Coinmama is an online broker that was first set up in 2013 and it now has clients in more than 190 countries, catering for over a million clients, including many in the United States. This is a cryptocurrency brokerage and it has its headquarters in Israel, with the company being registered in Slovakia.
Coinmama is not like your standard crypto exchanges because it is in fact a brokerage service. This Coinmama review looks at the ins and outs of this brokerage platform. You will find out where Coinmama thrives and where it may lack in certain departments.
|Min Deposit||App Support||Max Leverage||Trading Fees|
Coinmama solely acts as a broker for cryptocurrency trading and does not deal with other types of financial products or assets. As this is not an exchange, you will be purchasing tokens from Coinmama itself rather than having to conduct trades with fellow investors.
Usually, this makes the process of purchasing different cryptocurrencies quicker, but on the flip side, it can be a process that has higher fees. The main focus for Coinmama is on Bitcoin, but it also caters to other major digital tokens like Ethereum, Litecoin, Ripple, Bitcoin Cash, Cardano, Qtum and Ethereum Classic.
When you submit an order with Coinmama, the price will be locked in straight away, that means that there will be no slippage. You are able to buy cryptocurrencies using five different fiat currencies. These are USD, GBP, EUR, CAD and AUD.
When you buy tokens, you will need to have your own digital wallet set up as there is no wallet set up for you by Coinmama. You can make trades worth up to $12,000 each day.
As you are not buying your cryptocurrency tokens through an exchange and you are instead going through Coinmama as a brokerage service, your fees will be a bit higher. Coinmama still does its best to keep these costs as low as possible but they are still higher when compared to most of the broker’s competitors.
The service fee is set at 5.9%, which is definitely high. However, one of the upsides is that the prices you see on the Coinmama platform for the various cryptocurrency tokens will have already factored in this fee into the price that is displayed. Therefore, you will not be hit with any further fees when you make your trade.
There is an additional charge of 5% in place if you are buying the cryptocurrencies through a debit or credit card. There may also be further fees put in place by the provider of your card.
With Coinmama, there is only one type of trading account for you to sign up for. The process of getting started is very easy and quick to do. All you need to do is enter in the usual types of personal information, as well as verifying your identity by providing some form of a government-issued photo ID.
If you are looking to deposit using a debit or credit card, you will also have to provide this car number when you are signing up. Normally approval for your Coinmama account will come inside of an hour, oftentimes only taking about 15 minutes. There is no minimum required deposit in place, which is uncommon for a lot of similar brokerage platforms.
There is no wallet provided for you, so you will need to have your own digital wallet and then link it to your new Coinmama account. There is a minimum trade size of $60 in place, but this can change as the value of different cryptocurrencies changes over time.
The options you have with Coinmama in terms of the trading platform are very limited. You will solely have the ability to trade through the website. You cannot download any software and there is no advanced type of trading platform available for you to use.
While you can get access to the website through your mobile, there is no app for you to use. The reason for this minimalist approach is because Coinmama is a broker and not an exchange. All you do when placing a trade is enter how much of a given token you want to buy and then you confirm the order.
It’s as simple as that. Its aim as a platform is to be very easy to use, meaning that even complete beginners will intuitively know how to make trades. It is not even proper trading, more so being a platform allowing you to purchase and sell cryptocurrencies with the platform and not with fellow investors.
While the trading options are very limited with Coinmama, the upside is that the website is extremely easy to use. This means that all you need to do is enter how much of a given cryptocurrency you want to buy at the outlined price and you will have your order filled.
You do not have to worry about slippage or having your orders filled with changes in the market. The website is very well-laid out, with the options not being overwhelming. Every section that is important is well labeled. The process of using the platform is well-laid out in simple to read steps. This walks you through the process of setting up an account and getting started placing orders.
The blue and white color scheme really makes everything pop out. What’s more is that the website is nice and responsive, so you do not have to deal with slow processing times.
If you are looking to get a resolution to an issue you may be having on the platform, your first destination should be the ‘Help’ section. This is a very comprehensive section, with many articles being dedicated to key and common issues you may be having. This will often resolve an issue you may be having, walking you through the solution in a step by step fashion. There is also a guide that discusses how to use the platform.
If you still want to get in touch with a member of the customer support team, they are contactable on a 24/7 basis. You can send them an email through the website’s email form. Coinmama calls its customer support teams ‘Happiness Heroes’ who will quickly issue you with a response. While you will think there is a live chat option as there is a ‘Help’ bubble at the bottom of the website, this in fact just directs you to the FAQ section.
One of the other downsides of the customer support is that there is no telephone line for you to ring. Therefore, while you can get quick responses to your emails, you cannot speak with the support team directly either through a live chat or over the phone.
