Coinmama Review
Coinmama is a decentralized digital currency exchange that provides its users with the ability to sell Bitcoin in exchange for fiat cash. It does not support trading between different cryptocurrencies, it has a restricted selection of cryptocurrencies accessible for purchase, and it has exceptionally high transaction costs for buying and selling cryptocurrency. Coinmama may be appealing to beginners since it provides an easy way to buy cryptocurrency; but, advanced traders who are looking for access to cryptocurrency trading, minimal fees, and a broader coin variety will want to search elsewhere.
Pros
• Easily able to buy cryptocurrency with traditional currencies
• Access to some of the most popular cryptocurrencies, including Bitcoin and Ethereum
• Phone support available
• There are no transaction fees for deposits or withdrawals of cryptocurrency.
Cons
• Only 15 cryptocurrencies are available for purchase at this time.
• Expensive costs
• You are only able to sell bitcoins
• Must connect to a digital wallet provided by a third party in order to store coins
Introduction
Coinmama is an online cryptocurrency exchange that makes purchasing and selling a number of the most widely used cryptocurrencies a straightforward process. It does not permit trading of cryptocurrencies with other cryptocurrencies, and it also contracts out a large number of its transactions to a third-party service (Simplex). At the moment, Coinmama only supports fifteen different cryptocurrencies, which is fewer than the majority of exchanges.
Users of Coinmama are able to purchase Bitcoin and a variety of other popular cryptocurrencies using traditional currencies. Users are also able to sell Bitcoin, but in order to sell other cryptocurrencies, they must first withdraw them to their respective digital wallets. Coinmama is not a trading platform, and unlike other trading platforms, it does not offer any of the trading tools that are available on such platforms. These trading tools include advanced charting, limit and stop orders, and trading on margin.
Speculative investments, such as those made in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs), come with a high degree of risk, and the markets itself can be highly unpredictable. Before making any decisions regarding your finances, you should discuss your options with a knowledgeable expert. This article does not constitute a suggestion to invest in cryptocurrencies on the part of The Balance or the author, nor can the accuracy or timeliness of the information contained herein be guaranteed.
An Overview of the Company
Ilan Schuster, Laurence Newman, and Nimrod Gruber established Coinmama in 2013 with the intention of simplifying the process of purchasing bitcoins. It is now possible to buy Bitcoin and sell Bitcoin back to the exchange, making it one of 15 major cryptocurrencies that are available for purchase. At the moment, operations are managed from within Israel’s Ramat Gan.
Coinmama is available in the majority of nations throughout the world (including 48 of the 50 states in the United States), however there are certain areas in which it is not due to regulatory constraints. Because customers are unable to trade cryptocurrencies or make purchases using trading pairs, Coinmama cannot be considered a regular cryptocurrency exchange. Instead, it’s more of a marketplace where people can buy cryptocurrency with traditional currency like dollars or euros. However, customers of Coinmama are only permitted to sell Bitcoin back to the exchange in return for fiat cash. In order to sell any other cryptocurrency, it is necessary to move it off of the site first.
Coinmama Cryptocurrencies That Are Available for Trading
A very limited number of cryptocurrencies are available for purchase through Coinmama. These cryptocurrencies include Bitcoin (BTC), Bitcoin Cash (BCS), Ethereum (ETH), and Dogecoin (DOGE). On this platform, you can only use nine different cryptocurrencies; however, the developers want to expand support for additional cryptocurrencies in the near future. The following is the entire list:
• BTC (Bitcoin)
• ETH (Ethereum)
• DOGE (Dogecoin)
• UNI (Uniswap)
• AAVE (Aave)
• LINK (Chainlink)
• ETC (Ethereum Classic)
• BCH (Bitcoin Cash)
• COMP (Compound)
• EOS (Eos)
• LTC (Litecoin)
• OMG (OMG Network)
• WBTC (Wrapped Bitcoin)
• LRC (Loopring)
• NMR (Numeraire)
Some of the most popular cryptocurrencies, such as Solana (SOL), Polkadot (DOT), Avalanche (AVAX), and Tether, are not yet supported by Coinmama (USDT).
