Coinmama Review 2021

Pros Explained

• Platform simplicity: Coinmama is a simple, straightforward platform that lets customers buy and sell crypto. It doesn’t offer any other features, which could be good for those looking for an easy-to-use exchange.
• Longevity in the cryptocurrency space: Founded in 2013, Coinmama is an established platform in the crypto space. 
• Strong focus on security: Coinmama verifies its users to help prevent fraudulent activity and employs features like two-factor authentication to protect user accounts.

Cons Explained

• No cryptocurrency wallet: Unlike several other platforms, Coinmama doesn’t offer a cryptocurrency wallet. This could be a drawback for some users who appreciate the convenience of being able to buy, sell, and store their crypto in one place. 
• Limited options: Coinmama only facilitates buying and trading of cryptocurrencies. Users looking for other financial products or tools would have to find those options elsewhere. 
• High fees: The fees are noticeably higher compared to other platforms offering a similar service at a lower cost.  

Introduction

Coinmama is an established, straightforward cryptocurrency exchange. It supports a small number of digital assets and doesn’t offer a dedicated crypto wallet. Those looking for a crypto exchange with lots of tools and products may want to look elsewhere. Unlike some other exchanges which offer a full suite of products and tools, Coinmama is a basic exchange that could be well-suited for novice crypto investors who have crypto wallets on other platforms. 

Company Overview

Coinmama was established in 2013 and has served over three million customers around the world. The company is headquartered in Israel, and it was founded by Nimrod Gruber, Laurence Newman, and Ilan Schuster. At the time of publication, Coinmama supports nine digital assets, including Bitcoin, Cardano, and Ethereum.

Coinmama is available to users in 188 countries and 48 U.S. states, excluding Hawaii and New York. It gives customers the option to purchase crypto using credit cards, debit cards, bank transfers, Apple Pay, and Google Pay. 

Cryptocurrencies Available on CoinMama

While some crypto exchanges offer hundreds of assets available for purchase, Coinmama has a limited selection. It currently supports just nine assets, including the following: 

• Bitcoin (BTC)
• Bitcoin Cash (BCH)
• Cardano (ADA)
• Dogecoin (DOGE)
• Ethereum (ETH)
• Ethereum Classic (ETC)
• Litecoin (LTC)
• Ripple (XRP)
• Tezos (XTZ) 

Trade Experience

The trade experience on Coinmama is user-friendly and intuitive. However, options are fairly limited. Coinmama doesn’t support crypto-to-crypto trading, and users can only sell Bitcoin through this platform. If you want to sell another asset, you’ll need to use a different exchange. Customers can click the Buy or Sell tab to initiate a transaction on their online dashboard or the mobile app, which is available for Android. 

While the platform experience is simple, certain assets do require a minimum purchase amount. For instance, there’s a minimum of $50 USD to make a Bitcoin (BTC) purchase and $100 USD to make a Chainlink (LINK) purchase. There is also a minimum order based on which payment method you choose. 

If a user would like to make a purchase that is below the minimum amount, then they must submit a form to CoinMama providing details for the amount that they would like to purchase. Coinmama supports several payment methods, including credit or debit cards, bank transfers, Apple Pay, and Google Pay.

Fees 

Coinmama charges trading fees as a percentage of each transaction, and these fees vary based on account tier. The platform has three tiers: 

• Curious: Under $5,000 in transactions over a 90-day period
• Enthusiast: Over $5,000 in transactions over a 90-day period
• Believer: Over $18,000 in transactions over a 90-day period or over $50,000 in transactions total

Those in the Curious tier will pay a 3.9% fee per buy or sell transaction. Enthusiasts pay 3.41%, and Believers pay 2.93%. Compared with other cryptocurrency exchanges, Coinmama’s trading fees are relatively high. Users will also pay spread fees, which are called “rates” on Coinmama, and may be subject to other fees depending on the payment method they use. 

Security 

Coinmama is strictly a crypto exchange and doesn’t hold user funds on its platform. Users must have a crypto wallet to initiate a transfer of funds. This security feature removes some of the risks that users are exposed to when using a platform to store their funds. Coinmama also offers guidance to users on how to create a strong password and username, and customer information such as credit card numbers or bank account details isn’t stored on the platform. 

In addition to these features, Coinmama users are required to verify their identity by providing a driver’s license, passport, or another valid government-issued ID. Customers are also encouraged to enable two-factor authentication, though it isn’t required. 

It’s important to note that Coinmama was one of several companies targeted in 2019 during a large-scale hack, resulting in a security breach that exposed user emails and passwords to those who orchestrated the hack.   

Opening a CoinMama Account

What makes Coinmama attractive to many of its users is the platform’s simplicity and how easy it is to open an account. Before you start creating an account, ensure you have a valid government-issued ID on hand and be prepared to create a unique username as well. 

You’ll begin the account creation process by inputting some basic information, such as your country of residence, address, and email. Once you submit that information, a confirmation link will be sent to the email address used to create your profile. After you click the confirmation link, the final steps to create your account include uploading a valid ID and a selfie to verify your identity. 

If there’s a delay in the verification process, Coinmama indicates it will notify you and may request additional information if needed. 

Customer Service

Coinmama offers customer service via a form on its website and a chatbot. Users can also reach out to Coinmama on Twitter for general questions. The platform does not offer phone support at this time. 

In addition to its customer support options, Coinmama also has a help center where users can find answers to common questions about account management, fees, and more. 

Customer Satisfaction 

Coinmama customers have mixed feedback about this exchange, though it has a relatively high rating of 4 out of five stars across 438 Trustpilot reviews. Several users have positive things to say about Coinmama’s customer service.

There were two notable issues of concern, though. Some new customers had to resubmit identifying information more than once in order to confirm their identity. Others reported unexpected account closures. 

Account Management

Coinmama users can log in to their online portal or use the Coinmama app, which is available for Android. Once logged in, users can view the different stages of their orders ranging from pending, failed, or completed. 

Completed orders provide details such as the amount purchased, the date and time the order was completed, and the type of coins purchased or sold in the transaction. 

Understanding how to transfer funds from Coinmama to a crypto wallet is a key component to using the platform. While the process of transferring funds is relatively simple, those who aren’t familiar with it may be more inclined to look at different exchanges that offer built-in wallets. 

How CoinMama Compares to Other Cryptocurrency Companies

Coinmama is a simple, straightforward platform for buying and selling crypto. Its ease of use makes it a great option for certain customers. However, it has relatively high fees and users looking for expanded product offerings such as crypto rewards credit cards or crypto-backed loans will need to look elsewhere. 

Coinmama vs. BlockFi

Both Coinmama and BlockFi are cryptocurrency exchanges allowing customers to buy and sell digital assets. However, there are some notable differences between the two platforms. 

• BlockFi offers a suite of financial products, including crypto-backed loans and a Bitcoin rewards credit card. 
• Coinmama doesn’t offer storage for user funds, while BlockFi offers its own crypto wallet. 
• BlockFi does not charge trading fees, though users may pay spread fees and withdrawal fees. Coinmama charges percentage-based fees for each buy and sell transaction as well as spread fees.   

For those looking to purchase or sell cryptocurrencies, Coinmama will likely be a great fit. However, if you’re interested in a range of financial products and services on one platform, BlockFi may be the better option. 

Methodology 

Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.

Exchanges are only considered for review if they are safe, secure, liquid, and either regulated by a proper agency or entirely decentralized.