Coinmama is a cryptocurrency brokerage offering convenient and simple crypto purchases. It is often recommended as a place for beginners to make their first cryptocurrency purchases.
Coinmama Exchange Review
Overview and Reputation
Coinmama has a reputation as a reliable cryptocurrency provider. It has served over 2.3 million users in 190 countries since its inception in 2013.
It is a subsidiary of New Bit Ventures, Lmt., which has offices in Bratislava, Slovakia, and Ramat Gan, Israel. Coinmama holds a money transmitter license from the U.S. FinCEN and the Israeli financial authority, IMPA.
Fiat to crypto conversion
Coinmama offers fiat to crypto conversion via bank transfer or debit card.
For bank transfer purchases, Coinmama charges 3.9%. For debit or credit card purchases, it charges an additional “momentum fee” of 5%.
Coinmama offers discounts to frequent users and high volume traders. Users who purchase more than $5,000 worth of digital assets over a 90 day period achieve the Crypto Enthusiast title. This grants them a 12.5% discount on fees.
Users who buy $50,000 worth over a lifetime or $18,000 worth over 90 days achieve the Crypto Believer title. This grants them a 25% discount on fees.
Users who buy less than $5,000 worth of crypto over 90 days are given the title Crypto Curious and must pay the full fee.
Here is a table summarizing this information.
|Title||90 day volume||Purchase with bank transfer||Purchase with debit card|
|Crypto Curious||< $5,000||3.9%||8.9%|
|Crypto Enthusiast||$5,000 - $17,999||approx. 3.41%||approx. 7.79%|
|Crypto Believer||$18,000+||approx. 2.93%||approx. 6.68%|
Crypto to fiat conversion
If you want to sell your Bitcoin and “cash out,” Coinmama will allow you to do so via bank transfer. The sell fee is between 0.9% and 0.1%, depending on your Coinmama loyalty level.
Coinmama does not accept sales of Ethereum, Ripple, Tezos, or any other altcoin. So if you are holding an altcoin and want to sell, you’ll need to convert it to Bitcoin at another exchange first.
Coinmama offers 10 different cryptocurrencies. Here is the full list:
Its overall volume of trade is unknown. But Coinmama seems to have enough liquidity to handle orders of less than $50,000. If you want to purchase more than this in a single order, the team recommends that you contact them at email@example.com to make sure the process is smooth.
Coinmama is available in most countries and US states.
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There are some US states and territories where Coinmama is not available, namely: Hawaii, New Mexico, Oregon, Vermont, Washington, New York, ,and Puerto Rico
Areas where Coinmama operates through a third party
In some areas, Coinmama does not yet have a legal status that will allow it to sell cryptocurrency, but it can still facilitate sales through a third party that does have this status.
If you live in one of these areas, Coinmama will redirect you to a partner platform for purchases. Here are the areas served by third parties.
US States served by third parties: Connecticut, Florida, Iowa
Technically, you cannot “deposit” funds to Coinmama. It does not hold an account in your name, and any crypto you buy is immediately sent to your wallet address.
Still, there are multiple methods to purchase crypto at Coinmama.
Crypto purchase methods in the EU
If you live in the EU, Coinmama offers crypto purchases through SEPA or bank card.
Regardless of method, the minimum amount that can be purchased is US$50 equivalent. Coinmama does not charge a fee for using SEPA.
Crypto purchase methods in the UK
For UK residents, SWIFT transfer, SEPA, and debit/credit card are the methods available. Coinmama only accepts GBP through SWIFT. If a UK user wants to send Euros, he’ll need to use SEPA.
The minimum purchase amount for SWIFT is US$57 equivalent. For SEPA or card, it’s US$50.
Crypto purchase methods in the US
US users have three options available at Coinmama: credit/debit card, Fedwire, and SWIFT.
The minimum purchase amount for SWIFT is $1,000. For Fedwire, it’s $990. For a credit or debit card, it’s $50.
