Coinmama Review 2023: Pros & Cons - Is it Right for You?

Overview:

CoinMama is a global cryptocurrency exchange that supports purchases via debit or credit card, Apple Pay, Google Pay, or bank transfer. It offers a range of cryptocurrencies, including Bitcoin, Ethereum, Tether, and USD Coin. The platform operates in 197 countries and 43 U.S. states. Coinmama's user interface is straightforward and intuitive, which makes it accessible for both new and experienced users.

One of the key features of CoinMama is its self-custody wallet, which allows users to maintain full control over their crypto assets. The wallet supports the storage, sending, and receiving of Bitcoin, Ethereum, Tether, and USD. Users can also import a crypto wallet from another app to Coinmama for easy crypto transfers.

CoinMama uses a KYC process that requires customers to provide identifying information such as full name, address, date of birth, and government-issued identification. This information is then verified against an external source or service, like a credit bureau, to ensure the safety and security of transactions on the platform.

As for the fees, CoinMama's charges vary based on the type of transaction and the user's loyalty level. The general fee for trading and transactions is based on the market rate plus up to 3.9% for purchases and up to 0.99% for sales. Additional fees may apply, such as a 5% fee for credit or debit card transactions. Coinmama offers a loyalty program that provides reduced fees for users who make a certain amount of purchases over 90 days.

The platform also offers a 24/7 live support feature, ensuring that users can get help whenever they need it. In summary, CoinMama is a secure and globally accessible cryptocurrency exchange that provides a variety of features to support the buying, selling, and storing of crypto assets.

Pros & Cons of Coinmama

Here are some of the pros and cons of using CoinMama as a cryptocurrency exchange:

Pros:

• Easy to Use: CoinMama offers a user-friendly platform that is easy to navigate, making it an excellent option for beginners who may not have much experience with cryptocurrency trading.
• Wide Range of Payment Options: The platform offers a variety of payment options, including credit/debit cards, bank transfers, and cash payments through Western Union. This makes it easy for users to buy cryptocurrencies using their preferred payment method.
• High-Security Standards: CoinMama uses robust security protocols to ensure the safety of users' funds and personal information. The exchange is fully compliant with KYC and AML regulations, which help prevent fraud and illegal activities on the platform.
• Fast Verification Process: CoinMama has a fast and efficient verification process, which allows users to start trading quickly after signing up.
• Reliable Customer Support: CoinMama offers reliable customer support through email and phone, and they are quick to respond to customer inquiries and issues.

Cons:

• Limited Cryptocurrency Selection: CoinMama only supports a limited selection of cryptocurrencies, which may be a disadvantage for users who want to trade other cryptocurrencies.
• High Fees: CoinMama charges higher fees compared to other exchanges, which can range from 4.9% to 5.9%. This can be a significant drawback for users who want to save on transaction costs.
• No Trading Pairs: CoinMama does not offer trading pairs, which means that users cannot trade cryptocurrencies against each other. Instead, users can only buy and sell cryptocurrencies against fiat currency.
• Limited Geographic Availability: CoinMama is not available in some countries, which can be a significant drawback for users who want to trade cryptocurrencies from those regions.
• No Mobile App: CoinMama does not currently offer a mobile app, which may be inconvenient for users who want to trade on the go.

What are the KYC Requirements?

CoinMama's Know Your Customer (KYC) process requires customers to provide certain identifying information such as:

• Full name
• Address
• Date of birth
• Government-issued identification

The KYC process goes beyond just collecting identifying information; it also includes verifying this information against an external source or service, such as a credit bureau. This ensures the authenticity of the information provided and helps to prevent fraudulent activities.

What are the CoinMama Transaction Fees?

The transaction fees for CoinMama are as follows:

• The fees range from 0.99% to 3.99%.
• The specific transaction fees are a combination of the market rate plus a percentage for users to buy and sell. For purchases, the market rate plus up to 3.9% is charged, and for sales, the market rate plus 0.99% is charged. If the transaction is made via credit or debit card, an additional fee of 4.99% is incurred.
• Coinmama's rate for trading cryptocurrency is based on the market rate of TradeBlock’s XBX Index plus 2%. On top of this, a commission fee of up to 3.9% is charged for crypto purchases and up to 0.99% for selling bitcoin.
• Coinmama also offers a loyalty program that reduces fees for users. Users who make $5,000 in purchases over 90 days get their sales fee reduced by 12.5%. Users who purchase $18,000 over 90 days or have a lifetime purchase amount above $50,000 receive a 25% discount on their sales fee.

What Countries Does CoinMama Support?

Coinmama serves 197 countries worldwide and 43 states in the U.S., making it widely accessible to users around the globe.

CoinMama Payment Options

Coinmama supports a variety of payment methods to buy cryptocurrency.

These include:

• Credit card
• Debit card
• Apple Pay
• Google Pay, and
• Bank transfer

Supported Cryptocurrencies:

CoinMama supports the following cryptocurrencies for buying and selling on their platform:

• Bitcoin (BTC)
• Bitcoin Cash (BCH)
• Ethereum (ETH)
• Ethereum Classic (ETC)
• Litecoin (LTC)
• Cardano (ADA)
• Ripple (XRP)
• Tezos (XTZ)

It's important to note that CoinMama does not support trading pairs, which means that users cannot trade cryptocurrencies against each other.

