Coinmama Review: Advantages and Disadvantages

Coinmama Overview

Coinmama is a cryptocurrency exchange that has been serving customers since 2013. The company focuses on providing an easy way for people to buy and sell the most popular cryptocurrencies on the market, such as bitcoin, ethereum and more. 

With multiple payment options, high spending limits and fast-track verification, Coinmama is a reliable platform for newcomers to the cryptocurrency market who want a streamlined, no-fuss experience.

Key Features

GoBankingRates gave Coinmama a 3.0 overall score for the following features.

Fees 

Coinmama charges higher fees than other competitors. According to their website, they use the TradeBlock XBX average market rate of other known providers to set their internal rate. Then, they add a platform fee of 2.30% on top of the XBX rate. 

There are also additional fees. Coinmama charges a commission of 3.90% on buy transactions and up to 0.90% on sell transactions. For SWIFT bank transfers, a minimum fee of 20 GBP applies to orders below 1,000 USD. While no charges are added to SEPA bank transfers, credit or debit card transactions carry an added 5% fee.

Promotion

Coinmama users are automatically enrolled in a Coinmama Loyalty Program that rewards high-volume buyers with reduced fees. There are three tiers to the loyalty program:

• Crypto Curious: This is the basic tier where all Coinmama users are registered. There is no required spending limit for this level but no discounts, either.
• Crypto Enthusiast: After spending at least $5,000 within 90 days, users are granted a 12.50% fee reduction on subsequent trades. They also receive faster customer support.
• Crypto Believer: Users who spend over $18,000 within 90 days or over $50,000 total on the platform are granted a 25% fee reduction on subsequent trades. They also gain access to priority customer support.

After a user is promoted to a new loyalty level, they can only maintain their status by meeting the spending requirements within 90 days.

Cryptocurrency

Coinmama lists 17 cryptocurrencies available for purchase on its website. They include the most popular cryptocurrencies, like bitcoin and ethereum, along with some lesser-known cryptocurrencies, such as chainlink and loopring.

Coinmama currently allows users to purchase the following coins:

• Bitcoin (BTC)
• Bitcoin Cash (BCH)
• Wrapped Bitcoin (WBTC)
• Ethereum (ETH)
• Ethereum Classic (ETC)
• Dogecoin (DOGE)
• Ripple (XRP)
• Uniswap (UNI)
• Aave (AAVE)
• Chainlink (LINK)
• EOSIO (EOS)
• Litecoin (LTC)
• OMG Network (OMG)
• Yearn Finance (YFI)
• Loopring (LRC)
• Numeraire (NMR)

Customer Service

Coinmama lists several ways for customers to receive support. Notably, there is no live human support chat or 24/7 phone support. For users who prefer personalized assistance, Coinmama’s options may be limited.

Otherwise, users can reach customer support through an online support request form or leave a message for a call back at 1-650-600-9939. For basic support issues, the automated text chatbot may prove helpful. Additionally, there is a detailed self-service help center where users can find answers to questions regarding account management, order issues and more.

How Does Coinmama Stand Out?

Despite its limitations, Coinmama does stand out when it comes to simplifying the cryptocurrency experience. This is crucial for someone new to crypto who doesn’t need advanced trading tools or access to obscure altcoins.

The platform makes it easy to buy crypto by allowing customers to set up their accounts in minutes and purchase via credit card, debit card, Apple Pay or bank transfer. Coinmama also has high spending limits to facilitate large transactions. Users who want to spend beyond these limits can email vip@coinmama.com to learn about the requirements.

Furthermore, users don’t need to be concerned about the long-term security of Coinmama’s coin custody. Unlike other cryptocurrency exchanges that hold their clients’ crypto in private vaults that may be susceptible to hacks, Coinmama never holds customer funds or stores payment information. Instead, customers use third-party wallets to ensure complete control of their own coins.

Comparable Coinmama Options 

Coinmama isn’t the only cryptocurrency exchange. There are plenty of different options to suit everyone, from crypto newcomers to experienced traders. Below are two recommended alternatives.

Coinbase

Coinbase is one of the most popular cryptocurrency trading platforms in North America. It offers an intuitive, streamlined user experience and provides users with advanced technical functionality to make the most of their cryptocurrency trading.

Compared to Coinmama, Coinbase is a much more robust platform. It offers access to over a hundred coins and tokens and charges significantly lower fees. It’s also an industry leader in platform security and trading tools.

However, some newcomers may be overwhelmed by Coinbase’s extensive offerings and prefer the more simplistic approach of Coinmama.

Binance

Crypto traders based outside the U.S. may not be able to trade on Coinbase. So, those looking for the widest selection of cryptocurrencies will want to head to Binance.

As the world’s largest crypto exchange, Binance lists hundreds of cryptocurrencies. It also has some of the lowest trading fees and most advanced technical tools on the market.

However, some beginners may find Binance’s trading interface confusing and prefer Coinmama’s simplified user experience.

How To Apply

It’s relatively easy to open a Coinmama account, and most users can set up their profile within minutes. All that’s needed is some basic personal information and a valid ID.

New users can sign up by inputting their country of residence, address and email. After confirming their email address, users must upload a valid, government-issued ID and a selfie for identity verification.

Who Is Coinmama Best For?

Coinmama is best for beginners in the world of cryptocurrency trading and investing. It offers multiple payment options and an easy-to-use interface without any complicated technical features.

Final Take

Coinmama offers users a simple way to get started buying and selling cryptocurrency. While the platform is limited by its basic functionality and high fees, newer users may appreciate the bare-bones approach and quick account setup.

Information is accurate as of July 14, 2022.

Editorial Note: This content is not provided by Coinmama, Coinbase or Binance. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Coinmama, Coinbase or Binance.