Most US banks charge between $15-$25 to send a Fedwire or SWIFT transfer. Coinmama has not disclosed whether it also charges a fee to receive these funds.
Crypto purchases in other countries
For countries outside the EU, US, and UK, debit and credit card are the only methods available. The minimum purchase amount in this case is US$50.
As with deposits, “withdrawals” technically cannot be made on Coinmama - since it does not hold any funds on behalf of users.
But there are multiple methods to receive cash from sales.
Bitcoin is the only cryptocurrency that can be sold for cash at Coinmama. Other cryptocurrencies must be converted to Bitcoin at another brokerage or exchange first.
Bitcoin sale methods in the EU and UK
If you live in the EU or UK, SEPA and SWIFT are the available methods to receive funds from cash sales. Only EUR can be sent through SEPA. To receive GBP, the user must use SWIFT.
Most banks will charge the equivalent of $25 to receive a SWIFT transfer.
Regardless of method, the minimum sale amount for Bitcoin is US$200 worth.
Bitcoin sale methods in the US and throughout the world
If you live in the US or anywhere outside of the EU or UK, the only method to receive funds from Coinmama is SWIFT. The minimum sale amount is $200 worth of Bitcoin, and most banks will charge $25 to receive the funds.
Coinmama doesn’t offer Paypal or debit card refunds as payment methods. So users are not able to make instant withdrawals through the service. Other than that, Coinmama’s sale or withdrawal methods are adequate.
Before you can buy any crypto from Coinmama, you’ll need to verify your identity.
As with other crypto brokerages, Coinmama has multiple levels of verification. Higher levels require greater proof of ID and allow for greater limits for purchases and sales.
There are three levels of verification total.
In order to reach verification level 1, you’ll need to provide a name, address, phone number, and photos of the front and back of your ID. The ID can be a non-US international passport, driver’s license, or national ID.
You’ll also need to provide a photo of yourself holding both your ID and a sign that reads “Coinmama” followed by today’s date.
After submitting these documents, a member of Coinmama staff will review them to make sure the photos are not too blurry or dark.
We tested out the verification level 1 procedure. We found that it took less than 24 hours to get a response saying that we were accepted.
Level 1 users are limited to 5 card purchases totaling up to $5,000 per day or 10 wire transfer purchases totaling up to $15,000 per day. They are also limited to 20 bank card purchases or 50 wire transfer orders totaling $15,000 per month.
If you want greater limits, you can try to get level 2 verification. To do this, you’ll need to provide front and back photos of a second ID.
The second ID needs to be different from the one used to attain level 1. US residents can use a passport for a second ID.
You’ll also need to provide photos of proof of residence such as a water, electricity, or gas bill. And you’ll need to take another selfie while holding your second ID and a Coinmama/date sign.
Level 2 users have an increased wire transfer limit of $35,000/day, can do 30 bank card purchases of up to $30,000 per month, and have an increased monthly wire transfer limit of $50,000.
If $50,000/month is still too low of a limit, you can increase it further by attaining level 3 verification.
Once you’ve attained levels 1 and 2, level 3 is fairly easy to get. Just fill out a Know Your Customer (KYC) questionnaire that asks where you got your funds from and the purpose of your investment. That’s all there is to getting approved.
Level 3 users can do $7,500 worth of bank card purchases or $50,000 worth of wire transfer purchases per day. As for monthly limits, they can do $40,000 worth via card or $100,000 worth via wire transfer.
With crypto exchanges, security is often a great concern to users. This is because many exchange users keep their crypto on the exchange in order to more easily trade it.
Coinmama does not hold any funds for users, so security may be less of a concern than with other crypto purchase options. But some readers may still wonder what Coinmama does to protect sensitive information such as credit card numbers and ID photos.
Coinmama does not hold credit or debit card numbers for users. Instead, users must type this info over again each time they make a purchase. And the transmission of these forms is protected by standard SSL Certificate procedures.
Coinmama does keep records of personal information such as photo IDs, names, genders, and addresses. This information could be obtained by hackers if they were to gain access to Coinmama’s servers. However, this is a risk that users take when using any website that keeps personal information.
