Does Coinmama really compare to all those other Bitcoin exchanges out there? Perhaps you have heard how this crypto exchange has millions of international users through its comparatively flexible global credit-card purchases policy.
Throughout this Coinmama review I will show you that it’s all true: Coinmama has never yet experienced any known security breaches, and they continue to successfully grow and gain larger market share. Coinmama is the brand name of New Bit Ventures, an Israeli/Slovakian exchange started by bitcoin enthusiasts in April 2013.
It is registered with FinCEN in the US as a money service business (MSB), but its headquarters are located in Ramat Gan, Israel.
The exchange is best known for offering it’s clients to buy and sell bitcoin with a debit and/or credit card. Its services are accessible from most parts of the globe.
In addition to bitcoin, Coinmama offers other high volume traded coins for you to buy and/or sell, such as: Ether (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), Cardano (ADA), Qtum (QTUM), Ethereum Classic (ETC), Tezos (XTZ), Eos (EOS).
A short guide for using Coinmama’s website:
Coinmama offers a simple and efficient service for those looking to buy or sell crypto currencies. You can buy using a credit/debit card or a bank transfer such as SEPA or SWIFT. Some exchanges, such as Poloniex and Bitstamp, match buyers and sellers. Others such as Coinmama and Coinbase buy and sell directly from clients.
Coinmama doesn’t offer advanced trading tools, such as charts, price notifications, stop losses or take profits, as heavy trading exchanges do. As a client at Coinmama, you mainly use the platform to buy and sell bitcoins and other crypto currencies for longer terms. Which means the simple interface will be perfect for you.
Advantages of Coinmama
- Coinmama accepts credit & debit cards from all countries around the world (over 188 countries). This is a significant advantage compared to larger exchanges such as Coinbase or Bitstamp that are very limited.
- Coinmama accepts bank transfers such as SEPA and SWIFT.
- Coinmama delivers coins within minutes after an order is placed, allowing users to act quickly to price movements.
- Coinmama doesn’t hold user’s funds. This setup makes Coinmama significantly more secure.
- Coinmama offers the highest daily buying limit in the industry.
Disadvantages of Coinmama
- No conventional trading platform/interface or trading tools such as charts. Users can only make simple buy and sell orders. Larger exchanges like Kraken & Bitstamp give the option of placing advanced trades via the graph interface.
- New users are not offered a free bitcoin bonus like Coinbase’s $10 reward system.
- Like most exchanges, due to regulations. Coinmama requires identification to buy. Some non-regulated sites allow users to purchase without ID.
- Has no mobile application or API for developers to build third party tools. Other larger exchanges like Coinbase or Kraken have such functionality.
Security of Coinmama
To do a full Coinmama analysis let’s look at just how safe it is for buying and selling bitcoin.
As like all centralized services, these exchanges represent prime targets for hacking. However, Coinmama doesn’t hold user funds and instead sells bitcoins out of its own inventory. When you place an order, you provide a wallet address to which they can send your bitcoins to.
As of October 2017 Coinmama has not experienced any security breaches. That’s quite impressive when compared to Coinbase, who did have one early, yet major hack on their exchange.
An order is usually executed within minutes after your payment is approved. If an order is declined, the system automatically voids the payment within 48 hours and the money is refunded back to your bank account.
A few users have made complaints in online forums that they’ve had their card charged but the exchange failed to deliver coins purchased. This is an uncommon occurrence, and believed that these clients were very quick to complain and judge, as entitled refunds will always be given.
While Coinmama doesn’t hold user funds, customers may still experience losses if the exchange is a target of hacking. Aside from cryptocurrency funds belonging to the exchange, user credit card information could be a target for theft. However, Coinmama assures customers that credit and debit card information is not stored on the exchange server.Even more so, Coinmama doesn’t even have access to credit card details, as payment checkouts are completed on their credit card processor’s checkout page.
They also state that their system encrypts users’ sensitive personal information and stores it on secured and dedicated servers.
Like with most exchanges, Coinmama’s fees may vary based on your payment method, and other circumstances. Fees start as low as 2.9%, include loyalty programs and in some cases you may be charged processing fees.
As part of Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements from regulators, Coinmama requires personal identifying information. When you sign up, you provide an email address, your name and country of residence. Before you can buy bitcoin, the exchange has to verify your account. The verification form requires full name, date of birth, gender, address and credit or debit card number.
The Coinmama registration process is quite simple
The verification process also involves submitting photos of the front and back sides of an identification document. The document can be a passport, driver’s license or a national ID card. After the submission of the application, the process can take a few minutes and up to half an hour to be verified, which is one of the quickest time frames in the industry. It may take longer if there is high market demand.
The most frequent reason Coinmama declines applications is due to poor quality of ID photos. To avoid this, make sure photos of your ID are of high resolution, in color and all four corners are visible.
After verification, you can buy bitcoins and/or other crypto currencies up to $50,000. If you need to buy more, just contact support. In comparison to other exchanges, Coinmama offers one of the highest daily buying limits of bitcoin available immediately after signup and verification of your account.
For example, Coinbase limits new signups to purchases of $200, Kraken imposes a new account limit of $2,500 and Poloniex limits to $2,000. Unlike Kraken or Poloniex.
Supported payment methods
Buying crypto at Coinmama is as easy as buying shoes online.
At Coinmama, you can buy and sell crypto using credit and debit cards and also with bank transfers such as SEPA and Swift. This is very helpful, especially for newer crypto investors.
The primary channel to reach Coinmama support is through email. Compared to other major exchanges, the response here is extremely fast, with queries consistently replied to under 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.
Alternative sites to Coinmama
- Coinbase – highly popular & easy-to-use platform. Read my review of Coinbase for details. Credit card & bank transfer purchases. (USA)
- Bitstamp – separate interfaces for beginner & advanced users. This Bitstamp review explains the card & bank transfer purchasing. (Luxembourg)
- Blockchain.info – world’s largest online wallet. Similar to Coinmama in that users can only make buy orders (no bitcoin selling). Credit card purchases available for EU users. (UK)
How was your experience using Coinmama? Was it good or bad, and what would you add to this Coinmama review? Let me know in the comments below.