What is Coinmama?
Coinmama is a global cryptocurrency marketplace founded in 2013, with an aim to make it quick and easy to purchase digital currency using fiat currency. Since its establishment, it has expanded to 190 countries and served over 3 million customers worldwide. Coinmama allows you to buy crypto instantly, with the coins going directly to your personal wallet. Selling crypto is easy, even if you bought it on a different exchange, and your payment goes direct to your bank account. Coinmama is safe, because it never holds customer funds or stores payment information. You always have complete control of your digital and fiat funds.
My Overall Thoughts on Coinmama
Coinmama is very limited in both the cryptocurrencies offered (only 15) and the features it provides. However, their aim is to provide an online marketplace where it is fast and simple to buy and sell cryptocurrency, and they have fulfilled that goal. Here are the top 3 reasons why you should consider Coinmama.
1) Coinmama is very easy to use, perfect for beginners in the world of cryptocurrency. To buy cryptocurrency, simply click buy, select the coin you want to purchase, and the amount in fiat currency, and click Buy Now. There is no need to place an order on the market, or watch price fluctuations. Selling is just as easy a process.
2) Coinmama is the quickest way to buy cryptocurrency. Other crypto exchanges require you to first deposit fiat currency into your account, then buy crypto, and finally transfer the funds to your external wallet. Coinmama on the other hand, takes the payment at the point of sale, and sends the crypto directly to your wallet. When you sell your crypto, it goes straight from your external wallet, and the fiat funds from the sale are sent straight to your bank account.
3) Coinmama is a safe way to buy and sell cryptocurrency because it is non-custodial, meaning they never hold your crypto assets nor your fiat currency. Your funds are always securely held in your possession and not online with Coinmama; even if Coinmama is hacked, you cannot lose your crypto.
I do need to mention that Coinmama only offers 15 cryptocurrencies so it is quite limited. If you are after a crypto exchange that offers a wider range, Coinbase offers 160+ coins and KuCoin has over 700+ different cryptocurrencies.
If you are after a safe and quick way to buy and sell the most popular cryptocurrencies, then Coinmama is the crypto marketplace you should use.
Key Features & Advantages of Coinmama
Coinmama operates differently to many other crypto exchanges, and here are the main reasons why over 3 million users choose to buy and sell crypto on their marketplace.
Negatives & Disadvantages of Coinmama
Coinmama has some downsides that you should take note of before deciding to open an account. To read more about these disadvantages and find out crypto exchanges that are a better alternative in these areas, simply click on the jump links.
What Services does Coinmama offer?
Coinmama differs from many other cryptocurrency exchanges, so what does it offer? Let's take a look at what you can expect from Coinmama.
Easy to use - perfect for beginners: Coinmama has a very user-friendly interface that is simple to navigate, even for complete beginners to the cryptocurrency industry. From the screenshot below, you can see how easy it is to buy Bitcoin. There are three pre-set amounts you can choose from ($150, $500 or $1000) or you can type a different amount you want, at the far right. There are no confusing charts, or markets that you need to understand before you can buy crypto.
Buy and sell crypto instantly: Coinmama allows users to buy cryptocurrency instantly, for convenience and to save time. Most crypto exchanges require pre-funding of the account, so you need to deposit fiat currency, then buy your selected crypto, and finally transfer the funds from your online exchange wallet to your external wallet. Coinmama cuts down this process, with your payment made directly at the time of purchasing, and the crypto sent directly to your personal hot or cold wallet. When selling your cryptocurrency, it goes straight from your external wallet, and the fiat funds from the sale are sent direct to your bank account.
15 of the most popular cryptocurrencies: Coinmama offers access to 15 of the most popular cryptocurrencies in the world. Of course you will be able to purchase BTC and ETH, as well as several other coins. They plan to add more coins in the near future, so keep your eyes open for more options.
Non-custodial: you remain in control of your assets at all times: Coinmama is a non-custodial cryptocurrency broker, meaning they neither hold your crypto assets nor your fiat funds. You always have the funds securely in your possession, so you don't need to worry about trusting Coinmama with your investments. Even if Coinmama is hacked, you will not lose any crypto because it is always stored in your personal hot or cold wallet.