Instead, users can only buy and sell cryptocurrencies against fiat currency (USD, EUR, GBP, etc.). Additionally, CoinMama's selection of cryptocurrencies is limited compared to other exchanges, which may be a disadvantage for users who want to trade a wider variety of cryptocurrencies.

Coinmama Mobile App (Crypto Wallet)

The CoinMama exchange also has a mobile app that can be found on the Google Play Store.

The CoinMama app is designed as a self-custody wallet that gives users full control of their cryptocurrency. It supports Tether (USDT), USD Coin (USDC), Bitcoin (BTC), and Ethereum (ETH), allowing users to securely buy and store these digital assets without the need for intermediaries, third-party custody, or customer deposits.

Some of the key features of the CoinMama app include:

• Full Control: Users can take full control of their crypto portfolio and manage it securely through the Coinmama Wallet. The wallet also supports stablecoins USDT and USDC, which can help mitigate volatility as they are pegged to the value of the US Dollar.
• Buy Crypto: Coinmama allows users to buy cryptocurrency on their platform. The app makes the buying process easy and quick, and the purchased coins are sent to the user's wallet instantly.
• Safe & Secure Wallets: The app provides secure wallets for Bitcoin, Ethereum, Tether, and USD Coin. As a self-custody wallet, it allows users to keep control of their keys, ensuring that their crypto remains safe at all times.
• Import Wallet: The app allows users to import a crypto wallet from another app to Coinmama with ease. This can simplify crypto transfers, as users can seamlessly send their BTC, ETH, USDT, or USDC to their Coinmama wallet.
• Multiple Payment Methods: Coinmama supports multiple payment methods, allowing users to purchase crypto with a credit card, debit card, Apple Pay, Google Pay, or bank transfer.
• Flexible Spending Limits: The app offers flexible spending limits, allowing users to start with as little as $50 or buy up to $5M worth of crypto at a time.
• Backup Your Keys: Coinmama provides a feature for users to backup their private keys to their devices. This can help prevent the loss of funds, even if the user misplaces their recovery phrase or loses their device.
• 24/7 Live Support: Coinmama prioritizes customer care with quick response times. Their team of "Happiness Heroes" is always ready to assist users with any issues they might encounter.
• Cryptocurrency Market Information: The app provides key information about the top crypto assets, with constantly updated intuitive price graphs for all the most important cryptocurrencies.

Who is Coinmama Best Suited for?

CoinMama is best for the following types of users:

• Beginner Traders: CoinMama's user-friendly platform makes it an excellent option for beginner traders who may not have much experience with cryptocurrency trading. The platform is straightforward and easy to navigate, and the verification process is fast and efficient, allowing users to start trading quickly.
• Those Who Want to Buy Cryptocurrency with Fiat Currency: CoinMama is an excellent option for users who want to buy cryptocurrencies with fiat currency, as the platform supports a variety of payment options, including credit/debit cards, bank transfers, and cash payments through Western Union.
• Those Who Value Security: CoinMama takes security seriously and uses robust security protocols to ensure the safety of users' funds and personal information. The exchange is fully compliant with KYC and AML regulations, which help prevent fraud and illegal activities on the platform.
• Those Who Want Reliable Customer Support: CoinMama offers reliable customer support through email and phone, and they are quick to respond to customer inquiries and issues.
• Those Who Want to Trade a Limited Selection of Cryptocurrencies: CoinMama only supports a limited selection of cryptocurrencies, which may be a disadvantage for some users. However, it can be an advantage for users who want to trade only the most popular cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin.

Overall, CoinMama is an excellent option for users who want a straightforward platform to buy and sell cryptocurrencies with fiat currency, prioritize security, and value reliable customer support.

Is CoinMama Safe? Is it a Legit Exchange?

Coinmama is considered to be a safe and legitimate platform for buying and selling cryptocurrencies. The company has been operating since 2013 and is trusted by millions of users across the globe. Coinmama uses industry-standard encryption technology to protect user data and transactions.

One of the key safety features of Coinmama is that it's a non-custodial service, meaning it doesn't hold customers' cryptocurrency on their behalf. Instead, when you buy cryptocurrencies, they are delivered directly to your own personal wallet, reducing the risk of loss if the exchange were to be hacked.

In terms of legitimacy, Coinmama is registered with the Financial Crimes Enforcement Network (FinCEN) in the United States. This means that the company is recognized as a money services business and is therefore subject to certain regulatory standards designed to prevent financial crimes such as money laundering and fraud​¹​.

However, like any platform dealing with cryptocurrencies, it's important to use strong security practices. This includes using a secure wallet to store your cryptocurrencies, enabling two-factor authentication (2FA) on your account, and being cautious of phishing attempts.

As always, while Coinmama has generally a good reputation, it's always important to do your own research and due diligence when choosing a cryptocurrency exchange.

Conclusion:

Overall, CoinMama is a reliable and secure cryptocurrency exchange with a user-friendly interface. While it may not offer as many cryptocurrencies as other exchanges and has higher fees, it's an excellent option for those who are just starting with cryptocurrency trading or want a straightforward platform to buy and sell cryptocurrencies with fiat currency.