Coinmama Review

Hedge with Crypto aims to publish information that is factual and accurate as of the date of publication. For specific information about a cryptocurrency exchange or trading platform please visit that provider’s website. This information is general in nature and is for educational purposes only. Hedge with Crypto does not provide financial advice nor does it take into account your personal financial situation. We encourage you to seek financial advice from an independent financial advisor where appropriate and make your own enquiries.

Bottom line:

Coinmama is a well-known fiat to crypto currency exchange that has become popular in the industry. While the platform has found itself in hot water for past security breaches, the Coinmama team has worked hard to improve its security.

While Coinmama makes it simple to buy and sell cryptocurrency, there is a lack of advanced features on the platform. As such, anyone looking for features like margin trading, staking, or copy trading will need to find another cryptocurrency exchange. However, despite the higher-than-average fees, Coinmama is a viable platform for beginners looking for a safe way to buy cryptocurrencies.

How We Rated Coinmama

Review Criteria	Hedge With Crypto Rating
Features	4/5
Supported Fiat and Deposit Methods	3.9/5
Supported Crypto & Trading Pairs	2.5/5
Fees	2.4/5
Ease of Use	5/5
Customer support	4.8/5
Security Measures	3.7/5
Mobile App	3.3/5

Pros Explained

• Exchange available worldwide. Accessibility is crucial for any platform that enables people to buy and sell crypto. Coinmama is available in 188 countries worldwide, including the US, making it one of the widest-reaching platforms on the market.
• Multiple payment options. Coinmama offers support for buying Bitcoin with a credit card, debit card, bank transfers, and e-wallets. Furthermore, with support for USD, GBP, EUR, CAD, and AUD, users can easily buy and sell various assets in their local currency.
• Highly suitable for beginners. For people new to the space, the terminology and the vast number of products can make things difficult for beginners. However, Coinmama takes a no-frills approach that is ideal for new investors.
• Non-custodial exchange. Security is paramount for any service that deals with finances. As a non-custodial platform, Coinmama has no control over user funds, providing greater safety for its users.

Cons Explained

• Limited to 16 cryptocurrencies. Thousands of crypto assets are available, with more released daily. Unfortunately, Coinmama only allows users to purchase 16 different cryptos, a tiny fraction compared to larger platforms like Binance. As such, users who like to diversify may struggle with Coinmama.
• Customers can only sell Bitcoin. Although Coinmama allows users to buy 16 cryptocurrencies, customers can only sell Bitcoin. Unfortunately, this drastically reduces the viability of Coinmama as a crypto-to-fiat gateway.
• Trading fees are very expensive. While it's common for a cryptocurrency exchange to charge transaction fees equal to around 0.1% to 0.3% of a trade, Coinmama charges between 0.9% to 3.90%, plus a 2% spread. These relatively high fees drastically reduce the value offered by Coinmama.
• Lack of features. Coinmama has a minimal number of features. The platform only supports buying and selling (and even those capabilities are limited). Therefore, users looking to explore the myriad of crypto-centric products will likely find Coinmama barren.

Coinmama Compared Alternatives

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Coinmama At A Glance

Exchange Name	Coinmama
Features	Beginner-Friendly, Available Worldwide, Non-Custodial
Accepted Fiat Currency	USD, EUR, GBP, CAD, AUD
Deposit Methods	Credit/Debit Card, Bank Transfer, Skrill
Supported Cryptocurrencies	BTC, ETH, XRP, LINK, USDT, DOGE, and 10 Others
Number of Trading Pairs	N/A
Trading Fees	0.9% to 3.90%
Customer Support	AI Chatbot, Email, Help Center
Security Measures	2FA, Non-Custodial
Mobile App	Mobile Wallet Available on IOS and Android

Coinmama Overview

Launched in 2013 and initially headquartered in Israel, the now Ireland-based and registered Coinmama provides a simple, intuitive, and secure online platform for more than 2,600,000 people to buy digital currencies such as Bitcoin, Bitcoin Cash, and Ethereum.

The Coinmama exchange is one of the most well-respected names in the cryptocurrency industry and is now available in over 188 countries. While it doesn't allow people to trade cryptocurrency pairs, the exchange is worth considering for anyone looking to spot-buy BTC, ETH, XRP, and a handful of other popular cryptos.

Review of the Top Features on Coinmama

Designed for beginners

The user experience on Coinmama has been carefully thought out and is designed to suit individuals with various levels of investing knowledge. The website provides simple methods to buy Bitcoin or another cryptocurrency, with users able to easily select which asset they want to buy, how much they want to spend, and with which currency to transact.

As Coinmama is a bare-bones exchange, there are no additional features or complex order book-style interfaces to confuse users. As such, while not likely to appeal to experienced traders looking to utilize advanced strategies, Coinmama is a viable platform for beginners looking to take their first steps into the cryptocurrency space.

Available worldwide

Coinmama is one of the few exchanges supported almost worldwide. The platform is available in over 188 countries around the globe. Users from accepted countries, including Australia, Singapore, Europe, the UK, Canada, New Zealand, and the US, can quickly and safely purchase cryptocurrency using Coinmama. However, there are a few restricted states and territories within the US, including New York and Hawaii.

Non-Custodial

A non-custodial cryptocurrency broker like Coinmama is one of the safest places to buy crypto, as the platforms do not store customer funds or hold digital assets. We completed a mock purchase while creating our Coinmama review and noticed that users must provide a crypto wallet address before initiating a purchase. Once the address is provided, the user can decide which payment method works for them and complete the transaction.

After sending the required funds to the exchange, Coinmama sends the tokens straight to the user's wallet address, eliminating the risk of hackers stealing client funds. In addition, the non-custodial service offered by Coinmama means users can send their purchases directly to a preferred hardware wallet, perfect for the security-conscious crypto enthusiast.