Credit and debit cards accepted: Coinmama is one of the cryptocurrency brokers that accepts credit and debit cards. This makes purchasing crypto convenient, unlike many other exchanges that don't support card payments.
Loyalty program - reduce fees and save money: Coinmama offers a loyalty program with three levels, based on your purchase amounts. Enrolment is free and automatic, and your savings are applied automatically. The three loyalty levels are:
Crypto Curious - the initial level, and fees for buying and selling are 3.90%.
Crypto Enthusiast - cumulative purchase amount of $5,000 USD over a rolling 90-day period. Fees for buying and selling are reduced to 3.41%.
Crypto Believer - cumulative purchase amount of $18,000 USD over a rolling 90-day period, or a lifetime purchase amount above $50,000 USD. Fees for buying and selling are now just 2.93%.
Customer Support with Live Chat and email assistance: Coinmama has a Help Center to assist you when you find yourself with an issue. You can search the help topics as a first point of call, and if that doesn't help, there is a Live Chat function. You are initially faced with a bot that tries to direct you to the correct information, but if that isn't sufficient, you can click the button to Chat. If there are any agents online, they can assist you, otherwise you can leave an email which they will respond to once they get to it. When I tested out the Live Chat function, I was speaking to a real person within 2 minutes, and she was very helpful and responsive.
High spending limits - up to $30,000 USD at a time: At Coinmama you can buy large amounts of crypto, with the limit set at $30,000. At some other crypto exchanges, you may have an issue placing a large order, due to liquidity and slippage issues. On Coinmama, your purchase price will remain at the set price.
What I don't like about Coinmama
Only 15 cryptocurrencies are supported: The major point that brings Coinmama down is that it only supports 15 cryptocurrencies. If you only want to purchase popular coins then you may not find it an issue, but if you want a wider selection, try some other well-known crypto exchanges such as Coinbase (160+ coins), KuCoin (700+ coins), Kraken (185+ coins) or Gemini (90+ coins).
Higher transaction fees than some other crypto exchanges: Coinmama's fees for buying and selling (3.90%) crypto are high compared to the rest of the cryptocurrency industry. If you are looking for lower fees, Gemini has trading fees of 0.25% / 0.35% (maker/taker), Kraken charges 0.16% / 0.26% (maker/taker) and KuCoin charges just 0.1% per trade.
Not available in all US states: Coinmama is not available in New York and Hawaii, as they are both restricted locations. Some other US states are served by third parties; these are Alabama, Arkansas, Connecticut, Delaware, Georgia, Florida, Iowa, Louisiana, Nevada, New Mexico, Oregon, Rhode Island, South Dakota, Washington, Vermont. If you are from one of these states, you can learn how third-party transactions work by clicking here. If you are after a cryptocurrency exchange that is available in your state, Kraken can be used in 48 states (excludes New York and Washington), and Gemini is available in all 50 states.
No charts to view price history of cryptocurrencies: Coinmama's interface is so simple that it doesn't include a price chart showing the history of each coin. There is no way to see if the price has risen or fallen in the previous days or weeks. This is frustrating, as you have to rely on an external site to search the price history of each coin on Coinmama. Also, there is no clear exchange rate for the coin you are about to buy or sell. The only way you can find this out from the site is to type in "1" next to the amount of coin you want to buy/sell and see how much the equivalent in fiat currency is. In the screenshots below, you can see I have done this to see how much Coinmama are charging for 1 BTC. The exchange rate is $46,814.87 (inclusive of fees). I compared this to CoinMarketCap where the price of 1 BTC is $44146.84, and calculated that Coinmama charges about 6% more than the market price (inclusive of its fee of 3.90%). For a crypto exchange that has price charts, you can open an account with Coinbase, KuCoin, Kraken or Gemini.
Coinmama Deposit/Payment Fees
Coinmama technically doesn't have deposits, as users don't deposit to pre-fund the account. Instead, Coinmama accepts payment directly at the time of purchase. The payment fees vary depending on the method you use.
