Coinmama exchange – May 2021 review
Should you buy bitcoin, Ether or other leading cryptocurrencies on Coinmama? Our review can help you decide.
|Product Name||Coinmama Cryptocurrency Marketplace|
|Fiat Currencies||USD, EUR, AUD, CAD, GBP, JPY|
|Cryptocurrencies||BTC, ETH, ETC, BCH, LTC, ADA, QTUM, XRP, XTZ, EOS|
|Trading Fee||2.9-3.9% (depending on loyalty level)|
|Deposit Fees||Credit card: 5%|
What is Coinmama?
Coinmama is a global online marketplace designed to make it as simple and straightforward as possible to buy digital currency. Founded in 2013, it’s helped more than 1 million people in 188 countries buy crypto coins and tokens using fiat currency. Coinmama is a subsidiary of Slovakian company NBV International s.r.o., which is based in Bratislava and is a daughter company of money service business New Bit Ventures Ltd.
You can buy bitcoin and other currencies on Coinmama by completing the following steps:
- Register for an account. You’ll need to provide your name, email address, country of residence and proof of ID.
- Enter transaction details. Specify which digital currency you want to buy and how much you want to purchase.
- Choose your payment method. Select the credit or debit card you will use to pay for the transaction.
- Fill out the payment form. Provide your card details and follow the prompts.
- Complete payment. The final step is to submit your payment and confirm your cryptocurrency wallet address.
Which cryptocurrencies can I buy and sell?
Coinmama users can buy seven cryptocurrencies through the platform:
- Bitcoin (BTC)
- Ether (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Qtum (QTUM)
- Ethereum Classic (ETC)
- Ripple (XRP)
Coinmama users in many locations can also sell Bitcoin through Coinmama with high limits and 0% processing fees to receive money directly to their bank account.
Coinmama is currently available in more than 180 countries worldwide, including Canada, and it also accepts all local currencies. A full list of supported countries is available on the Coinmama website.
Which payment methods are accepted?
- Visa credit/debit cards
- Mastercard credit/debit cards
How much will it cost me to use Coinmama?
The company charges a 5.9% transaction fee for each purchase. However, credit card and debit card transactions attract an additional 5% fee from Coinmama’s payment processors. It’s also worth checking with your bank or card issuer beforehand to find out whether you will also need to pay a cash advance fee for the transaction.
|Credit card purchase fee||5%|
|Cash advance fee||Varies (may be charged by your bank or card issuer)|
Case study: Buying $1,000 of bitcoin on Coinmama
Let’s consider the actual cost if you wanted to buy $1,000 worth of bitcoin through Coinmama. (FYI, at the time of writing in August 2018, the price of one bitcoin is just above $8,100.)
|Credit card purchase fee||5%||$50|
|SEPA bank transfer||0%||$0|
|Exchange rate fee||Coinmama prices are set in USD and euros. If you are using another currency, your bank or credit card may assess a currency exchange fee.||Unknown|
|TOTAL KNOWN COST||$1,105|
It will cost you at least $1,105 to buy $1,000 worth of bitcoin using Coinmama. It might even be more, if you are assessed a cash advance fee or a fee for using a currency other than US dollars or euros.
What is a rate lock?
The price of bitcoin and most other digital currencies can fluctuate wildly. To avoid any problems that this may cause, Coinmama “locks” the crypto rate at the time of purchase. This means you will receive exactly the amount of coins or tokens you ordered, regardless of whether the price went up (or down) between the time you placed the order and when you receive your coins.
How soon can I get my cryptocurrency?
There are a few key factors that affect how long you’ll have to wait before you can access your funds:
- Time for bank or credit card processor to verify your payment
- Time required for you to confirm your digital wallet address
- Time for the blockchain to confirm each transaction
Once your payment has been approved and you have confirmed your wallet, Coinmama usually sends the coins within 10 minutes. You’ll then have to wait for the relevant blockchain to confirm the transaction, which may take another 10 minutes.
Are there any transaction limits?
The minimum amount you can purchase in any one transaction with Coinmama is US$60 or equivalent. Daily and monthly transaction limits also apply as follows:
- Daily limit: 5,000 USD/EUR
- Monthly limit: 20,000 USD/EUR
Is it safe to use Coinmama?
Coinmama is a registered money service business based in Slovakia. The company has been selling digital currency since 2013 and employs a couple of key security measures to help ensure the safety of customer funds. These include encrypting personal details and documents and never storing customer credit card details on its website or servers.
However, there’s always an element of risk when buying cryptocurrency online, so make sure to exercise normal safety precautions.
Coinmama offers support via email (email@example.com) and zendesk. However, it also offers an online help centre with answers to a wide range of frequently asked questions.
Coinmama pros & cons
- Live pricing in US dollars and euros
- Makes it easy to buy crypto using your credit or debit card
- 5 digital currencies offered
- Buy direct from the site – no middleman
- Buy crypto in more than 180 countries worldwide
- Does not accept PayPal, American Express or Discover
- High fees
- No smartphone app
Compare Coinmama against other exchanges
First, carefully review Coinmama’s features to decide if you want to make a purchase through the platform. If you want to get started with Coinmama, register for an account on the platform’s website. It’s then just a matter of registering for an account, choosing which cryptocurrency you’d like to buy, completing payment and confirming your wallet address.