Coinmama Review Complete Beginner’s Guide
Coinmama is a financial institution that provides the easiest way of buying Bitcoin (and Ether). It was founded in mid 2013 and was one of the first companies offering the possibility of buying bitcoin with credit card or cash. The company has its roots in Israel and it is managed by a group of financial experts who keep to their word in helping people secure Bitcoins. They specifically dedicated their resources to remove the burdens buying bitcoin with credit card usually suffers from.
Following is a short overview of the various sections of this guide:
- Coinmama Background: Coinmama is dedicated exclusively to Bitcoin trade, and is focused on providing extremely straightforward Bitcoin trading services. The platform is available in over 226 countries, and boasts more than 200,000 users around the world.
- Online Wallet: Coinmama doesn’t actually offer a wallet, meaning you’ll need to sort one out elsewhere.
- Ease of Use: As the Coinmama platform is dedicated exclusively to Bitcoin, it’s extremely simple and easy to use. As soon as you’ve got an active credit card and a wallet solution, it’s possible to start buying Bitcoin on Coinmama straight away.
- Security: Like most exchanges, Coinmama protects the privacy and security of their users with SSL technology. All personal information and transaction data is stored on password-secured databases to keep it safe from hacking attacks.
- Limits and Fees: Coinmama is simple, but it also has higher fees than some other exchanges.
|First Download Desktop Wallet|
|Second Buy Bitcoin|
Coinmama Review: Key Information
Founded in 2013, Coinmama has been a long-time choice for consumers wanting a fast way to purchase cryptocurrency via credit/debit card. The company was the first to offer this method of payment and have grown rapidly as a result of this accessibility. The site is available for almost everyone, serving 226 countries and the majority of U.S. states.
Unlike exchanges such as Kraken or GDAX, Coinmama is a buy-only outlet serving consumers that want to purchase major cryptocurrencies (Bitcoin and Ethereum) to send to their wallet of choice. The price is based on current market values, with Coinmama’s 6.15% fee included in this pricing.
Tutorial How to Buy Bitcoin/Ethereum with Coinmama Exchange
Credit card is the most popular payment method on Coinmama. This table compares Coinmama to other popular credit card exchanges.
|Coinbase||3.50%||USA, Europe, Canada|
Coinmama offers high buying limits, especially in respect of credit card transactions. Verified users can purchase up to $5,000 per day, with a maximum limit of $20,000 per month. Daily limits last for 24 hours from the moment that the limit is reached, while monthly limits is a moving sum of the previous 30 days. It currently displays pricing in USD and EUR with additional currencies to be added soon. However, it accepts orders in all currencies, while noting that exchange fees may be applicable to customers that are purchasing in fiat currencies other than USD or EUR.
The amount of cryptocurrency that a user may purchase is dependent on the level of verification that they have reached with the platform. The more documentation that the user provides, the more currency that they are entitled to purchase. However, it should be noted that daily and monthly limits are applicable regardless of what level users have reached in terms of their verification. The breakdown of the limits and requirements are as follows:
- Level 1: This level allows users to purchase up to 10,000 USD through the service. This level only requires users to provide valid government issued ID (as set out above);
- Level 2: This level allows users to purchase up to 50,000 USD worth of cryptocurrency. In order to access this level users will need to provide two valid government issued IDs, as well as either a utility bill or a selfie of the user holding their ID.
- Level 3: This is the highest level of authorisation on Coinmama and allows users to purchase up to 1 million USD in cryptocurrency. In order to obtain this level of authorisation, users are required to fill out a short form and return it to Coinmama.
Security And Privacy
CoinMama store your personal data on secured servers, and use high-level encryption and authentication measures, to ensure your money and details are safe.
Having said that, even with impeccable security, no online platform is 100% secure. So make sure you keep your private key (similar to your email password) PRIVATE.
The fees are now lower because the process has become much more advanced. Just so you’ll get a perspective – before the change to credit cards was made, one Bitcoin would cost you $310 when the corresponding Bitstamp rate was only $257, which is a whooping 22% fee. Ouch!
After changes were implemented fees are about 5%, which may still sound like a lot. However, if you look around at companies selling you Bitcoin with credit card as a payment method, you’ll see that it’s basically the same fee everywhere. The reason why fees are so high is because of expensive measures these companies have to deploy in order to avoid fraud and chargebacks.
We’re aware that the current commission can be considered pretty high to the average customer. That’s why we’re constantly looking for ways to lower it in order to give our customers more value for their money.
Nimi, Coinmama’s CEO
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The primary channel to reach Coinmama support is through email. Compared to other major exchanges, response is very fast, with queries consistently replied to within 24 hours. Waits are longer over the weekend or during public holidays.
The exchange has a detailed knowledge-base platform that provides answers to most common questions. Furthermore, the support team also responds to questions left on their blog.
One common customer complaint is the slow account verification process. Sometimes users say they are also unable to successfully place orders following verification.
Coinmama is one of the oldest Bitcoin brokers in business. It has been selling bitcoins via credit/debit cards for longer than any other company.
I like CoinMama a lot. They have a solid reputation, have proven to be trustworthy, and have made the process of buying bitcoins drop-dead simple.
I also love that you can buy up to $150 at a time without showing proof of identification.
And when you manage to get a support rep on live chat – those business hours make it difficult! – the support is typically professional and helpful.
Having said that, there are a few things I’d like to see in the future.
First, I hope CoinMama lowers its fees. There are cheaper ways to buy bitcoin.
Second, I’m looking forward to the day when I’m able to sell bitcoins through their service (they claim the feature is coming soon). And third, it’d be great to have the ability to buy (and sell) a variety of cryptocurrencies, including Litecoin, Ripple, and Dash.
Bottom line: CoinMama is a legit, safe, and user-friendly service that deserves your attention if you’re looking for a place to buy bitcoins.