, Apple Pay, SEPA, Osko, Wire Transfer, Cryptocurrency, Bank Transfer||AUD, USD, GBP, EUR, CAD, JPY, CHF||140+||Taker: 0.10% – 0.26% Maker: 0.00% – 0.16%||Visit|
|SEPA, Debit Card, Credit Card, Wire Transfer, PayPal, Cryptocurrency||AUD, EUR, USD, RUB, GBP, KRW, CNY, VND, TRY||645+||0.1%||Visit|
|Bank transfer, POLi, OSKO, P2P||AUD||100+||Taker fees: 0.5% – 1.6% Maker fees: 0.5% – 1.6%||Visit|
|Crypto, Bank Transfer, PayID||AUD||410+||Taker fees: 0.85% Maker fees: 0.85%||Visit|