Coinmama Review 2018: Is Coinmama Safe and Legit? | Beginner’s Guide

Cryptocurrencies are quickly gaining in popularity, people are scrambling to invest in them, and it’s evident to most people that the future is crypto. However, to meet the rising demand for cryptocurrencies, a number of outlets are coming up and offering the purchase of cryptocurrencies like Bitcoin, Ethereum, and others.

However, before you trust any of these outlets, you should do your research to make sure that it’s legit and that it’s the best option for you. In this article, I shall review Coinmama, which is one of the leading services selling cryptocurrencies.

Coinmama has been selling Bitcoin and Ethereum cryptocurrencies since 2013, and as such, they come with the verifiable badge of being one of the initial services in the field. With Coinmama, you can purchase cryptocurrencies using your Credit or Debit cards. Over time, their reach has grown multifold and now they are accessible to 217 countries and most of the U.S. States.

Even though Coinmama is registered as a Slovakian company, it’s owned by New Bit Ventures Limited and headquartered in Israel.

Please read on for a detailed review of Coinmama.

PART 1: Is Coinmama Safe and Legit?

Your first concern when using any Cryptocurrency purchase outlet should be the legitimacy. There are various fraudulent services out there that may sell fake cryptocurrencies as well. However, Coinmama isn’t one of them.

Is Coinmama Legit?

Coinmama is properly certified and it’s verifiable. They’re a property of NBV International s.r.o., which is a company within New Bit Ventures Ltd, and its registration number is #514907880. They’re registered with FinCEN under the category of Money Service Business. You can also view their registration certificate online.

Is Coinmama Safe?

Coinmama is completely safe to use. Their website is protected by Trust Guard and Comodo, and both work with 256-Bit SSL encryption for private pages. However, they don’t yet have a two-factor authentication system, so you should use a secure password that combines both lower and uppercase letters, numbers, and symbols.

PART 2: Trading Information

Cryptocurrencies Supported

Coinmama currently sells Bitcoin and Ethereum. However, they’re in the process of adding other cryptocurrencies.

Currencies Accepted

They accept payment from all currencies. So you can pay with your local currency, whatever it is. However, the pricing on the site is displayed only in USD or EUR currencies, though they’re in the process of adding other currencies as well.

Countries Supported

Coinmama currently operates in 217 countries and 23 U.S. States. You can check out a full list of the countries and states here.

Fees

Coinmama has the highest transaction fee amongst all its competitor sites. For each transaction, a fee of 5.50% is applied, included in the cryptocurrencies rate you purchase. In addition to that, they also charge a 5% transaction fee on your credit or debit card transaction.

Payment Methods Accepted

Coinmama accepts all VISA/MasterCard credit cards and debit cards. However, they currently don’t accept American Express, PayPal, etc.

Buying Limits

Coinmama has an extremely high purchase limit of up to $5,000 a day, or $20,000 a month. However, depending on the user’s level of verification, the overall purchase limit may vary. This verification level depends on the number of documents that the user has submitted for verification. Below is a breakdown of the limits of the various verification levels.

Level 1: If you have only submitted a valid Government ID, then you can purchase up to $10,000 from Coinmama.

Level 2: If you submit two valid Government IDs, along with a selfie with the ID or a utility bill, then you’ll have access to a purchase limit of $50,000.

Level 3: If you also fill out a short form given by Coinmama, your purchase limit increases to 1 million USD.

However, one of the most appealing aspects of Coinmama is that even if you don’t verify yourself at all, you can still purchase up to $150 or €150.

How Quickly will my Funds be Available?

After the payment and the wallet address is confirmed, the funds are immediately made available to the buyer.

PART 3: How to use Coinmama to buy Cryptocurrencies?

Purchasing cryptocurrency from Coinmama is fairly easy and can be accomplished with three easy steps.

Step 1: Registration

  1. Fill up the registration form at com.
  2. You’ll need to enter your full name, your country of residence, along with an email address and a password.
  3. Once you’ve filled up the form, you’ll be sent to a verification link.

coinmama home

Step 2: Verification

  1. Go to My Account > Verify Your Account.
  2. Enter your residential information and your phone number.
  3. Add proof of a government issued ID, such as a driving license, passport, national ID card, etc.
  4. You can also go further in the verification process and add multiple government issued IDs, a selfie with the ID, a utility bill, and fill up the online form. However, that’s not necessary to start off.

The verification process only takes a few hours, though it may be longer during evenings and weekends.

Coinmama-Review-Verifiy-Your-Account

Step 3: Purchase

  1. Go to Buy Bitcoin/Ethereum.
  2. Enter the amount you’d like to purchase.
  3. Add your Cryptocurrency wallet address.
  4. Enter your Credit/Debit card payment details.
  5. Once the details have been confirmed and the payment is processed, you’ll receive the cryptocurrencies in your wallet.

The minimum purchase is set at around $60, though that depends more on the value of the Bitcoin, with the minimum being 0.1 Bitcoin.

method-of-payment

PART 4: Coinmama Compared (and other Alternatives)

In terms of transaction, Coinmama provides the most hassle-free means of purchasing cryptocurrencies directly from your debit or credit cards.

However, it only allows you to buy cryptocurrencies, and that too only Bitcoin or Ethereum. Other services — such as

Furthermore, Coinmama also incurs the highest transaction fee as compared to its competing services. Below is a brief comparative table of the approximate transaction fees between different services.

ExchangeReviewsFeesSecuritySupportPurchase
Coinbase
Coinbase
Coinbase Review3.75%GreatEmail+ Coinbase “Community”Buy
Binance
Binance
Binance Review0.1%GreatEmailBuy
LocalBitcoins
LocalBitcoins
LocalBitcoins Review1.0%GoodQuick responses to online support ticketsBuy
Paxful
Paxful
Paxful Review0% from buyer, 1% from sellerGoodForum,live chat and email.Buy
bitpanda
BitPanda
BitPanda Review1.0% to 4.0%GoodEmailBuy
CEX.IO
CEX.IO
CEX.IO Review0.5% to 2.0%GreatEmailBuy
Coinmama
Coinmama
Coinmama Review6.0%GoodEmailBuy
bitbond
Bitbond
Bitbond Review1.0% to 2.5%GoodEmailBuy

PART 5: Coinmam Review Conclusion – Is Coinmama a Good Choice?

In conclusion, I’d say that Coinmama can be either the perfect choice or the most ill-advised choice for you. It all depends on what you need.

If you’d like to simply and efficiently purchase bitcoins or Ethereum, you can’t find a better service than Coinmama. Even though it has a high transaction fee, it makes up for it with ease of transaction. Furthermore, the fact that the currency is sent directly to your wallet rather than being stored in the site is also a great advantage of using Coinmama.

However, Coinmama also has its drawbacks, like most services. It offers only two types of cryptocurrencies and it doesn’t let you sell them. As such, if you’re interested in lesser known currencies or in active trading, then you should look at other services such as

I hope this article has proven helpful to you. If you have any other questions about Coinmama, please feel free to mention it down below in the comments section.

7 Total Score
Good

Great platform for beginners to buy Bitcoins or Ethereum, but it’s not meant for trading.

Security
8
Ease of Use
10
Support
8
Compatibility
5
Price
6
PROS
  • Ideal for beginners who want to buy Bitcoins.
  • Simple UI.
CONS
  • High transaction fee.
  • Can’t sell or trade.
  • Only Bitcoins and Ethereum available.
User Rating: No Ratings Yet!