Deciding which cryptocurrency exchange to use can be difficult as there are hundreds of different options to choose from. However, one of the most popular and favored exchanges is Coinmama. So, many search for a Conmama review.
So, I thought I’d do a little review on it.
In this Coinmama review, I am going to give you all the information you need before getting started. I will also provide you with a step-by-step guide on how to set up an account, along with some helpful screenshots.
So that by the end of this Coinmama review, you will be ready to go and buy some coins on your own!
What are you waiting for? Let’s dive in!
Table of Contents
What Is Coinmama?
Let’s start this Coinmama review from locations. Coinmama is a cryptocurrency broker exchange that is located in Israel. Originally created in 2013, the website explains that they offer a fast, safe and fun way to buy digital currency from anywhere in the world.
In fact, it serves all countries apart from those sanctioned, such as North Korea. However, at present, only 23 U.S. states can use their services, which can be found below.
Arizona, California, Colorado, Florida, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Missouri, Montana, Nevada, New, Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Wisconsin
Since Coinmama was launched, more than 500,000 customers have bought coins from the website. Doesn’t that just show you how much the cryptocurrency industry is growing!
Coinmama Review: Advantages
✓ Everyday Payment Method
One of the most frustrating parts of buying cryptocurrency is that so many exchanges don’t allow you to use fiat money. Instead, they normally ask you to deposit using another cryptocurrency (such as Ethereum), which you obviously can’t do if you don’t have any! So, this is a positive aspect in this Coinmama review.
At Coinmama, you can use your debit or credit card to buy cryptocurrency directly from the website. This is just like ordering your weekly groceries online, but instead of buying food, you are purchasing digital assets!
Personally, I’d rather buy digital assets than food anyway ;p
Almost every major bank issues debit and credit cards backed by Visa or MasterCard, so you shouldn’t have any problems buying from Coinmama, providing you have a bank account!
✓ Instantly Receive Your Coins to Your Personal Wallet
When you use other cryptocurrency exchange brokers like Coinbase, your coins are stored instantly inside your Coinbase wallet (which isn’t the securest of places). This means that you then need to send them to your personal and more secure wallet after purchasing your crypto.
However, when you enter you card details and make a purchase with Coinmama, your coins are sent to your private wallet as soon as the payment goes through! This is a much safer option for you as third-party wallets are known for being hacked.
✓ User Friendly Platform
Most cryptocurrency exchanges can be really scary when you are just starting out. There are always lots of graphs, charts and statistics — making things seem complicated. Not only this, but you also have lots of different options such as market orders and kill-or-fill orders. Another point to the Coinmama review pros list.
Fortunately, Coinmama make the buying process really simple. All you have to do is open and verify your account, enter your card details and choose how many coins you want to buy. No previous knowledge of trading is required to purchase cryptocurrency from Coinmama.
✓ Really Helpful Support Team
If you have a problem with your account and need some help from the Coinmama team then you have a few support options to choose from. The best way to contact them is through live chat though, however, this is only available during business hours, which I have listed below. A huge plus for this positive Coinmama review.
If you need to contact them outside of these hours, you can either send an email, raise a support ticket or even contact them on Facebook! However, after taking a deeper look through their website, I noticed that most of the common problems are answered on their FAQ page.
✓ High Levels of Security
It’s a real shame that most cryptocurrency exchanges are not regulated by any governmental department, however, Coinmama is in fact registered with FINCEN in the U.S. This shows that the exchange is very reputable and that any fraudulent activities on their site will be investigated accordingly.
As of March 2018, Coinmama has never experienced any hacks and they keep all of their debit and credit card numbers on a different server.
So, now that I’ve listed some of the advantages, let’s take a look at some of the disadvantages in this Coinmama review.
Coinmama Review: Disadvantages
✗ No Option to Sell or Trade Coins
Coinmama is quite unusual as it only allows you to buy cryptocurrencies, not sell or trade them. Whereas broker exchanges like Coinbase allow you to sell cryptocurrencies back to them for fiat money.
So, if you want to trade your coins for a different cryptocurrency at a later date then you will need to use a different broker exchange.
✗ Credit Card Fees
As I mentioned earlier in the advantages section of this Coinmama review, one of the greatest features is that you can easily use your debit or credit card to purchase cryptocurrency. However, you should be warned — the fees are quite expensive!
To use your card, you will have to pay an extra 5% fee on top of the rate that Coinmama charge. However, it is worth remembering that no matter which cryptocurrency exchange you use, if you want to pay with your debit or credit card then there will always be extra costs.
✗ Coinmama Fees
On top of the fees you will be charged when using your card, you will also be charged an average fee of 5.5% for every transaction you make! The exact fee will depend on the amount of coins you want to buy, and this seems to change without notice.
