Coinmama is a bitcoin broker that specializes in selling Bitcoins for credit card to nearly anyone in the world. This website also allowed you to buy Bitcoins with Western Union. However, it is no longer working with Western Union and it now offers direct sales of Bitcoin through the use of a credit card/debit card with much lower fees.
Coinmama is one of the oldest Bitcoin brokers in business, and it has been selling Bitcoins via credit/debit cards for longer than any other company.
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.
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.
“We’re aware that the current commission can be considered pretty high to the average customer. That’s why we’re constantly looking for ways to lower it in order to give our customers more value for their money.”
Nimi, Coinmama’s CEO
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.
What is Reddit Community’s Opinion on Coinmama?
As always I make sure to cross reference my review with the Bitcointalk forum and Bitcoin’s subreddit. I’ve been searching around the web to try to find other reviews of Coinmama. However, all I found on Reddit was this thread, which has several users saying they are happy with the site.
Going through Bitcointalk I couldn’t find any more useful information. There was only one post stating that Coinmama is not that well-known and another one stating that the site has high fees (this was before the change to a lower fee structure).
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?
It is a reputable company, so the short answer is yes. 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.
Coinmama Pros and Cons
- Available in many countries
- Quick delivery
- Easy to use
- Transactions are secure
- Great customer service
- Intuitive and simple user interface
- High fees for purchasing with a credit/debit card