When adding funds to your Coinmama account, you have a couple of different options to look at. There is the option to use a reputable debit or credit card (MasterCard or Visa). To add these funds all you need to do is choose what cryptocurrency you want to buy, click the buy button, enter the wallet address you want to send these tokens to and then select debit/credit card as your payment method.
You will then be directed to a payment form that you fill out before clicking on the Pay Now button. Usually, your bank will confirm this transaction with you by sending a text message to your mobile device. The payment process usually takes about ten minutes to complete. There is a charge of 5% in place when buying tokens using a debit or credit card, in addition to any fees that may be levied by your bank or card provider.
There is also an option for you to use a bank transfer to buy your preferred cryptocurrencies. The process is the same as using a credit or debit card, but there is a minimum purchase amount of $200 when you are using a bank transfer. After entering in your wallet address, you will be given a couple of different bank transfer options, depending on your country.
These transfers will often contain some sort of charge that you will need to consider when making your decision as to which one is the best to use for your needs. After placing the order, you will receive an email with the details of the order. It can often take a few days to process this transaction depending on which of the bank transfer methods you select. There is a purchase limit in place of $12,000 per day.
If you are selling cryptocurrencies, the funds should reach you within three business days. If they do not, then you should get in touch with the Coinmama customer support team.
Sometimes Coinmama will have different types of discounts and promotions on offer through the website, so this is always something to keep an eye on. This could see discounts on the price of a given cryptocurrency. There is also a referral program where you can earn as much as 15% on any purchases that are made by a customer you direct to Coinmama.
The education side of things on Coinmama is almost non-existent. You do have guides that teach you briefly how to use the Coinmama platform and us the different payment methods, but there is no info that will help you to become a better trader or to become more informed about cryptocurrencies.
The research offering is also extremely limited, with no news or analysis sections to utilize. The site’s news section solely caters for news specific to the Coinmama offering. The only tool you really have access to is a calculator allowing you to compare different fiat and cryptocurrencies in terms of their current prices.
With the cryptocurrency space being such a new sector, there is not much in the way of regulation of the various trading and brokerage platforms. This is why there is a lot of uncertainty from investors about investing in these unknown exchanges. In most countries, there is no need for a specific license in order to operate an exchange or brokerage for crypto. It is usually up to the platforms themselves to self-regulate and ensure that everything is above board.
Coinmama does say that it puts a lot of time and effort into protecting its clients. All data and transactions are well encrypted. Due to your account not being pre-funded, there is no need for deposit protection, as none of your funds are kept on the Coinmama platform. You will pay directly for any cryptocurrency tokens that you buy at the time of placing the order.
The tokens will also be controlled by you, as you do not store them on a wallet on the Coinmama website. Therefore, your tokens are safe in case the Coinmama site has anything happen to it. Some card providers also may give you protection on your purchases in case something untoward happens.
There are not really any industry awards for the crypto space as it is such a burgeoning sector. Therefore, Coinmama has not been awarded and specific awards. However, a lot of the major review platforms have analyzed the Coinmama offering and attributed it with high ratings.
It gets a lot of positive feedback from users across the likes of forums and social media, which is also a good indicator. However, you should always conduct proper due diligence before using any type of trading platform.
When it comes to safety, Coinmama is trusted by over 2 million users in about 190 countries. However, when it comes to legitimacy, the industry as a whole is unregulated. But, the quality of services and security measures adopted by Coinmama is robust. Besides, the online cryptocurrencies broker has been around since 2013 and is the property of NBV International, the subsidiary of New Bit Ventures Limited, both registered as Money Service Businesses with FinCEN. So, based on the above factors, Coinmama is safe and legitimate.
Coinmama is not a wallet, but a cryptocurrency exchange where you can change your fiat currency for cryptos or vice-versa, for a fee. Coinmama does not facilitate trades between buyers and sellers. Instead, they act as market makers and buy the cryptos you sell and sell cryptos to buyers from their inventory. Headquartered in Israel and registered in Slovakia, the firm provides users with the choice to buy/sell 10 digital currencies instantly with high spending limits and multiple payment methods.
Currently, Coinmama does not have an app. So, users who wish to buy/sell cryptocurrencies can do so directly from their website. To transact, you have to have an account with Coinmama. To create one, click on sign-up, enter your personal information, verify your email, upload your id documents, take a pic of yourself along with the id and a note stating ‘Coinmama and the date,’ and upload them again.
According to Coinmama, the id verification process generally takes about 2-3 minutes to complete. On successful verification, you would be directed to the ‘Your documents’ page, and you can start trading. On the contrary, if the verification or the upload is successful, you would have to retry the process. To troubleshoot, try Coinmama’s Support Center.