This can become really expensive if you’re purchasing cryptocurrencies in large amounts or on a regular basis. However, you also have to remember that no matter where you buy cryptocurrency, if you are using real-world money (which you will have to if it is your first time) then there will always be fees involved.
✗ Only Two Coins to Choose From
The only two coins that you can buy from Coinmama is Bitcoin (BTC) and Ethereum (ETH). When you compare this to other exchanges that have more than 200 coins available, this is quite poor.
However, as I explained earlier in my Coinmama review, Coinmama is a broker exchange which means that you are actually buying directly from them with fiat money.
So, even though you can only purchase the two most popular cryptocurrencies, both BTC and ETH will allow you to trade with all the smaller, less popular cryptos.
Coinmama Review: Verification
When Coinmama first launched, you were able to buy up to $150 worth of cryptocurrency without uploading any ID. However, as governments have become stricter, you can’t buy any coins without verifying your account first.
The process is quite simple as you only need to confirm your personal details and then upload some form of ID. You will also need to take a selfie of you holding the ID, which is to make sure you are who you say you are.
As for Coinmama verification time, accounts are normally verified within a couple of hours, so you will just need to wait until you receive an email. However, once this is done, you can buy up to $15,000 in coins without needing to provide any more information.
In the next section of this Coinmama review, I will show you how to verify your account.
Coinmama Review: Step-by-step Guide to Buying Coins
Now that you have a full understanding of all the advantages and disadvantages of using Coinmama, I am now going to show you exactly how to buy your first coins!
- First, you will need to visit the official Coinmama website which can be accessed here.
- The easiest way to open an account is to enter your email address in the large white box and then click on Buy Coins.
- Now you will need to enter your full name, choose a strong password and enter your country of residence.
- Don’t forget to confirm your email address by clicking the link Coinmama send to your email!
- Once you have logged in to your account, click on the coin that you want to buy.
- Next, you will need to choose whether you want to buy in USD or EUR. In this example, I am going to pay with USD.
- As you will see below, the transaction fees change depending on the amount of coins you want to buy. Choose the option that suits you.
- You will now be notified that you first need to verify your account. Click on Click here to get verified.
- You will then be asked to re-confirm your full name and then enter your date of birth, phone number, and full address. Make sure this matches the address on your payment card or it will be declined!
- Scroll down and then enter your identification details. This will be either your passport or driver’s license. Double check that you have entered the correct information or it may delay the process! Then click on Next.
- You will then be asked to upload your documents. You will need to upload the front and back of your ID and then the following:
- A selfie of you holding your ID
- An image of you holding a piece of paper saying “Coinmama” with today’s date
- Once you click on submit, it normally only takes a couple of hours for Coinmama to verify your ID. Make sure your images are clear, otherwise they might ask you to take them again.
- Once this has been completed, you will receive an email once your account has been verified. Congratulations, you can now buy up to $15,000 in cryptocurrency!
- Now all you need to do is repeat steps 5-8 to complete your purchase. At the final stage, you will be asked to enter your debit or credit card details, as well as your Bitcoin or Ethereum wallet address.
As soon as the payment is confirmed the coins will be instantly sent to your wallet!
Who Should Use Coinmama?
Assuming you have read this guide fully up until this point, you should now know that Coinmama is a really basic exchange broker. That makes it perfect for first-time buyers!
If you currently don’t own any cryptocurrency then the easiest way to buy it is to use a debit or credit card, which is made simple at Coinmama.
Even if you want to buy a less popular coin, the chances are that you will still need to trade it with another cryptocurrency such as Bitcoin or Ethereum, which makes Coinmama a good place to start.
So, what you would need to do is transfer your Bitcoin or Ethereum over to another exchange that lists the coin you want, and then trade your Bitcoin or Ethereum for that coin. Simple!
If you are looking to buy either Bitcoin Cash (BCH) or Litecoin (LTC) using real-world money, then it would be better to use Coinbase.
I hope you have enjoyed reading this Coinmama review! If you have read it from start to finish, you should now have a really good understanding of how it works, as well as all of the advantages and disadvantages it has. If you would like to check out Coinbase, another broker exchange, then check out my guide here.
No exchange is perfect, yet my Coinmama review is on the positive side. Although some might be cheaper when it comes to transaction fees, they might not offer the option to use your debit or credit card. So, for those of you looking to purchase Bitcoin or Ethereum for the first time, Coinmama is a great place to start.
So, did you follow my step-by-step guide and buy some coins? If so, which one did you go for?
Either way, I wish you all the very best of luck with your investments. Just remember to stay safe out there and always do extensive research before placing your money into any cryptocurrency!