Coinmama Review 2022
Coinmama is a Slovenian trading platform founded in 2013 in Israel by the Israeli software company New Bit Ventures. Coinmama.com boasts over one million clients and 30 staff members and covers most countries worldwide including Australia, which is why we consider it one of the top Bitcoin crypto exchanges in Australia.
Customers may use this platform to purchase some of the most popular currencies using a variety of exchange methods such as Apple Pay, Google Pay, credit/debit card, bank transfers, or wire transfers such as SWIFT and SEPA. This is a great choice for beginners looking to purchase their first Bitcoin.
Curious to find out more? Keep reading this article to get a more in-depth look at Coinmama and its features.
How Does Coinmama Work?
Coinmama offers several account levels that allow customers to purchase increasing quantities of cryptocurrency. The number of personal information you provide determines your account level. New users will be asked to upload papers to get Level 1 verification, and once their account spending limits are reached, they will be prompted to provide documents for a Level 2 account.
To get started, visit Coinmama’s sign-up page and provide your first and last name, email account, and country of residence. Coinmama will send you an email with a link to validate your account. To begin the verification process, just click on the link.
You’ll also have to select the type of ID you wish to submit based on your country of residency. Take a photo of the front and back with your camera phone, ensuring that all four corners are clear and that the picture and text are visible, and then submit them to your account.
Then, on a piece of paper, write “Coinmama” and the current date. Take a selfie of yourself holding the ID. Check that your face, ID, and paper note are all visible. The photo should then be uploaded to your account.
Once your papers have been uploaded, click the Submit button. A representative of Coinmama’s verification staff will evaluate your form and papers, and if everything checks up, you’ll be allowed to purchase Bitcoin online with Coinmama in as little as 15 minutes.
Bitcoin and Other Supported Cryptocurrencies
Coinmama accepts USD and EUR for the purchase of the following digital currencies: BTC (Bitcoin), ETH (Ether), LTC (Litecoin), Tezos (XTZ), BCH (Bitcoin Cash), EOS (EOS), ETC (Ethereum Classic), ADA (Cardano), XRP (Ripple) and QTUM (Qtum).
This is a disadvantage of Coinmama when compared to other cryptocurrency exchanges like Coinbase – one of the best Bitcoin exchanges that provide its customers with over 100 cryptocurrencies. However, if you’re new to cryptocurrency trading, it is best to stick to reliable and well-known currencies.
Coinmama supports fiat currency payments in the following currencies: American dollar (USD), Euro (EUR), British pound (GBP), Canadian dollar (CAD), Australian dollar (AUD), and Japanese yen (JPY). There is a minor conversion fee if you use a different fiat currency.
Coinmama Fees and Limits
Coinmama measures its brokerage fees using Trade Block’s XBX index. These trading fees are typically 6%, however, this amount varies by location and is also affected by the XBX index.
If you purchase cryptocurrency with a credit card, Coinmama adds an additional 5% credit card processing fee on top of the transaction cost. So, when you purchase with a credit card, expect to pay 11% more than the market price, which is substantially more than what other crypto exchanges and brokerages would charge.
Coinmama has daily and monthly purchasing limits that belong to all account holders, irrespective of the verification level of their accounts. The following are the total limits for the various accounts:
- Level 1 – $15,000
- Level 2 – $50,000
- Level 3 – $1 million
Level 1 Coinmama accounts enable users to purchase Bitcoin up to a certain amount. Overall account limitations for Level 1 are 15,000 USD with daily restrictions of 5,000 USD for credit card transactions and 12,000 USD for bank account activities.
To get level 1 status, you must share personal information such as your name, date of birth, address, phone number, and email address, as well as a photocopy of your passport, driver’s license, or national ID and a selfie of yourself while holding the document. If you wish to purchase a larger amount of Bitcoin, Ethereum, or other cryptocurrencies, you must update your account verification to Level 2.
Level 2 is intended for cryptocurrency purchasers who wish to purchase more than $10,000 in digital currency, up to a maximum of $50,000. For level 2 status, you must supply a copy of your driver’s license and passport, and you may need to show a utility bill.