Exchanging One’s Knowledge
Coinmama provides consumers with a straightforward trading experience in that they simply have the option to purchase or sell Bitcoin and cryptocurrencies. You can send funds into your Coinmama account through a wire transfer, an ACH transfer, or you can move Bitcoin from your digital wallet directly into the Coinmama platform. All of these options are available to you. Users also have access to a number of additional methods for purchasing cryptocurrency, such as via Google Pay or Apple Pay, or with any Mastercard or Visa card.
Coinmama levies additional service fees on customers who make purchases with a debit or credit card, as well as with Google Pay and Apple Pay.
Because Coinmama does not store any user assets on its platform, users will be required to connect an existing wallet address in order to store cryptocurrency. Finding a wallet that is compatible with the cryptocurrency you desire can be a difficult task for novice users, which can be an annoyance. Because Coimama does not provide advanced charting or the ability to place limit or spot orders, advanced traders may find the trading capabilities supplied to be underwhelming.
Fees
Coinmama levies transaction fees for buying and selling cryptocurrency, in addition to other costs that vary with the user’s chosen mode of payment. Coinmama’s fees are calculated using the TradeBlock XBX list, which is a well-known Bitcoin price index, plus a markup of 2.3%. Additionally, Coinmama applies a transaction fee to each and every transaction. The vast majority of cryptocurrency exchanges charge lower fees than this one does.
Security
Two-factor authentication, often known as 2FA, and encrypted servers are two of the standard security features that can be found on Coinmama. In addition, Coinmama does not keep any of its users’ cryptocurrency holdings; rather, it requires its clients to utilize either their own software or hardware wallets. This ensures that users retain custody of their assets rather than storing them on a centralized platform.
The following is some information regarding the safeguards that are provided by Coinmama:
• Authentication with two separate factors (2FA). Two-factor authentication, often known as 2FA, is available through Coinmama’s use of third-party authentication apps (such as Google Authenticator.)
• Control of the user. Coinmama does not keep any of its users’ coins on file, and in order to make purchases, you will need to connect a digital wallet. This assures that every user may keep their cryptocurrency safe even after leaving the Coinmama site.
Creating an Account with Coinmama
You will need to submit both an email address and a password in order to create an account with Coinmama. After confirming your email address, you will be able to log in and add a second factor of authentication to your account. In order to complete this step, you will need to scan a QR code provided by Coinmama and enter a six-digit code that will expire from your authenticator app.
Coinmama needs its users to verify their identities before they are allowed to make any purchases (or withdrawals). This requires you to not only provide your name, address, and any other personal information, but also present a photograph of a photo identification card issued by the government. You will also be required to send in a photograph of yourself holding a piece of paper in which the word “Coinmama” is written. This is in accordance with the most up-to-date security rules in the United States known as Know Your Customer, or KYC.
Assistance to Customers
Coinmama provides customer care across the following mediums: the telephone, email, live chat, and several social media platforms. Users can access the voicemail service by calling the following number: +1 (650) 600-9939. When they do so, they will be prompted to leave a message that includes their name and phone number. Coinmama’s customer service department will get back to you to provide assistance. Because most cryptocurrency exchanges do not provide phone service, Coinmama stands out from many of its other competitors due to this feature.
Additionally, users can get minimal support using Twitter. In general, Coinmama provides a wider range of support services than the majority of cryptocurrency exchanges.
Satisfaction of the Customer
Coinmama generates generally excellent feedback from customers, with many of those customers praising the ease with which they may make purchases as well as the quality of the company’s customer support. A small number of customers have voiced their dissatisfaction with the lengthy approval process for verification, as well as the inability of some accounts to pass identity verification checks (though users were able to withdraw funds with no issue).
In general, Coinmama obtains better reviews than some of its rivals, and the company’s customer support appears to respond to problems in a timely manner.
Because there are currently no official rating organizations for cryptocurrency exchanges, consumers will have to rely on customer evaluations in order to receive any kind of insight into the experience of using the platform.
Management of Client Accounts
Coinmama is a cryptocurrency trading platform that enables users to buy and sell cryptocurrencies using its web-based platform as well as its Android mobile app. Users are able to log in, view their cryptocurrency holdings, make purchases, and, if they so choose, sell Bitcoin. Coinmama does not facilitate the trading of cryptocurrencies, and users store their coins in third-party wallets rather than on the Coinmama platform itself.