We’ll discuss this more in connection with the Coinmama hack, below.
On February 15, 2019, Coinmama staff discovered that an attacker had gained access to 450,000 user emails and hashed passwords from prior to September, 2017. This was part of a larger attack that had affected 30 different companies.
Three days later, the Coinmama team discovered that a different attacker had gained personal information from 1.4 million Coinmama accounts. This personal information included names, physical addresses, email addresses, genders, and ID numbers of users.
Coinmama responded by sending out email notifications to users affected by the breach, contacting the police, and contacting data protection authorities. They recommended that all users change passwords that were created before September, 2017.
This hack affected many other websites outside of the crypto space, including the dating app Coffee Meets Bagel and fitness app MyFitnessPal.
Because Coinmama does not hold user funds, no cryptocurrency was lost in the attack. And no credit card information was obtained by the attackers.
In addition, it appears that the information gained in the attack was never used in any further attacks.
Despite a hack, Coinmama seems to be following standard procedures for protecting personal information. And users should be able to sleep soundly knowing that Coinmama doesn’t keep records of their credit card numbers.
To register for Coinmama, a user needs to take the following steps.
- Click Sign Up in the upper-right corner of the homepage
- Enter the user’s country, state (if applicable), email address, a password, and click create account
- Push the create my profile button
That’s all there is to registering. Once the user is finished with this task, he is sent immediately to an ID verification page.
The next step after registering is to get verified. The first step of verification is to fill out two web forms that ask for basic information such as name, address, and birthdate.
After submitting these forms, the user is sent to a page where he can scan a QR code with his phone so that photos can be taken.
If the user has trouble getting his QR code to scan, he can opt to remain on his PC instead. In this case, he is presented with a button that allows him to upload photos from his PC onto the website.
In our testing, we had trouble getting the QR code to work. So we took images with our phone and uploaded them to Google Drive, then downloaded them to the PC. Once we did this, we were able to easily upload the photos to Coinmama.
Other users may find it easier to use the QR code than we did.
Once the photos are uploaded, the user receives a message stating that staff will look over the information.
In our test, we submitted our forms at 10:12 p.m. and got them approved at 12:10 a.m., so it took less than two hours for staff to approve the application.
It’s unclear whether verification is always approved this quickly. But judging by our experience, we suspect that most users will not have to wait more than 24 hours to get approved.
Once the user is approved, he can buy cryptocurrency by selecting the buy drop-down list in the upper-right and choosing a cryptocurrency.
Coinmama will provide buttons for several purchase amounts. For example, it may offer a button for $100, $500, and $1,200 worth of coins. If the user wants to buy one of these amounts, he can go ahead and click the corresponding button.
Otherwise, the button on the far-right can be used. It is labeled “choose an amount.” The user can enter a specific amount into the field above this button to choose any amount above US$50.
Pushing any button brings up a screen where the user can type his cryptocurrency address.
Users have 30 minutes to finalize a purchase after an amount is chosen. Beginning at the address entry screen, a timer displays to inform the user of how much time he has remaining. If this timer goes to zero, the user must start the process over again.
Once an address is entered, a payment method can be chosen. And from there, making a purchase is as simple as filling out payment details.
If a user wants to sell Bitcoin for cash, here is the process for doing so.
The first step is to select sell from the menu in the upper-right. This brings up a form where the user can enter the amount he wants to sell.
Either a fiat or BTC amount can be entered. Regardless of which field the user alters, the other field will change to display an equivalent amount minus fees.
After entering an amount, the user pushes Sell to Bank Account, chooses either SEPA or Bank Transfer, and then enters bank account information. Once this is done, a Coinmama BTC address displays where the funds can be sent.
Coinmama does not provide customer service by phone or chat.
However, it does appear from reviews that Coinmama goes out of its way to help customers deal with declined payments and missing funds.
Coinmama offers customer support through email. To submit a ticket, scroll down to the bottom of the screen. Under the support heading, select contact.