Level 3 status is designed for people who want to buy an infinite amount of Bitcoin or Ethereum. This level has no buying restrictions. However, no information regarding the requirements for achieving this status is provided by the company. If you wish to make purchases without total limitations, you will need to contact their support desk directly.
Is Coinmama Safe to Use?
Coinmama is a secure cryptocurrency trading platform where users can buy and sell cryptocurrency. Coinmama never stores any customers’ payment information, such as account details or wallet addresses, which helps secure users’ funds and bank account data. Users can have complete control over their crypto assets by using third-party broker wallet addresses.
Moreover, the exchange is registered with FinCEN in the United States. The Financial Crimes Enforcement Network (FinCEN) is in charge of investigating financial crimes such as fraud, tax evasion, and money laundering.
Still, the exchange announced in 2019 that it was a subject of a large multi-platform assault affecting over 450,000 consumers. Unlike many previous high-profile Bitcoin exchange hacks, Coinmama’s users suffered no financial losses as a result of the assault. Even though no funds were lost, customers were encouraged to change their passwords, and Coinmama was tracking those accounts for questionable activities.
Coinmama offers a comprehensive help centre and FAQ that addresses the most frequently asked questions by potential users.
You may also reach out to them by email. In general, customers say that the Coinmama support service responded to their questions within 24 hours, which is substantially faster than the response rates of most other cryptocurrency exchanges.
The most effective method to reach the Coinmama support team is via the live chat feature. This, however, is only accessible during their business hours, which are Sunday-Thursday, 9:00-18:00 GMT+3. Coinmama currently does not provide phone-based customer assistance.
Some user concerns involve the identification verification procedure, which many users find obtrusive. Some users’ applications have been declined with no explanation. Keep in mind that when you submit your verification papers, Coinmama will generally verify you within a few hours. Unfortunately, because Coinmama is required by law to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) laws to operate in the United States and the European Union, this information is necessary. Coinmama reserves the right to reveal your personal information to the government, in case any questionable behaviour has been detected on your account.
Frequently Asked Questions
What payment methods does Coinmama support?
Coinmama customers also have access to a variety of payment options. Coinmama accepts Visa and Mastercard credit and debit cards. In addition, the company has started taking payments through SEPA bank transfer, SWIFT, FasterPayments, Fedwire, etc. with no processing fees.
It also cooperates with Apple Pay and Google Pay, which means that it now accepts payments through those gateways. On the other hand, American Express, Discover, ACH transfers, and PayPal, aren’t supported.
Is Coinbase a safer cryptocurrency exchange than Coinmama?
Coinbase has industry-leading security and integrates user-friendliness with top-tier security. 98% of users’ funds are held offline in cold storage, and they employ two-factor authentication (2FA), which means your account cannot be accessed using only your regular password.
Coinmama, on the other hand, does not require such strict security because funds will not be held in a wallet on your account, making it less exposed to cyberattacks than other platforms. They utilize trusted security and are secured by Trust Guard and Comodo security experts who ensure that 256-Bit SSL encryption is actively used on sites that contain personal data.
As a result, whichever cryptocurrency exchange you end up choosing will keep your funds safe.
Is photo ID mandatory for account verification?
To begin using Coinmama, you must first provide a photo ID. The amount of identification required depends on the account you are seeking. However, even the lowest level, Level 1, requires the use of a government-issued photo ID, such as a driver’s license, resident identity card, or passport.
A Few Words Before You Go...
Is Coinmama a good crypto exchange platform to use? If you are a first-time cryptocurrency buyer seeking a secure and easy broker exchange platform and don’t mind paying high fees then the answer is yes! Coinmama has a fantastic user interface and a simple process to buy Bitcoin and other cryptocurrencies.
Still, the fees charged by Coinmama are on the higher end. Nonetheless, the ability to pay with a credit or debit card is a major benefit, as many less expensive platforms do not provide this option. Coinmama is a fantastic place to start because of this, as well as the high degree of security they provide through their verification procedure and FinCEN registration.
About The Author
This page was last updated on August 4, 2022