Coinmama is a bitcoin exchange that specializes in selling Bitcoins via credit card to nearly anyone in the world. They used to sell BTC via Western Union but they don’t do that anymore as they are now focused on instant bitcoin purchases via credit cards.
Coinmama is one of the oldest Bitcoin exchanges in business, and it has been selling Bitcoins via credit/debit cards for longer than any other company. We will take a deeper dive into workings of this exchange in our Coinmama review – so let’s go.
Payment Methods Accepted
Various payment methods are supported as well, so Coinmama customers can invest in Bitcoin via Visa and MasterCard credit and debit cards and cash.
One of the most important changes in the Bitcoin industry is how simple it has become to purchase Bitcoins with a credit card. This is mainly because of the fact that companies like Simplex have allowed brokers and exchanges to verify users with less risk.
Coinmama integrates Simplex in its system and allows you to pay with any MasterCard or Visa you might have, which is a much welcomed change because, without this, you’d be bound to the old methods of actually going to your local Western Union counter and depositing money.
How to register on Coinmama?
Unlike some of its competitors, Coinmama has no mobile app yet and is only currently available as a website.
On the other hand, it is on par with its competition in terms of KYC procedures – you need to be fully verified in order to buy crypto on Coinmama.
Sign up process is easy – you go to Coinmama.com and click on register. Once you fill out the form, click next and finish the process. Don’t forget to confirm your email address by clicking the link Coinmama send to your email!
How to verify on Coinmama?
You will have to upload official government issued ID and wait for Coinmama approval.
Coinmama requires the following steps in order to verify you:
- all photos you upload need to visible in their entirety;
- high quality images;
- valid documents, with details like expiry date clearly visible;
- maximum file size of 8MB.
Verification process usually takes couple of hours during the working time and a bit longer if you start your verification in the evenings or weekends.
How to Buy Bitcoin on Coinmama
Coinmama is a bit different than other exchanges when it comes to buying crypto. They do not store anything on their servers – not your credit card details nor your coins.
So how do Coinmama purchases work?
You create an order, choose how many bitcoin or other coins you want to buy and then proceed to the checkout page, where you enter your credit card details.
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After finishing the payment, the cryptocurrency is sent immediately to the user’s private wallet, not a wallet that is kept on Coinmama servers. The minimum purchase amount on Coinmama is 60 USD (or its equivalent in EUR) at present, although this is based on the price of Bitcoin.
When you use other exchanges like Binance or Coinbase, your cryptocurrencies are stored inside the exchange’s wallet, on their servers (which is highly inadvisable.).
However, when you enter your payment details and buy crypto on Coinmama, your coins are instantly sent to your own wallet as soon as the payment goes through! Needless to say this is much safer for both you and the exchange (avoids the risk of being hacked).
Coinmama accepts all major world currencies:
- British Pound
- Canadian Dollars
- Australian Dollars
You can buy these cryptocurrencies:
The fees are now lower because the process has become much more advanced. Just so you’ll get a perspective – before the change to credit cards was made, one Bitcoin would cost you $310 when the corresponding Bitstamp rate was only $257, which is a whooping 22% fee. Ouch!
After changes were implemented fees are about 6.5%, which may still sound like a lot. However, if you look around at companies selling you Bitcoin with credit card as a payment method, you’ll see that it’s basically the same fee everywhere. The reason why fees are so high is because of expensive measures these companies have to deploy in order to avoid fraud and chargebacks.
A huge plus for this positive Coinmama review is their support that works mostly via live chat in the following working hours.
If you need to contact Coinmama outside these hours, you can either send an email, open a support ticket or even contact them on Facebook!
Read our comprehensive guide on best cryptocurrency exchanges.
There is also an extensive knowledgebase with FAQs which is very useful for the most common issues users have with the exchange.
You Get Your Bitcoins Instantly
The speed at which you get your coins is the last thing that gets dramatically improved. In the past, when you could buy Bitcoins with Western Union, you’d have to wait for a wire confirmation to arrive from Western Union. Today, you can withdraw your coins as soon as your payment has cleared, which is completely awesome.
This is crucial, because sometimes a day or two can mean wide price fluctuations in Bitcoin. This means that you could end up purchasing coins for more or less than you intended. Keep in mind that there is a limit for first time users on how much you can buy (at the time or writing this limit is $5,000 per day, and up to $20,000 worth per month).
Security and Privacy
Coinmama stores your personal data on secured servers. Also, the site uses high-level encryption and authentication measures to ensure your details and money are safe.
Coinmama allows its users buying less than $150 worth of Bitcoins without uploading pictures of an ID, but any amount over $150 worth of Bitcoins will require full identity verification.
Coinmama offers the service worldwide. You might have limited functions in some countries (for example, if a country shows up on a sanctions list maintained by the US Office of Foreign Assets Control (OFAC), UK Treasury, European Union, or United Nations, CoinMama will not operate there). However, overall, the service is available in the widest range of countries.
Is Coinmama Easy to Use?
It’s incredibly easy to buy Bitcoins at Coinmama, which is one of the reasons they’re so popular.
When you visit Coinmama, you’ll notice that the UI is intuitive and simple, and that not one element is ambiguous or confusing. The site is simple, fast, and there are no obstacles aside from the verification requirements at various purchase volumes.
All these things make for an ultra-easy buying process.
Conclusion – Should I use Coinmama?
In conclusion of this Coinmama review we can say that this is a reputable company, so the short answer is yes, Coinmama is legit and safe to buy crypto on it. The only downfall is its high fees, which unfortunately can’t be avoided when using a credit card at the moment.
On the other hand, the long answer to the question is “it depends”. If you have the option to use a different payment method other than a credit card then I’d go elsewhere to avoid paying the high fees.
All in all, the service is solid and hopefully in the near future, it will become more affordable.
Is Coinmama safe and legit?
Yes, Coinmama is a safe and legit place to buy bitcoins and other offered coins like ETH, ADA, XRP, LTC, QTUM.
Where is Coinmama located and can it be trusted?
Coinmama was started in 2013 as a startup in Israel and has since expanded and served over 2m customers in over 180 countries with over 30 employees. Today, the company is registered in EU, more precisely in Slovakia while still owned and headquartered by New Bit Ventures in Israel.
How long does it take Coinmama to verify?
Initial level 1 verification on Coinmama usually takes 10 minutes. After this verification, you will have your bought bitcoins delivered instantly. However, level 2 and 3 verification may take up to six hours.
What states does Coinmama work?
Coinmama is available in the following US states: Arizona, California, Colorado, Florida, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Missouri, Montana, Nevada, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and Wisconsin.
Does Coinmama require ID?
Yes. Coinmama requires 1 valid government issued ID and a selfie of yourself holding that ID and a note with “Coinmama” and today’s date written on it.
Can you sell on Coinmama?
Yes, you can sell bitcoins on Coinmama. Selling cryptocurrency with Coinmama is currently available to customers in Europe that are part of SEPA.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com