You can also get answers from a bot by clicking help in the lower-right corner of the screen. If the bot fails to answer your questions satisfactorily, it will let you enter an email address and send the chat transcript to staff for email assistance.
We tried out contacting support through the bot system. We got an answer from staff 13 hours after having submitted our transcript.
Coinmama has a 4 out of 5 stars rating on Trustpilot. It typically replies to negative reviews within 1 week. It has replied to 60% of negative reviews total.
Most Trustpilot reviews discuss either identity verification procedures or issues with bank transfers.
Coinmama has responded to these claims saying that it did, indeed, send these emails. However, it cannot disclose why these users are not allowed to use the platform.
One user accused Coinmama of stealing her money. On August 5, 2020, Becky Williams stated:
“They stole my money. I sent 2 wire transfers from my bank for a total of $10,000 and they never credited it to my account with them. I reached out to them 4 times and received 2 responses asking for more information. I never heard back from them.”
“After a long search, we were able to locate your funds...You sent us the funds from a business/corporate account, that was not in your name...Sadly sending funds on Coinmama from a business or corporate account is forbidden....Your funds will be returned of course, as we have no reason to hold on to funds that do not belong to us”
Other users have praised Coinmama for its help in dealing with declined payments.
For example, Adam A stated “I initially had some problems because my payment was declined but I contacted customer support and Ivan helped me quickly. After that everything went smoothly!”
And Shane stated “I love coin coinmama!! They’ve helped me two times with issues that I thought were unfixable!”
Overall, most of the Coinmama reviews on Trustpilot are positive.
Coinmama doesn’t have any “notable features.” It is a basic cryptocurrency broker that doesn’t offer a lot of bells and whistles.
While other services may offer options trading, peer-to-peer trading, custody services, or other unique features, Coinmama opts to focus entirely on buying and selling cryptocurrency.
This isn’t necessarily a bad thing. We’re just pointing it out here in case you are wondering why we don’t list these features.
Coinmama does not have a mobile app. So we can’t give it a rating in this category. However, it does have a website optimized for mobile.
We tried accessing this website using an Android phone. We had no problem placing buy or sell orders using the site on a mobile device.
Coinmama is a great broker for beginners who want to buy Bitcoin or other major cryptocurrencies with a debit card or bank transfer. It offers a simple interface, excellent customer service, and great security.
Coinmama only offers major cryptocurrencies like BTC, ETH, and LTC. It doesn’t offer smaller market cap coins like BAT or COMP. So users seeking a wider variety of coins may want to go elsewhere.
Frequent traders may also be disappointed in Coinmama, since it offers no solution to custody crypto for easy trading.
But for users who want a fast, easy way to buy BTC, ETH, XRP, ADA, or other major cryptos, Coinmama is a solid choice.
Is Coinmama safe?
Yes. Coinmama is safe. Over 2.3 million people have used it to buy Bitcoin since 2013. It is regulated by both US and Israeli financial authorities.
How long does Coinmama verification take?
Coinmama verification seems to take no more than a few hours or up to a day at the most.
How long does Coinmama take to send funds?
If you buy Bitcoin with a credit card, you should receive it within 10 to 20 minutes of completing the purchase. You can track the purchase using a blockchain explorer. For altcoins, the length of time varies depending on the speed of the network.
Where is Coinmama located?
Coinmama is headquartered in Bratislava, Slovakia. Its parent company, New Bit Ventures, also has offices in Ramat Gan, Israel.
Can Coinmama be used without verification?
No. Users who create an account at Coinmama will find that all functions of the site are blocked until the user finishes verification.
Does Coinmama accept prepaid cards?
Most prepaid cards are not associated with a billing address. Since Coinmama asks for a billing address during checkout, the transaction will fail when using these cards. If a prepaid card does allow you to register an address with it, Coinmama will accept it as long as it is issued by Visa or Mastercard. However, the card company itself may still reject the transaction because it is a cryptocurrency purchase.
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