Account Creation & ID Verification

Coinmama is a straightforward exchange that beginners will likely have no trouble using. The initial sign-up process requires that a user enter an email and password. After that, however, customers have no choice but to complete know-your-customer (KYC) verification before being able to use the platform.

To complete the verification process, a user must provide their full name, home address, and a form of photo ID (passport, driver's license). Additionally, new users must take a selfie while holding their ID and a piece of paper with the current date and ‘Coinmama' written on it. The details provided by new customers are checked manually and can take anywhere from 30 minutes to a few hours to be confirmed.

Investors that prefer to remain anonymous will need to choose a non-KYC crypto exchange to buy crypto. Although, limits and restrictions on account features can apply.

Supported Fiat Currencies and Deposit Methods

Coinmama is a fiat-to-crypto exchange that allows individuals to buy cryptocurrencies using fiat currencies. While the platform supports USD, EUR, GBP, CAD, and AUD, users wishing to transact in another currency will need to look elsewhere.

While the range of supported fiat currencies is lower than other exchanges, Coinmama has ensured that every user is provided with a viable payment method. Coinmama accepts credit and debit cards, bank transfers, Google Pay, Apple Pay, and Skrill. Unfortunately, while the most cost-effective option, bank transfer payments can take between 1-3 days to complete.

Supported Crypto & Trading Pairs

Having access to a substantial number of assets is crucial for anyone wishing to buy and sell crypto. However, while creating our Coinmama review, we noticed that the exchange only supported 16 cryptocurrencies, far less than most other cryptocurrency exchanges.

While the exchange does support the largest assets, including BTC, ETH, and LTC, the lack of smaller projects is far from ideal for anyone aiming to trade cryptocurrency. Furthermore, as a direct purchasing platform, there are no additional trading pairs available and therefore can only spot trade.

Coinmama Fees

Commission Fee

Coinmama boasts higher transaction fees than most exchanges. For crypto purchases. There is a minimum fee of 0.90%, but this figure can be as high as 3.90%, depending on the user's loyalty level.

Coinmama's trading fees are 0.1% to 0.9% plus the 2% spread to sell cryptocurrency. Furthermore, an additional spread fee charged at 2% above the market rate is used to offset volatility.

Credit/debit cards, Apple Pay, Google Pay, and using a prepaid card to buy Bitcoin incur a 4.99% ‘express fee' for fixed-rate instant purchases. There are no added fees for bank transfers. The final trade fee is displayed before the transaction is confirmed, making it simple for users to see a cost breakdown before buying.

Coinmama Loyalty Level

Similar to other cryptocurrency trading platforms such as Binance, Kraken, EXMO, and Kucoin, Coinmama offers a loyalty system. The program incentivizes users to trade increased volumes by rewarding them with reduced trading fees. The loyalty status is not a one-off and needs to be maintained over a 90-day rolling period. The discounts have been updated in the last 12 months and are shown below:

Loyalty Level	Fee Discount	Trading Volume (90 day)
Crypto Curious	0%	0%
Crypto Enthusiast	12.5%	$5,000
Crypto Believer	25%	$18,000 or $50,000 Lifetime

Coinmama Fees Compared

The fee charged by Coinnmama for buying and selling crypto is far higher than most other crypto exchanges. average. Furthermore, the additional spread and express fees reduce the value offered by Coinmama even further. While the exchange does provide a convenient way to purchase crypto, those looking for a cost-effective exchange will be better off using a platform like Binance, Crypto.com, or eToro.

Exchange Name	Trading Fee
Crypto.com	0.0750%
Binance	0.1%
eToro	1%
Coinmama	0.9% to 3.90%

Coinmama Ease of Use

Coinmama is a simple-to-use exchange that enables users to purchase 16 cryptocurrencies using various payment methods. The platform's interface is clean and intuitive, with all essential information readily available.

The interface is designed for beginners to easily, quickly, and securely purchase cryptocurrency that resembles Paybis, a similar fiat-to-crypto exchange we have reviewed. There is no price chart to view historical or live Bitcoin prices or advanced order types such as limit or stop-limit.

The design and arrangement of the website are orientated for beginners purchasing Bitcoin or other altcoins for the first time. However, experienced investors will need to use a cryptocurrency trading platform to use advanced trading features and risk management tools.

Coinmama Mobile App

While the trading platform is only available to desktop users, Coinmama has recently released its non-custodial wallet on both IOS and Android. Although users can view the price of crypto markets, the app only supports storing assets and not purchasing them. While the app boasts a slick interface and is easy to use, it currently only supports Bitcoin and Ethereum, hindering its performance.

Coinmama Support Team

Coinmama has created a help center filled with articles covering how to buy and sell, account security, and the verification process to assist its users with everyday issues. Furthermore, Coinmama offers a live chatbot to help users with basic requests. However, users can contact the Coinmama team for less common queries via email. For our Coinmama review, we tested the support team's response time and received an email back in less than an hour, which was impressive.

Coinmama Security Measures

Unlike most cryptocurrency exchanges, Coinmama is designed like an instant crypto swap service rather than a trading platform. As a result, Coinmama enables the purchase of digital assets, but no funds are stored directly on the exchange, significantly reducing the risk of a digital attack. Although Coinmama keeps its exact security measures under close wraps, the platform offering two-factor authentication and being non-custodial helps to keep users safe.

Coinmama was previously hacked, resulting in the comprise of 1.4 million customers' details. However, the exchange has since increased its awareness of account security by regularly monitoring any suspicious activity and informing customers of good security practices. To prevent another event like the infamous 2019 exchange hack, Coinmama has pledged not to store customers' credit card details. However, some personal information is kept on record as part of the ID verification process.