The Coinmama mobile app provides customers with a comparable experience, enabling them to buy and trade Bitcoin as well as other cryptocurrencies. Users are able to transfer funds, examine their holdings, make deposits and withdrawals, and view their account balances all via the mobile app.
How Coinmama Stacks Up Against Competitors in the Cryptocurrency Industry
Although its costs are greater than those of many other exchanges, Coinmama is a straightforward marketplace that gives customers the ability to purchase cryptocurrency. It also provides a straightforward mobile app that can be used to manage user accounts and make purchases while the user is on the road.
Because Coinmama currently supports 15 cryptocurrencies and does not allow users to trade one cryptocurrency for another, the platform can only be used to make straightforward purchases. Users can only sell Bitcoin back to the platform as well; individuals who wish to sell other coins will need to move them off of Coinmama in order to sell them somewhere else. The following chart compares Coinmama to another major cryptocurrency exchange in the United States:
Coinmama vs. Gemini
Coinmama and Gemini are both examples of cryptocurrency exchanges that make it straightforward to purchase Bitcoin. Both companies let customers to acquire cryptocurrency directly with fiat currency and have user fees that are greater than those of certain competitors.
Coinmama, on the other hand, is intended to function as a marketplace where users can purchase a limited number of cryptocurrencies. Gemini, on the other hand, facilitates trading between cryptocurrencies, allows users to earn interest on their holdings, and supports more than 100 cryptocurrencies in total.
Other distinctions that can be made between Coinmama and Gemini include the following:
• Gemini allows users to purchase and sell more than 100 different cryptocurrencies, but Coinmama only supports 15 of them.
• Coinmama does not store the cryptocurrency assets of its users and instead requires them to use an offline wallet.
• Gemini is a provider of services for institutional investors, one of which is over-the-counter (OTC) trading.
• Coinmama offers telephone support for customers, but Gemini does not offer this option.
Coinmama makes it easy for crypto newbies to purchase some of the most popular cryptocurrencies, but the platform’s fees are quite expensive. Gemini is a cryptocurrency exchange that provides its users with a comprehensive range of services, including the ability to buy, sell, trade, and stake cryptocurrency in order to earn interest. In addition, it attracts institutional investors with its over-the-counter (OTC) trading desk and round-the-clock support staff.
Final Verdict
Coinmama is a straightforward and centralized cryptocurrency exchange that makes it quick and convenient to acquire a variety of cryptocurrencies, albeit at the expense of large transaction costs. Coinmama does not take custody of its users’ assets; rather, it needs users to connect a digital wallet hosted by a third party in order for them to get immediate custody of their holdings.
Depending on the manner of purchase, the fees charged by Coinmama can reach up to 8.9% of the total purchase price. This is a greater percentage than practically every other cryptocurrency exchange currently available on the market. These markups can cost traders a significant amount of their investment, thus it is recommended that they shop around at various cryptocurrency exchanges in order to find a price that is more favorable to them.
Coinmama is an option that has rather high costs overall and is not recommended for beginners who are looking to buy and hold Bitcoin or other popular crypto assets. Coinmama does provide exceptional customer care, and the company’s mobile app as well as its web-based platform make it simple to make cryptocurrency purchases. It’s possible that Coinmama will work for crypto newbies, but more experienced traders will want to search elsewhere for a wider variety of trading alternatives.
Is Coinmama the platform for you to use?
Coinmama may appeal to consumers who are new to trading cryptocurrencies due to its user-friendly interface and straightforward transaction flow; nonetheless, the platform’s costs are higher than those of many of its rivals.
Understand that investing in cryptocurrencies such as bitcoin is very speculative and is notorious for its volatility, regardless of the decision you make in this regard. It is sound advice to never put in more money into an investment than you can actually afford to lose.
Methodology
The Balance is committed to assisting readers who are interested in investing in cryptocurrencies in making decisions that are well-informed and secure. Our team is dedicated to offering our readers objective assessments of the most reputable cryptocurrency exchanges, catering to investors of all experience levels.
Exchanges were evaluated based on a variety of criteria, including safety, fees, the range of cryptocurrencies they support, and more. We also took into consideration whether or not the exchange is governed by an appropriate agency or is completely decentralized. Reviewers are welcome to go at our comprehensive approach to the trading of cryptocurrencies, which includes the data collecting and review procedures as well as the weighted data points.
