The Ultimate Coinmama Review
How does Coinmama work?
Coinmama is a cryptocurrency broker which means that they will send you the cryptocurrency directly to your cryptocurrency wallet in exchange for a commission.
Unlike cryptocurrency trading platforms, you do not need to create an additional wallet on the platform to store your crypto.
Checkout Process Review
Coinmama has a very user-friendly and shopping feel to it unlike other exchange platforms which makes it ideal for beginners.
Create a free account account:
Step 1: Head over to Coinmama and create a free account.
Feel free to use our affiliate link at no extra-cost to you:
There are two ways to create an account with Coinmama:
You can either click the sign up button on the top right or the ‘Buy Coins ‘ button.
Step 2: Coinmama verification process
- Your email
- Preferred password
- Country of residence
- Click create account
Coinmama requires very basic user information to create an account.
Coinmama will send you an email confirmation to confirm your identity.
What I personally like about the Coinmama Verification process the fact that is that they do not invasive questions like traditional trading platforms.
In some cases, KYC approval can easily take months.
Placing an order
Coinmama offers two options:
Option 1: You can choose one of their 4 packages at different price points for simplicity.
Option 2: You can choose a very specific amount of crypto or fiat (USD/Euros) by either entering the exact figure.
I think the price slider adds a very nice touch.
Coinmama allows you to choose a package or buy a specific amount.
Click the ‘Buy’ at the bottom of the page.
Enter your (receive) wallet address
VERY IMPORTANT: Be sure to give the wallet address which corresponds to correct amount of crypto.
Protip: The Receive Address is also known as the public key and the send address the private key.
If you are not sure what is a private key, you can check out this easy explanation.
This is definitely one of the finest qualities of Coinmama.
I really like the fact that that you do not need to provide ID verification like typical cryptocurrency exchange where they sometimes require you scan your password as well as take a selfie.
Is Coinmama legit?
Here is the Bitcoin and Ethereum I ordered in the Coinmama dashboard.
It is safe to say: Yes!
Which other coins can you buy?
Coinmama currently allows you to buy the 8 following cryptocoins directly:
- Bitcoin (BTC) : Bitcoin is the first cryptocurrency and created by SatoshiNakamoto who had gone into hiding and recently reappeared.
- Ethereum : The second most popular cryptocurrency after Bitcoin created by 22 year old Vitalik Buterin. Ethereum is also a blockchain platform which is very popular among devs as they can create DAPPs (decentralized applications) and smart contracts.
- Ripple: Just like Ethereum Ripple is also a blockchain platform except their target maket is the banking sector.
- Litecoin: The Creator of Litecoin, Charlie Lee, called Litecoin, the digital silver and bitcoin being the goal. Litecoin is meant to be faster alternative to Bitcoin.
- Cardano: This is a Chinese-based cryptocurrency and blockchain project similar to ethereum.
- Qtum: Is a Bitcoin fork (derived from Bitcoin) and blockhain platform like* Ethereum.
- BitcoinCash: BitcoinCash is another Bitcoin fork which boasts faster and cheaper transaction. Its most vocal advocate is RogerVer.
- Ethereum Classic: Ethereum Classic was infact the original Ethereum but as the community could not agree. The fork became what is known as Ethereum and Classic the ‘core’ version.
*In very simple terms
Accepted Payment Methods
- Bank Transfer (SEPA)
Coinmama does not accept:
- American Express
Coinmama Supported Countries
You can buy cryptocurrency from Coinmama if you live in the following countries:
[table id=Coinmamacountries /]
Coinmama supports the following states in USA:
[table id=Coinmamausa /]
More experienced cryptocurrency traders complain that brokers like Coinmama have high rates, here is a break down of the costs
There are 2 main fees when buying cryptocurrency through Coinmama:
- 5.90% brokerage fee (included in the price)
- 5% Credit/Debit card fee imposed by
HACK: To be sure you have enough funds on your card, just take the price and multiply by 1.05% . So if you buy $100 worth of BTC, you need $105 of your card.
Some people may feel that the 5% transaction fee is high, but I personally think that it’s really a question of how much your time is worth.
As you become more comfortable with the technical aspects of cryptocurrency and blockchain, you will naturally pick up ways to save on these fees.
1.Blockchain fee :
However, remember that blockchain transactions powered by something called mining and the miners verifying the transactions require transaction fees.
Unfortunately, the mining fees are unavoidable no matter transaction even if you’re sending crypto directly to another person.
2.Cash advance fee
Consequently, this resulted to an additional 5% on purchases of cryptocoins.
They claim to have reversed this decision, but if this does happen to you, you can file dispute with your bank.
3.Exchange rate fees
This is the fee charged by banks to convert your currency to USD or EUR.
It is a lesser known fee but good to monitor if you live outside of the US or EU.
The minimum purchase is 60 USD or EUR.
There is a maximum daily limit of 5000 USD/EUR and monthly limit of 20,000 USD/EUR.
Coinmama requires verification for the higher amounts.
Coinmama does not provide any phone support if you need to contact them, you can send them an email at email@example.com, submit a ticket or contact them on their Facebook Page.
They also have a very extensive knowledge base which answer all user questions.
Coinmama doesn’t appear a negative reputation except for more experiences users complaining of high fees which in my opinion normal when deal with a bank and credit card companies.
Social Media Presence
I think this is the biggest weakness of this company, they do not have a big following on Facebook or Twitter.
Indacoin is definitely the closest competitor in terms of fast and beginner friendliness.
My biggest issue is that they are not transparent on how much they charge for brokerage.
Paxful is ‘clunkier’ with more features.
Their anti-spam set-ups make the website frustratingly slow to use.
LocalBitcoin can be compared to Craiglist.
It can be a daunting option for first time Bitcoin buyers
[table id=Coinmamacompetitors /]
I will be creating a more detailed review for each one of them soon 😉
Who is Coinmama for?
- If you do not own Bitcoin yet.
- If you do not own Ethereum yet.
- You find exchange platforms to complicated.
- You get overwhelmed by complicated processes.
When had just started out, I found all the information extremely overwhelming and all I wanted to do was just buy Bitcoin and Ethereum.
Coinmama is the most user friendly and easy to use platform compared to its competitors.
Though the brokerage fees are steeper compared other similar platforms, the simplicity was definitely worth it for me as a beginner.
I hope you enjoyed my coinmama review 🙂
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Founder of Satoshi Library
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Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!