Fedwire, SEPA, SWIFT, Open Banking: Free of charge
Debit card, Credit card, Apple Pay, Google Pay: 5% fee
Skrill: 2.5% fee
Coinmama Buy/Sell Fee
The transaction fee you pay for buying and selling crypto on Coinmama depends on your loyalty level. Loyalty levels are based on your cumulative purchase amount in the previous 90 days. If you have just signed up to Coinmama, your loyalty level is Crypto Curious. These are the buy/sell fees for the various loyalty levels.
Crypto Curious - the initial level. Buy and Sell fees: 3.90%
Crypto Enthusiast - cumulative purchase amount of $5 000 USD over a rolling 90-day period. Buy and Sell fees: 3.41%
Crypto Believer - cumulative purchase amount of $18 000 USD over a rolling 90-day period, or a lifetime purchase amount above $50 000 USD. Buy and Sell fees: 2.93%
Pros and Cons of Coinmama
- Easy to use to buy and sell crypto instantly
- Non-custodial platform so you remain in control of all your funds all the time
- Free loyalty program to reduce fees
- Credit and debit cards accepted
- Customer support with Live Chat and email assistance
- Only 15 cryptocurrencies available
- Higher transaction fees compared to some other exchanges
- No charts to view price history of cryptocurrencies
Coinmama is a crypto marketplace that is limited in its range of coins, with only 15 different cryptocurrencies available. It is also lacking in features, and doesn't even have price charts for the coins you are looking to purchase. However, Coinmama isn't aiming to be a feature-packed exchange with a wide array of cryptocurrencies. Coinmama has targeted its platform to people that want a quick and simple way to buy and sell crypto, and I commend them on achieving that to a high standard.
It is simple to use Coinmama, and purchases are made instantly. There is no fussing around with deposits into an online account, before buying on a market, and then transferring the crypto to your personal wallet. With Coinmama, you only need your payment method when you are about to purchase your crypto, and then the coins are sent straight to your personal hot or cold wallet. Your crypto is never stored on Coinmama, nor do they store your payment information. This ensures your personal details and your digital funds are always safe. Even if Coinmama is hacked, your crypto cannot be lost, because it is in your personal possession.
If Coinmama doesn't sound like it's for you, have a read of the best crypto exchanges where I provide several top options for US residents. You are bound to find a crypto exchange suitable for your needs. Here is a quick comparison table where you can check the key details.
Comparison Table of the Best Crypto Exchanges in the USA
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. "Virtual currencies are highly volatile. Your capital is at risk."
Frequently Asked Questions
Yes, Coinmama is a legitimate and trustworthy cryptocurrency broker that has been established since 2013. It is available in 190 countries and has served over 3 million customers.
Yes, Coinmama is safe, because it is a non-custodial crypto broker. Your crypto assets are sent directly to your person wallet once you purchase it, it is never held online in your Coinmama account. Also, you don't need to pre-fund your account with fiat currency; when you want to buy crypto, you pay for it directly at the point of sale.
Yes, Coinmama can be trusted. It is a legitimate online crypto marketplace that has been around since 2013. It can be used in 190 countries worldwide and has over 3 million users.
Coinmama was hacked in 2019, when 450,000 email addresses and hashed passwords were leaked. No cryptocurrency was lost, and the way Coinmama works as a non-custodial exchange means that your funds will be safe even in the case of a hack, since your coins are stored in your own personal wallet and not with Coinmama.
Yes, Coinmama can be used in the USA, but it is not available in New York and Hawaii, and some other US states are served by third parties. The states served by third parties are Alabama, Arkansas, Connecticut, Delaware, Georgia, Florida, Iowa, Louisiana, Nevada, New Mexico, Oregon, Rhode Island, South Dakota, Washington, Vermont. If you are live in one of these states, you can find out how third-party transactions work by clicking here. If you are after a crypto exchange that is available in your state, Kraken services 48 states (excludes New York and Washington), and Gemini is available in all 50 states.
Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us.